2009 Supreme(Mad) 5874
IN THE HIGH COURT OF MADRAS
N. Kirubakaran, J.
James Jeyachandran - Appellant
Vs.
Managing Director, Tamil Nadu State Transport Corporation, Villupuram Division-Iii Limited And Another - Respondent
Writ Petition No. 7594 of 2003
Decided On : 19-11-2009
For the Appellant : S.G. Jeremiah
For the Respondent: V.R. Kamalanathan
Ex-servicemen are exempt from the deduction of military pension from the gross pension under Rule 14(c) of the Employees Provident Fund and Pension Rules.
Headnote:
Pension - Deduction of Military Pension - Rule 14(b) of Employees Provident Fund and Pension Rules - Rule 14(c) - [Rule 14(b), Rule 14(c)] - The court discussed the application of Rule 14(b) and the introduction of Rule 14(c) which exempted ex-servicemen from the deduction of military pension from the gross pension. The court relied on a previous decision to support the petitioner's entitlement to pension for both military service and service under the respondent corporation, and concluded that the respondent cannot deduct the petitioner's pension drawn from the previous employer.
Fact of the Case:
The petitioner, an ex-serviceman, challenged the deduction of his military pension from the total pension calculated for his service under the respondent corporation.
Finding of the Court:
The court found that the petitioner is entitled to pension for both military service and service under the respondent corporation, and that the respondent cannot deduct the petitioner's pension drawn from the previous employer.
Issues: The main issue was the deduction of the petitioner's military pension from the total pension calculated for his service under the respondent corporation.
Ratio Decidendi: The court relied on the introduction of Rule 14(c) which exempted ex-servicemen from the deduction of military pension, and a previous decision supporting the petitioner's entitlement to pension for both military service and service under the respondent corporation.
Final Decision: The writ petition was allowed, the impugned order was quashed, and the respondents were directed not to deduct the pensionary benefits available to the petitioner for his military service and to pay the pension as per pensioner's services in the respondent's corporation.
N. Kirubakaran, J.
The petitioner was informed by the communication dated July 11, 2001 of the first respondent, by which the Corporation deducted the Pension drawn from the previous employer, from the total pension calculated for the total service and fixed the pension at Rs. 286/- per month.
2. The case of the petitioner is that he joined the defence service in the year 1960 and was discharged from military service in December 1976 after completion of 16 years of service. Subsequently, he was appointed as Security Supervisor in Pallavan Transport Corporation in December 1976 itself and he was transferred to various Transport Corporations and finally to M.G.R Transport Corporation. After completing 22 years of service, he retired from service in April 1999 on attaining the age of superannuation.
3. From September 1, 1998 onwards, pension scheme was introduced for transport employees and under the said scheme, the petitioner is eligible for receiving pension on his retirement in the year 1999. The petitioner opted for pension scheme. Under the impugned communication, his pension was fixed at Rs. 286/- per month stating that as per pension rules, the pension drawn from the previous employer had to be deducted from the total pension calculated for total service. Aggrieved by that only, the present writ petition has been filed by the petitioner.
4. It is an admitted fact that the petitioner is an ex-servicemen, who put in 1014 years of service in military and he was drawing pension from the Government of India. Subsequent to the military service, he joined the first respondent Transport Corporation and attained superannuation in April 1999 after completing 22 1/2 years of service and the petitioner is entitled to pensionary benefits under the first respondent's pension scheme also. The petitioner questioned the procedure adopted by the respondent stating that both services rendered by him are different and the pensionary benefits for different services, should not be taken together and his pensionary benefit of the military service cannot be deducted.
5. Mr. S.G. Jeremiah learned Counsel for the petitioner submitted that both services are covered by different service rules and the petitioner is entitled for pension for both services which are independent and it cannot be counted together. He relied on a decision of the Division Bench of this Court in The Government of Tamil Nadu Vs. Tamil Nadu Government Transport, Retired Employees Welfare Association (formerly known as Tamil Nadu Transport Employees Urimagal Sangam) and Others, (2008) 1 MLJ 817. In that case the employees were formerly in Government service and after formation of transport Corporation, they opted for the same. When the pension was calculated, certain benefits were limited to a class of employees by prescribing cut of date and the same was challenged before this Court and this Court held as follows at p. 824:
14. There is difference of pension as is paid by the State Government and the pension as is paid by the transport Corporation. So far as the State Government is concerned its expenditure towards pension is made from the consolidated fund of the State Government, but so far as the Transport. Corporation is concerned, pension is not paid from the consolidated fund of the State or from the State Government or any other local authority, but is paid from the funds generated by the corporation. A separate budgetary provision is made by the State Government every year to meet the expenditure towards payment of pension to the State Government pensioners. On the other hand, no such budgetary provision is made by State Government for payment of pension is made by State Government for payment of pension to the employees of the transport corporation, which is generated from the earning of the employees' contribution of contributory provident fund under the Pension Fund Trust formed for the purpose of the transport corporation. While the State is bound to pay the pensi