SUPREME COURT OF INDIA
Ashok Bhushan, R. Subhash Reddy, M.R. Shah, JJ.
Himachal Road Transport Corporation & Anr. – Appellants
Versus
Himachal Road Transport Corporation Retired Employees Union – Respondent
Civil Appeal No.7230 OF 2012
Decided On : 22-02-2021
Road Transport Corporations Act, 1950 - Central Civil Service (Pension) Rules, 1972 - Pension Scheme - Notification - Eligibility - Himachal Road Transport Corporation is established under The Road Transport Corporations Act, 1950 - Employees of Corporation were governed by Contributory Provident Fund Scheme (CPF) - Appellant-Corporation introduced a Pension Scheme in year, by issuing a Notification date and adopted Central Civil Service (Pension) Rules, 1972 - Second appellant has approved Scheme formulated by Corporation - Pension Scheme was given effect to from that is from the date on which Scheme was approved by Cabinet/ Government - For employees who retired from till date of notification and for employees in service, an option was given either to opt for Pension Scheme, or to continue under Contributory Provident Fund. Clause 5 of Scheme, stipulates eligibility criteria to opt for Pension Scheme – Held, It cannot be said that paying capacity is not a relevant or valid consideration while fixing cut-off date - University could, in, validly frame Pension Regulations to be made applicable prospectively - It, however, chose to give them limited retrospectively so as to cover a larger number of employees by taking into account financial impact of giving retrospective operation to Pension Regulations - In Court opinion, it cannot be said that this cut-off date was fixed arbitrarily or without any reason - High Court was clearly in error in allowing writ petitions and substituting date High Court, without noticing difference of factual background, in cases relied on by respondent-writ petitioner and without independently considering issue in question, has allowed writ petition - In view of same, Court are of view that judgment of High Court deserves to be set aside - Civil appeal is allowed.
JUDGMENT :
R.SUBHASH REDDY, J.
1. This appeal is filed by the Himachal Road Transport Corporation and another, aggrieved by the judgment and Order dated 08.01.2009, passed by the High Court of Himachal Pradesh, at Shimla in CWP No. 1362 of 2001.
2. The Himachal Road Transport Corporation is established under The Road Transport Corporations Act, 1950. The employees of the Corporation were governed by the Contributory Provident Fund Scheme (CPF). The appellant-Corporation introduced a Pension Scheme in the year 1995, by issuing a Notification dated 06.10.1995 and adopted Central Civil Service (Pension) Rules, 1972. The second appellant has approved the Scheme formulated by the Corporation. The Pension Scheme was given effect to from 05.06.1995, that is from the date on which Scheme was approved by the Cabinet/ Government. For the employees who retired from 05.06.1995, till the date of notification, i.e, 06.10.1995 and for the employees in service, an option was given either to opt for Pension Scheme, or to continue under the Contributory Provident Fund. Clause 5 of the Scheme, stipulates eligibility criteria to opt for Pension Scheme.
3. The respondent-Union, consisting of the employees who retired prior to 05.06.1995, approached the Administrative Tribunal by filing Original Application in OA (D) No. 237/1996, for grant of following reliefs:
“i) That the cut off date for grant of pension to those employees who were in service of the Corporation as on June 5, 1995 be quashed and set aside;
ii) That the applicants i.e. pre June 5, 1995 employees, may be held entitled for pension as the other similarly situated employees between June 5, 1995 to October 6, 1995 have been given the benefit as per Clause 5 of the said Scheme;
iii) That the action of the respondents Corporation in denying pension to the applicants may be declared illegal, unjust, unreasonable, arbitrary and violative of Article 14, 16, 21.”
The respondent-union, relying on a judgment of this Court in the case of D.S. Nakara & Ors. v. Union of India, AIR 1983 SC 130 : (1983) 1 SCC 305 and several other judgments, pleaded that the fixation of cut-off date was arbitrary and discriminatory.
4. The appellants have contested the Original Application, filed by the respondent-Union, inter alia pleading that they have introduced a Pension Scheme to the employees of the Corporation, with effect from 05.06.1995, on which date Cabinet has approved the Scheme. It was the plea of the appellants that all the employees of the Corporation, who retired prior to 05.06.1995, were already paid all the retiral benefits including the benefit of Contributory Provident Fund, as such the cut-off date fixed, i.e., 05.06.1995, for implementing the Pension Scheme, was not discriminatory.
5. The Himachal Pradesh Administrative Tribunal, by judgment dated 19.06.2001, dismissed the Original Application filed by the respondent-Union, by holding that the appellants are entitled to fix the cut-off date for introducing the Pension Scheme for its employees and such fixation is not discriminatory. It was held that all the employees of the Union, who were governed by the Contributory Provident Fund, on their retirement, have already availed the benefit of such fund. It was further noticed by the Tribunal that, as the Cabinet has approved the Scheme in its meeting held on 05.06.1995 as such, the Scheme was given effect to from such date. By recording a finding that the employees who were already retired prior to 05.06.1995, constitute a different category and are not similarly placed as those employees who were in service of the appellant-Corporation as on 05.06.1995, dismissed the Original Application.
6. The respondent-Union, aggrieved by the judgment and Order of the Administrative Tribunal, approached the High Court of Himachal Pradesh, at Shimla, by way of Civil Writ Petition No. 1362 of 2001. In the Writ Petition filed, mainly it was the case of the respondent-Union that, the cut-off date, i.e, 05.06.1995, fi
Point of Law - Court must maintain judicial restraint in matters relating to the legislative or executive domain.
Sympathies cannot override the Rules and Regulations.
Fixing of a cut-off date for granting of benefits is well within the powers of Government as long as the reasons therefor are not arbitrary and are based on some rational consideration.
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