Former Sangli Bank Limited Employees Granted Right to Pursue Legal Action for Denied Pension Benefits
In a significant legal development, the National Consumer Disputes Redressal Commission (NCDRC) has declared that the grievances of former Sangli Bank Limited (SBL) employees, now under ICICI Bank, regarding the non-provision of retirement pension schemes, fall within the purview of consumer services as defined by the Consumer Protection Act.
The ruling came in response to a petition filed by the ICICI Bank (Erstwhile Sangli Bank Limited-ESBL) Retired Employees’ Welfare Association, representing sixteen former employees from various cities who either retired or voluntarily resigned from SBL. The employees, through their legal representative Dnyanaraj Sant, alleged that ICICI Bank failed to establish a pension fund within the mandated timeframe following the merger in April 2007.
Despite objections from the bank’s counsel, arguing that the complaint did not constitute a service deficiency under the Consumer Protection Act, the NCDRC bench, comprising presiding member Ram Surat Ram Maurya and members Binoy Kumar and Sudip Ahluwalia, upheld the employees’ right to pursue legal recourse for denied pension benefits.
Sant, representing the petitioners, emphasized the statutory obligation of providing pensions under the Employees’ Provident Funds and Miscellaneous Provisions Act of 1952, stating that ICICI Bank’s failure to establish a pension fund within the stipulated period constitutes persistent deficiency in service.
In its deliberation, the Commission referenced relevant judgments of the Supreme Court, affirming that services provided under the Employees’ Provident Funds and Miscellaneous Provisions Act of 1952 and the Bank Employee’s Pension Scheme of 1993 are encompassed within the definition of ‘service’ as outlined in the Consumer Protection Act, thereby validating the admissibility of consumer complaints alleging deficiencies in such services.
The case is slated to be heard before the regular Bench on May 20, marking a pivotal moment in the pursuit of pension rights by former bank employees.
