IN THE HIGH COURT OF GAUHATI, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
HON’BLE MR. JUSTICE MANISH CHOUDHURY
Mukut Das, S/O- Lt. Madhab Chandra Das - Petitioner
Versus
The Assam Power Generation Corporation Ltd. And Ors. – Respondents
Writ Petition (Civil) 1607/2020
Decided On : 03-11-2022
PENSION - RETIREMENT BENEFITS - ASSAM STATE ELECTRICITY BOARD AND SUCCESSORS COMPANIES, REVISED PAY RULES, 2017 - The court interpreted the provisions of the Revised Pay Rules, 2017, particularly Rule 4a and Rule 321a & b, to determine the eligibility of the petitioner for pension and retirement benefits. The court concluded that the petitioner, having retired on 31.03.2016, should be classified under Rule 4a as he acquired the status of pensioner only on 01.04.2016. This interpretation influenced the decision to allow the petitioner’s claim for enhanced retirement benefits based on the revised pay structure.
Fact of the Case:
The petitioner, a retired General Manager of the Assam Power Generation Corporation Limited, filed a writ petition under Article 226 of the Constitution of India, claiming that his pension and retirement benefits were not disbursed according to his entitlements under the Revised Pay Rules, 2017, following his retirement on 31.03.2016.
Finding of the Court:
The court found that the petitioner was in service until 31.03.2016 and acquired the status of pensioner only on 01.04.2016. It ruled that the provisions of Rule 4a of the Revised Pay Rules, 2017 should apply to the petitioner, allowing for the calculation of his pension and retirement benefits based on the revised pay structure.
Issues: Whether the petitioner, who retired on 31.03.2016, is entitled to pension and retirement benefits under Rule 4a or Rule 321a & b of the Revised Pay Rules, 2017.
Ratio Decidendi: The court held that the petitioner, having retired on 31.03.2016, cannot be classified as an existing pensioner under Rule 321 and is entitled to benefits under Rule 4a, which applies to employees in service on that date.
Final Decision: The writ petition was allowed, directing the respondent authorities to recalculate the petitioner’s entitlements under the Revised Pay Rules, 2017, and disburse any enhanced amounts found due within six weeks.
JUDGMENT :
HON’BLE MR. JUSTICE MANISH CHOUDHURY
The petitioner has instituted this writ petition under Article 226 of the Constitution of India raising a grievance that his pension and other retirement benefits in the form of - [i] Commuted Value of Pension [C.V.P.]; [ii] Death –cum- Retirement Gratuity [DCRG]; and [iii] Leave Encashment Benefits – have not been disbursed in terms of his entitlements under the Assam State Electricity Board [ASEB] and Successors Companies, Revised Pay Rules, 2017.
2. The case projected by the petitioner in the writ petition, in brief, is that the Assam State Electricity Board [ASEB] was established in 1958 under the Electricity [Supply] Act, 1948. The ASEB used to manage generation, transmission and distribution of powers in the State of Assam as per the duties defined under the Electricity [Supply] Act, 1948. A process of reform was carried out and the ASEB was trifurcated into three new entities viz. [i] Assam Power Generation Corporation Limited [APGCL]; [ii] Assam Electricity Grid Corporation Limited [AEGCL]; and [iii] Assam Power Distribution Company Limited [APDCL]. All the new entities are State Public Sector Enterprises and are inter-alia governed by the provisions of the Indian Electricity Act, 2003.
2.1. It is the case of the petitioner that he joined the erstwhile ASEB in the year 1979 as an Assistant Engineer. During the course of his service period in the erstwhile ASEB and thereafter, with the successor entity, Assam Power Generation Corporation Limited [APGCL], he was promoted from time to time. In the year 2016, he was serving in the APGCL in the substantive post/grade of General Manager. By an Officer Order bearing no. ASEB/PLT/438/1979/268 dated 31.03.2016, the petitioner was released from service on 31.03.2016 on attaining the age of superannuation. On the date of his retirement on superannuation itself, another Office Order bearing no. MD/APGCL/PEN/M-16/180/23 dated 31.03.2016 was issued whereby sanction was accorded for pension, Commuted Value of Pension [C.V.P.], Retirement Gratuity, Family Pension, etc. in respect of the petitioner. As per the said Officer Order, the petitioner was to be paid pension @ Rs. 24,660/- per month w.e.f. 01.04.2016 prior to the date of drawal of 1/3 of C.V.P. and thereafter, @ Rs. 16,440/- per month till his death or restoration of full pension, whichever was earlier. Besides the pension, it was ordered that the petitioner was to be paid C.V.P. of Rs. 9,67,659/- and a retirement gratuity of Rs. 7,00,000/- as admissible under the Board’s Pension Rules, subject to adjustment of outstanding liability amounting to Rs. Nil as per No Demand Certificate.
2.2. It is the further case of the petitioner that consequent to his retirement on superannuation, the respondent Successor entities had published the Assam State Electricity Board and Successor Companies, Revised Pay Rules, 2017 [‘the Revised Pay Rules, 2017’, for short] by an Office Memorandum bearing no. MD/APDCL/PC/236/2017/45 dated 12.12.2017, whereby, the pay and allowances of the employees and pensioners of erstwhile ASEB and its Successor companies i.e. APDCL, APGCL and AEGCL came to be revised. Provisions have been made in the Revised Pay Rules, 2017 for revision of pay and allowances and pension of the employees and pensioners of erstwhile ASEB and three Successor companies including the petitioner. After coming into force of the Revised Pay Rules, 2017, the petitioner has been paid pension @ Rs. 61,160/- per month and the said figure has been worked out by the respondent authorities in terms of Clause 32[1][a] of the Revised Pay Rules, 2017. Aggrieved by the calculation worked out for pension in such manner by resorting to Clause 32[1][a] of the Revised Pay Rules, 2017 by the respondent authorities, the petitioner has approached this Court by this writ petition contending that the pension and other retirement benefits in respect of the petitioner in the form of C.V.P., DCRG, Leave Encashment Ben
An employee who retires on the last day of the month in which they attain superannuation acquires the status of pensioner only on the following day, thus affecting the applicability of pension rules.
Employees who retire before the implementation of revised pay rules cannot claim benefits under those rules; their entitlements must be determined according to the provisions applicable at the time o....
Employees who were in service on the effective date of revised pay rules are entitled to the benefits regardless of their technical retirement status, as per the interpretation of applicable rules.
The statutory force of rules, impermissibility of creating two classes of pensioners, and the discriminatory nature of the classification were the central legal points established in the judgment.
It is a well settled principle of law that statutory rules cannot be altered or amended by executive orders or circulars or instructions nor can they replace the statutory rules. The rules made under....
The reasonableness of the cut-off date for pension revision and the absence of unreasonableness in the respondent corporation's actions in fixing the cut-off date were the central legal points establ....
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