National Insurance Co. Ltd. & Another v. Kirpal Singh
Background
General-insurance employees retired under the special voluntary-retirement scheme introduced in 2004 and sought pension under the 1995 pension scheme. The insurers refused because the employees had not completed the twenty years required for ordinary voluntary retirement. The High Court upheld their claims using the ten-year qualifying-service provision, and the insurers appealed.
Decision Breakdown
The Supreme Court dismissed the insurers' appeals and upheld pension eligibility under the special scheme. Retirement under that scheme was distinct from ordinary voluntary retirement governed by the twenty-year rule. Reading the schemes together, employees with the stipulated ten years of qualifying service could receive pension, while the special scheme excluded the ordinary five-year notional service addition. The pension provisions had to be understood in their beneficial context rather than narrowly interpreted to defeat the offered retirement benefit.
Lesson Learnt
A special retirement scheme may offer benefits on terms different from an employer's ordinary retirement rules. Eligible employees here did not lose pension merely because they lacked the twenty years required under a different route to voluntary retirement.