The central legal point established in the judgment is that the State is responsible for paying pensionary benefits to employees, regardless of the financial condition of the Corporation.

1. Petitioners (pensioners) appear to have been clamouring for getting the arrears and pensionery benefits on the basis of revised pay fixable on the basis of sanctioned 43 installments of COLA. In principle claim of the petitioner is not denied but stand of the respondent No. 4 is that it is to be paid by the respondent No. 1, 3 & 5 out of its own resources and in the process petitioners are caught, resultantly their retiral life has been made painful.

2. Contention of the petitioners that it is respondents No. 1 to 3 who have to release the funds, is also supported by respondent No. 4 (Managing Director, J&KSRTC, Srinagar). Respondents No. to 3 and 6 have not chosen to file any reply whereas respondents No. 4 and 5 have separately filed their objections.

3. Factual background has to be precisely noticed:-

(I) Petitioners were on the establishment of Government Transport Undertaking, same was converted into J&K State Road Transport Corporation in the year 1976. The claims/terms and conditions of its employees were required to be settled in terms of Cabinet Decision No. 51 dated 19th of February, 1979. As a result thereof, formal Government Order No. 25-TR of 1979 dated 27th of March, 1979 was issued, in terms whereof, employees of the Government Transport Undertaking were taken on deputation in the State Road Transport Corporation. It was also provided therein that the employees of the Government Transport Undertaking, who were holding permanent status or were holding quasi-permanent status of five years on the date of formation of Transport Corporation, have the option either to retain pensionery benefits available to them under Government Rules or to be governed by the rules of the Transport Corporation. In pursuance to the said Govt. order petitioners claim that it is the responsibility of the government i.e. respondent Nos. 1 to 3 and 5 to pay all the arrears to the petitioners who were permanent employees born on the establishment of Government Transport Undertaking and were holding status of permanent Government employees till their retirement.

(II) The respondent State vide Cabinet Decision No. 197 dated 22nd April, 1980, while accepting recommendations of the Wage Review Committee for Public Sector Enterprises, issued Order No. 19-GR of 1980 dated 26.4.1980 in pursuance whereof rate and scale of DA including Cost of Living Allowance (COLA) was fixed for different scales of the employees including the State Road Transport Corporation. Accordingly petitioners were receiving the said benefits till January, 1999 and it is from January, 1999 the arrears as are due to the petitioners have not been released despite having made repeated requests.

(III) Financial Advisor/CAO, Transport Department, vide its letter dated 24th of August, 2005 had asked the respondent No. 4 (Managing Director) to furnish the formal proposal along with financial implications of such staff retired as well as likely to retire in next five years working in Jammu and Kashmir State Road Transport Corporation.

(IV) On 7th of February, 2006 in terms of the communication, Accounts Officer (Codes) Finance Department had called for detailed financial implications so that the proposal is processed in the Finance Department.

(V) 34 slabs of COLA were duly sanctioned by J&K SRTC Board in its 64th meeting along with other benefits like leave salary, pay arrears as well as gratuity which the respondent No. 5 has not release in favour of the petitioners.

(VI) The respondent No. 4 vide its letter dated 28th of June, 2006, addressed to Director (Codes) Finance Department indicated that COLA benefits have been partly released with the result remaining slabs are still unpaid with other benefits of leave salary. (VII) Non response made the petitioners to file memorandum to the Chairman, J&K SRTC. In the meantime respondent No. 4 (Managing Director) on 13.4.2007 in categoric terms clarified that in terms of Govt. order No. 25-TR of 1979 the petitioners are entitled to all servi

Click Here to Read the rest of this document