Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2024 Supreme(Tri) 17

HIGH COURT OF TRIPURA AGARTALA
S. Datta Purkayastha, J.
Sri Nataraj Datta - Appellant
Versus
The State of Tripura & Ors. - Respondents
W.P.(C) No. 377 of 2023
Decided On : 08-01-2024

Advocates appeared:
Mr. P. Roy Barman, Sr. Advocate, Mr. Samarjit Bhattacharjee, Advocate, for the Petitioner; Mr. D. Bhattacharya, Sr. Advocate, Mr. Samar Das, Advocate, Mr. D. Sharma, Addl. G.A., for the Respondent.

The court established that a Deed of Variance cannot be applied retrospectively to deprive a retiree of benefits promised under an earlier Trust Deed.

Headnote:
Pension - Post-Retirement Benefits - Trust Deed and Variance - The court interpreted the irrevocable nature of the Trust Deed and the non-retrospective application of the Deed of Variance, affirming the petitioner's entitlement to benefits under the original pension scheme.
Fact of the Case:

The petitioner, a retired Principal Scientific Officer, claimed post-retirement benefits under a Trust Deed established for pension schemes after the discontinuation of the EPF scheme. He alleged non-payment of benefits as per the original scheme due to a subsequent Deed of Variance executed after his retirement.
Finding of the Court:

The court found that the original Trust Deed governed the pension benefits and that the Deed of Variance could not be applied retrospectively to deprive the petitioner of his entitled benefits, which were to be paid as per the original scheme.
Issues: Whether the post-retirement benefits should be governed by the original Trust Deed or the subsequent Deed of Variance executed after the petitioner's retirement.
Ratio Decidendi: The court held that the Deed of Variance could not be applied retrospectively, and the petitioner was entitled to benefits under the original Trust Deed, as the promise of benefits created a legitimate expectation.
Result: The petition is allowed; the petitioner is entitled to post-retirement benefits as per the original Trust Deed.

JUDGMENT AND ORDER

1. The petitioner, joined in the post of Research Officer [Engineering] under the Tripura State Council for Science & Technology [in short, the State Council], a society registered under the Societies Registration Act, 1860 in the Department of Science, Technology and Environment on 30.11.1987. He later on got promotion to the post of Principal Scientific Officer (Space Application) w.e.f. 21.11.2012 and ultimately retired from the service on 31.10.2019. As averred, when he was in service, the State Council in its meeting of Executive Committee passed resolution on 22.12.2015, that a Trust would be formed comprising of Joint Member Secretary of the State Council, Joint Director, Department of Science, Technology and Environment, Government of Tripura i.e. DDO & HOO of the State Council and the Accounts Officer to manage LICI Linked Defined Benefit Pension Scheme w.e.f. 01.01.2016.

2. Accordingly, a Deed of Trust was executed on 27.01.2016 between the State Council and the Joint Member Secretary of the State Council. Some terms and conditions of the said Trust relevant to the issues involved in this writ petition are highlighted below:

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Trust Irrecoverable	4	These presents shall constitute a Trust upon which Trust shall be irrevocable in India. No moneys belonging to the Scheme in the hands of the Trustees shall be recoverable by the Employer nor shall the Employer have any lien or change of any description on the Scheme.
Employer to make contributions	7	The Employer agrees to make the contributions to the Trustees as provided in the Rules and the Trustees shall utilise the same for paying premium under the aforesaid Master Policy.
Power to Amend the Scheme	9	The Trustees may at any time by a resolution in writing signed by not less than two of them and with the consent in writing of the employer as also of the LIICI where the variations have a bearing on the terms and conditions of the Master Policy effected with the LICI but not otherwise alter, vary or amend any of the trusts or provisions of this Deed and the Rules. PROVIDED THAT no such alterations or variations shall be inconsistent with the main objects of the trust hereby created nor shall such alterations or variations in any way prejudice the rights or interests of the Member or his Beneficiaries.
Employer's Right to amend Scheme	10	(a)(i) The Employer may also at any time give three months notice in writing to the Trustees, of its intention to amend the scheme and it shall be lawful for the Trustees to give effect to such amendment or alteration. Such amendment shall ordinarily have effect from the anniversary of the date of commencement of the Scheme which next follows the date on which the notice has been served. (ii) Any amendment shall not effect the benefits already secured for Members under the Rules and more particularly by the premiums paid to the LICI upto the date of such amendment.
Provision of Pension	11	On behalf of the Employer the Trustees shall provide fund for the payment of pension in defined benefit mode for the Members or for their Beneficiaries as the case may be, by entering into a Scheme with the LICI. The Trustees shall be responsible for deduction of Income Tax chargeable on any payment made by them to any member or his Beneficiary and shall deduct the relevant tax or duty therefrom and account for the same to the government of India.
Termination of Trust	26	(i) Winding up of the Employees' establishment- (Unless such winding up The trust Fund hereof shall be wound up only on the is for the purpose of amalgamation, reconstitution or reconstruction). Application for approval of winding up of the fund shall be made within reasonable time but not exceeding six months of winding up of the council/Establishment. (ii) Upon the winding up of the Trust Fund, the Truste