Re-employed pensioners are not entitled to dearness relief during re-employment, and misrepresentation regarding entitlement disqualifies them from equitable relief against recovery of excess payments.

JUDGMENT :

C. HARI SHANKAR, J.

1. The petitioner, who was working as Assistant Director (Metallurgy) in the Ministry of Micro, Small and Medium Enterprises, [“the MSME” hereinafter], on being selected in the RITES, [Rail India Technical and Economic Service] as Deputy Manager (M & C), tendered his technical resignation from the MSME on 3 May 2007 and joined RITES on 4 May 2007. He was later absorbed in RITES with effect from 4 May 2007, the date of his joining.

2. On 5 September 2013, the Central Pension Accounting Office, [“CPAO” hereinafter, and Respondent 2 herein] Ministry of Finance, issued a Pension Payment Order, [PPO], computing the pension payable to the petitioner consequent on the service rendered by him in the MSME. Note 3 at the foot of the PPO read thus:

“3. DR, [Dearness Relief] is Admissible on Basic Pension and Additional Pension if any.”

3. Though DR is ordinarily payable on pension, Mr. Mohanty, who appears for the petitioner, does not dispute the position that DR would not be admissible to a pensioner who takes re-employment elsewhere, as per Office Memorandum, [OM] dated 2 July 1999 issued by the Department of Pension & Pensioners’ Welfare, [DOPPW], in terms of the recommendations of the 5^th Central Pay Commission, the relevant clauses of which read thus:

“3. These recommendations have been considered and accepted by the Government. The President is accordingly pleased to decide as follows:

(a) In so far as re-employed pensioners are concerned, the entire pension admissible is to be ignored at present only in the case of those civilian pensioners who held posts below Group ‘A’ and those ex-servicemen who held posts below the ranks of Commissioned Officers at the time of their retirement. Their pay, on re-employment, is to be fixed at the minimum of the pay scale of the post in which they are re-employed. Such civilian pensioners will consequently be entitled to Dearness Relief on their pension in terms of the recommendations of the 5^th Central Pay Commission at the rates applicable from time to time.

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4. (II)(a) In the case of Central Government pensioners who were/are re-employed under the Central Government or the State Government or a Corporation/Company/Body/Bank including an autonomous organisation under them in India or abroad or had/have been permanently absorbed in such corporation/company/body/bank or autonomous organisation, dearness relief will now be admissible to such of those re-employed pensioners who satisfy the conditions referred to in para 3(a) above. …

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(III)(d) In all other cases of re-employed pensioners, no dearness relief shall be admissible on pension during the period of their re-employment. Payment of dearness relief in these cases shall become admissible only with effect from the date they cease to be re-employed.”

Rule 55-A of the Central Civil Services (Pension) Rules, 1972, was also suitably amended by inserting, therein, clause (ii). As amended, Rule 55-A read:

“55-A. Dearness Relief on Pension/Family Pension

(i) Relief against price rise may be granted to the pensioners and family pensioners in the form of dearness relief at such rates and subject to such conditions as the Central Government may specify from time to time.

(ii) If a pensioner is re-employed under the Central or State Government or a Corporation/Company/ Body/ Bank under them in India or abroad including permanent absorption in such Corporation/Company/Body/Bank, he shall not be eligible to draw dearness relief on pension/family pension during the period of such re-employment.”

4. While employed with RITES, the petitioner had to submit a Declaration regarding drawal, by him, of DR on Pension. In the said declaration, while filling in all the formal details, in respect of the drawal, by him, of DR on Pension, the petitioner submitted thus: