SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1996 Supreme(SC) 1983

1997(1) Supreme 49
SUPREME COURT OF INDIA
K. Ramaswamy and G.B. Pattanaik, JJ.
Union of India & Ors. -Appellants
versus
D.R.R. Sastri -Respondent
Civil Appeal No. 14752 of 1996
(Arising out of SLP (C) No. 14785 of 1995)
Decided on 22-11-1996

Headnote:SERVICE LAW-Liberalised Pension Scheme-Claim of benefit of-Respondent Joined Indian Railways in 1950-He opted for Contributory Provident Fund Scheme-While continuing in Railways he went on deputation to Heavy Engineering Corporation during year 1972-Respondent exercised his option for permanent absorption in Heavy Engineering Corporation-Submitted his resignation from Railways in 1973-In 1974, Railway Board introduced liberalised Pension Scheme-An opportunity was given to all persons governed by Provident Fund Scheme to opt for liberalised Pension Scheme-Respondent made a representation in 1993 to exercise the option-Similar relief was granted to another railway employee in 1994-Absence of any explanation to indicate any special feature in that case-Impugned direction of Tribunal granting relief to respondent not liable to be interfered with.

       Held, in the absence of any explanation from the appellant to indicate any special feature for granting similar relief as late as in the year 1994 to Shri K.V. Kasthuri, we see no justification for our interference with the impugned direction of the Tribunal. The respondent had served for about 22 years and he should not be deprived of the pensionary benefit when the Government itself had come forward with the liberalised Pension Scheme and gave option to the persons already retired to come over to the pension scheme. But his pension is to be calculated as on July 31, 1972 in accordance with the Railway Board s letter dated 23rd of July, 1974 and on compliance with all the necessary formalities by the respondent in accordance with the said circular. (Para 4)

       

JUDGMENT

Pattanaik, J.-Leave granted.

2. This appeal by special leave is directed against the order of the Central Administrative Tribunal, Madras dated 23rd September, 1994 in OA No. 1711 of 1993. By the impugned order the Tribunal has directed the appellant to allow the respondent the benefit of option for the pension scheme, on respondent refunding the amount he has received on his retirement.

3. The admitted facts are that the respondent joined the Indian Railways in the year 1950 and while continuing there went on deputation to the Heavy Engineering Corporation during the year 1972. While he was in the railway he had opted for Contributory Provident Fund Scheme. The said respondent exercised his option for permanent absorption in Heavy Engineering Corporation and submitted his resignation from the railways which was accepted by Railway Board and communicated by letter dated 26th June, 1973. In the year 1974 on the basis of recommendations of the Third Pay Commission, liberalised Pension Scheme was introduced and the Railway Board in its letter dated 22nd July, 1974 decided to give an opportunity to all the persons governed by the Provident Fund Scheme to opt for the liberalised Pension Scheme. The Railway Board s letter was communicated to all the General Managers with the direction that it shall be brought to the notice of all retired railway servants. The case of the respondent is that the liberalised Pension Scheme having been introduced at a point of time when he was an employee under the railways, he was entitled to opt for the said scheme. But the aforesaid letter of the Railway Board was not brought to his notice. It is only on 12th June, 1993 the said respondent made a representation requesting the Railway Board that he may be allowed to exercise the option and the Railway Board having rejected the same by its communication dated 13th July, 1993, respondent approached the Tribunal. The Tribunal by the impugned order came to the conclusion that the respondent being in service of the railways on 1st January, 1973 was entitled to exercise option for coming over to the pension scheme in terms of Railway Board s letter 23rd July, 1974. The Tribunal further came to the conclusion that notwithstanding the clear statement in the Board s letter that it should be brought to the notice of all the retirees, it had not been brought to the notice of the respondent no account of which he was prevented from exercising his option. The Tribunal also took note of the fact that another railway employee was allowed to exercise the option long after the date of exercising of option has expirted and, therefore, there should be no ground to discriminate the respondent. Challenging the aforesaid direction of the Tribunal the Union of India has come in appeal.

4. Mr. Mahajan appearing for the appellant contended that the respondent having not exercised his option to opt for the pension scheme within the time specified in the Board s letter dated 23rd July, 1974 the Tribunal erred in law granting him the relief in question. The learned counsel, however, was not in a position to indicate any special reason why the similar opportunity had been given to another railway employee which has been noticed by the Tribunal while granting the relief to the respondent. Mr. Mahajan, however, contended that in view of the Constitution Bench s decision of the Court in Krishan Kumar s case (1990(4) SCC 207) the impugned direction of the Tribunal cannot be sustained. When this case listed before this Court on 6th May, 1995, it was brought to the notice of the Court that the Government itself has granted a similar benefit to one K.V. Kasthuri by an order dated September 19, 1994 even though he had retired in the year 1973. The Court, therefore, called upon the Union Government to place the necessary material which enabled the Government to grant the relief to Shri Kasthuri and how his case stands on a different footing than the case of the respondent. But no


Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top