TMI Blog2006 (5) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... etting 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 grat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Deemed University with effect from 26.6.2002. 3. It is not in dispute that the revised scales of pay as recommended by the Pay Revision Committee became applicable to the appellants with effect from 1.1.1986. It is also not in dispute that the UGC scales of pay were applicable to them. The Government of Karnataka, by a letter dated 17.12.1993 directed that the matter relating to the fixation of pension on the basis of UGC pay scales would be governed by Rule 296 of the Karnataka Civil Services Rules (hereinafter referred to as 'the Rules'), providing for computation of emoluments for the purpose of pension and gratuity of a Government servant. In the said letter it was stated: The term 'emoluments' has been defined and redefined from time to time whenever pension has been revised by Executive orders. The terms Emoluments for purpose of pensionary benefits as defined in G.O. Dated 17.8.87 benefits includes among other things the last pay drawn. It is therefore, clarified that the pay drawn by the teachers of degree colleges in respect of whom UGC scales have been extended by G.O. No.ED 88 UNI 88 dtd. 30.3.90 w.e.f. 1.1.86 and who have opted to UGC scales of pay, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion structure of its employees and the same has been extended to the teachers in Central Universities, it is requested that appropriate orders in this regard may kindly be issued at an early date for the teachers in State Universities and Colleges. The AIFUCTO delegations further highlighted the problems faced by teachers in getting recognition of past service for pensionary benefits and condonation of break in service while moving from one State to another. It is requested that the guidelines issued by UGC in this regard may be followed and the State Govts. May have reciprocal arrangements amongst themselves to obviate the problems faced by the teachers. 6. The Government of Karnataka issued appropriate notification extending the UGC pay scales as revised from 1.1.1996, inter alia to the teachers of Government and Aided Colleges, stating: 5. Government is pleased to revise the pay scales of teachers, librarians and physical education directors in Government and aided colleges under the control of the Department of Collegiate Education as detailed below. 6. Coverage: This scheme applies to Lecturers, Lecturers (Senior Scale), Lecturers (Selection Grade), Librarians, Librarians (Sen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingly, (a) In respect of teachers drawing UGC pay scales who have retired during the period from 1.1.96 to 31.3.98 they shall be eligible for the benefit of the fixation of pay and arrears under the revised UGC scales of pay only. There shall not be any change in their pensionary benefits with reference to the revised UGC pay and the retirement benefits already sanctioned in the pre-revised UGC pay scales will not undergo any modifications. However, they shall be entitled to the benefit of fixation of revised pension/family pension as contemplated in GO No.FD(Spl.) 2 PET 99 dated 15.2.99 only w.e.f. 1st dated 15.2.99 stand modified to this extent. (b) In respect of teachers drawing UGC pay scales and who have issued on or after 1.4.98, the pay drawn in the revised UGC pay scales shall be counted for the purpose of pensionary benefits and the orders revising the pensionary benefits vide GO No.FD (Spl.) 1 PET 99 dated 15.2.99 shall be made applicable. A similar amendment was made in respect of the Regional Engineering Colleges by inserting para 31A. 9. The mode of payment of arrears in the revised scales of pay in terms of the notification was to be made as under: 10. Mode of payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be bad. Therefore, the order of learned Single Judge quashing the orders dated 29.7.2000, 7.8.2000 and 8.8.2000 in setting aside the grant of pension from 1.4.1998 on the ground of discrimination vis-a-vis the Government employees, is not correct. Policy decision has been taken in fixing cut off date having regard to expenditure involved, financial implications and other relevant considerations. It cannot be said to be arbitrary or irrelevant in fixing the cut off date which is applicable uniformly to all categories of pensioners including Government servants which is in consonance with Articles 14 and 16 of the Constitution and the impugned orders of the Government do not violate Articles 14 and 16 of the Constitution of India. Therefore, the order of the learned Single Judge is liable to be set aside and accordingly set aside. The review petitions filed thereagainst were dismissed. 12. Mr. S.B. Sanyal, leaned senior counsel appearing on behalf of the appellants raised a short question in support of these appeals. Learned counsel would submit that having regard to the fact that the appellants were given the benefit of the revised scales of pay w.e.f. 1.1.1996, and, thus, having ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Committee w.e.f. 1.1.1986. The pensionary benefits payable to them on attaining the age of superannuation or death were also stated to be at par with the employees of the State Government. The State of Karnataka, as noticed hereinbefore, for all intent and purport, has treated the teachers of the Government Aided Colleges and the Regioinal Engineering Colleges on the one hand and the teachers of the colleges run by the State itself on the other hand at par. Even the financial rules were made applicable to them in terms of the notifications, applying the rule of incorporation by reference. Although Rule 296 of the Rules per se may not be applicable so far as the appellants are concerned, it now stands admitted that the provisions thereof have been applied to the case of the appellants also for the purpose of computation of pensionary benefits. Therefore there cannot be any doubt whatsoever that the term Emoluments as contained in Rule 296 of the Rules would also apply to the case of the appellants. Rule 296 of the Rules reads as under: 296. In respect of retirement or death while in service of Government Servants on or after first day of July, 1993, the term Emoluments for the pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not have been denied to the appellants. 17. The stand of the State of Karnataka that the pensionary benefits had been conferred on the appellants w.e.f. 1.4.1998 on the premise that the benefit of the revision of scales of pay to its own employees had been conferred from 1.1.1998, in our opinion, is wholly misconceived. Firstly, because the employees of the State of Karnataka and the appellants, in the matter of grant of benefit of revised scales of pay, do not stand on the same footing as revised scales of pay had been made applicable to their cases from a different date. Secondly, the appellants had been given the benefit of the revised scales of pay w.e.f. 1.1.1996. 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 20. In Chairman, Railway Board and Ors. vs. C.R. Rangadhamaiah and Ors. [1997 (6) SCC 623], a Constitution Bench of this Court opined: Apart from being violative of the rights then available under Articles 31(1) and 19(1)(f), the impugned amendments, insofar as they have been given retrospective operation, are also violative of the rights guaranteed under Articles 14 and 16 of the Constitution on the ground that they are unreasonable and arbitrary since the said amendment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of pension was the liability of the employer as per the Rules and that liability is required to be discharged by the Union of India in lieu of its taking over of the Company. The rights of the employees (including retired) are protected under Section 11 of the Burmah Oil Company [Acquisition of Shares of Oil India Limited and of the Undertakings in India of Assam Oil Company Limited and the Burmah Oil Company (India Trading) Limited] Act, 1981. 22. Yet again, in State of West Bengal and Anr. vs. W.B. Govt. Pensioners' Associations and Ors. [2002 (2) SCC 179], this Court stated the law in the following terms: Because the scales of pay had been revised from 1.1.1986, the recomputation of pension for such employees as had been granted the revised scales of necessity was limited to the same cut-off date. All that the impugned Memorandum No.4056-F dated 25.4.1990 did was to recompute the benefits in favour of post- 1.1.1986 retirees according to the existing formula as provided by Memorandum No.7530-F and No.7531-F, both dated 6.7.1988. The same formula continues to be applied to the pre-1986 pensioners is only on account of the revision of pay scales and not on account of fai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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