Abrupt stoppage of dearness relief on pension for pre-repeal corporate scheme retirees invalid; constitutes arbitrary action dehors scheme and CCS Rules 55-A, violative of natural justice and vested rights; must be restored with parity to other beneficiaries.

JUDGMENT :

Ranjan Sharma, J.

Petitioner, L.R. Kaundal and 50 others having retired from service of Himachal Pradesh State Handicraft and Handloom Corporation, filed an Original Application No. 5325 of 2016 before State Administrative Tribunal and upon abolition of Tribunal, the matter came to be transferred to this Court, as CWPOA No.332 of 2020, seeking the following reliefs:-

“(i). That the impugned communications dated 19.1.2016 and 17.2.2016 between the Respondents No. 1 and 2 wherein respondent No1 has restricted its liability to the extent of statutory pension only by releasing part of grant in aid to the extent of Rs. 40 lakhs instead of Rs. 87,61,695/- and further directing the respondent Corporation No.3 to consider the case for release of enhanced dearness relief from time to time to its retiree being illegal, violative to Pension Scheme (Annexure A-1) and CCS Pension Rules be declared void abinitio, and hence set aside. Further respondent No.1 i.e. department of finance, Government of H.P. be directed to release entire grant in aid so that the arrears of dearness allowance for the period with effect from July, 2015 to March, 2016 be disbursed to the applicants by respondent Corporation alongwith interest from the date of entitlement till its realization.
(b) That the case of the applicants is squarely covered by the judgment passed by the Hon'ble High Court in CWP(T) No. 6604 of 2008 and OA No. 1395 of 2016 and hence in accordance with the directions passed in these cases the applicants be made entitled for full pension and respondent No.1 be directed to make necessary provisions for grant in aid so that arrears of dearness allowance for the period with effect from July, 2015 to March, 2016 be released in their favour.
(c) Further, the respondent No. 1 i.e., Department of Finance be issued with necessary directions for releasing of Grant in aid in favour of respondent Corporation No. 3 so that necessary arrangements be made for the issuance of full pension in favour of applicants i.e., Statutory Pension and Dearness relief from April, 2016 till date.”

FACTUAL MATRIX:
2. Case set up by Learned Counsel for petitioners is that on 29.10.1999 [Annexure A-1], the State of Himachal Pradesh notified a Scheme The Himachal Pradesh Corporate Sector Employees (Pension, Family Pension, Computation of Pension and Gratuity) Scheme 1999 and the Scheme was made applicable from 01.04.1999. This Scheme remained in force till its repeal on 02.12.2014 [Annexure A-2]. In the backdrop of said scheme, the case of the petitioners is that they are the retirees of the Respondent No 3-Himachal Pradesh State Handicrafts and Handloom Corporation, who retired from service during the operation and continuance of said scheme w.e.f. 01.04.1999 till 02.12.2004. It is averred that the petitioners had opted for pensionary benefits in terms of the scheme. Based on the Scheme, the Respondent No. 3-Corporation released the pensionary benefits to petitioners from the date of their respective retirements and family pension in cases of death of an employee from time to time. It is averred that the pensionary benefits included release of dearness relief on pension and the same was duly released to the petitioners inaccordance with CCS (Pension) Rules 1972 and the mandate and intent of 1999 Scheme. It is averred that Principal Secretary [Industries] issued a communication on 19.01.2016 [Annexure A-3], directing Respondent No.3-Corporation that, in case, the Corporation does not have a corpus to make the recurring payments of dearness relief on pension in view of the non-availability of funds, therefore, the Respondent-Corporation was directed to examine the matter at its own level. It is averred that the communication dated 17.02.2016 [Annexure A-4] indicates that 58 employees have retire