The DHC judgment

The DHC judgement

We are all unhappy with the judgement pronounced by the DHC on 27-4-17. The reasons are (1) it turned down our demand for updation of pension and (2) only partial relief in DR was given to pre 8/97 retirees. The dissatisfaction is understandable.

Are there no positives at all in the judgement? In my view there are. We seem to have somehow missed them.

What are they?

(1) The judgement has asserted that pre 8/97 retirees are entitled to DR at the same rate (.23 pc) as is allowed to post 8/97 retirees. Post 8/97 the DA and DR formula for in-service employees and pensioners we are aware is the same. This can only mean that the DR formula for pre 8/97 retirees cannot be different from the DR formula followed for employees.

(2) The judgement has stated clearly that rule 3A of appendix IV is discriminatory and unconstitutional since it's benefit is not extended to pre 8/97 retirees.

These are the two positives.

Naturally then the question arises in what way thus will be of help to us in our case. The answer follows.

Point (1) given above needs no elaboration.

In point (2) lies the key to our case in SC.

The judgement has declared that 3A is unconstitutional. So the benefit of rule 3A is applicable to all earlier (pre 8/97) retirees also.

Rule 3B is an extension of rule 3A. It was added to simply avoid the work of issuing repeated notifications regarding change in DR rate to pensioners after each wage revision. So if 3A is unconstitutional all notifications issued by LIC under rule 3B are equally unconstitutional. This only leads to that whenever DR rate for pensioners is revised after a wage revision it is applicable to all earlier pensioners also.

Where does this lead to? No doubt in my opinion to automatic updation of pension. How? It is explained below.

The current rate of DR payable to pensioners is .08 pc per slab for CPI in excess of 6352. So this rate as elaborated above is applicable automatically to all pre 8/17 retirees as can be deduced from the judgement. This leads to automatic pension updation as explained below. .08 pc relates to CPI 6352. Therefore .08 pc per slab should be applied to pension calculated on the updated pay scales linked to CPI 6352 effective from 1-8-17 and not on the exixsting pension. This is how point (2) will lead to automatic updation of pension for all. In my considered view therefore there is inbuilt provision for automatic updation of pension thanks to the DHC judgement and rules 3Aand 3B of appendix IV.

I hope this point along with my recent earlier post will get due attension during the deliberations of the LSG scheduled on 21-11-21.

S.R.SRINIVSAN

RIEA (AIRIEF)

THANJVUR