Home Case Index All Cases Indian Laws Indian Laws + SC Indian Laws - 2006 (5) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (5) TMI 514 - SC - Indian LawsPension Scheme - retirement benefits - Challenged the Notifications issued on 22.7.2000 and 8.8.2000 - discrimination between the teachers working in the Government Colleges and the teachers working in the Non- Government Colleges - whether at the given time, such vested or accrued rights can be divested with retrospective effect by the Rule making authority? - HELD THAT:- It is now well settled that a notification can be issued by the State accepting the recommendations of the Pay Revision Committee with retrospective effect as it was beneficent to the employees. Once such a retrospective effect is given to the recommendations of the Pay Revision Committee, the concerned employees despite their reaching the age of superannuation in between the said dates and/or the date of issuance of the notification would be deemed to be getting the said scales of pay as on 1.1.1996. By reason of such notification as the appellants had been derived of a vested right, they could not have been deprived therefrom and that too by reason of executive instructions. The contention of the State that the matter relating to the grant of pensionary benefits vis-a-vis the revision in the scales of pay stands on different footing, thus, must be rejected. Pension, as is well known, is not a bounty. It is treated to be a deferred salary. It is akin to right of property. It is co-related and has a nexus with the salary payable to the employees as on the date of retirement. The impugned orders furthermore is opposed to the basic principles of law inasmuch as by reason of executive instructions an employee cannot be deprived of a vested or accrued right. Such a right to draw pension to the extent of 50% of the emoluments, computed in terms of the rules, w.e.f. 1.1.1996, vested to the appellants in terms of Government notification read with Rule 296 of the Rules. As the amount calculated on the basis of the revised scales of pay on and from 1.1.1996 to 31.3.1998 have not been paid to the appellants by the State of Karnataka as ex gratia, and in fact was paid by way of emoluments to which the appellants became entitled to in terms of their conditions of service, which in turn are governed by the statutory rules, they acquired a vested right therein. If the appellants became entitled to the benefits of the revised scales of pay, and consequently to the pension calculated on the said basis in terms of the impugned rules, there would be reduction of pension with retrospective effect which would be violative of Articles 14 and 16 of the Constitution of India. The appellants had retired from service. The State therefore could not have amended the statutory rules adversely affecting their pension with retrospective effect. Thus, the impugned judgment cannot be sustained and is accordingly set aside.
|