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2025 Supreme(Online)(Ker) 49107
IN THE HIGH COURT OF KERALA AT ERNAKULAM
ANIL K. NARENDRAN, MURALEE KRISHNA S., JJ
STATE OF KERALA, REPRESENTED BY CHIEF SECRETARY – Appellant
Versus
RAJ. N.C, S/O. LATE NARAYANA PANICKER A.N. – Respondent
OP(KAT) NO. 53 OF 2023 | OA (EKM) NO.1778 OF 2022
For the Appellants/Petitioners: SRI. A.J. VARGHESE
For the Respondents: ADV SHRI.S.VISHNU
Ex-servicemen cannot be compelled to join a state health insurance scheme that jeopardizes their existing benefits under a central health scheme.
Headnote:(A) Constitution of India - Article 227 - Supervisory jurisdiction - Petition filed against the interim order of the Kerala Administrative Tribunal regarding deductions from pension benefits for medical insurance. (Paras 2, 5, 8)
(B) Ex-Servicemen Contributory Health Scheme - The applicants were compelled to join the State insurance scheme, despite being eligible for benefits under a central scheme. (Paras 2, 5)
(C) Interim Order - The Tribunal initially directed to cease deductions, which was later modified by this Court balancing the interests of both parties. (Paras 5, 8)
Facts of the case:
The applicants, re-employed Ex-Servicemen, challenged the mandatory deductions from their pension for joining a state insurance scheme after being denied their request to opt out.
Findings of Court:
The court emphasized that the benefits under the Ex-Servicemen Contributory Health Scheme must not be forfeited due to coerced enrollment in the state scheme.
Issues: The main issue concerned whether the applicants could be forced into an insurance scheme that could affect their existing benefits.
Ratio Decidendi: The court noted that ex-servicemen should have the choice to continue with their original health scheme without undue pressure from the state’s requirements.
Result: Original petition disposed of directing appropriate examination by the Tribunal.
| Table of Content |
|---|
| 1. petition against compulsory deductions (Para 1 , 5 , 6) |
| 2. ex-servicemen's rights under health schemes (Para 2 , 3) |
| 3. tribunal's directive on case handling (Para 8) |
JUDGMENT
Muralee Krishna, J.
This original petition is filed by the respondents in O.A.
(EKM)No.1778 of 2022, invoking the supervisory jurisdiction of this Court under Article 227 of the Constitution of India , challenging the interim order dated 21.12.2022 passed by the Kerala Administrative Tribunal (the ‘Tribunal’ in short), in that original application.
2. Going by the averments in the original application, the applicants are re-employed Ex-Servicemen under the Government of Kerala. The 1st applicant is still in service, while applicants 2 to 4 are retired from service. They are covered under the Ex-Servicemen Contributory Health Scheme. The said scheme is compulsory for those retiring after 01.01.2003, and a compulsory deduction of a substantial amount is made from the retirement benefits. The first lump sum deduction from pensionary benefits, being subscription towards the ECHS Scheme and stoppage of Fixed Medical Allowance of Rs.1000/- per month is for the lifetime medical insurance coverage. The benefits can be availed by Ex-Servicemen at any place all over the country, with the facility to avail specialised treatments at multispecialty hospitals all over the country, with substantially higher coverage not just for the employees but also for their families. However, they are now compelled to join the Medical Insurance Scheme for State Government Employees and Pensioners (MEDISEP) under Annexure A5 to A10 with compulsory monthly deduction of Rs.500/- from the salary and pension of the applicants. The applicants’ representations to the competent authority to permit them to opt out of the scheme have been rejected. At the same time, the Government has permitted All India Service officers to opt out of this MEDISEP. Since compulsory deduction is made from the salary/pension of the applicants every month, they approached the Tribunal with the Original Application.
3. On 21.12.2022, when the original application came up for admission, the Tribunal passed the following interim order:
“Admit. Learned Government Pleader takes notice for the respondents.
There shall be direction to the respondents not to effect monthly contribution towards Medicep from the applicant”.
4. Being aggrieved, the respondents in the original application are now before this Court with this original petition.
5. On 13.02.2023, when the original petition came up for admission, this Court passed an interim order whereby the impugned interim order passed by the Tribunal was vacated and certain directions were issued to protect the interest of the respondents. Paragraphs 2, 3, and the last paragraph of that order read thus:
“2. From the perspective of petitioners, the interim order has the effect of derailing a comprehensive medical insurance scheme implemented by the State of Kerala for all its employees. The respondents before us are ex-service personnel who have taken up employment after being discharged by the Armed Forces. It is not in dispute that a person who either retires or is relieved from Armed Forces is entitled to medical insurance called ‘The Ex-Servicemen Contributing Health Scheme’. According to the respondents central scheme is more beneficial and the medical treatment can be availed anywhere in the country. The scheme under which the respondents are availing the medical benefit has a condition to the effect that the respondents if become members of any other scheme, then they are disentitled to have the remedy or relief from the 'The Ex-Servicemen Contributory Health Scheme’.
3. According to the learned counsel appearing for the respondents, it is not the question of deducting the amount from the salary of the respondents, but the effect such deduction could have on the otherwise beneficial scheme to which the respondents are entitled to.
We have taken note of the ha
