SHOULD LIC HAVE GOT LIC PENSION RULES 1995 AMENDED BEFORE IMPLEMENTING THE PARTIAL RELIEF PROVIDED BY DELHI HIGH COURT?

In the wake of the implementation of the DHC judgment by LIC-even though as per commitment made before the Supreme Court on 30/7/2018- , the question arises as to whether LIC can allow the following Rules in the LIC Pension Rules 1995 to continue in the present form even though the SLPs of six petitioners are pending before the Supreme Court:

1. Appendix IV (under Rule 37) para 1;

2. Appendix IV (under Rule 37) para 2:

3. Rule 36 on Minimum Pension (where presently there is no provision for upgradation).

Now that LIC has implemented the DHC judgment and modified the rate of Basic Pension from 1/8/2018 to all eligible pensioners, continuing the Appendix IV in the present form is illegal and in violation of the DHC judgment and in conflict with the practice of paying DR at a rate different from the existing provisions in the Pension Rules.

The same logic will also apply in respect of Rule 36 where some additional paragraph will have to be added providing for upgradation of minimum pension with every wage revision.

These amendments will have to be made through a Gazette Notification by the GOI, but the catch will be that if Appendix IV, para 1 is amended as per the DR formula adopted by LIC in violation of the DHC judgment, it will be an illegal provision in the light of the DR formula prescribed by the DHC in its judgment. Such a wrong amendment can be challenged in the Supreme Court as being in conflict with and contempt of the Delhi High Court judgment dated 27/4/2017.

This issue needs to be raised by the counsel of the various petitioners, so that the violations will be effectively brought to the notice of the Apex Court and LIC/GOI are compelled to incorporate correct amendments to the Pension Rules and pay the difference in arrears as per the DHC judgment in consequence.

The amendments that should be incorporated in tune with the DHC judgment will of course have to  undergo changes if Supreme Court orders changes in the verdict delivered  by the DHC-which will definitely happen if it allows upgradation of pension in its final verdict.

Of course, the unwarranted deduction of 40% interim relief from the arrears paid will have to be raised independently as a violation of DHC order dated 27/4/2017 as it has nothing to do with the LIC Pension Rules.

The case managers will do well to discuss the above with their counsel so that the legal points are effectively utilised to our advantage.

Greetings.

C H Mahadevan