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2026 Supreme(Mad) 1290

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
N. SATHISH KUMAR, M. JOTHIRAMAN, JJ.
The Administrator, Tamil Nadu State Transport Corporation – Appellant
Versus
R. Valarmathi – Respondent
WA. (MD) No. 556 of 2026, C.M.P. (MD) No. 5240 of 2026
Decided On : 30-04-2026

Advocates Appeared:
For the Appellants : Datchayani Reddy, S.C. Herold Singh
For the Respondents: H. Mohammed Imran, D. Sasi Kumar

Employed family pensioners entitled to Dearness Allowance on family pension despite separate employment salary DA, as per G.O.Ms.No.112 (2008), Rule 20A inapplicable.

Headnote:The judgment examines G.O.Ms.No.112 dated 24.03.2008, which allows Dearness Allowance on family pension for employed family pensioners, following Government of India memorandum dated 02.07.1999, overriding prior suspension in G.O.Ms.No.191 dated 16.03.1996. Essential facts involve a deceased employee's wife, employed independently as Deputy Director, receiving family pension without Dearness Allowance, rejected by corporation citing Rule 20A of Pension Fund Rules. Court finds Rule 20A inapplicable to family pensioners and holds employed family pensioners entitled to Dearness Allowance. Issues framed as whether G.O.Ms.No.112 applies to transport corporation family pensioners despite employment and Rule 20A preventing dual benefits. Ratio decidendi clarifies family pension Dearness Allowance compensates deceased's service separately from current employment salary adjustment, rejecting dual payment argument as inapplicable to pre-existing independent employment. Writ appeal dismissed, upholding single judge order directing payment of family pension with Dearness Allowance and arrears.

Table of Content
1. facts of family pension denial post-husband's death despite employment. (Para 2 , 3 , 8)
2. appellant argues against dual da payment citing rule 20a. (Para 4 , 5)
3. respondent relies on g.o.ms.no.112 allowing da for employed pensioners. (Para 6)
4. rule 20a inapplicable to family pensioners; g.o.ms.no.112 governs. (Para 9 , 11)
5. distinguishes prior cases; allows da on family pension independently. (Para 12 , 13 , 14)

JUDGMENT :

M. JOTHIRAMAN, J.

1. Under assail is the order passed in WP.(MD)No.35410 of 2025 dated 10.12.2025.

2. The first respondent/writ petitioner has challenged the order passed by the third respondent/Managing Director, Tamil Nadu State Transport Corporation (Madurai) Ltd., vide his proceedings dated 13.11.2025 and consequential direction to the official respondents to revise the family pension of the writ petitioner along with dearness allowance and disburse the family pension with dearness allowance including arrears thereof with an accrued interest at the rate of 12% per annum.

3. It is the case of the first respondent/writ petitioner that her husband namely, Mr.A.Ravichandran was working as Deputy Manager in the third respondent/Transport Corporation. He retired from service on 31.07.2022. He received pension and retirement benefits. He died on 13.12.2022. Upon his demise, the pension was converted into family pension. The petitioner being the wife of the deceased pensioner have been receiving the family pension. She is working as Deputy Director/PA (Agri) to District Collector, Theni. The family pension is being disbursed without adding the proportionate Dearness Allowance, which is admissible to the family pensioner. The Government of Tamil Nadu vide G.O.Ms.No.327, Finance (Pension) Department dated 21.10.2019 has revised the rate of Dearness Allowance to the pensioner as well as the family pensioner. However, the writ petitioner being paid family pension without Dearness Allowance. Hence, she made representation dated 04.11.2025 to revise her family pension by adding Dearness Allowance. The third respondent therein rejected the request and passed the impugned order dated 13.11.2025. Hence, the writ petition. The learned Writ Court allowed the writ petition on the ground that the Government of India in Office memorandum dated 02.07.1999 has issued orders allowing dearness allowance on family pension to the employed family pensioners at the rates applicable from time to time. In view of the same, the Government of Tamil Nadu had issued G.O.Ms.No. 112, dated 24.03.2008 decided to allow Dearness Allowance on family pension in the case of employed family pensioners. Aggrieved over the same, the second respondent therein/ The Administrator, Tamil Nadu State Transport Corporation Employees Pension Fund Trust has preferred the present appeal.

4. The learned Senior Counsel appearing for the appellant would submit that the first respondent is employed as a Personal Assistant to the District Collector (Agriculture)/Deputy Director of Agriculture and she is drawing government salary which have specific component for dearness allowance. As such the component matching the price index is being taken care of the of the employer of the first respondent. The Dearness Allowance is a cost of living adjustment and would be a percentage of the basic pay which is calculated on percentage of the basic salary as well as pension. The concept of paying Dearness Allowance is to compensate the inflation to mitigate on the purchasing power of the first respondent. The purchasing power of the first respondent is being taken care of by her employee by providing Dearness Allowance along with her salary. The first respondent though appointed independently is receiving salary from the government and in addition to that she is receiving 53% Dearness Allowance based on her salary. Therefore, paying Dearness Allowance would amount to dual payment.

5. The learned Senior Counsel appearing for the appellant would further submit tha

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