IN THE HIGH COURT OF JUDICATURE AT MADRAS
T. VINOD KUMAR, J.
R.Kothandan - Petitioner
Versus
Government of Tamil Nadu, Rep. by its Secretary, Co-operative, Food and Consumer Protection Department – Respondent
WP No. 15207 of 2019, WMP No.15178 of 2019
Decided On : 13-03-2026
ORDER :
T. VINOD KUMAR, J.
Heard the learned counsel for the petitioner and the learned Additional Advocate General appearing for the Respondents 1 and 2 and the learned Standing Counsel appearing for the third Respondent.
2. The petitioner by the present writ petition has assailed the action of the first respondent in restricting the payment of ex-gratia pension to the employees who had retired after introduction of Employees' Pension Scheme 1995, (in short ‘EPS’), and did not become a member of EPS, by deducting notional pension which they would have received under EPS as being illegal, arbitrary and contrary to the law and violation of Article 14 of the Constitution of India.
3. The case of the petitioner in brief is that he had joined the third respondent bank on 01.07.1968 and retired from service on 31.07.1998; that there was no pension scheme in force with the third respondent; that the Central Government had introduced EPS in November 1995 and granted option to become a member of EPS with effect from 01.04.1993; that as EPS was not attractive, many employees like the petitioner, did not join EPS;
4. The petitioner contends that the employees who have opted to join EPS in the year 1993 and thereafter retired in the year 1999 were initially paid pension of Rs.500/- and the same is revised to Rs.1,000/-; and that as the pension payment under the scheme EPS was not attractive, he did not join the scheme.
5. It is the further case of the petitioner that on the Central Government introducing EPS, the employees and union working in the third respondent as well as other District Central Cooperative Banks submitted large-scale representations to the Government of Tamil Nadu, for ex-gratia payment of Rs.5,000/- per month; that the Government, taking into account that the employees of the District Central Cooperative Bank, were having no protection on retiring from service, had issued G.O.(Ms).No.132, Cooperative, Food and Consumer Protection Department, dated 20.09.2010 granting ex-gratia pension payment of Rs.2,500/- per month to the employees who worked in the Central Bank and retired during the year 1987-1988 to 1994-1995 and who are not covered under EPS, 1995; that the aforesaid ex-gratia Pension was to be paid by the Central Co-Operative Bank of the concerned district; that the aforesaid G.O also directed the employees who are covered under EPS and receiving pension under the scheme, will be paid ex-gratia pension after deducting the pension, they get under EPS; and that the family pension was fixed at Rs.1,250/- for the persons who were already granted and getting family pension under EPS after deducting family pension they were getting under EPS.
6. The petitioner contends that there was no provision initially for granting ex-gratia payment to the employees who got retired after introduction of EPS and who did not opt to be a member of EPS; that the first respondent thereafter issued G.O (Ms).No.160 Cooperative, Food and Consumer Protection Department, dated 11.11.2010, extended the benefit of payment of ex-gratia pension even to those employees who retired after introduction of EPS, but did not opt for the same like petitioner; and that the first respondent while issuing the aforesaid G.O had put a condition that the ex-gratia pension would be paid after deducting the pension which the employee would have got if they had opted to become a member of the EPS; and that the reduced ex-gratia pension was directed to be paid from 20.09.2010.
7. It is the further case of the petitioner that on issuance of G.O.Ms.No.160, dated 11.11.2010, he was getting ex-gratia pension after deducting the notional pension amount which he would have received under EPS if he had opted to become a member of EPS; and that on increase of minimum pension payable under EPS to Rs.1000/-, he was being paid ex-gratia pension of Rs.1500/- by deducting the notional pension receivable by him under EPS if opted to be the member of the same.
8. The petitioner furthe
An amendment with retrospective operation that takes away a benefit already available to the employee under the existing rule violates the rights guaranteed under Articles 14 and 16 of the Constituti....
The court upheld the government's policy decision to set a cut-off date for extending monetary benefits to retirees, affirming that such classifications are permissible under constitutional provision....
Employees of exempted establishments are entitled to pension benefits under the EPS 1995 based on actual salary, as clarified by the Supreme Court.
Amendments to the Employees' Pension Scheme cannot impose retrospective cut-off dates for exercising pension options, affirming beneficiaries' rights established prior to amendments.
Pension rights depend on the fulfillment of predetermined conditions, and cabinet decisions lack enforceability without formal executive orders.
Sympathies cannot override the Rules and Regulations.
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