UNION OF INDIA Vs. B RAMAMURTHY

JUDGEMENT

(1.) Leave granted.

(2.) The government of India in OM No. 18 (4-EV/79 dated 25/5/1979 introduced in para 3 (iii) that half of the dearness pay was treated as pay to compute retirement benefits. That came to be challenged by the respondent in filing OA before the central Administrative tribunal, Hyderabad. The tribunal in the impugned order dated 9/8/1989 following a judgment of the Bangalore tribunal declared it to be ultra vires, offending Article 14 of the Constitution. Thus this appeal by special leave.

(3.) The benefit of the OM is to facilitate calculation of 10 months' average pay for the purpose of pension. Earlier, only 3/10th of the 10 months' average pay was computed for pension. Under the impugned order in para 3 (iii) of the OM dated 25/5/1979, the computation would be 5/10th i. e. half of the dearness pay for the purpose of computation of pension. In other words, the OM is more beneficial for the pensioner rather than earlier computation. Whether the notification is justified and valid in law, was considered by a bench of this court in State of Rajasthan v. Sevanivatra Karamchari Hitkari Samiti wherein it was held that the ratio in Nakara case has no bearing in this matter and the introduction of the rule is not arbitrary or capricious. It is permissible to introduce different retiral benefit schemes for government servants as indicated in the decisions held by this court in Krishena Kumar v. Union of India, Indian Ex-Services League v. Union of India and State of Rajasthan v, Rajasthan Pensioner Samaj.