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Oct 30, 2006

Class Room

Compensation for delayed payment to VRS optees In an interesting judgement in the legal history, District Consumer Forum, Chennai North, has directed Indian Bank to pay a compensation of Rs.15,000/- each to 144 VRS optees for the delayed payment of pension commutation. The forum has passed the order armed with a directive from a division bench of Madras High Court to adjudicate the issue based on merits and on the points raised before the forum including the question relating to jurisdiction. The ex-employees of the bank opted for the VRS 2000 scheme and retired from service and were relieved on different dates. Their main complaint was that after lapse of few months, the commutation of pension amount was given to them, for which the bank had not paid any interest. The disbursement of reduced pension after few months had caused mental agony and sufferings. Initially, when they moved the forum, it was resisted by the bank arguing it had no jurisdiction since it was a dispute between an employer and employee. The forum also closed the complaints after a single judge of Madras High Court held that it has issued notice without jurisdiction. Later, a division bench of the High Court directed the forum to decide all cases on merit. By complying with the direction and taking into consideratin all factors, the forum came to the justifiable conclusion that it got jurisdiction to adjudicate the dispute. After hearing the points advanced by the parties, it held that the complainants are consumers as contemplated in the consumer protection act 1986 and the dispute raised by them falls under the definition of "consuemer dispute". The Economic Times (26.10.2006)