CHAIRMAN & M.D.,INDIAN OVERSEAS BANK&ORS vs TRIBHUWAN NATH SRIVASTAVA

The Supreme Court upheld the Allahabad High Court's decision to quash the bank's rejection of the respondent's application for voluntary retirement under the IOB Officers/Employees Voluntary Retirement Scheme - 2000. The Court emphasized that the bank had absolute discretion to accept or reject applications but must record reasons for its decisions, as per the scheme's Clause 4. The Court noted that the respondent's application was improperly rejected, and thus directed the bank to accept it, considering the respondent's subsequent retirement and receipt of dues.