UOI Vs. GM JAGANNADHARAO

JUDGEMENT

(1.) In the early sixties the Government of India took a decision to give impetus to Public Sector Undertakings in the core industrial sectors and initially sent government servants on deputation to various Public Sector Undertakings. With passage of time it was found desirable that some deputationists could be absorbed in these Public Sector Undertakings and a methodology devised to protect the service rendered while under the Government for purposes of pension as also receive terminal benefits upon superannuation from the Public Sector Enterprises was the concept of deemed retirement in public interest. In other words, irrespective of qualifying pensionable service not rendered, but proportionate to the number of years service rendered in the government such government servants who were permanently absorbed in Public Sector Undertakings became entitled to be treated as retired in public interest with pensionary benefits as per the applicable pension rules including the entitlement for pension to be commuted as per the Civil Pensions (Commutation) Rules. Under the said Rules a government servant is entitled to commute one-third pension. And as regards those who are treated as having retired in public interest they are entitled to the additional facility of commuting even the balance twothird pension i.e. these persons can commute the full pension.

(2.) The respondent is one such government servant who was absorbed in a Public Sector Undertaking. After having rendered service in the Indian Railways, the respondent was absorbed in RITES (a Public Sector Undertaking) on April 30, 1989. As per his request on February 05, 1990 one-third commuted pension payable to him for the service rendered in the Indian Railways was received by him followed by he commuting the remaining two-third pension on March 10, 1990.

(3.) In the year 1983 a registered society and some retired government servants filed petitions under Article 32 of the Constitution of India seeking striking down certain provisions of Central Civil Services (Commutation of Pension) Rules, 1981 on the ground that the rules permit the government to recover more than what is paid to the pensioners upon commutation and sought directions for issuance of formulating appropriate scheme rationalizing the provisions relating to commutation. During the pendency of the matter, the government agreed to restore the commuted portion of the pension in regard to all civilian employees at the age of 70 years or after 15 years of retirement, whichever is later, and agreed to make this effective from April 01, 1986. However, the Court directed that it would be just and equitable that the benefit agreed to be extended in respect of commuted portion of the pension should be effective from April 01, 1985.