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2012 Supreme(Kar) 67

High Court of Karnataka
VIKRAMAJIT SEN, B.V. NAGARATHNA
Bangalore Water Supply & Sewerage Board
Versus
Bangalore Water Supply & Sewerage Board Pensioners Association & Others
Writ Appeal No. 4738 of 2011 (S-R)
Decided on : 31-01-2012

Advocates appeared:
For the Appellant:Udaya Holla, Senior Counsel for M.S. Narayan, Advocate. For the Respondents:R1 to R3, H.N. Narayan, Senior Counsel for Mrs. Lakshmy Iyengar, Advocate, R4, B. Veerappa, Additional Government Advocate.

Headnote:PENSIONARY BENEFITS - Revised pensionary benefits - [Vikramajit Sen, Actg. C.J., & B.V. Nagarathna, JJ] Water Supply and Sewerage Board revised pension of its employees but for extending benefit devised a dichotomy within pensioners, viz., dividing them date by their retirements, prior and post 1-7-1990 - Held, Denial of revised pension to post 1990 retirees is improper. Fact that they had given unilateral undertaking to forego from their claim of arrears of pension would not preclude them from claiming revision in pension.

Judgment :-

Vikramajit Sen, C,J.

This appeal assails the order of the learned Single Judge dated 4.2.2011 directing the Bangalore Water Supply & Sewerage Board (hereafter referred to as ‘Board’) to accord the members of the petitioner Association revised pensionary benefits with effect from 1.7.2003 onwards upto 1.7.2008 and thereafter in accordance with revision of pay scales wherever and whenever applicable. Secondly, the learned Single Judge has accepted and acted upon the undertaking of the petitioner Association to the effect that they shall not insist on payment of arrears prior to 1.7.2008, and has directed that these would not be payable consequent upon the revision of pension retrospectively. Thirdly the respondent – Board has also been called upon to consider the request of the petitioner Association vis-à-vis sanction of medical benefit to the pensioners and their spouses on such terms as the Board deems fit. Fourthly, the respondent – Board has been directed to implement the foregoing three directions within a period of three months from the date of receipt of a copy of the impugned order.

2. The facts so far as they are germane for a decision of this appeal, succinctly stated, are thus. The Board has itself fixed and implemented pay scales for its employees since 1.7.1986. Revisions of pay scales have occurred on 1.7.1990, 1.7.1994, 1.7.1998, 1.7.2003 and 1.7.2008. It appears that pension was revised with regard to all employees on two previous occasions, that is, 1.7.1990 and 1.7.1994. In 1998 the Board devised a dichotomy within the pensioners, viz., the dividing date having retirements prior and post 1.7.1990. The petitioner Association espoused the cause of those pensioners falling in the first category. Since several representations ended in futility, the Association had no alternative but to invoke the extraordinary jurisdiction of the High Court under Article 226 of the Constitution of India. Pensioners falling in the second category have received the benefit of the revised pension with regard to the increases on 1.7.1990 as well as 1.7.1994 and onwards. It appears that the State Government has revised pension with effect from 1.4.1998 on the general revision of pay scales, but the Board has not extended these benefits to the petitioners with effect from 1.4.1998 onwards.

3. The learned Single Judge has granted the relief mentioned above almost entirely on the decision of the Constitution Bench in D.S. Nakara – vs. Union of India, AIR 1983 SC 130. The petitioners before the Constitution Bench were retired pensioners of the Central Government, civil servants and members of the Armed Forces. Therefore the present petitioners – pensioners must inevitably swim or sink depending on whether they fall within or without the ratio of Nakara. The Constitution Bench in Nakara had referred to its previous Constitution Bench decision in Deoki Nandan Prasad vs. State of Bihar, AIR 1971 SC 1409 and reiterated that it is indeed an antiquated notion that pension is a bounty or gratuitous payment flowing from the sweet will or grace of the employer and that it is not claimable as a right. The Constitution Bench in Nakara opined that pension is not only compensation for loyal services rendered but that it partakes of a measure of socio-economic justice. The Constitution Bench also noticed that “the continuous upward movement of the cost of living index has a sequel on inflationary input and diminishing purchasing power of rupee necessitated upward revision of pension”. We can do no better than to reproduce extracts from this celebrated judgment for the reason that it is our understanding that this Appeal must perforce predicted completely and comprehensively on the ratio decidendi of Nakara.

“42. If it appears to be undisputable, as it does to us that the pensioners for the purpose of pension benefits form a class, would its upward revision permit a homogenous class to be divided by arbitrarily fixing an eligibility criteria























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