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2016 Supreme(Del) 4076

IN THE HIGH COURT OF DELHI AT NEW DELHI
SANJIV KHANNA & SUNITA GUPTA, JJ.
LIFE INSURANCE CORPORATION OF INDIA – Petitioner
Versus
KRISHNA MURARI LAL ASTHANA & OTHERS – Respondents
W.P. (C) Nos. 3983, 3984, 4894, 5868, 5903, 9440, 9441, 9442 of 2016 & 184 of 2007
Decided On : 11-11-2016

Advocates Appeared:
For the Petitioners: Mr. Tushar Mehta with Mr. Dayan Krishnan, Mr. Ashok Panigrahi and Mr. Surajit Bhaduri.
For the Respondent: Mr. Kumar Gaurav.

The main legal point established in the judgment is the interpretation and compliance of the interim directions given by the Supreme Court, particularly in relation to the Life Insurance Corporation Act, 1956, and the Life Insurance Corporation of India (Employees) Pension Rules 1995.

Headnote:

Compliance - Life Insurance Corporation of India - Life Insurance Corporation Act, 1956, Section 48 - The judgment discusses the compliance of interim directions given by the Supreme Court in paragraph 27 of their judgment and order dated 31st March, 2016 passed in Civil Appeal Nos. 8959-8962/2013 titled LIC of India & Others Vs. Krishna Murari Lal Asthana & Another and other connected appeals. The controversy relates to the compliance of the interim directions of payment given in paragraph 27 of the order dated 31st March, 2016 passed by the Supreme Court. The judgment also interprets and discusses the provisions of the Life Insurance Corporation Act, 1956, particularly Section 48, and its implications on the compliance of the interim directions.

Fact of the Case:

The controversy relates to the compliance of the interim directions of payment given in paragraph 27 of the order dated 31st March, 2016 passed by the Supreme Court. The petitioner, Life Insurance Corporation of India, and the retired employees or associations of retired employees of the Corporation, are the main contesting parties. The dispute arose from the interpretation and compliance of the Life Insurance Corporation Act, 1956, particularly Section 48, and the Life Insurance Corporation of India (Employees) Pension Rules 1995.

Finding of the Court:

The court found that the respondent Corporation had complied with the interim order passed by the Supreme Court. The judgment discusses the computation and implementation of the interim order and directions of the Supreme Court, particularly regarding the payment of 40% to each employee within six weeks as per paragraph 3A of Appendix IV of the 1995 Rules. The court also clarified that the direction did not mandate an enhancement of the basic pension by 40% and rejected the contention of the retired employees and associations in this regard.

Issues: The main issue was the compliance of the interim directions of payment given in paragraph 27 of the order dated 31st March, 2016 passed by the Supreme Court. Additionally, the interpretation and implementation of the Life Insurance Corporation Act, 1956, and the Life Insurance Corporation of India (Employees) Pension Rules 1995 were also key issues in the case.

Ratio Decidendi: The court's decision was based on the finding that the respondent Corporation had complied with the interim order passed by the Supreme Court. The judgment also clarified the scope of the interim order, particularly regarding the payment of 40% to each employee within six weeks as per paragraph 3A of Appendix IV of the 1995 Rules. The court rejected the contention that the basic pension should be enhanced and increased by 40%, emphasizing that paragraph 3A of the Appendix IV deals only with Dearness Relief and not the basic pension.

Final Decision: The court held that the respondent Corporation had complied with the interim order passed by the Supreme Court.

JUDGMENT :

SANJIV KHANNA, J.

1. This order will decide the controversy relating to compliance of the interim directions given by the Supreme Court in paragraph 27 of their judgment and order dated 31st March, 2016 passed in Civil Appeal Nos. 8959-8962/2013 titled LIC of India & Others Vs. Krishna Murari Lal Asthana & Another and other connected appeals. By the subsequent order dated 31st August, 2016, the Supreme Court had observed that if there be any dispute with regard to the quantum i.e. the quantum payable in terms of paragraph 27 of their order dated 31st March, 2016, it would be addressed by the High Court.

2. For deciding the present controversy, i.e. whether or not there has been compliance of the interim directions of payment given in paragraph 27 of the order dated 31st March, 2016 passed by the Supreme Court, we are only required to notice limited facts.

3. The petitioner before us in W.P. (C) Nos. 9440 and 9442 of 2016 is the Life Insurance Corporation of India, and in the remaining petitions are the retired employees or associations of retired employees of the Life Insurance Corporation of India (Corporation for short), who is the main contesting respondent along with the Union of India.

4. In exercise of power conferred by Section 48 of the Life Insurance Corporation Act, 1956, the Central Government has framed the Life Insurance Corporation of India (Employees) Pension Rules 1995 (1995 Rules for short). Rule 37 of the 1995 Rules relates to Dearness Relief, payable to the retired employees. Appendix 4 to the 1995 Rules, reads as under:

“Dearness relief on basic pension shall be as under:

(1) In the case of employees who retired on or after the 1st day of January, 1986, but before the 1st day of November, 1993, dearness relief shall be payable for every rise or be recoverable for every fall, as that case may be of every 4 points over 600 points in the quarterly average of the All India Average Consumer Price Index, for Industrial Workers in the series 1960 = 100. Such increase or decrease in dearness relief for every said four points shall be calculated in the manner given below:-

Scale of basic pension per month

The rate of dearness relief as a percentage of basic pension

(i) upto Rs.1250/-

0.67 per cent

(ii) Rs.1251/- to Rs.2,000/-

0.67 per cent of Rs.1250 plus 0.55 per cent of basic pension in excess of Rs.1250/-

(iii) Rs.2001/- to Rs.2130/-

0.67 per cent of Rs.1250/- plus 0.55 per cent of the difference between Rs.2000/- and Rs.1250/- plus 0.33 per cent of basic pension in excess of Rs.2000/-

(iv) above Rs.2130/-

0.67 per cent of Rs.1250/- plus 0.55 per cent of the difference between Rs.2000/- and Rs.1250/- plus 0.33 per cent of the difference between Rs.2130/- and Rs.2000/- plus 0.17 per cent of basic pension in excess of Rs.2130/-

(2) In the case of employees who retire on or after the 1st day of November, 1993, dearness relief shall be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over 1148 points in the quarterly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960 = 100. Such increase or decrease in dearness relief for every said four points shall be calculated in the manner given below:-

Scale of basic pension per month

The rate of dearness relief as a percentage of basic pension

(i) upto Rs.2400/-

0.35 per cent

(ii) Rs.2401 to Rs.3850/-

0.35 per cent of Rs.2,400/- plus 0.29 per cent of basic pension in excess of Rs.2,400/-

(iii) Rs.3,851 to Rs.4,100/-

0.35 per cent of Rs.2,400/- plus 0.29 per cent of the difference between Rs.3,850 and Rs.2,400/- plus 0.17 per Page 88 cent of basic pension in excess of Rs.3,850/-

(iv) above Rs.4,100/-

0.35 per cent of Rs.2,400/- plus 0.29 per cent


































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