BIHAR PENSIONER SAMAJ Vs. STATE OF BIHAR

JUDGEMENT

(1.) Initially the petitioners being aggrieved by the Resolution of the Government of Bihar, contained in Finance Department Memo No. 4159 dated 5 -5 -1998 (Annexure -1) with respect to the effective date for raising the limit of retirement gratuity from 1 lakh to 2.50 lakh i.e. 16 1/2 times of the emoluments or Rs. 2.50 lakh whichever is less and for treating the dearness pay for the purpose of death -cum -retirement gratuity of its employees who retired/died on or after 1 -4 -1987 instead of 1 -4 -1995 as implemented in the case of the Central Government employees challenged its validity. Later the petitioners filed an amendment application challenging the validity of the Finance Department Resolution No. PC -01/99 -11556 Vi Pe dated 22 -12 -1999 (Annexure 11) whereby the State Government decided to notionally revise the pension, family pension and gratuity with effect from 1 -1 -1996 of its employees who retired or died in harness on or after 1st January, 1996 but gave actual monetary benefit with effect from 1st April, 1997 and the gratuity was to be counted on the basis of basic pay plus dearness allowance as admissible on the date of retirement or death and further that it should be with of the admissible every six monthly emolument for pensionary service which shall not exceed 16.5 times of the same and in the case of death gratuity different calculation was provided but in both the cases the maximum limit of the gratuity was increased to 3.50 lakh admissible in the case of those who retired or died on or after 1 -4 -1997. The prayer for amendment was allowed vide order dated 2 -5 -2000.

(2.) Petitioner No. 1 which is a registered society espousing the cause of pensioners through its General Secretary, who is also petitioner No. 2, along with three other petitioners, are aggrieved by the said decisions of the State Government insofar as the date of the implementation of the said provisions in the case of the State Government employees from 1 -4 -1997 instead of 1 -4 -1995 and 1 -1 -1996 as have been implemented in the case of the Central Government employees.

(3.) The thrust of the petitioners' case is that the State Government has always fixed the pension scheme on the pattern laid down by the Government of India and in the present case also, the aforementioned benefits have been granted in pursuance to the recommendation of the 5th Pay Revision Committee which was accepted by the Central Government and implemented with effect from 1 -4 -1995 for treatment of clearness allowance as clearness pay for the purpose of death gratuity and retirement gratuity and raising the maximum limit of gratuity from Rs. 1 lakh to 2.50 lakh vide Annexure -8 in pursuance to the interim report base on All -India Consumer Index 1201.66 and in the matter of final revision of pension. Family pension , DCRG, commutation of pension from 1 -1 -1996 but the State Government implemented the said benefits with effect from 1 -4 -1997 including the benefit in increase of gratuity to Rs. 3.50 lakh in pursuance to the recommendation of the Fitment Committee in the case of its employees who retired or died on or after 1 -4 -1997. It is contended that the State Government revised the pension scheme in question on Central Government pattern which is linked to Average Consumer Price Index 1201.66 obtaining as on 1st July, 1993 which was the basis for the Central Government to fix 1 -4 -1995 as the cut -off date. As such, according to the learned Counsel for the petitioners, there is no rational/ justification in not giving the similar benefit to the petitioners also. It is also submitted that once having taken a decision to follow the Central Government pattern in the matter of payment of retiral benefits from 1972 and having acted since then on that line, the State Government cannot depart from it and take an arbitrary date for implementation of the Scheme in question. According to the learned Counsel for the petitioners,, by the Cabinet decision dated 13 -1 -1998 a right had accrued and matured in favour of those employees who retired or died on 1 -4 -1995 to receive gratuity by getting dearness allowance treated as dearness pay which the State Government cannot take away by a subsequent administrative order and that too without the approval of the Government. It is submitted that the State Government having taken decision in principle on the basis of the interim report of the Central Pay Commission committed fraud on power in making the said benefit available from 1 -4 -1997 against its own decision to add the entire dearness allowance with pay for calculating the retiral benefits and the gratuity from 1 -1 -1996.