The main legal point established in the judgment is that employees compulsorily shifted to a corporation based on statutory provisions are entitled to claim parity with State Government employees, and the corporation and State Government are obligated to address pension disparities and apply relevant circulars to ensure equitable treatment of retirees.

Rajasekhar Mantha, J.

1. The writ petitioner is aggrieved by receipt of lesser amount of pension compared to similarly situated persons in the State Government as well as the other Transport Corporations in the State of West Bengal, namely, SBSTC, CSTC etc.

2. The writ petitioner joined the service of the Government of West Bengal in the State Transport Department, Cooch Behar as a cashier on 27th June, 1959.

3. Thereafter, on an assurance contained in the Road Transport Corporation Act of 1959 at Section 3F, the petitioner’s service was shifted mandatorily to the North Bengal State Transport Corporation (NBSTC).

4. The NBSTC until 1990 only had a Provident Fund Scheme. Upon a Pension scheme being introduced, in or about June, 1992, the writ petitioner opted for pension under the NBSTC Pension Regulations. The writ petitioner retired from service on attaining superannuation on 31st July, 1994. However, the amount of pension paid to him came to be less as benefits under 4th Pay Commission were not allowed to the employees of NBSTC and a large number other State Government and State Transport Corporation, who retired prior to 1996. The said Pre-1996 retirees were however allowed the 5th Pay Commission benefits and subsequent Pay Commissions.

5. With a view to address the anomaly and disparity between those employees who received benefits under the 4th Pay Commission and those who did not, the State Government introduced a special measure vide Memorandum dated 27th October, 1998. Under the said Circular at Clause 4.1, the State Government ordered consolidation of pension/family pension of the pre-1996 employees with certain additional amounts.

Clause 4.1 of the said memorandum is set out herein-below:-

“4.1 The pension/family pension of existing pre-1996 pensioners/family pensioners will be consolidated w.e.f. 1.4.1997 by adding together:

(i) Existing pension/Family Pension.

(ii) Existing relief on pension/Family Pension.

(iii) First Interim Relief sanctioned under Memo No. 1474-F(Pen) dated 16.1.1995.

(iv) Second Interim Relief sanctioned under Memo No. 530-F(Pen) dated 1.4.1997.

(v) An amount equivalent to 40% of the existing pension/family pension.”

6. Since the writ petitioner and 369 other employees of NBSTC were not receiving the benefit of the aforesaid Circular dated 27th October, 1998 and their pension continued to remain at a much lower scale, two Writ petitions were filed before this Hon’ble Court. The said Writ Petitions were numbered as W.P. Nos. 7346 (W) and 7347 (W) of 2003. By an order dated 7th March, 2008 passed by a Co-ordinate Bench of this Court, the said Writ Petitions were disposed of, directing the NBSTC to conduct an enquiry to ascertain the reasons for such anomaly or discrepancy in pension payable to the said pre 1996 employees, as opposed to that being received by other similarly situated State Government employees and employees of other Transport Corporations.

7. Pursuant to such order, an enquiry was conducted by the Chairman and Managing Director of the employer, NBSTC and it was found that the said 1998 Circular should have been applied to the said pre 1996 retirees like the writ petitioner. It is not disputed that such consolidation has also been done as per the said 1998 Circular and or similar measures to employees of other State Transport Corporations, namely, SBSTC and CSTC.

8. Accordingly, by several letters, inter-alia, dated 8th November, 2005, 8th February, 2006, 28th March, 2006, 23rd April, 2007 and 16th June, 2008, the Managing Director of the Corporation found inter-alia the writ petitioner and about 369 other pre 1996 retirees were entitled to the benefit of either the 4th Pay Commission and/or the aforesaid Circular dated 27th October, 1998. After recalculating the actual pensionary benefits payable to such persons the said NBSTC prayed for release of funds from the State Government. The State Government has however not released any funds to the employer, NBSTC, due to paucity of funds.

9.