Important Points:
" The Development Officers who have resigned and whose services have been terminated prematurely form a class by themselves who can be excluded from the benefit of pay revision. Such a stand taken by the LIC consciously falls in the realm of policy decision in the larger interest of its administration and the same is not arbitrary or unconstitutional by any means.
" An employee can resign at any point of time, even on the second day of his appointment but in the case of retirement he retires only after attaining the age of superannuation or in the case of voluntary retirement on completion of qualifying service.

Chitambaresh, J.

The respondent while working as a Development Officer in the Life Insurance Corporation of India ('LIC' for short) had tendered his resignation from the post on 7.4.2005 which was accepted on 31.5.2005. LIC later issued Ext.P6 instructions in consonance with the Life Insurance Corporation of India Development Officers (Revision of Terms and Conditions of Service) Amendment Rules, 2005. Ext.P6 instructions inter alia specified the date of notification as 5.9.2005 and revised the pay scale of the employees providing 'equitable relief' for the period from 1.8.2002 to 31.3.2005. The benefit was extended to the Development Officers who were in the whole time salaried service as on 1.8.2002 and have joined in the permanent establishment thereafter. However those Development Officers whose resignation had been accepted on or before the date of notification (irrespective of whether they are relieved or not) were excluded. Similarly those Development Officers whose services had been terminated during the period between 1.8.2002 and 5.9.2005 were declared ineligible for the pay revision arrears.

2. The respondent contended that there is no rationale in denying him the benefit on account of his resignation when the 'equitable relief' was provided for the period from 1.8.2002 to 31.3.2005. The respondent asserted that he was in the whole time salaried service during this period and should not be denied the benefit as the resignation was tendered and accepted later. The respondent pointed out that the net benefits of the pay revision have even been allowed to the Development Officers who retired from service or died on or after 1.8.2002. The respondent added that it is atrocious to treat the Development Officers who have resigned and whose services have been terminated at par in the release of the benefit. The above arguments found favour with the learned single Judge who quashed Ext.P6 instructions in part and directed the disbursement of the pay revision benefit to the respondent. The LIC, its Chairman and the Divisional Manager are in appeal contending that the exclusion of the Divisional Officers who had resigned from the pay revision benefit is not at all arbitrary.

3. We heard Mr C. Varghese Kuriakose, Advocate on behalf of the appellants, Mr S. Radhakrishnan, Advocate on behalf of the respondent as well as Mr S. Easwaran, Advocate as amicus curiae in the case.

4. The relevant part of Ext.P6 instructions which decides the eligibility of a Development Officer to receive the benefit of pay revision for the period from 1.8.2002 to 31.3.2005 is as follows:

“3. ELIGIBILITY

(1) These instructions shall apply to the Development Officers who were in the whole time salaried service in the permanent establishment of the Corporation as on 1.8.2002 and those who have joined the whole time salaried service in the permanent establishment of the Corporation after that date.

Provided, however, that those Development Officers whose resignation had been accepted on or before the date of notification irrespective of whether they are relieved or not or whose services had been terminated under LIC of India Development Officers (Revision of Terms and Conditions of Service) Rules, 1989 or Rule 39 of Life Insurance Corporation of India (Staff) Rules, 1960, during the period between 1.8.2002 and 5.9.2005 (both days inclusive) shall not be eligible for the arrears on account of this revision.

Provided further that the net benefits there under may be allowed to Development Officers who retired from service or died on or after 1.8.2002 as if they were governed by the Amended revision rules.

(2) For removal of doubt, it is clarified that the Amended Revision Rules and these instructions shall not apply to:

(i) Apprentice Development Officers;

(ii) Development Officers whose services have been terminated under Rule 39 of the Life Insurance Corporation of India (Staff) Rules, 1960 on or before the date of notification; and

(iii) Development Officers