The case of K.G. Seshadri v. The Trustees of State Bank of India and Another (2026 INSC 333) involves a civil appeal by a former bank clerk seeking pensionary benefits after his service was declared as “voluntary abandonment.”,
Factual Background
- Employment History: The appellant was appointed as a Clerk at State Bank of India (SBI) in August 1978 and confirmed in February 1979., He worked until 1989, when he left for abroad.
- Attempted Re-entry: Upon returning to India in 2004, he requested to rejoin the service. The Bank turned down this request and, in 2008, declared that he had voluntarily abandoned his services effective December 12, 1998, following a period of unauthorized absence.,
- Prior Litigation: The appellant initially approached the Labour Court under Section 33-C(2) of the Industrial Disputes Act to compute his pension benefits. The Labour Court and subsequently the High Court dismissed his claims, ruling that the application was not maintainable because he had no pre-existing, non-disputed right to a pension.,,
Supreme Court’s Legal Analysis
Although the lower courts dismissed the case on technical grounds of maintainability, the Supreme Court chose to decide the matter on its merits based on the State Bank of India Employees’ Pension Fund Rules, 1955.
- Calculation of Pensionable Service: Under Rules 7 and 20, pensionable service is reckoned from the date of confirmation. The Court calculated the appellant’s service from February 17, 1979, to December 12, 1998, totaling 19 years, 9 months, and 25 days. This fell short of the mandatory 20-year minimum service requirement for pension eligibility.,
- Nature of Cessation (Rule 22(i)(c)): The appellant sought benefits under Rule 22(i)(c), which grants a pension after 20 years of service to an employee who retires “at his request in writing.”, The Court found this rule inapplicable because the appellant did not retire; rather, his services were terminated due to voluntary abandonment after he remained unauthorizedly absent for nearly a year without informing the Bank.,
- Age Requirement (Rule 22(i)(a)): The Bank argued that Rule 22(i)(a) was the appropriate rule, requiring 20 years of service and the attainment of 50 years of age., The Court noted that the appellant failed both conditions, as he had neither completed 20 years of service nor reached the age of 50 at the time his service ceased.,
- Distinction from Precedents: The Court clarified that previous rulings relied upon by the appellant (such as Radhey Shyam Pandey) involved employees who had undisputedly retired under recognized Voluntary Retirement Schemes (VRS), which was not the case here.
Conclusion
The Supreme Court concluded that the appellant satisfied none of the eligibility conditions for a pension under the Bank’s rules. The appeal was dismissed, and the findings of the High Court and Labour Court were upheld.
2026 INSC 333
K.G. Seshadri V. Trustees of State Bank Of India And Another (D.O.J. 08.04.2026)




