Full Judgment Text
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS. 8959-8962 OF 2013
LIC of India and Others ...Appellant(s)
Versus
Krishna Murari Lal Asthana and ...Respondent(s)
Another Etc.
WITH
CIVIL APPEAL NO. 6995 OF 2013
CIVIL APPEAL NO. 9223 OF 2013
CIVIL APPEAL NOS. 9409-9410 OF 2013
JUDGMENT
J U D G M E N T
Dipak Misra, J.
Pension though, by the judicial pronouncements, has
been treated as not a bounty yet the controversy relating to
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the said claim and denial thereof has been a matter of
frequent cavil between the employer and the employee in
numerous situations. And that is why this Court has been
required to deal with and render judgments pertaining to
pension and interpretation of the rules or policies or
schemes relating thereto.
2. The present set of appeals fresco a picture which is not
a happy one. It appears that the appellant, the Life
Insurance Corporation of India (for short' 'the Corporation')
at one point of time was enthusiastic to confer certain
benefits on the respondent-employees, may be without
appreciating the legal nuances but its action irrefragably
instilled a concrete hope in thousands of employees.
3. The Corporation is controlled by the Life Insurance
JUDGMENT
Corporation Act, 1956 (for brevity, 'the Act'). Section 21 of
the Act which provides that the Corporation to be guided by
the directions of the Central Government reads as follows:-
“ 21. Corporation to be guided by the
directions of Central Government . - In the
discharge of its functions under this Act, the
Corporation shall be guided by such directions
in matters of policy involving public interest as
the Central Government may give to it in writing;
and if any question arises whether a direction
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relates to a matter of policy involving public
interest, the decision of the Central Government
thereon shall be final.”
4. Section 48 of the Act which is pertinent for the present
purpose empowers the authorities to make rules. Section
48 (1) and (3) to which our attention has been invited read
as follows:-
“ 48. Power to make rules .- (1) The Central
Government may, by notification in the Official
Gazette make rules to carry out the purposes of
this Act.
(2) In particular, and without prejudice to the
generality of the foregoing power, such rules may
provide for all or any of the following matters,
namely:-
(a) the term of office and the conditions of service
of members;
(aa) the instruments which may be issued and
the amount of working capital under sub-section
(2) of section 5;
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(b) the manner in which the moneys and other
assets belonging to any such fund as is referred
to in Section 8 shall be apportioned between the
trustees of the fund and the Corporation;
(c) the services which the chief agent should
have rendered for the purpose of the proviso to
section 12;
(cc) the terms and conditions of service of the
employees of the Corporation, including those
who became employees of the Corporation on the
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appointed day under this Act;
(d) the jurisdiction of the Tribunals constituted
under section 17;
(e) the manner in which, and the persons to
whom, any compensation under this Act may be
paid;
(f) the time within which any matter which
may be referred to a Tribunal for decision under
this Act may be so referred;
(g) the manner in which and the conditions
subject to which investments may be made by
the Corporation;
(h) the manner in which an Employees and
Agents Relations Committee may be constituted
for each zonal office;
(i) the form in which the report giving an
account of the activities of the Corporation shall
be prepared;
(j) the conditions subject to which the
Corporation may appoint employees;
JUDGMENT
(k) the fees payable under this Act and the
manner in which they are to be collected;
(l) any other matter which has to be or may be
prescribed.
2(A)(B)(C)
xxx xxx xxx xxx
(3) Every rule made by the Central Government
under this Act shall be laid, as soon as may be
after it is made, before each House of Parliament
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while it is in session, for a total period of thirty
days which may be comprised in one session or
in two or more successive sessions, and if, before
the expiry of the session immediately following
the session or the successive sessions aforesaid,
both Houses agree in making any modification in
the rule shall thereafter have effect only in such
modified form or be of no effect, as the case may
be; so, however, that any such modification or
annulment shall be without prejudice to the
validity of anything previously done under that
rule.”
5. In exercise of the powers conferred by Section 48 of the
Act, the Central Government has framed a set of rules,
namely, Life Insurance Corporation of India (Employees)
Pension Rules, 1995 (for short, 'the 1995 Rules’). Rule 37 of
the 1995 Rules refers to “dearness relief”, which is extracted
herein below:-
“ Dearness Relief – (1) Dearness relief shall be
granted on basic pension or family pension or
invalid pension or on compassionate allowance
in accordance with the rates specified in
appendix IV.
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(2) Dearness relief shall be allowed on full
basic pension even after commutation.”
6. Appendix IV of the 1995 Rules, which is the principal
plinth of quarrel, is as follows:-
“ Dearness relief on basic pension shall be as
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| ints over<br>e All Indi | 600 point<br>a Averag |
|---|---|
| dustrial W | orkers i |
| Scale of basic T<br>pension per a<br>month p<br>(1) | he rate of dearness relief<br>s a percentage of basic<br>ension<br>(2) |
|---|---|
| (i) upto Rs.1250/- 0 | .67 per cent |
| (ii) Rs.1251/- to 0<br>Rs.2,000/- p<br>p<br>R | .67 per cent of Rs.1250<br>lus 0.55 per cent of basic<br>ension in excess of<br>s.1250/- |
| (iii) Rs.2001/- to 0<br>Rs.2130/- p<br>d<br>JUDG<br>R<br>p<br>p<br>R | .67 per cent of Rs.1250/-<br>lus 0.55 per cent of the<br>ifference between<br>MENT<br>s.2000/- and Rs.1250/-<br>lus 0.33 per cent of basic<br>ension in excess of<br>s.2000/- |
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| (iv) 0<br>aboveRs.2130/- p<br>d<br>R<br>p<br>d<br>R<br>p<br>p<br>R | .67 per cent of Rs.1250/-<br>lus 0.55 per cent of the<br>ifference between<br>s.2000/- and Rs.1250/-<br>lus 0.33 per cent of the<br>ifference between<br>s.2130/- and Rs.2000/-<br>lus 0.17 per cent of basic<br>ension in excess of<br>s.2130/- |
|---|
(2) In the case of employees who retire on or
st
after the 1 day of November, 1993, dearness
relief shall be payable for every rise or be
recoverable for every fall, as the case may be, of
every 4 points over 1148 points in the quarterly
average of the All India Average Consumer Price
Index for Industrial Workers in the series 1960 –
100. Such increase or decrease in dearness
relief for every said four points shall be
calculated in the manner given below:
| Scale of basic T<br>pension per a<br>JUDG<br>month p<br>(1) | he rate of dearness relief<br>s a percentage of basic<br>MENT<br>ension<br>(2) |
|---|---|
| (i) upto Rs.2400/- 0 | .35 per cent |
| (ii) Rs.2401 to 0<br>Rs.3850/- R<br>c<br>e | .35 per cent of<br>s.2,400/- plus 0.29 per<br>ent of basic pension in<br>xcess of Rs.2,400/- |
| (iii) Rs.3,851 to 0<br>Rs.4,100/- R<br>c<br>b<br>R | .35 per cent of<br>s.2,400/- plus 0.29 per<br>ent of the difference<br>etween Rs.3,850 and<br>s.2,400/- plus 0.17 per |
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| c<br>e | ent of basic pension in<br>xcess of Rs.3,850/- |
|---|---|
| (iv) above 0<br>Rs.4,100/- R<br>c<br>b<br>R<br>c<br>b<br>R<br>c<br>e | .35 per cent of<br>s.2,400/- plus 0.29 per<br>ent of the difference<br>etween Rs.3,850 and<br>s.2,400/- plus 0.17 per<br>ent of the difference<br>etween Rs.4,100/- and<br>s.3,850/- plus 0.09 per<br>ent of basic pension in<br>xcess of Rs.4,100/- |
(3) Notwithstanding anything contained in Para
(1) and Para (2), in respect of employees
belonging to Class-III and Class-IV, who have
st
retired on or after the 1 day of August, 1992 and
in respect of Officers belonging to Class-I and
st
Class-II, retired on or after 1 day of April, 1993,
dearness relief shall be payable or be recoverable
as may be determined from time to time.
@3(A) In case of employees who have
st
retired or died on or after the 1 day of August
1997, the dearness relief shall be payable for
every rise or to be recoverable for every fall, as
the case may be, of every 4 points over 1740
points in he quarterly Average Consumer Price
Index for Industrial Workers in the series of 1960
– 100 Such increase or decrease in dearness
relief for every said 4 points shall be at the rate of
0.23 per cent of the Basic Pension;
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@3(B) In case of any wage revision in future
the rate of dearness relief payable to an employee
shall be determined by the Corporation
corresponding to the index to which the case is
linked.
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( The Corporation has determined that in case
of employees who have retired or died on or after
st
the 1 day of August 2002, the dearness relief
shall be payable for every rise or to be recoverable
for every fall, as the case may be, of every 4 poins
over 2328 points in the quarterly Average
Consumer Price Index for Industrial Workers in the
series of 1960 – 100 Such increase or decrease in
dearness relief for every said 4 points shall be at
the rate of 0.18 per cent of the Basic Pension ).
(4) Dearness relief shall be payable for the half
st
year commencing from the 1 day of February
st
and ending with 31 day of July on the quarterly
average of the index figures published for the
months of October, November and December of
the previous year and for the half year
st
commencing from the 1 day of August and
st
ending with the 31 day of January on the
quarterly average of the index figures published
for the months of April, May and June of the
same year.
(5) In the case of family pension, invalid
pension and compassionate allowance, dearness
relief shall be payable in accordance with the
rates mentioned above.
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(6) Dearness relief will be allowed on full basic
pension even after commutation.
(7) Dearness relief is not payable on additional
pension.”
Be it stated, para 3A to the Appendix IV was
nd
incorporated on 22 June, 2000, and was published in the
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Official Gazette.
7. As the afore-quoted appendix would show, the
Corporation has divided its employees for the purpose of
dearness relief into three categories regard being had to the
date of retirement. When situation remained thus, certain
representations were submitted to the Corporation. The
said representations were considered and Minutes were
drawn up by the authorities of the Board.
8. Mr. Nidhesh Gupta, learned senior counsel appearing
for the respondents in Civil Appeal Nos.8959-8962 of 2013,
would impress upon this Court that the Minutes are
absolutely material to understand the controversy and,
accordingly, he has laid immense stress on them. For the
sake of completeness, we think it apposite to reproduce the
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relevant part of the said Minutes. It is as follows:-
“An index linked Pension Scheme in lieu of
Corporation's Contribution to Provident Fund
(CCPF) was introduced in the Corporation vide
Central Government Notification dated
28.06.1995. The Scheme provides for payment of
pensionary benefits with effect from 01.11.1993.
The employees of the Corporation, who retired
between 01.11.1986 to 31.10.1993, are also
covered under the scheme for pensionary
benefits.
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2. At the time of notification of the Pension
Rules, the scales of pay and allowances of the
employees of the Corporation were linked to All
India Consumer Price Index (AICPI) 800 points.
After the notification of the Pension Rules, the
pay scales and allowances of the employees of the
Corporation have been revised on two occasions –
first in the year 1996 by linking it to AICPI 1148
Points and again in the year 2000 by linking it to
AICPI 1740 Points. The revision in the year 1996
was made effective retrospectively from
01.08.1992 and the revision in the year 2000 was
made effective retrospectively from 01.08.1997.
Consequent upon the revision of pay scales, the
Pension Rules were suitably amended to give
effect to payment of pension commutation value
and family pension as per the revised scales of
pay and allowances. However, the Dearness
Relief on pension is being paid to different
generations of pensioners (depending upon their
date of retirement) on a graded structure upto
31.07.1997 as per the rates given in Appendix-IV
of the Pension Rules governing the rates of
Dearness Relief is given in Annexure-I to this
note.
3. It may be observed from the rates of
Dearness Relief as given in Annexure-I, that there
are three different rates prescribed for different
groups of pensioners depending upon their date
of retirement. Due to the different rates of
Dearness Relief to different groups of pensioners,
the real value of pension, which is being eroded
over a period of time is not being protected
besides causing administrative inconvenience. It
has thus become necessary to rationalize the
Dearness Relief structure and provide a suitable
updation formula to upgrade the basic pension to
the employees of the Corporation who have
retired prior to 01.08.1997. It may be mentioned
that such a provision to upgrade the pension due
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to periodic revision in case of Central
Government employees is incorporated in the
Central Civil Services (Pension) Rules, on the
basis of which the LIC of India (Employees)
Pension Rules have been drafted.
4. In view what has been stated in Para 3
above, it is suggested that the following updation
formula to upgrade the basic pension/family
pension in respect of employees who have retired
between 01.01.1986 to 31.07.1997 may be
adopted.
a. The basic pension/family pension payable
in relation to AICPI 600 points or 1148 points, as
the case may be, shall be upgraded by merging
the Dearness Relief payable upto AICPI 1740
points, and
b. On the pension so upgraded, Dearness
Relief of 0.23% of basic pension shall be paid or
become recoverable for every 4 point rise or fall of
AICPI from 1740 points.
It is suggested that the above amendment shall
be made from the date of its notification in the
official gazette and no arrears on account of
Pension/FamilyPension/Commutation Value or
Dearness Relief shall be payable. The one time
financial implication of the above proposal has
been actuarially determined to be Rs.51.37
Crore.”
JUDGMENT
9. On the basis of the said Minutes, a resolution was
th
passed by the Board on 24 November, 2001. As the entire
case hinges and rests on the resolution, it is extracted
below:-
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“Amendment to LIC of India (Employees) Pension
Rules, 1955 – UPGRADING OF Basic Pension to
AICPI 1740 Points and 100% DA neutralization
thereon in respect of Retirees prior to
01.08.1997:
Executive Director (Personnel), introducing the
subject mentioned that there were three different
rates for different groups pensioners at present
depending upon their dates of retirement, which
causes considerable administrative
inconvenience. Chairman pointed out that he
has since received a communication for Dr. S.
Ram Khanna, Board Member, which refers to his
meeting with the Retirees Federation and
requests for examining the proposals as per
Board Note in line with the demands made by
the Federation viz. Giving effect to the proposals
by 01.11.1993 and upgradation by giving
weightage of 11.25% as in the case of in service
employees. Chairman pointed out that these
have been considered before placing the matter
to the Board and it was felt that the same would
increase the financial burden very substantially
and may be unaffordable for the Corporation.
Chairman pointed out that the implications of
the proposal made have been actually
determined at Rs.51.37 crore and the annual
outlay would be in the region of 5 to 6 crore.
After some discussion, the Board approved the
proposal and suggested that it should be
implemented prospectively after obtaining
Government approval.”
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10. After the resolution was passed, the Executive Director
of the Corporation wrote to the Joint Secretary (Insurance &
st
Banking) on 31 December, 2001, seeking amendment to
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the 1995 Rules. Nothing has been brought on record by the
Corporation as to what ensued on the said communication.
Be that as it may. The respondents being grieved by the
non-execution of the resolution passed by the Corporation,
preferred two writ petitions being S.B. Civil Writ Petition
No.6676 of 1998 and S.B. Civil Writ Petition No.654 of 2007
before the High Court of Rajasthan at Jaipur.
11. The learned Single Judge, after hearing the learned
counsel for the parties though as a matter of fact came to
hold that no approval had been given by the Union of India,
and the matter was pending before the Union of India; yet
taking into consideration the concession given by the
learned counsel for the Union of India, directed as follows:-
“The Respondent Corporation is directed to take
a decision for implementation of the resolution
dated 24.11.2001 passed by the Board. The
respondent Corporation cannot provide different
criteria for grant of dearness allowance to the
existing pensioners based on cut-off date i.e.
31.7.1997. The benefit arising out of the
directions above would, however, be considered
by the respondent Corporation so that every
retired employee may get the same benefit.
Costs made easy.”
JUDGMENT
12. The Corporation being grieved by the decision of the
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learned Single Judge preferred two intra -court appeals D.B.
Civil Special Appeal (W) Nos.493 and 494 of 2010. The
Division Bench posed the question whether the resolution
passed by the Corporation required approval of the Central
Government, referred to Section 21 of the Act, reproduced a
paragraph from the order of the learned Single Judge and
came to hold as follows:-
“The learned counsel for LIC Mr. Mahendra Singh
contended, taking us through the provisions of
the Act and the Rules under Section 48 and 49,
that the rules with regard to the conditions of
service of the employees could only be framed by
the Central Government and could be
implemented only after being notified in the
official gazette.
We are of the view that whatever grievance with
regard to the implementation of the Board's
resolution dated 24.11.2001 is concerned, the
same can be raised by the Union of India who
has chosen not to file any appeal in the matter
and this can easily be considered as an approval
of the said resolution of the Board dated
24.11.2001 which was allegedly pending for nine
years. The Board of LIC, who is the appellant
before us against the judgment of the learned
Single Judge, had itself taken a decision to
remove the disparities and the discrimination
with regard to the payment of Dearness
Allowance and pension to the retired employees
under its resolution of the Board dt.24.11.2001,
which was in public interest. It could not and
should not have filed the present appeal against
the judgment of the learned Single Judge as the
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learned Single Judge has provided an umbrella to
the appellant for the implementation of the
decision of the Board dt.24.11.2001 on the
categorical statement made by the learned
counsel appearing on behalf of the Union of India
and not assailed in appeal by the Union of India.”
13. It is submitted by Mr. Neeraj Kishan Kaul, learned
Additional Solicitor General appearing for the appellant-
Corporation that, the learned Single Judge as well as the
Division Bench, has committed illegality in deciding an
issue of law on the basis of concession given by the learned
counsel for the Union of India, for a concession by counsel
on a question of law, does not bind the Corporation and, in
any case, it cannot form the foundation of a decision. (See
1
Union of India v. Hira Lal , B.S. Bajwa v. State of
2
Punjab , Vimaleshwar Nagappa Shet v. Noor Ahmed
JUDGMENT
3 4
Shariff , State of Rajasthan v. Surendra Mohnot .)
14. The thrust of the matter is whether the approval of the
Union of India is necessary. Mr. Gupta, learned senior
counsel appearing for the respondents has drawn our
attention to Rule 55 of the 1995 Rules, which reads as
1 (1996) 10 SCC 574
2 (1998) 2 SCC 523
3 (2011) 12 SCC 658
4 (2014) 14 SCC 77
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under:-
“ 55. Power to issue instructions – The
Chairman of the Corporation may from time to
time issue instructions as may be considered
necessary or expedient for the implementation of
these rules.”
Relying on the same, it is urged by Mr. Gupta that with
regard to pay revision, the Chairman of the Corporation has
been issuing circulars from time to time and the same is
being followed by the Corporation and hence, the
interpretation placed on Sections 21 and 48 of the Act by
the Corporation is absolutely uncalled for and totally
unjustifiable.
15. On scanning of anatomy of Rule 55 of the 1995 Rules,
we are absolutely clear that it does not confer power on the
Chairman of the Corporation to issue any instructions that
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can travel beyond the rules. In terms of Rule 55, he has
been authorized to issue instructions which are necessary
and expedient for the implementation of the rules. The
Board had passed the resolution. The Board can pass a
resolution and the Chairman can be the head of the Board,
but it does not authorize the Board to take a decision with
regard to certain matters which are within the domain of the
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rule making authority. On a perusal of Section 48, it is
clear as crystal that conferment of benefit, either pension or
anything ancillary thereto has to be conferred by the rules
and the rule as prescribed under Section 48 of the Act is to
be tabled before the Parliament. In the absence of a rule, in
our considered opinion, no benefit can be granted on the
basis of the resolution passed by the Corporation. This
being the legal position, the High Court could not have held
to the contrary on the basis of the concession given by the
counsel for the Union of India.
16. Having stated so, in all possibility, we would have
proceeded to record the conclusion but, a significant one,
the controversy of this nature does not see the sunset with
such immediacy.
JUDGMENT
17. Mr. Shree Ram Panchu, learned senior counsel
appearing for the respondents in Civil Appeal No.9223 of
2013, has submitted that certain petitioners had preferred
writ petition No.184 of 2007 in the High Court of Delhi,
assailing the constitutional validity of Para 3A of the
Appendix to the Rules contending, inter alia, that the said
Para is violative of Article 14 of the Constitution in view of
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the decisions rendered by this court in D.S. Nakara v.
5
Union of India and others , All India Reserve Bank
6
retired Officers Association v. Union of India and V.
Kasturi v. Managing Director, State Bank of India and
7
another , but the High Court has not adverted to the said
facets and disposed of the writ petitions, placing reliance on
the decision rendered by the High Court of Rajasthan. We
are of the considered opinion that when the issue of
constitutional validity of Para 3A to the Appendix was
raised, the same deserved to be addressed by the High
Court.
18. Mr. Gupta, learned senior counsel appearing for the
respondents, endeavoured hard to impress upon us to deal
with the same, but as we find certain facts are to be
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adverted to and the pleadings are not adequate, we think it
seemly to restrain from the same.
19. At this juncture, we may usefully note another facet of
the submission advanced by Mr. Gupta. The learned senior
counsel would urge that there are certain employees who
5 AIR 1983 SC 130 = (1983) 1 SCC 305
6 (1992) Suppl 1 SCC 664
7 (1998) 8 SCC 30
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have retired after the cut-off date stipulated in Para 3A of
the Appendix, but they are not being given the requisite
dearness relief based on subsequent pay revisions. To
bolster his submission, he has placed reliance on Union of
8
India and Another v. SPS Vains (Retd.) and others ,
9
K.J.S. Buttar v. Union of India and another and V.
Kasturi (supra) . Mr. Gupta would submit that there is a
distinction between challenge to the constitutional validity
of a provision and the interpretation of the provision and its
applicability. For the aforesaid purpose, he has referred to
us paragraph 16 of the SPS Vains (Retd.) and others
(supra), which reads as under:-
“The case of the respondents, however, was that
in view of the Constitution Bench decision of this
Court in D.S. Nakara v. Union of India , the
fixation of a cut-off date as a result of which
equals were treated as unequals, was wholly
arbitrary and had been rightly interfered with by
the High Court. One of the questions posed in
the aforesaid decision was whether a class of
pensioners could be divided for the purpose of
entitlement and payment of pension into those
who retired by a certain date and those who
retired thereafter. The question was answered
by the Constitution Bench holding that such
division being both arbitrary and unprincipled
the classification did not stand the test of Article
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8 (2008) 9 SCC 125
9 (2011) 11 SCC 429
Page 20
21
14.”
20. Pyramiding the submission further in that direction,
he has also laid emphasis on paragraphs 8 to 10 and 26 to
28 and 31 of K.J.S. Buttar (supra).
21. It is urged by Mr. Gupta that once the employees are
covered under Para 3A, being retirees after the cut-off date,
the benefit cannot remain static but has to change with the
pay revisions regard being had to the price index, for
otherwise the provision does not spring to life and,
eventually, paves the path of arbitrariness. He has heavily
relied on paragraphs 34, 35 and 39 of Kallakkurichi
Taluk Retired Officials Association, Tamil Nadu and
10
others v. State of Tamil Nadu apart from other
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paragraphs. We may hasten to add that we have referred to
this aspect in extenso as Mr. Gupta would submit that non-
conferment of the benefit of the dearness relief keeping in
view the subsequent pay revisions of the similarly situated
employees leads to disastrous effect and in a way allows
room for absurdity. Learned senior counsel has given an
example to highlight as to how the absurd situation can
10 (2013) 2 SCC 772
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creep in. It is urged by him that if an Executive Director
stood retired sometime in 1997, he would get approximately
Rs.7,000/- towards pension, whereas a person working in
Class III, if he retires subsequently would get approximately
double of the said amount.
22. We have already stated that the High Court of Delhi
has really not adverted to as regards the constitutional
validity of Para 3A of the Appendix. As far as the other
delineations or deliberations are concerned, the High Court
of Punjab & Haryana at Chandigarh has also not
independently dealt with the controversy, but followed the
decision rendered by the Rajasthan High Court. We have
already adverted to the reasoning of the High Court of
Rajasthan inasmuch as it has referred to the scheme of the
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Act, recorded the concession of the counsel for the Union of
India and proceeded to apply the inherent principle
enshrined in Article 14 of the Constitution, though
constitutional validity was not challenged. Be it stated,
there are two categories of employees, namely, the
st
employees who have retired prior to the cut-off date i.e. 1
August, 1997, as a consequence of which they are not
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getting the benefit of dearness relief, and the employees who
have retired after the said date but are not extended the
benefit of dearness relief despite subsequent pay revisions.
Needless to say, the quantum of pension is affected.
23. Regard being had to the piquant situation, we are
inclined to set aside the orders passed by the High Courts of
Rajasthan, Delhi and Punjab & Haryana at Chandigarh and
transfer the writ petitions from the High Courts of
Rajasthan and Punjab & Haryana to the High Court of
Delhi, which will decide the constitutional validity of Para
3A of the Appendix to the Rules, as argued by Mr. Panchu,
learned senior counsel appearing for the respondents, and
also deal with the cases of the persons, who have retired
after the cut-off date, consider the contentions raised by Mr.
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Gupta, learned senior counsel and the other contentions to
be raised. However, we may clarify that we have not
expressed any opinion on the merits of the case, except that
the resolution could not become operative unless it was
conferred the status of a rule as provided under Section 48
of the Act.
24. We had indicated at an earlier stage that though the
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controversy relating to pension should be put to an end to
in quite promptitude, yet for some reason or other, it does
not so happen. When the present batch of appeals were
th
argued, this Court on 7 May, 2015, as an interim measure,
had directed as follows:-
“As an ad-interim measure, it is directed that the
petitioner-Corporation shall release 20% of the
amount as per the impugned judgments
pertaining to the High Court, in favour of the
respondent-employees within six weeks hence,
subject to final result in the appeals. If any
amount, that has been deposited before the High
Court pursuant to the order passed by this
Court, 20% of the same shall be released in
favour of the Life Insurance Corporation of India,
so that it can pay to the concerned employees.
In case, where the amount has not been
deposited, needless to emphasize, the
Corporation shall pay and question of any kind
of withdrawal from court does not arise.
Needless to say, the payment in continuum shall
be considered when the appeals are taken up for
hearing.”
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25. A grievance has been raised by the learned counsel for
the respondents that the Corporation has really not paid the
twenty percent of the amount. The same is seriously refuted
by learned Additional Solicitor General on the count that
they have deposited the amount as per Para 3A of the
Appendix, but not given the benefit of pay revisions, as
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25
claimed by the certain respondents-employees.
26. We have been appraised at the Bar that the
respondents had harboured hope when the resolution was
passed. Their hope, as the learned counsel for the
respondents would submit, was not unfounded, inasmuch
as the revisions in pension were earlier made by issue of
certain circulars issued by the Chairman in exercise of
power conferred under Rule 55 of the 1995 Rules. Whether
the hope was reasonable or not need not be commented
upon, but the fact remains that certain respondents are
septuagenarians and they have to fight another round of
litigation in the High Court. We feel the pain while
remanding the matter, but we have no option as the
pleadings are not adequate as it should have been while
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assailing a constitutional validity of a provision. It is well
settled in law that he who assails the constitutional validity
of a statutory provision or a rule, has to specially assert the
grounds for such challenge. [See State of Uttar Pradesh v.
11
Kartar Singh , State of Andhra Pradesh and another
12
v. K. Jayaraman and others , Union of India v. E.I.D.
11 AIR 1964 SC 1135
12 (1974) 2 SCC 738
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26
13
Parry (India) Ltd. , State of Haryana v. State of Punjab
14
& another ]. The purpose of saying all this is as the
learned counsel for the respondents would agonizingly
contend that the amount of pension the respondents are
getting is a paltry sum and it is difficult to sustain in the
present day. That apart, the Corporation should have been
gracious enough to recognize the services rendered by them
and the Union of India should have come with an
affirmative response when the resolution was passed by the
Corporation. We have already adjudicated the said facet,
but as we are remanding the matter to the High Court on a
different count. In such a situation, we are of the convinced
opinion that the respondents should get certain amount as
an interim measure. We had already directed by the order
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th
dated 7 May, 2015 that the Corporation shall pay 20%
amount to the individual employees. Mr. Kaul, learned
Additional Solicitor General would submit that the
Corporation has already deposited the entire amount
without the pay revision before the High Courts of
Rajasthan and Punjab & Haryana at Chandigarh are
13 (2000) 2 SCC 223
14 (2004) 12 SCC 673
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27
concerned regard being had to the order of this Court. As
far as the High Court of Delhi is concerned, employees have
been paid 20%, as directed by this Court. The said fact is
disputed by learned counsel for the respondents after
obtaining instructions. The said aspect shall not detain us,
for what we are going to direct in praesenti.
27. Keeping in view the totality of facts and circumstances
of the case, it is hereby directed that the Corporation shall
pay 40% as per Para 3A of the Appendix to each of the
employees within six weeks and shall file an affidavit before
the High Court of Delhi to the said effect. The Corporation
is at liberty to withdraw the amount deposited in the Courts
so that it can pay the employees who have retired. Needless
to emphasize, the aforesaid payment shall be subject to final
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results in the writ petitions.
28. It is a case where we are constrained to speak that the
end does not bring the finality. We say so as Mr. Kaul,
learned Additional Solicitor General would contend that the
parties to the litigation shall only get the benefit and not the
similarly placed persons in view of the interim order passed
by this Court on 07.05.2015. It does not require Solomon's
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28
wisdom to state that an interim order is an interim order
and does not have any impact at the time of final verdict
especially in such a situation and, therefore, we direct that
it shall be applicable to the similarly placed persons.
29. As we are transferring the cases to Delhi High Court,
the Registry of the High Courts of Punjab & Haryana and
Rajasthan shall send the papers to the High Court of Delhi
within three weeks hence. The learned Chief Justice of the
High Court of Delhi is requested to constitute a Bench
within four weeks from today. We grant liberty to the writ
petitioners to file requisite amendments, if so advised.
Counter affidavit to the same shall be filed by the contesting
parties within three weeks from the date of filing the
amendments. The High Court is requested to dispose of the
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writ petitions by the end of August, 2016. We ingeminate
that we have not expressed any opinion with regard to any
of the aspects of the matter, except what we have finally
concluded, namely, that the resolution could not have been
given effect to without framing a rule by the Central
Government. Till the matter is decided by the High Court of
Delhi, no other High Court shall proceed with the similar
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matters, as it is desirable that a singular judgment is
passed so that the validity of the same can be adjudged.
30. The appeals are disposed of accordingly. There shall
be no order as to costs.
.....................J.
(Dipak Misra)
......................J.
(R. Banumathi)
New Delhi;
March 31, 2016.
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