Case Note & Summary
The High Court allowed a Writ Petition filed by retired SIDBI employees challenging a Circular that denied them pension benefits. The Court examined the history of SIDBI's pension regulations, finding that the 1993 Pension Regulations were never properly enacted under the SIDBI Act as they lacked mandatory gazette notification and parliamentary placement. The Court held that only the 2002 Pension Regulations were valid. The impugned Circular, which relied on the invalid 1993 Regulations to deny benefits, was quashed. The Court directed SIDBI to pay pension to the Petitioners from their respective dates of superannuation or retirement along with arrears, recognizing their legitimate expectation based on the Bank's previous resolutions and commitments.
Headnote
The High Court of Judicature at Bombay -- Ordinary Original Civil Jurisdiction -- heard a Writ Petition filed by retired employees of Small Industries Development Bank of India (SIDBI) seeking quashing of Clauses 3(VIII) and 4(IX) of Circular dated 29th June, 2022 and direction for payment of pension arrears -- The Court examined the validity of Pension Regulations of 1993 under Section 52(1) read with Section 52(3) of the Small Industries Development Bank of India Act, 1989 (SIDBI Act) -- Held that the 1993 Regulations were never properly enacted as they lacked gazette notification and parliamentary placement -- The Court found that the 2002 Pension Regulations were the only valid regulations -- The impugned Circular was quashed as it denied pension benefits based on invalid 1993 Regulations -- The Respondents were directed to pay pension from respective dates of superannuation or retirement with arrears
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Issue of Consideration: The Issue of Consideration was whether Clauses 3(VIII) and 4(IX) of the impugned Circular dated 29th June, 2022 were valid and whether the Petitioners were entitled to pension benefits from their respective dates of superannuation or retirement
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Final Decision
The Court allowed the Writ Petition -- Quashed Clauses 3(VIII) and 4(IX) of Circular dated 29th June, 2022 -- Directed Respondents to pay pension to Petitioners from respective dates of superannuation or retirement -- Directed payment of arrears from those dates till current date
2026 LawText (BOM) (02) 63
Writ Petition No. 4746 of 2022
R. I. Chagla J. , Advait M. Sethna J.
Mr. Ramesh Ramamurthy, Mr. Saikumar Ramamurthy, Mr. Aalim N. Pinjari for Petitioners, Mr. Anand Pai, Mr. Rahul Sanghavi, Mr. Ajinkya Kadam for Respondents
Sandeep Lahiri Choudhury & Anr.
Small Industries Development Bank of India & Ors.
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Nature of Litigation: Writ Petition challenging administrative circular denying pension benefits
Remedy Sought
Petitioners seeking quashing of Circular clauses and direction for payment of pension arrears
Filing Reason
Denial of pension benefits based on impugned Circular dated 29th June, 2022
Previous Decisions
Writ Petition No.2698 of 2017 disposed with direction to Ministry of Finance -- Writ Petition No.104 of 2020 disposed with direction to SIDBI to formulate pension scheme
Issues
Whether Clauses 3(VIII) and 4(IX) of Circular dated 29th June, 2022 were valid under the SIDBI Act -- Whether the Petitioners were entitled to pension benefits from their respective dates of superannuation or retirement
Submissions/Arguments
Petitioners argued that 1993 Pension Regulations were never properly enacted -- Respondents defended the Circular based on 1993 Regulations
Ratio Decidendi
Regulations under Section 52 of SIDBI Act require prior approval, gazette notification, and parliamentary placement to be valid -- The 1993 Pension Regulations lacked these mandatory requirements and were therefore invalid -- Only the 2002 Pension Regulations were properly enacted -- Administrative circulars cannot deny benefits based on invalid regulations
Judgment Excerpts
Held that the 1993 Regulations were never brought into force and can be at the most said to be executive instructions or Regulations in draft form having no effect in law -- Held that the 2002 Pension Regulations were the only valid Pension Regulations brought into force by SIDBI
Procedural History
Petitioners retired from SIDBI -- 1993 Pension Regulations introduced but not properly enacted -- 2002 Pension Regulations properly enacted -- Board Resolution dated 28th March, 2014 for pension option -- Writ Petition No.2698 of 2017 filed and disposed -- Ministry of Finance remanded matter -- Writ Petition No.104 of 2020 filed and disposed -- Impugned Circular dated 29th June, 2022 issued -- Present Writ Petition No.4746 of 2022 filed
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