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SUPREME COURT OF INDIA
H.K. Sema and V.S. Sirpurkar, JJ.
Chief General Manager, Telecom, BSNL and another - Appellants
Versus
K.J. George and others - Respondents
Civil Appeals No. 2907 of 2005 with Nos. 2908 and 789 of 2005.
Decided On : 22-2-2007
Retirement - Pensionary Benefits - Interpretation of FR 56 - Fifth Central Pay Commission Report
Fact of the Case:
The respondents were retired from the Telecom Department in December 1995, and the Fifth Central Pay Commission Report came into force from January 1996. The issue was whether they were entitled to pensionary benefits from 1-1-1996.
Finding of the Court:
The court held that the respondents' pensionary benefits could not be reckoned from 1-1-1996 as they were retired in December 1995, and their relationship with the employer terminated at that time.
Issues: Interpretation of FR 56, entitlement to pensionary benefits based on retirement date
Ratio Decidendi: The court interpreted FR 56 and the Fifth Central Pay Commission Report to determine the entitlement to pensionary benefits based on the retirement date.
Final Decision: The orders of the Tribunal and the High Court were set aside, and the appeals were allowed with no order as to costs. In another case, the appeal was dismissed as the respondent was voluntarily retired on 1-1-1996.
ORDER :
Civil Appeals Nos. 2907 and 2908 of 2005
H.K. Sema, J. - The respondents were working in the Telecom Department on the posts of Senior Section Supervisor and Section Supervisor and retired on 16-12-1995 and 3-12-1995 respectively. In view of the provision of FR 56 they were made to retire with effect from the afternoon of 31-12-1995. The report of the Fifth Central Pay Commission came into force with effect from 1-1-1996. Clause 3.1 of the Fifth Central Pay Commission Report states that the revised provisions shall apply to Government servants who retire/die in harness on or after 1-1-1996.
2. The grievance of the respondents raised before the High Court was that they should be allowed to reckon their pensionary benefits on the basis of the Fifth Central Pay Commission Report with effect from 1-1-1996. The Division Bench of the High Court was of the view that since they were made to retire with effect from 31-12-1995, till the midnight of 31-12-1995 they were in service and, therefore, entitled to retiral benefits from 1-1-1996. We are unable to countenance with the decision of the Tribunal and the High Court.
3. As already noticed, they were retired with effect from 16-12-1995 and 3-12-1995 respectively but because of the provision of FR 56 they were allowed to retire on the last date of the month, the grace period of which was granted to them for the purpose of pay and allowances only. Legally, they were retired on 16-12-1995 and 3-12-1995 respectively and, therefore, by no stretch of imagination can it be held that their pensionary benefits can be reckoned from 1-1-1996. The relationship of the employer and employee terminated in the afternoon of 16-12-1995 and 3-12-1995 respectively. In view thereof the orders of the Tribunal and the High Court are accordingly set aside and these two appeals are allowed with no order as to costs.
Civil Appeal No. 789 of 2005
4. In this case the respondent was voluntarily retired on 1-1-1996. In this view of the matter he is entitled to reckon the pensionary and retiral benefits in terms of the Fifth Central Pay Commission Report.
The appeal is accordingly dismissed.
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