NATIONAL BANK OF PAKISTAN and another vs Rana MUHAMMAD KHALIL
This matter concerns a petition for leave to appeal against a judgment of the Federal Service Tribunal, which had ordered the reinstatement of an employee of the National Bank of Pakistan. The respondent had voluntarily applied for optional retirement on medical grounds, which was accepted by the Bank. Following his retirement, the respondent received all applicable pensionary and financial benefits, which he continued to enjoy. Subsequently, the respondent sought to withdraw his retirement request to avail himself of the benefits under a newly introduced 'Golden Handshake Scheme,' a request the Bank declined. The Federal Service Tribunal accepted the respondent's appeal and directed his reinstatement. The Supreme Court granted leave to appeal to determine whether the Tribunal was legally justified in ordering reinstatement when the employee had voluntarily retired and accepted all terminal benefits. The core legal question addresses the finality of a voluntary retirement once the employee has accepted the associated financial benefits and whether such an employee can subsequently seek reinstatement to claim different benefits under a separate scheme.
- Can an employee who voluntarily applied for and accepted retirement benefits subsequently seek reinstatement to avail benefits under a different scheme?
- Is the Federal Service Tribunal justified in ordering reinstatement where an employee has already received and continues to enjoy full pensionary benefits following voluntary retirement?
ORDER
' IRSHAD HASAN KHAN, J.---Leave to appeal is sought against the judgment, dated 12-6-1998 passed by the Federal Service Tribunal, Lahore, hereinafter referred to as the Tribunal, in Appeal No,1037(L) of 1998.
2. Relevant facts are that the respondent, an employee of the petitioner Bank, submitted an application to the Regional Audit Chief of the Bank on 9-10-1996, praying therein for optional retirement on medical grounds with effect from 10-7-1997. Vide Staff Order dated 10-7-1997, the respondent's request for optional retirement was allowed and he was relieved from Bank Service on 6-8-1997. The respondent applied for pension and other financial benefits to which he was entitled under the Bank's Rules. The same were also received by him on 29-10-1997 and 1-11-1997. It is alleged that presently he continues to receive the pension as well as Financial Assistance from Benevolent Funds, as aforesaid, each month. On 15-10-1997 the petitioner moved another representation on humanitarian basis for withdrawal of optional retirement with a view to avail the benefits of "Golden Handshake Scheme" introduced by the Government of Pakistan. The request was declined by the petitioner. Eventually, the respondent moved the Tribunal which accepted his appeal by directing his reinstatement in service.
3. We have heard the learned counsel for the petitioner and the respondent/caveator.
4. Leave is granted to consider whether the Tribunal was justified, in the facts and circumstances of the case, in directing reinstatement of the respondent who voluntarily applied for optional retirement and after acceptance of the said application received all financial and pensionary benefits, which he is still continuing to enjoy.
5. Operation of the impugned judgment is suspended till the disposal of the appeal.