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2024 Supreme(All) 186

IN THE HIGH COURT OF ALLAHABAD
Attau Rahman Masoodi, Om Prakash Shukla, JJ.
Indu Bhushan Pandey – Petitioner
Versus
State Of UP Thru Prin. Secy. Deppt. of Energy And Others – Respondents
WRIT -A No. – 5813, 6486 & 6487 of 2022
Decided On : 23-01-2024

Advocates:
Advocate Appeared:
For the Petitioner: Chandra Bhushan Pandey, Asim Kumar Singh, Paavan Awasthi, Apoorva Tewari
For the Respondent: Sanjay Singh

The retrospective application of an amendment affecting the pension entitlement of retired Members was held to be arbitrary and in violation of the Act and the Constitution.

Headnote:

Rule 15 - Challenge to Rule 15 of The Uttar Pradesh Electricity Regulatory Commission (Appointment and Condition of Service of the Chairperson and Members) Rules, 2008 - Section 82, Section 89 of the Electricity Act, 2003 - Summary: The court addressed the challenge to Rule 15 of the Rules, 2008, which provides for payment of pension to the Chairperson and Members of the Commission. The court analyzed the provisions of the Electricity Act, 2003, and the retrospective application of the amended Rule 15. The court held that the retrospective application of the amendment to Rule 15, which affected the pension entitlement of the retired Members, was arbitrary and in violation of the Act and the Constitution. The court allowed the writ petitions and directed the respondents to pay pension and quashed the orders cancelling pension and recovery of amounts.

Fact of the Case:

The petitioners challenged Rule 15 of The Uttar Pradesh Electricity Regulatory Commission (Appointment and Condition of Service of the Chairperson and Members) Rules, 2008, which provides for payment of pension to the Chairperson and Members of the Commission. The petitioners, retired Members of the Commission, contested the retrospective application of the amended Rule 15, which affected their pension entitlement.

Finding of the Court:

The court found that the retrospective application of the amendment to Rule 15, which affected the pension entitlement of the retired Members, was arbitrary and in violation of the Act and the Constitution. The court allowed the writ petitions and directed the respondents to pay pension and quashed the orders cancelling pension and recovery of amounts.

Issues: The main issue was whether the amendment made to Rule 15 of Rules, 2008 in the year 2021, affecting the pension entitlement of the retired Members, was applicable to the petitioners or not.

Ratio Decidendi: The court held that the retrospective application of the amendment to Rule 15, which affected the pension entitlement of the retired Members, was arbitrary and in violation of the Act and the Constitution. The court allowed the writ petitions and directed the respondents to pay pension and quashed the orders cancelling pension and recovery of amounts.

Final Decision: The court allowed the writ petitions and directed the respondents to pay pension and quashed the orders cancelling pension and recovery of amounts. The court clarified that the order was applicable to the petitioners and shall not be treated as a precedent.

JUDGMENT :

A. R. Masoodi, J.

1. Herad Sri Chandra Bhushan Pandey, Sri Paavan Awasthi and Sri Apoorva Tewari, learned Counsel appearing for the petitioners in the respective petitions, learned Sri V. P. Nag, learned Additional Chief Standing Counsel for the State-respondents and Sri Sanjay Singh, learned Counsel appearing for the Commission.

2. In the aforesaid three writ petitions, mainly challenge to Rule 15 of The Uttar Pradesh Electricity Regulatory Commission (Appointment and Condition of Service of the Chairperson and Members) Rules, 2008 [in brief, it has been referred to as ‘Rules, 2008’] has been made. Thus, they have been clubbed together and decided by a common order.

3. Apart from above, in Writ-A No. 5813 of 2022, Indu Bhushan Pandey v. State of U.P. and two others, following ancillary prayers have also been made:-

    “(i) to issue a writ, order or direction of or in the nature of certiorari to quashing the order, dated 31.07.2020, whereby respondent no.3 illegally and arbitrarily cancelled the petitioner’s pension, provided under Rule 15 of The Uttar Pradesh Electricity Regulatory Commission (Appointment and Condition of Service of the Chairperson and Members) Rules, 2008, as contained in Annexure No.2 to this writ petition;

(ii) to issue a writ, order or direction of or in the nature of certiorari to quashing the order, dated 02.06.2020, thereby, State Government/ Respondent No.1 illegally and arbitrarily did not sanction further pension to the petitioner, as contained in Annexure No.3 to this writ petition;

(iii) to issue a writ, order or direction of or in the nature of mandamus commanding the respondents to provide pension including all the perks, allowances and benefits as admissible with un-amended Rule 15 of The Uttar Pradesh Electricity Regulatory Commission (Appointment and Condition of Service of the Chairperson and Members) Rules, 2008 revisable from time to time in favour of the petitioner, commensurate with that admissible to a retired Hon’ble Judge of the High Court with all the consequential benefits;

(iv) to issue a writ, order or direction of or in the nature of mandamus commanding the respondents to release the withholding amount of pension including 12% interest, since, August 2021 to till date.

(v) to issue a writ, order or direction of or in the nature of mandamus commanding the respondent to not to recover Rs.22,65,528/-(Rupees Twenty Two Lakhs Sixty Five Thousand Five Hundred Twenty Eight only) from the petitioner;

(vi) to issue any other order or direction which this Hon’ble Court deems fit and proper in the facts and circumstances of the present case;

(vii) to allow this writ petition with exemplary costs.”

4. The events leading to the filing of this petition are recapitulated in brief as under:

    In the year 2003, the Parliament enacted the Electricity Act, 2003 [here-in-after referred to as ‘Act’] to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and for establishment of Regulatory Commission and Appellate Tribunal. After receipt of assent from the President on 26.05.2003, it was published in the Gazette of India on 02.06.2002.

5. Section 82 of the Act provides for the constitution of a Commission for the State Electricity Regulatory Commission whereas Section 82 (2) of the Act provides that the State Commission shall be a body corporate having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable and to contract and shall, by the said name, sue or be sued.

6. Section 82 (4) of the Act postulates that the State Commission shall consist of not more than three Members, including the Chairperson. Section 82 (5) of the Act, 2003 provides that the Chairperson and Members of the State Commission shall be appointed by the State Government on the recommendation of a Selection Committee referred to in Section 85.

7. Section 89 of the Act provides for the term of office and conditions of service




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