Settle Britannia, pensioners fight fast, says high court
BS Reporter / Chennai/ Bangalore Jul 26, 2010, 00:05 IST
The Karnataka High Court in a recent statement has granted a larger or further pension amounts in line with the lower court’s decision of April 8 subject to it being recoverable in the event the judgement favours the company.
They have sent back the case to the lower court and ordered for an accelerated time frame for the final judgement on all issues after obtaining a joint consent on the basis of concessions agreed by both parties not to further litigate, and for the pensioners not to press for the triennial adjustment release during this interim period, with a time-limit of October 31 for orders, as laid down by the high court. The battle between biscuits major — Britannia and its pensioners has been going on for a long while.
The pensioners have been arguing for the defined benefit scheme which was the existing pension scheme from inception — for the last thirty years or so — applicable to the officers and managers. According to the pensioners, Britannia wished to change retrospectively from the very start of serviceôdate of joining the fund of the pensioner — going against the existing fund rules completely.
“We are not against the company’s right to change the fund rules — but are against the retrospectively application of this change as proposed, but could be only from the cut-off date after protecting the accumulated benefits as per the existing fund rules (fund rules and IT rules require ‘prior permission’ to rule changes),” a spokesperson for the pensioners said.
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