2010 Supreme(Raj) 48
HIGH COURT OF RAJASTHAN
M. N. BHANDARI, J.
KRISHNA MURARI LAL ASTHANA
Versus
UNION OF INDIA
S. B. Civil Writ Petition Nos. 6676 of 1998 and 654 of 2007,
Decided On : JANUARY 12, 2010
Subject
Pension Law - DISCRIMINATION
Act Referred
Headnote
Writ petition allowed.
( 1 ) THESE two writ petitions involve common issues, thus are being heard and decided by this order.
( 2 ) THE petitioners are those who retired from the service of Life insurance Corporation of India (for short 'the LIC of India' ). First ground raised by the petitioners and common in both the writ petitions is regarding discrimination in grant of pensionary benefits. It is stated that on 28. 6. 1995, LIC of India (Employees) Pension Rules, 1995 (for short 'the Pension Rules') were notified. The Pension Rules were made applicable to the employees, who were in service of the respondent Corporation on or after 1. 1. 1986, on their exercising options to be governed by the Pension Rules and refunding the contribution of provident fund with interest. For those employees, who retired after 28. 6. 1995, the Pension Rules were made compulsory. Chapter - IV of the pension Rules provides rates of pension. Rule 35 (2) of the Pension Rules provides that if an employee, has completed qualifying service of not less than 33 years, then his pension would be 50% of the average emoluments. The grievance of the petitioners is in regard to the grant of dearness allowance, inasmuch as, dearness allowance benefit has been attached on the basic pension and not on the basic pay. To clarify the above, it is submitted that benefit of dearness allowance after revision of the pay scale in the year 1996 was provided as under:-
"dearness formula" basic Pay rate of DA for every 4 points i)Upto Rs. 4800 0. 35% of pay ii)Rs. 4801 to 7700 0. 25% of 4800 plus 0. 29% of pay in excess of Rs. 4800 iii)Rs. 7701 to 8200 0. 35% of 4800 plus 0. 29% of difference between Rs. 7700 and Rs. 4800 plus 0. 17% of pay in excess of Rs. 7700 iv)Rs. 8201 and above 0. 35% of Rs. 4800 plus 0. 29% of difference between Rs. 7700 and Rs. 4800 plus 0. 17% of difference between Rs. 8200 and Rs. 7700 plus 0. 09% of basic pay in excess of Rs. 8200
( 3 ) AFORESAID formula was available till Pension Rules came in the year 1995. Under the Pension Rules, the benefit of dearness allowance was provided in the following manner:-Scale of Back pension per month rate of dearness relief as a percentage of basic pension upto Rs. 2400 0. 35% ii)Rs. 2401 to 3850 0. 35% of Rs. 2400 plus 0. 29% of basic pension in excess of Rs. 2400 iii)Rs. 3851 to 4100 0. 35% of Rs. 2400 plus 0. 29% of the difference between Rs. 3850 and Rs. 2400 plus 0. 17% of basic pension in excess of Rs. 3850 iv)Above Rs. 4100 0. 35% of Rs. 2400 plus 0. 29% of difference between Rs. 3850 and Rs. 2400 plus 0. 17% of the difference between Rs. 4100 and Rs. 3850 plus 0. 09% of basic pension in excess of Rs. 4100
( 4 ) IN view of the aforesaid, benefit of dearness allowance at the first step being 0. 35% remains upto basic pension of Rs. 2400/- only whereas aforesaid percentage of dearness allowance is allowed on the basic pay upto Rs. 4800/ -. To understand the aforesaid difference, a comparative chart was submitted by the petitioners, which is quoted hereunder:-"comparative Chart" pay upto rate of DA/dr pension 1 Upto 4800 0. 35% of pay upto 2400 1 From 4801 to 7700 0. 29% of pay from 2401 to 3850 from 7701 to 8200 0. 17% of pay from 3851 to 4100 1 Above 8200 0. 09% of pay above 4100
( 5 ) PERUSAL of the aforesaid Chart shows that increase in the DA/dr was less for the pensioners because the benefit of DA/dr was reduced to the extent of 50% on proportion basis from the basic pay as an employee having qualifying pensionable service of 33 years or more gets 50% of. the pay as pension.
( 6 ) LEARNED counsel for petitioners prayed that slab of dearness allowance should be kept the same as is payable to the employees. In other words, it should not be reduced proportionately to the basic pension. Thus, first grievance of the petitioners is in regard to reduction of benefit of dearness allowance.
( 7 ) THE other issue raised in S. B. Civil Writ Petition No. 6676/1998 - Krishna murari Lal Asthana vs. Union of India and Others perta