TMI Blog2021 (2) TMI 1190X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant- Corporation, cannot be treated as a homogeneous class. The retired employees, who were governed by the Contributory Provident Fund Scheme, on their retirement had already received the benefits of such Scheme, constitute different class than those employees who were in service as on 05.06.1995. There is a valid reason for giving effect to the Pension Scheme from 05.06.1995, though the notification was issued on 06.10.1995. The cut-off date, i.e, 05.06.1995 is fixed on the ground that the Cabinet has approved the Scheme from such date. On the facts of this case, it is to be noticed that when the members of the respondent-Union retired, there was no Pension Scheme at all. They were merely governed by the Contributory Provident Fund Scheme and, on retirement, they were already granted the benefit of such Scheme. In that view of the matter, only on the spacious plea that all the employees of the Corporation constitute homogeneous class, cannot question the cut-off date fixed for grant of Pension Scheme. The High Court, without noticing the difference of factual background, in the cases relied on by the respondent-writ petitioner and without independently considering the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t-union, relying on a judgment of this Court in the case of D.S. Nakara Ors. v. Union of India [AIR 1983 SC 130 = (1983) 1 SCC 305] and several other judgments, pleaded that the fixation of cut-off date was arbitrary and discriminatory. 4. The appellants have contested the Original Application, filed by the respondent-Union, inter alia pleading that they have introduced a Pension Scheme to the employees of the Corporation, with effect from 05.06.1995, on which date Cabinet has approved the Scheme. It was the plea of the appellants that all the employees of the Corporation, who retired prior to 05.06.1995, were already paid all the retiral benefits including the benefit of Contributory Provident Fund, as such the cut-off date fixed, i.e, 05.06.1995, for implementing the Pension Scheme, was not discriminatory. 5. The Himachal Pradesh Administrative Tribunal, by judgment dated 19.06.2001, dismissed the Original Application filed by the respondent-Union, by holding that the appellants are entitled to fix the cut-off date for introducing the Pension Scheme for its employees and such fixation is not discriminatory. It was held that all the employees of the Union, who were gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... way of Notification dated 06.10.1995, the High Court has allowed the writ petition, without assigning valid reasons. It is submitted that the employees who retired prior to 05.06.1995, by availing the benefit of Contributory Provident Fund Scheme, constitute a separate class. After availing the benefit of Contributory Provident Fund Scheme, on their retirement, it is not open to plead that Pension Scheme, as notified for the existing employees and the employees retired between 05.06.1995 and 06.10.1995 is discriminatory. The employees who retired prior to 05.06.1995, and the employees presently in service, cannot be treated as a homogeneous class. It is submitted that, it is always open for the employer to extend further benefits to the employees prospectively. When such Scheme is introduced with effect from the date of its approval, i.e, 05.06.1995, same is rightly not extended to the employees who retired prior to 05.06.1995. The Pension Scheme was approved by the Cabinet on 05.06.1995, as such it cannot be said that such a fixation is either arbitrary or illegal. 10. On the other hand, Sri M.C. Dhingra, learned counsel appearing for the respondent-applicant, has submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied upon. The Tribunal has held that the members of the respondent-Union were governed by the Contributory Provident Fund and had, on their retirement, availed such benefit whereas the Scheme of pension was made applicable with effect from 05.06.1995, as per the Notification dated 06.10.1995. The Tribunal, by recording a finding that the employees who already retired by availing the benefit under the Contributory Provident Fund Scheme, constitute a different category and are not similarly placed as those employees who were in service of the Corporation on 05.06.1995, on which date the Scheme was approved, has dismissed the Original Application. 14. When the order of the Tribunal, rejecting the claim of the respondent-Union was challenged, by way of Civil Writ Petition, the High Court, by referring to certain cases decided by this Court, without any independent assessment on the issue in question, has allowed the writ petition, by impugned order. 15. In the case of D.S. Nakara [AIR 1983 SC 130 = (1983) 1 SCC 305], this Court had treated the pension retirees only, as a homogeneous class and all the pensioners governed by The 1972 Rules, were treated as a class, because paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng on or after the cut-off date. The criterion made applicable was being in service and retiring subsequent to the specified date . This Court held that for being eligible for liberalised Pension Scheme, application of such a criterion is violative of Article 14 of the Constitution, as it was both arbitrary and discriminatory in nature. The reason given by the Court was that the employees who retired prior to a specified date, and those who retired thereafter formed one class of pensioners. The attempt to classify them into separate classes/groups for the purpose of pensionary benefits was not founded on any intelligible dirrerentia, which had a rational nexus with the object sought to be achieved. However, it must be noted that even in cases of pension, subsequent judgments of this Court have considerably watered down the rigid view taken in D.S. Nakara [AIR 1983 SC 130 = (1983) 1 SCC 305] as we shall see later in T.N. Electricity Board v. R.Veerasamy ( Veerasamy ). In any event, this is not a case of a continuing benefit like pension; it is a one-time benefit like gratuity. 17. In the case of Govt. of Andhra Pradesh others v. N. Subbarayudu others [(2008)14, SC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore 05.06.1995, were paid all retiral benefits, applicable to them. As the Pension Scheme was not in existence during the relevant time, it was not the case of violation of any service conditions either. The Pension Scheme is introduced by way of notification dated 06.10.1995, by giving effect from 05.06.1995, on which date the Cabinet has approved the Scheme. The employees who were governed by the Contributory Provident Fund Scheme and retired prior to 05.06.1995 and the employees who were in service and continued after 05.06.1995, of the appellant- Corporation, cannot be treated as a homogeneous class. The retired employees, who were governed by the Contributory Provident Fund Scheme, on their retirement had already received the benefits of such Scheme, constitute different class than those employees who were in service as on 05.06.1995. There is a valid reason for giving effect to the Pension Scheme from 05.06.1995, though the notification was issued on 06.10.1995. The cut-off date, i.e, 05.06.1995 is fixed on the ground that the Cabinet has approved the Scheme from such date. As already noticed above, it is always open for the employer to introduce new Schemes and benefits, hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 86 in lieu of 1-1-1990. It is evident that for introducing a pension scheme, which envisaged financial implications, approval of the Rajasthan Government was required. In the letter of 16-4-1991, written to the Vice-Chancellors of different universities of Rajasthan, it was stated as follows: As per the direction in regard to the aforesaid subject, the State Government has decided to introduce Pension Scheme in the Universities of the State w.e.f. 1-1-1990. In this regard the State Legislature has passed University Pension Rules and General Provident Fund Rules. Therefore, by enclosing a copy of University Pension Regulations and General Provident Fund Regulations with this letter, it is requested that by obtaining approval of the competent body or Syndicate of the University, these Regulations be implemented in the University together and necessary information regarding implementation be intimated. 17. The Syndicate and Senate of the University, when they had forwarded their recommendations in 1986, did not contain a specific date with effect from which the pension scheme was to be made applicable. Their recommendations were subject to approval. The approval was granted by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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