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IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT NAGPUR
Manish Pitale, Valmiki Sa Menezes, JJ.
Maharashtra Rajya Vidyut Mandal & Ors. – Appellants
Versus
Secretary, Ministry Of Labour And Employment & Ors. – Respondents
Writ Petition No. 6101 of 2011 with Writ Petition No. 813 of 2012 & Writ Petition No. 1314 of 2013 & Writ Petition No. 2721 of 2013 & Writ Petition No. 2802 of 2013 & Writ Petition No. 3195 of 2012 & Writ Petition No. 4954 of 2012
Decided On : 29-09-2022

Advocates Appeared:
Mr. M.M.Sudame and Mr. A. M. Sudame, Advocate for petitioners., for the Appellant; Mrs. Mugdha Chandurkar, Advocate for respondent No.1. Mr. H. N. Verma, Advocate for respondent No.2 to 4. Mr. A. D. Mohogaonkar, Advocate for respondent No.5., Mr. V. G. Wankhede, Advocate for respondent No.3., for the Respondent

Headnote:

Employees Pension Scheme - Interpretation - Employees Provident Funds and Miscellaneous Provisions Act, 1952 - Section 6-A - Notification dated 15/06/2007 - The court considered the interpretation of Clause 12 of the Employees Pension Scheme, 1995, as it was notified on 16/11/1995, and subsequently amended retrospectively by Notification dated 15/06/2007. The court analyzed the contentions of the petitioners and the contesting respondents regarding the interpretation of Clause 12 and the retrospective amendment, and concluded that the amendment was clarificatory in nature and did not violate any vested rights of the employees.

Fact of the Case:

The petitions were filed by associations of employees of Government Organizations and individual employees raising a common question pertaining to the interpretation of Clause 12 of the Employees Pension Scheme, 1995, as it was notified on 16/11/1995, and subsequently amended retrospectively by Notification dated 15/06/2007. The principal question pertained to the interpretation of the clause and the reduction of pension payments to the employees.

Finding of the Court:

The court found that the interpretation sought by the petitioners on Clause 12 of the Pension Scheme, 1995, as it stood on 15/11/1995, was not reasonable and did not flow from the words of the clause. The retrospective amendment by Notification dated 15/06/2007 was found to be clarificatory in nature and did not violate any vested rights of the employees. The court dismissed the writ petitions, as the prayers made by the petitioners could not be granted.

Issues: The main issue was the interpretation of Clause 12 of the Employees Pension Scheme, 1995, and the retrospective amendment made by Notification dated 15/06/2007. The court also considered the challenge to the letter of clarification dated 10/05/1999 and the Constitutional validity of Section 7 of the Employees Provident Funds and Miscellaneous Provisions Act, 1952.

Ratio Decidendi: The court held that the interpretation sought by the petitioners on Clause 12 of the Pension Scheme, 1995, was not reasonable and did not flow from the words of the clause. The retrospective amendment by Notification dated 15/06/2007 was found to be clarificatory in nature and did not violate any vested rights of the employees. The court also noted that the judgments and orders from the Karnataka High Court, the Pension Lok Adalat, and the Consumer Fora did not accrue to the benefit of the petitioners.

Final Decision: The court dismissed the writ petitions, as the prayers made by the petitioners could not be granted. The petitioners specifically gave up the challenge to the Constitutional validity of Section 7 of the Employees Provident Funds and Miscellaneous Provisions Act, 1952, and did not press the prayers pertaining to grant of additional service weightage/benefit of two years, as the relief was already granted to the petitioners and other such employees.

JUDGMENT

Manish Pitale J. - Rule. Rule made returnable forthwith. Heard finally with the consent of the learned counsel appearing for the parties.

2. These petitions are filed by associations of employees of Government Organizations, as also individual employees raising a common question pertaining to Employees Pension Scheme framed under Section 6-A of the Employees Provident Funds and Miscellaneous Provisions Act, 1952. Various prayers have been made in these writ petitions, some of which have been given up, but the principal question that arises for consideration pertains to interpretation of Clause 12 of the Employees Pension Scheme, 1995, as it was notified on 16/11/1995, in respect of which a clarificatory letter dated 10/05/1999, was issued by the respondent Ministry of Labour and subsequently Notification dated 15/06/2007, was issued amending the said clause of the Scheme retrospectively.

3. It is the contention of the petitioners that the aforesaid Pension Scheme framed on 16/11/1995, upon a proper interpretation, granted them and other such employees specific amounts of pension, taking into consideration past service, as well as actual service which was sought to be arbitrarily and illegally reduced by faulty interpretation on the part of the contesting respondents and the purported clarificatory amendment by way of Notification dated 15/06/2007. On this basis, the petitioners prayed for upholding the interpretation placed by them on the said unamended Pension Scheme as per Notification dated 16/11/1995, seeking quashing and setting aside of the letter of clarification dated 10/05/1999 issued by the Ministry of Labour, as also quashing and setting of the subsequent Notification dated 15/06/2007, which amended Clause 12 of the Scheme retrospectively.

4. It was submitted that such retrospective amendment could not take away the benefit that had already accrued to the petitioners and other such employees. On this basis, it was submitted that the pension payable to the petitioners be revised and arrears be paid with interest. As noted above, the petitioners gave up the prayer challenging the Constitutional validity of Section 7 of the aforesaid Act and they also gave up the prayer for grant of additional service weightage/benefit of two years while calculating pensionable service, as admittedly such benefits were already granted to the petitioners and all eligible employees.

5. On 01/04/1997, by exercising power under the said Act, the Central Government framed Family Pension Scheme. In 1996, Sections 6-A and 6-B were added to the aforesaid Act to enable the Central Government to frame an Employees Pension Scheme to provide for superannuation pension, retiring pension and permanent total disablement pension. On 15/11/1995, the Central Government exercised power under Sections 6-A and 7 of the aforesaid Act to frame the Employees Pension Scheme, 1995, which came into effect from 15/11/1995. The aforesaid Scheme defined various expressions including actual service, past service and pensionable service. All employees who were existing members of the Employees Family Pension Scheme, 1971, were eligible for the benefit of the aforesaid pension scheme framed in 1995. The Family Pension Scheme, 1971, stood repealed and for an employee who was a Member of the said scheme, eligible service under the Pension Scheme, 1995, was number of years of service prior to 15/11/1995 + the years of service rendered after 15/11/1995, till attaining the age of superannuation i.e. 58 years.

6. The entire controversy in the present petitions concerns interpretation of Clause 12 of the Pension Scheme, 1995. The contesting respondents placed a particular interpretation on the Pension Scheme, 1995 and payments were made accordingly, but, some employees had grievance that the interpretation placed by the contesting respondents on Clause 12 of the Pensi

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