The right to receive pension is recognized as property, yet the pension amounts are determined strictly by the governing scheme, which was not found arbitrary or illegal.

JUDGMENT :

Both these appeals are directed against the order dated 17.06.2015 passed by the learned Single Judge dismissing WP(MD)No.9411 of 2011 filed by the appellants in WA(MD)No.761 of 2015. The appellant association in WA(MD)No.765 of 2015 got itself impleaded as the seventh respondent in the writ petition vide order dated 04.12.2014.

2.The case on hand pertains to the pension scheme applicable to the retired employees of Oriental Insurance Company Limited, United India Insurance Company Limited, New India Assurance Company Limited and National Insurance Company Limited. The Central Government in exercise of the power conferred by Section 17A of the General Insurance Business (Nationalization) Act, 1972 made applicable the General Insurance (Employees') Pension Scheme, 1995 with effect from 01.11.1993. It was to apply to those in service in the said insurance companies as on 01.01.1986. Clause 2(d) and Clause 34 of the pension scheme read as follows :

“2(d) 'average emoluments' means the average of pay drawn by an employee during the last ten months of his service”

34.Amount of Pension -

(1) In respect of employees who retired between the 1st day of January, 1986 but before the 31st day of July, 1987, basic pension and additional pension will be updated as per the formula given in Appendix-III.

(2) In the case of an employee retiring in accordance with the provisions of the relevant rationalisation scheme after completing the qualifying service of not less than thirty three years, the amount of basic pension shall be calculated at fifty per cent of the average emoluments.

(3) (a) Additional pension shall be fifty per cent of the allowances drawn by an employee during the last ten months of his service. (b) No dearness relief shall be paid on the amount of additional pension.

Explanation:- For the purposes of this sub-paragraph "allowances" means allowances which are admissible to the extent counted for the following purpose only, namely :-

(i) making contributions to the Provident Fund ;

(ii) grant of house rent allowances ;

(iii) payment of gratuity ; and

(iv) re-fixation of salary on promotion.

(4) Pension as computed being the aggregate of sub- paragraphs (2) and (3) above shall be subject to the minimum pension as specified in this scheme.

(5) An employee who has commuted the admissible portion of his pension as per the provisions of paragraph 40 of this scheme shall receive only the balance of pension, monthly.

(6) (a) In the case of an employee retiring before completing a qualifying service of thirty- three years, but after completing a qualifying service of ten years, the amount of pension shall be proportionate to the amount of pension admissible under sub- paragraphs (2) and (3) and in no case the amount of pension shall be less than the amount of minimum pension specified in this scheme.

(b) Notwithstanding anything contained in this scheme, the amount of invalid pension shall not be less than the ordinary rate of family pension which would have been payable to his family in the event of his death while in service.

(7) The amount of pension finally determined under this paragraph shall be expressed in whole rupee and where the pension contains a fraction of a rupee, it shall be rounded off to the next higher rupee.

(8) Notwithstanding anything contained in this Scheme, in relation to an employee covered by the