K S R T C Vs. VARGHESE

JUDGEMENT

(1.) hether Kerala State Road Transport Corporation (K.S.R.T.C.) is bound to pay revised pension and pensionary benefits to its retired employees as per the Government Service Rules (K.S.R.) on par with pensioners of Government service without fixing a different cut off date is the question that is to be considered in these appeals. Earlier, this Court answered the above question in the affirmative. In appeal, the matter was remanded as according to the Honourable Supreme Court, this Court had considered only the entitlement of the pensionary benefits and not regarding the legality of fixing a different cut off date. Apex Court also noticed that reliefs claimed in the Writ Appeals were not identical. There are two classes of employees in all the Writ Appeals: (1) erstwhile Government employees who were transferred and absorbed by the Corporation and (2) employees who were appointed after the formation of the Corporation. The Apex Court also held that this Court has not considered the question whether application of K.S.Rs. mentioned in the notification dated 22nd March, 1965 was by incorporation or by reference and the effect of letter dated 5thMay, 1984. The Judgment of the Honourable Supreme Court remanding the matter is reported in K.S.R.T.C. v. Varghese, ( 2003 (2) KLT 706 (SC)).

(2.) Kerala State Road Transport Corporation (K.S.R.T.C.) (hereinafter referred to as 'the Corporation') was formed on 1st April, 1965. All the employees of the State Transport Department were absorbed by the Corporation. All the assets of the State Government in the State Transport undertaking were transferred to the Corporation. Service conditions of ex employees of the State Transport Department absorbed by the Corporation were protected as per Notification No.4936/T.C. 4/65/P.W., dated 22nd March, 1965 under sub-s.(1) of S.34 of the Road Transport Corporation Act, 1950 (hereinafter referred to as 'the Act'). Para.11 and 12 of the notification reads as follows:

(3.) By order dated 5th May, 1984, the employees employed by the Corporation who have opted for pension were also granted pension at the same rate and conditions on par with the ex employees of State Transport Department. Government authorised the Corporation to pay pension to the employees as per Kerala Service Rules. All revision effected by the Government in dearness relief were also given to pensionable employees of the Corporation without any difference and the Corporation was strictly observing the provisions of Part III of K.S.Rs. in the matter of pension. No separate regulations were framed by the K.S.R.T.C. for giving pension. But, after 1st January, 1992, whenever Government revised pension and dearness relief, it was not given to the retired employees of the Corporation immediately, but, different cut off dates were given for effecting revision: For example, dearness relief granted to State Government pensioners with effect from 1st January, 1992 was granted to the pensioners of the Corporation only from 1st July, 1992. When the Government has revised dearness allowance with effect from 1st January, 1994, even though the Corporation granted revision, it was only with a cut off date starting from 1st November, 1996. Argument of the retired employees is that they are entitled to revised pensionary benefits on par with the Government employees from the respective dates and cut off date fixed by the Corporation is not correct. Learned Counsel for the Corporation submitted that they are not disputing the entitlement of revising pensionary benefits to its employees; but, they are entitled to fix a separate cut off date. Therefore, we need not look into the entitlement of the revised pensionary benefits to the pensioners; but, only the correctness of fixation of the cut off date by the Corporation in the backdrop of orders passed under S.34 and adoption of K.S.R. by the Corporation in the matter of payment of pension without framing regulations. Effect of the orders passed under S.34 of the Act on 22nd March, 1965 with regard to the employees transferred from the erstwhile Transport Department, effect of the order dated 5th May, 1984 with regard to the employees directly appointed by the Corporation, ambit of Government letter dated 24th September, 1992 and similar letters issued in subsequent pension revisions etc. have to be reconsidered in the light of the Apex Court judgment.