UNION OF INDIA Vs. CENTRAL ADMINISTRATIVE TRIBUNAL

JUDGEMENT

(1.) The issue involved in the present case is really a short one. The respondent No.2 herein joined the petitioner in the Ministry of Health and Family Welfare on 28th March, 1946 and after rendering 33 years and 11 months service, he was absorbed in Hindustan Zinc Ltd., Udaipur, a Public Sector Undertaking on 17th March, 1979. On his absorption he is deemed to have retired from Government service. He was asked to exercise his option either for receiving pension with Death-cum-retirement gratuity (DCRG) or for receiving gratuity and lump sum/amount in lieu of pension. He opted for the second, namely, gratuity and lump sum amount in lieu of pension. It was given to him although he was not subjected to medical examination as is required under Rule 18 of the Commutation of Pension Rules, 1981. Nobody noticed this lacuna. Although the respondent No.2's commutation date was 15th March, 1980, he was paid commuted value of full pension on 8th January, 1981.

(2.) Normally, Government servants on retirement, if they opt for lump sum, their 1/3rd commuted portion of pension is restorable after 15 years from the date of such option. Such benefit was earlier not admissible to those Government servants who are deemed to have retired on their permanent absorption in PSUs. However, the Supreme Court in its decision in Welfare Association of Absorbed Central Govt. Employees in Public Enterprise & other Vs. Union of India and Anr. as well as P.V.Sundara Rajan & Anr, Vs. UOI reported in (1996) 33 ATC 188 held that even this category of Government servants would be eligible for restoration of l/3rd commuted portion of pension, 15 years from that date. This decision was rendered on 15th December, 1995.

(3.) Acting on this decision, the Government also issued OM dated 30th September, 1996 giving effect thereto. As a result the respondent No.2 herein became entitled to l/3rd commuted portion of pension. Since the respondent No.2's commutation date was 15th March, 1980 this l/3rd commuted pension was due to be restored on 15th March, 1995. However, the petitioner permitted the same to the respondent No.2 only from 8th January, 1996. The period of 15 years was computed from the date he was given commuted full pension, i.e., 8th January, 1981 and not the commutation date i.e. 15th March, 1980. The respondent no.2 felt aggrieved by this action of the petitioner. The respondent No.2 herein successfully challenged this decision of the petitioner herein by filing Original Application No. 1972/2000 inasmuch as vide impugned Judgment dated 30th May, 2001 allowing his application, the learned Tribunal has directed restoration of l/3rd commuted value to be reckoned w.e.f. 15th March, 1995. The relevant portion of the impugned Judgment, to this effect, is as under: