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CaseLaw
The facts can be summarized briefly that the plaintiff respondent was a senior staff of the appellant/defendant company and after putting 25 years service he retired on 31st August 1980. But before his retirement, on 30/11/79 there was agreement entered into at a meeting held on that day between the worker's union of defendant/appellant company and the latter's management agreeing on the Rules of Pension and Gratuity scheme and that the said Rules be backdated to take effect from 1st of July 1979. Based on such agreement he was on his retirement paid his gratuity on the new rate as per the Agreement but when it came to the payment of his pension entitlement his employers offered him a reduced amount, which he rejected. The plaintiff/respondent remained adamant in his request for upward revision of the amount of pension offered him hence he instituted action against the appellant at the lower court. The case of the defendant/appellant on the other hand was that the meeting held on 30/11/79 was simply held to amend the original Rules governing gratuity and pension and that the benefits agreed upon at 30/11/79 meeting were not to become effective until they were approved by the Joint Tax Board. On the sum paid to the Respondent based on the newly agreed scheme, Defendant/Appellant said it paid him such amount out of sheer kindness. After taking evidence the trial judge in his judgment found that the parties have reached complete and binding agreement on all essential matters at the meeting held on 30th November, 1979 The trial court thereon allowed the claims of the plaintiff/Respondent except that on interest.
Aggrieved by the decision of the trial court, the appellant appealed to this court for redress.