T R SINGLA Vs. STATE OF PUNJAB

JUDGEMENT

(1.) PETITIONERS were the employees of the State of Punjab. They had retired from service after 1 -1 -1996 from various departments. They have filed this writ petition with the prayer that a writ of certiorari/mandamus or any other suitable writ or direction be issued to respondents to enhance the value of commuted portion of pension, already paid to them, on the basis of instructions dated 21 -7 -1998 (Annexure P -4). It has been stated that these instructions are arbitrary and due to its wrong interpretation, less amount has been paid to them. They are entitled to get commuted value of pension by calculating 40% of basic pension multiplied by 10.46 factor of year of purchase value and further multiplied by 15 corresponding to the restoration period of 15 years as there in no change of rate of interest as per Commutation Table Annexure P -3. It has further been pleaded that respondents have wrongly applied a multiplier of 12, while calculating their 'commuted portion ' of pension and in this way they had been paid 20% less amount of commuted value of their pension. It is further argued that the relief had been given to a similar employee in writ petition No. 16531 of 1998 titled as Harinder Pal Singh Sidhu v. State of Punjab decided on 17 -2 -2000 whereby the pension was ordered to be commuted by applying a multiplier of 15.

(2.) FACTS in this case are not in dispute. It is only the interpretation and validity of instructions dated 21 -7 -1998 which require consideration.

(3.) THE entire scheme of Chapter XI Volume II of the Service Rules entitles an employee to commute, for lump sum payment, any portion consisting of whole rupee not exceeding 1/3rd (now 40%) of his pension which has been or may be granted to him. The lump sum payable amount of commutation is calculated in accordance with Commutation Table prescribed under the rules. It is also apparent thatwhen a pensioner get a portion of pension commuted, his pension is reduced to the extent of commuted portion from the date he receives commuted value. Commuted value of pension depends upon the age of the pensioner as on the next birth day. For example, if an employee seeks commutation and his age on the next birth day is 59, the commutation value is equal to 10.46 years purchase, as the age next birth day increases, commutation value goes on decreasing. For a better der standing. it is necessary to reproduce relevant portion of commutation table as referred to in Rule 11.5(2), which is annexed with the above mentioned rules : -_