2008 Supreme(Ker) 126
Judgename : V.GIRI
Central Government Pensioners Association - Appellant
Versus
Union of India - Respondents
Case No : W.P.(C) No.23282 of 2005
Decided On : 02/22/2008
Headnote:
Central Civil Services (Commutation of Pension) Rules, 1981 - Rules 5, 8 and 10 - The Vth Pay Commission made a recommendation that commutation of pension should be restored after 12 years instead of 15 years but same was not accepted by Government though other recommendations were accepted - Government contended that recommendations were not binding on it and not mandatory to accept it and due to administrative and financial reasons, it could not be accepted - No reasons have been disclosed for the same hence it was challenged - Held, A reasoned order may be passed in this regard by the first respondent after hearing a representative of the petitioner - The Government shall take note of the observations made in this judgment - Writ Petition is disposed of.
1. The issue, which has impact on the quantum of pension drawn by the Central Government pensioners, who had exercised their option for receiving a lumpsum amount on computation of a percentage of pension admissible to them, is involved in this Writ Petition. Since the adjudication of the issue would also involve the service conditions of those pensioners whose service related disputes are cognizable by the Central Government Administrative Tribunal constituted under the Administrative Tribunals Act, an affidavit was filed by the petitioner in support of I.A. No.12599/2005 seeking permission of the Court to confine the reliefs sought for in the Writ Petition to those Central Government pensioners who will not come within the purview of the Central Administrative Tribunal constituted under the Administrative Tribunals Act, 1985. Such permission was granted on 30.9.2005 and thereafter the Writ Petition was proceeded with. A counter-affidavit was filed on behalf of respondents. By consent of parties the Writ Petition has been taken up and disposed of.
2. I heard learned counsel for the petitioner Sri. Anil K. Narendran and Sri. T. Sanjay, learned Central Government Standing Counsel on behalf of the respondents.
3. The petitioner is an Association of Central Government Pensioners in Kerala registered under the Travancore Cochin Literary, Scientific and Charitable Societies Registration Act. One of the main objects of the association is to protect, promote and safeguard the interests and welfare of the Central Government pensioners and retirees from Central Government public sector undertakings and to work for the common betterment of all Central Government pensioners, in the economic and social spheres. The petitioner seeks to approach this Court essentially aggrieved by the inaction on the part of the Central Government in ordering restoration of the commuted portion of the pension of the Central Government pensioners after 12 years of commutation as recommended by the 5th Central Pay Commission instead of 15 years as is being presently done. The right of the Central Government Pensioner (hereinafter referred to as the Pensioner for the purpose of this case) to commute portion of the pension drawn by him is provided under the Central Civil Services (Commutation of Pension) Rules, 1981 (hereinafter referred to as the Rules),
4.R.5 of the Rules is extracted hereunder:
"Limit on commutation of pension.-- (1) A Government servant shall be entitled to commute for a lumpsum payment of an amount not exceeding forty per cent of his pension."
4. R.8 of the Rules provided that "the lumpsum payable to an applicant shall be calculated in accordance with the table of the values prescribed from time to time and applicable to the applicant on the date on which the commutation becomes absolute." As per the Government of India decision under R.10 of the Rules, those Central Government pensioners who have commuted a portion of their pension and on 4.1985 or thereafter have completed or will complete 15 years from their respective dates of retirement will have their commuted portion of pension restored. It is accordingly that a pensioner who receives a lumpsum amount after availing the facility of commutation of pension in terms of R. 5 of the Rules is entitled to restoration of the pension after a period of 15 years. The commutation values for a pension of Rs.1 p.a., is given in the table at the end of the Rules. The commutation value is expressed as number of years of purchase, which is variable, with reference to the age of pensioner. An illustration given by the petitioner by hypothetically treating an amount of Rs.510/ - as the pension offered for commutation, being 40% of the pension admissible to the pensioner and relatable to the age of retirement from 58 to 60 is given hereunder:
Amount of pension offered for commutation @ 40% Age of retirement No. of years of purchase Lumpsum payable Recovery for 15 years Recovery for 12 year