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2026 Supreme(Online)(Ker) 22

IN THE HIGH COURT OF KERALA AT ERNAKULAM
T.R.RAVI, J
TRANSPORT PENSIONERS FRIEND – Appellant
Versus
STATE OF KERALA – Respondent
WP(C) NO. 18688 OF 2023 | WP(C) NO. 6611 OF 2024 | WP(C) NO. 13572 OF 2024



Advocates:
For the Appellants/Petitioners: K. ASOKAKUMAR, M.VIJAYAKUMAR, P. MURALEEDHARAN PILLAI
For the Respondents: SRI.P.SANTHOSH KUMAR, SRI.DEEPU THANKAN

Pension revisions cannot be denied based on financial constraints or arbitrary classifications based on retirement dates, ensuring equal treatment for all pensioners.

Headnote:(A) The principles underlying pension revision and entitlement, as established under the Kerala Service Rules, must be uniformly applied and are a legal obligation rather than a discretionary benefit of the State. (Paras 1-14)

(B) Classification based on retirement dates for pension benefits without a rational basis is discriminatory and violates Article 14 of the Constitution of India, necessitating equal treatment of pensioners. (Paras 11-12)

(C) Financial constraints do not justify the denial of pension revisions; historical agreements necessitate periodic updates. (Paras 2-6)

Facts of the case:
The petitioners represent retired employees of the KSRTC, contending against the non-revision of their pensions linked to salary increments, citing financial constraints from the government as unjustified.

Findings of Court:
The state orders rejecting pension revision were found legally unjustifiable and were quashed.

Issues: The primary issue is the legal justification for pension revisions based on financial constraints and the treatment of pensioners based on retirement dates.

Ratio Decidendi: The court reiterated that pensions should not be subject to arbitrary classification and affirmed that all pensioners warrant equal treatment under the law, with all regulations to be applied uniformly.

Result: The petitions are allowed, and the previous orders regarding pension revisions are quashed.

Table of Content
1. pension revision disparities challenge (Para 1 , 2 , 3 , 4 , 5 , 6)
2. legal obligations of pension without discretion (Para 7 , 8 , 9)
3. discriminatory classifications under scrutiny (Para 11 , 12)
4. judicial perspective on government policies (Para 13)
5. court orders quashing prior directives (Para 14)

JUDGMENT

The petitioners in all these cases are retired employees of the KSRTC and their Associations. Their common grievance is that the pension payable to retired employees of KSRTC is not revised periodically, in tune with salary revisions. The writ petitions are hence heard and disposed of together.

2. In W.P.(C) No. 18688 of 2023, the petitioners have challenged Exhibit P5 order dated 16.5.2023, issued by the 1st respondent, rejecting the petitioners’ request for revision of pension in line with other Government employees and for reduction of the existing disparity, on the reason that such relief would impose an additional financial burden on the KSRTC and the State Government.

3. In W.P.(C) No.13572 of 2024 and W.P.(C) No. 6611 of 2024, the petitioners have challenged the order dated 5.2.2024, produced as Exhibits P5 and P9 in W.P.(C) No.13752 of 2024 and W.P.(C)No.6611 of 2024 respectively, issued by the 1st respondent, rejecting the request for revision of pension on the reason that the KSRTC does not have the financial resources to meet the additional expenditure.

4. There are no serious disputes regarding the facts. The KSRTC was formed in 1965. On 27.03.1984, the Government accepted the request of the employees of KSRTC for payment of pension as per the Kerala Service Rules. The Government issued orders on 05.05.1984, directing payment of pension to the employees who retired on or after 1.4.1984. The petitioners claim that the KSRTC is bound by the above order to periodically revise the pension as in the case of the employees of the Government. On 22.5.2012, an agreement was entered into between the Management and the recognised trade Unions, which was approved by the Government as per order dated 27.11.2012. The validity of the agreement was till 28.2.2016. No fresh agreements were reached till 1.6.2021, on which day another agreement was entered into. However, the said agreement only addressed the question of revision of the pay, and the revision of the pension was left to be decided after joint consultation between the KSRTC and the Secretaries of the Government in the Departments of Finance, Co- operation, and Transport. A copy of the relevant pages of the draft agreement has been produced as Ext.P1 in W.P.(C) 13752 of 2024. Clause XXII of the agreement deals with the payment of pension.

5. Aggrieved by the agreement, the pensioners submitted representations to the Government and approached this Hon’ble Court for relief. W.P.(C) Nos. 24566 of 2022, 23966 of 2022 and 15093 of 2017 were disposed of by a common judgment dated 5.8.2022, directing the Government to consider the recommendations of the KSRTC regarding the revision of pay and pension to the employees and retired employees, after necessary deliberations with all the stakeholders and take a final decision. A similar direction was issued in W.P.(C)No.36042 of 2022 filed by a similarly situated Association. Pursuant to the direction in W.P.(C)No. 36042 of 2022, the Government passed an order on 16.5.2023 rejecting the request on the grounds of the bad financial position of KSRTC. Similar orders were issued on 5.2.2024 on the representations filed by other petitioners. It is aggrieved by the rejection of the request for revision of pension that the petitioners have filed these writ petitions.

6. Along with W.P.(C) No.6611 of 2024, the petitioners have produced the order dated 8.7.2022 issued by the KSRTC, revising the pension payable to persons who retired after 1.1.2022, based on the revised pay. The petitioners seek similar treatment.

7. The petitioners contend that a pension is not a charity or burden but a legal obligation. Reliance is placed o

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