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2010 Supreme(Mad) 3986

High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE N. PAUL VASANTHAKUMAR
Tamil Nadu Arasu Pokkuvarathu Madurai Thozhilalar Sangam & Another
Versus
The Government of Tamil Nadu, Chennai & Others
WRIT PETITION NOS. 4117, 4571 & 456 OF 2006, 31130 & 36941 OF 2005 & 10425 OF 2007 & connected Miscellaneous Petitions
Decided on : 07-09-2010

Advocates appeared:
For the Petitioners:V. Ajoy Khose, S. Balasubramanian, Advocates.
For the Respondents:R1 - R. Murali, Govt. Advocate, R2 - R. Singaravelan, R3 - V.R. Kamalanathan, Mrs. Rita Chandrasekar, T. Chandrasekaran, Advocates.

Headnote:

Pension - Family Pension Entitlement for Widows of Retired Employees - Tamil Nadu State Transport Corporation Pension Fund Rules - Rule 14(c), Rule 20 - The court held that the widows of the retired employees of the Transport Corporations, who got employment after serving in the Army/Navy/Air Force, are entitled to get family pension while receiving the military family pension. The court emphasized that the denial of family pension to the widows is unreasonable and in contravention of the Tamil Nadu Pension Rules, 1978 and Rule 14(c) of the Tamil Nadu State Transport Corporation Pension Fund Rules. The court also highlighted the constitutional significance of pension as a measure of socio-economic justice and emphasized that pension is not a bounty but a benefit earned by rendering long and efficient service.

Fact of the Case:

The widows of the retired employees of the Transport Corporations, who got employment after serving in the Army/Navy/Air Force, sought family pension from the respective Transport Corporation. The Transport Corporations had stopped the payment of pension to all workmen who retired after a certain date due to non-availability of exemption from the purview of income tax to the Tamil Nadu Transport Corporation Employees Pension Fund Trust. The widows' claims were rejected on the ground that the Rules do not provide for family pension to the widows of ex-servicemen. The petitioners contended that the action of the respondents was arbitrary, unreasonable, and in violation of the Rules and inhumane.

Finding of the Court:

The court found that the widows of the retired employees are entitled to receive family pension from the Transport Corporations, even though they are receiving military family pension after the demise of the pensioners. The court emphasized that the denial of family pension to the widows is unreasonable and in contravention of the Tamil Nadu Pension Rules, 1978 and Rule 14(c) of the Tamil Nadu State Transport Corporation Pension Fund Rules.

Issues: The main issue was whether the widows of the retired employees of the Transport Corporations, who got employment after serving in the Army/Navy/Air Force, are entitled to get family pension while receiving the military family pension.

Ratio Decidendi: The court held that the denial of family pension to the widows is unreasonable and in contravention of the Tamil Nadu Pension Rules, 1978 and Rule 14(c) of the Tamil Nadu State Transport Corporation Pension Fund Rules. The court emphasized that pension is not a bounty but a benefit earned by rendering long and efficient service.

Final Decision: The impugned orders were set aside and the writ petitions were allowed. The respondents were directed to sanction and pay family pension to the widows of the retired employees of the Transport Corporations as well as to the eligible persons. The concerned respondent was directed to release the family pension payable to the eligible family pensioners with arrears and continue to pay family pension as long as they are eligible to receive it.

Judgment

1. W.P.No.4117 of 2006 is filed by the Tamil Nadu Arasu Pokkuvarathu Madurai Thozhilalar Sangam and one Amsavalli, who is the widow of one Rathinasamy, employee of the Transport Corporation. The said Sangam also filed W.P.No.4571 of 2006. All other writ petitions are filed by petitioners, who are widow of the deceased employees, seeking family pension from the respective Transport Corporation.

.2. The prayer in these writ petitions are to quash the order of the first respondent dated 28. 2004 and the consequential order of the second respondent dated 28. 2004 and direct the respondents to pay monthly pension, commutation amount and family pension to the widow of the employees, who retired after attaining the age of superannuation and subsequently died.

3. Thecase of the petitioners is that the Sangam is a Trade Union registered under the Trade Unions Act, 1926 with Registration No.157/MDU. All the workmen employed in the State owned Transport Corporations demanded pension as given to the Tamil Nadu Government servants. The Transport Corporations considered the said demand and a settlement under Section 12(3) of the Industrial Disputes Act, 1947 was entered into on 12. 1999 between the Trade Unions and the Transport Corporations. Clauses 18 & 19 provide for pension with effect from 9. 1998. After the said settlement, Tamil Nadu Transport Employees Pension Fund Rules were framed and the second respondent-Trust was constituted to administer the Pension Fund as approved by the Government in G.O.Ms.No.135, Transport Department, dated 112. 2000. Thereafter, pension was disbursed to the employees, who were in service as on 9. 1998 and retired thereafter.

4. As per Rule 14(b) of the Tamil Nadu State Transport Corporation Pension Fund Rules, if a member is eligible for pension under any other scheme, pension payable under this Rule is the difference between the gross pension and the pension amount already received by the employee for the service with the previous employer or the pension eligible under the Rules, whichever is less, while calculating gross pension. The service rendered with previous employer should also be counted notionally.

5. According to the petitioners, when services rendered in the previous employment viz., Army, Navy and Air Force was not taken into account for fixation of pay at the time of initial recruitment as Ex-servicemen were recruited as fresh entrants, the respondents cannot rely on the pension payable from the previous employment to the disadvantage of the workmen, who are Ex-servicemen for calculating pension and therefore Rule 14(b) of the Rules was challenged in various writ petitions. Thereafter, Rule 14(b) of the Rules was amended by the Government incorporating Rule 14(c) through G.O.Ms.No.103, Transport Department dated 28. 2003. As per Rule 14(c) of the Rules, provision contained in Rule 14(b) of the Rules shall not apply in case of members, who are Ex-servicemen, drawing pension for military service. Therefore, it was recognised by the Department that the defence pension paid to Ex-servicemen will no way affect the right of their pension for their service rendered in Transport Corporations.

.6. According to the petitioners, the payment of pension by the Transport Corporations was stopped to all workmen who retired after 4. 2003 due to non-availability of exemption from the purview of the income tax to the Tamil Nadu Transport Corporation Employees Pension Fund Trust. The Union protested the said action and the first respondent issued a letter No.245, Transport Department, dated 212. 2004 and directed the Transport Corporations that the amount of pension and commutation of pension be disbursed immediately to the workmen, who retired voluntarily, medically discharged or expired on or after 4. 2003. The widows of the workmen, who are the petitioners in these writ petitions are not paid family pension and commutation of pension, even though the workmen were paid pension till their
































































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