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IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN

AT JAIPUR BENCH, JAIPUR

ORDER

1. S.B. Civil Writ Petition No.6676/1998

Krishna Murari Lal Asthana

Vs.

Union of India & Ors.

2. S.B. Civil Writ Petition No.654/2007

Krishna Murari Lal Asthana & Ors.

Vs.

L.I.C. of India & Ors.

Date of Order :

12^th January, 2010

HON'BLE MR. JUSTICE M.N. BHANDARI

Mr.Abhinav Sharma

Ms.Anita Aggarwal,G.C. - for petitioners

Mr. Anurag Aggarwal

Mr.Manoj Singh Ragav

Mr.S.S. Raghav -

for respondents

BY THE COURT:

REPORTABLE

These two writ petitions involve common issues,

thus are being heard and decided by this order.

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The petitioners are those who retired from the

service of Life Insurance Corporation of India (for short

'the LIC of India'). First ground raised by the petitioners

and common in both the writ petitions is regarding

discrimination in grant of pensionary benefits. It is stated

that on 28.6.1995, LIC of India (Employees) Pension

Rules, 1995 (for short 'the Pension Rules') were notified.

The Pension Rules were made applicable to the

employees, who were in service of the respondent

Corporation on or after 1.1.1986, on their exercising

options to be governed by the Pension Rules and

refunding the contribution of provident fund with

interest. For those employees, who retired after

28.6.1995, the Pension Rules were made compulsory.

Chapter – IV of the Pension Rules provides rates of

pension. Rule 35(2) of the Pension Rules provides that if

an employee has completed qualifying service of not less

than 33 years, then his pension would be 50% of the

average emoluments. The grievance of the petitioners is

in regard to the grant of dearness allowance, inasmuch

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as, dearness allowance benefit has been attached on the

basic pension and not on the basic pay. To clarify the

above, it is submitted that benefit of dearness allowance

after revision of the pay scale in the year 1996 was

provided as under:-

“Dearness formula”

Basic Pay

Rate of DA for every 4 points

i)

Upto Rs.4800

0.35% of pay

ii)

Rs.4801 to 7700

0.25% of 4800 plus 0.29% of pay in excess

of Rs.4800

iii)

Rs.7701 to 8200

0.35% of 4800 plus 0.29% of difference

between Rs.7700 and Rs.4800 plus 0.17% of

pay in excess of Rs.7700

iv)

Rs.8201 and above 0.35% of Rs.4800 plus 0.29% of difference

between Rs.7700 and Rs.4800 plus 0.17% of

difference between Rs.8200 and Rs.7700

plus 0.09% of basic pay in excess of Rs.8200

Aforesaid formula was available till Pension Rules

came in the year 1995. Under the Pension Rules, the

benefit of dearness allowance was provided in the

following manner:-

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Scale of Back

pension per month

Rate of dearness relief as a percentage of

basic pension

i)

Upto Rs.2400

0.35%

ii)

Rs.2401 to 3850

0.35% of Rs.2400 plus 0.29% of basic

pension in excess of Rs.2400

iii)

Rs.3851 to 4100

0.35% of Rs.2400 plus 0.29% of the

difference between Rs.3850 and Rs.2400

plus 0.17% of basic pension in excess of

Rs.3850

iv)

Above Rs.4100

0.35% of Rs.2400 plus 0.29% of difference

between Rs.3850 and Rs.2400 plus 0.17%

of the difference between Rs.4100 and

Rs.3850 plus 0.09% of basic pension in

excess of Rs.4100

In view of the aforesaid, benefit of dearness

allowance at the first step being 0.35% remains upto

basic pension of Rs.2400/- only whereas aforesaid

percentage of dearness allowance is allowed on the basic

pay upto Rs.4800/-. To understand the aforesaid

difference, a comparative chart was submitted by the

petitioners, which is quoted hereunder:-

“Comparative Chart”

Pay upto

Rate of DA/DR

Pension

Upto 4800

0.35% of pay

Upto 2400

From 4801 to 7700

0.29% of pay

From 2401 to 3850

From 7701 to 8200

0.17% of pay

From 3851 to 4100

Above 8200

0.09% of pay

Above 4100

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Perusal of the aforesaid Chart shows that increase

in the DA/DR was less for the pensioners because the

benefit of DA/DR was reduced to the extent