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2013 Supreme(Mad) 2058
HIGH COURT OF JUDICATURE AT MADRAS
S. NAGAMUTHU, J.
P. Giri
Versus
The Managing Director, Tamil Nadu Transport Corporation Villupuram & Another
W.P. No. 25451 of 2003
Decided on : 20-06-2013
For the Petitioner:S. Balasubramanian, Advocate.
For the Respondents:R1, Paramasivadosss, Advocate.
Interpretation of the Voluntary Retirement Scheme and Pension eligibility under administrative instructions.
Headnote:
Voluntary Retirement Scheme - Pension Eligibility - G.O (Ms) No.2010 Transport Department dated 03.11.1987, G.O(Ms).No.135 Transport (D) Department dated 15.12.2000 - Clause 16 of the Rules
Fact of the Case:
The petitioner, a driver, retired under the Voluntary Retirement Scheme but was denied pension for not attaining 50 years of age as on the date of retirement, despite having more than 20 years of service as required under the Scheme.
Finding of the Court:
The court found that the petitioner was eligible for Voluntary Retirement Pension as per the amended Scheme, and the rejection of his claim based on not attaining 50 years of age was unjustified.
Issues: The main issue was the eligibility for Voluntary Retirement Pension under the Scheme, specifically regarding the age requirement.
Ratio Decidendi: The court held that the Scheme should be interpreted to further the welfare measure intended by the government, and employees who had completed 20 years of qualifying service should be eligible for Voluntary Retirement Pension, irrespective of attaining 50 years of age.
Final Decision: The writ petition was allowed, the impugned order was set aside, and the respondents were directed to pay Voluntary Retirement Pension to the petitioner with interest.
1. The petitioner was a Driver under the respondent/Tamil Nadu Transport Corporation (Division – I), Villupuram. He retired from service under the Voluntary Retirement Scheme with effect from 30.04.2002. When he claimed pension under the Transport Corporation Employees Pension Fund, it was declined on the ground that he did not attain 50 years of age as on the date of his voluntary retirement though, he had put in more than 20 years of service as required under Clause 16 of the Pension Scheme. The order of rejection passed by the second respondent in his letter No.123/PE5/TNSTC(D-1) 2003 dated 06.02.2003, is under challenge in this writ petition.
2. The facts leading to this writ petition are as follows:-
The Government of Tamil Nadu issued G.O (Ms) No.2010 Transport Department dated 03.11.1987, introducing a special Scheme for voluntary retirement of employees of State Transport Undertakings. As per paragraph No.2 of the said Government Order, the eligibility for seeking voluntary retirement is 50 years of age and 20 years of service. To be precise, let me extract paragraph No.2 of the said Government Order as follows:-
“2. The Voluntary Retirement scheme is applicable to persons of 50 years of age and 20 years of service. However, the Board can relax this in special and deserving cases, particularly in respect of drivers. For every year of service left for the retiring personnel, a lump sum of Rs.5000/- per year will be paid.”
3. Subsequently, the Government issued letter No.11819/C2/00-13 dated 16.11.1990 thereby amending the above Government Order. As per the amended provision, the eligibility for voluntary retirement is 50 years of age and 15 years of qualifying service or 20 years of qualifying service. According to this amended provision, if a person has put in more than 20 years of qualifying service then, irrespective of his age as to whether he has completed 50 years of age or not, he is entitled for voluntary retirement.
4. The petitioner herein had put in more than 20 years of qualifying service. Therefore, he made a request on 26.02.2002 to the respondents offering to go on voluntary retirement. Admittedly, he had not attained the age of 50 years. Thus, the petitioner was fully qualified to seek voluntary retirement as per the said amended Scheme. Accordingly, the first respondent by his proceedings in Se.Mu.A.No.4764/Ni7/Tha Na A Po (V.Ko.1)/2002 dated 25.04.2002 permitted the petitioner to retire on voluntary retirement basis under the Scheme with effect from the afternoon of 30th April 2002. As per the said order of voluntary retirement, the petitioner was paid gratuity and other benefits.
5. At that time, when the petitioner retired from service, there was no provision for pension. Subsequently, the Tamil Nadu State Transport Corporation Employees Pension Fund was established with effect from 01.09.1998 as per G.O(Ms).No.135 Transport (D) Department dated 15.12.2000. Clause 16 of the said Rules provides for Monthly Members Pension. For the sake of convenience, the same is extracted below:-
“16. MONTHLY MEMBER’S PENSION:-
a) Pensionable salary shall be the last drawn basic pay.
i) Superannuation Pension, if he has rendered a qualifying service of 10 years or more and retires on attaining the age of 58 years if the retirement age that may be fixed by the employer.
ii) Voluntary Retirement Pension, if he has rendered a qualifying service of 20 years or more and attained the age of 50 years.
b) In the case of exit of an employee, the amount of monthly superannuation pension or retiring pension, as the case may be, shall be computed in accordance with the following formula namely:
Monthly Member’s Pension = Pensionable salary (50% of last drawn basic pay*) x Pensionable service **/30 * Basic pay includes Personal Pay ** The pensionable service shall be restricted to 30 years
c) Except as otherwise expressly provided hereinafter the monthly members pension under sub-paragraph (b) mentioned above
