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Monday, 18 December 2023

LIC PENSIONERS COURT CASE – IN A NUTSHELL

The Pension Rules were notified on 28-06-1995 and was deemed to have come into effect from 01-11-1993. These rules were made applicable to all those who were in service and retired on or after 01-01-1986.

Sri KML Asthana filed a writ petition no: 6676 of 1998 in the High Court of Rajasthan at Jaipur urging for upgradation of Basic Pension. In the mean time the L I C Board passed a resolution on 24-11-2001 which spelt three things : 1. That there should be 100% Dearness Relief (DR) to pre-1-8-1997 retirees, 2. That the Basic Pension should be upgraded by merging DR upto 1740 CPI points and 3. This to be applied prospectively and after obtaining Government approval.

The LIC Management referred this resolution to Finance Ministry for approval. But the Ministry kept the resolution in cold storage and has not approved so far.

Sri Asthana filed another Writ Petition no:654 in 2007 for the implementation of the Board Resolution. The Rajasthan HC while considering the Writ petitions, combined both the above Writ Petitions and Single Judge Bench consisting of Hon. Justice Sri M N Bhandari gave its Judgment on 12-01-2010. It is to be noted here that both LIC of India and Union of India were parties to the Writ petition. It allowed both the writ petitions and asked LIC Management to take steps to implement Board Resolution dtd. 24-11-2001.

LIC preferred an appeal to the Division Bench of Rajasthan HC no: Civil Appeal(W) nos: 493 and 494 in 2010. The Division Bench(DB) consisting of Hon. Justice Sri Dalip Singh and Hon. Justice Sri Mahesh Bhagwati pronounced its judgment on 21-01-2011. The DB observed that the appeals against the SB Judgment ought to have been preferred by UOI. It has not preferred an appeal which can be considered as an approval of the Board resolution. The LIC which is an appellant could not and should not have filed this appeal against its own resolution – passed to remove disparities and the discrimination with regard to the Payment of Dearness Allowance and Pension to the retired employees. The DB dismissed both the appeals stating that there is NO MERIT.

LIC then filed Review Petitions no:86 and 87 of 2011 before the same DB of Rajasthan HC. They also filed SLP nos:16117 and 16118 of 2011 in Supreme Court of India. In the mean time Sri Asthana filed a Contempt of Court Petition in the Rajasthan H C (Civil Contempt Petition No:760 of 2010).

The SLP came up for hearing in SC on 15-07-2011 and the Bench consisting of Hon. Justice Mr. G S Singhvi and Hon. Justice Mr. H L Dattu passed the following Order after hearing Counsel for LIC, " - -- - SINCE THE PETITIONS FILED BY PETITIONERS FOR REVIEW OF THE ORDER PASSED BY THE DIVISION BENCH ARE PENDING CONSIDERATION, THESE PETITIONS ARE DISPOSED OF WITH A REQUEST TO THE DIVISION BENCH OF THE HC TO MAKE AN ENDEAVOUR TO DECIDE THE REVIEW PETITIONS AS EARLY AS POSSIBLE , BUT LATEST WITHIN 3 MONTHS FROM THE DATE OF RECEIPT OF THIS ORDER." It is to be noted here that LIC counsel had sought for 2 years time. The court also stayed the proceedings in the Contempt Petition till the disposal of the Review Petition.

The Review Petition came up for hearing on 19-08-2011 before the same DB of Rajasthan HC, which heard counsels from both the sides and said that ' - - - we do not find any error apparent on the face of the record so as to call for interference in the Review Jurisdiction, the Review Petitions are accordingly DISMISSED." This naturally vacated the Stay granted by the SC on the Contempt Petition 760/2011.

When the Contempt Petition No.760/2010 came up for hearing on 31-10-2011, LIC Counsel gave an assurance that he will get the Order of SB Judge complied with within a period of 4 Weeks. The Court accepting this submission made by LIC counsel, allowed time of 1 month and fixed next date for hearing the petition on 01-12-2011.

At this stage LIC instead of honoring the undertaking given by its own counsel, preferred to file Special Leave Petitions in Supreme Court Nos: 29956 and 29957 of 2011 against the Judgment and Order dated 19-08-2011 passed in Review Petitions no: 86 & 87/2011 by DB of Rajasthan HC. These SLPs came up for hearing on 14-11-2011 before a Bench of Hon.Justice Mr. G S Singhvi and Hon. Justice Mr. S J Mukhopadhaya. They ordered for issue of Notices to both the Parties returnable in 10 weeks and also stayed the contempt of court proceeding no:760/2011 SUBJECT TO THE CONDITION THAT WITHIN 8 WEEKS THE PETITIONER(LIC) SHALL DEPOSIT THE AMOUNT DUE TO THE EMPLOYEES IN THE REGISTRY OF HIGH COURT.

LIC deposited a meager amount in the Registry of Rajasthan HC in compliance with the above Order. Sri Asthana, filed contempt petitions in SC no:82-83/2012. The amount deposited became a point of contention. He withdrew these petitions subsequently because there were some mistakes, and filed fresh contempt petitions in SC no:124 & 125/2012.

About 13 Interim Applications(IA) were filed by Sri Asthana in SC on many issues like seeking clarification on the Order dtd. 14-11-2011 etc,.

On 08-08-2013 IA nos;12 & 13 were considered by the SC Bench consisting of Hon. Justice Mr. G S Singhvi and Hon. Justice Mr. Mukhopadhaya. The contention of Mr. Asthana's counsel was that since LIC has not challenged DB Judgment of Rajasthan HC dated 21-01-2011(it only challenged the judgment in review petition), the SLPs are not sustainable. The court upholding this argument DISMISSED THE SLP Nos:29956 & 29957/2011. However, it also said in the judgment that LIC can file fresh SLPs, but condonation of delay is not automatic and depends on the merits of the case. This order vacated the stay granted by SC on the Contempt Petition no: 760/2010 filed in Rajasthan HC.

Immediately after this Order of SC dismissing the SLPs of LIC, NOIP wrote a letter to LIC Chairman to honour and implement the Judgment dated 12-01-2010 of Rajasthan HC.

LIC has now filed fresh SLPs which are registered as Nos: 16755 – 16758/2013 in SC. In the mean time the Contempt Petition no:760/2010 came up for hearing in Rajasthan HC and Notices have been issued to the then present Chairman, MD and ED(P) on 17th and 18th of Sptember 2013. Since acknowledgments for having served he notices have not yet been filed in the records of the HC, the case did not get listed on 23-09-2013.

Finally, the Writs were heard by Justice Dipak Mishra. He delivered 29 page Judgement on 31-03-2016. But unfortunately he only considered the issue 'whether Board Resolution dtd.24-11-2001 can be impleented by LIC, without GoI's approval' and decided against it. He said approval by GoI is must to implement Board Resolution. However, he ordered LIC to pay 40% Interim Relief to all Pensioners retired before 01-08-1997. He also remited the case back to Delhi HC to consider the constitutional validity of Rule 3(A) & 3(B of Appendix IV of LIC Employees Pension Rules, 1995, with an order to Jaipur and Chandigarh HC's to transfer the records of their cases to Delhi HC.

The Delhi High Court on receipt of the records from Jaipur and Chandigarh High Courts, Justice Sanjiv Khanna heard the case. Although in-principle he agreed that Pensioners prior to 01-08-1997 should get 100% DR neutralization. Gave his 90 page Judgement on 27-04-2017. But in the speaking order committed blunder and gave only a truncated relief to the pre-8/1997 retirees. He also said that Minimum Pension should be revised at every Wage Revision, if (Basic Pension + DR) is less than the Minimum Pension specified in the Wage Revision, as on the date of Wage Revision.

LIC impleented this order. The effect was Group 1 Pensioners got lesser arrears than Group 2 Pensioners – because of the faulty formula of the Judgement. LIC also recovered from the arrears 40% IR paid – where the arrears was more than the IR paid.

Plethora of Special Leave Petitions were filed challenging the DHC Judgement dtd.27-04-2017 in the Supreme Court in 2017 itself. Howerver due to lot many adjournments these SLPs have not been heard so far, in these 6 years. The SLPs are nubered as : 19799/2017; 20929/2017; 21206/2017; 27963/2017; 30000/2017; 28873/2017; 1945/2022.

The petitioners are : AIIPA; AIRIEF; Fed of Retd Class 1 Officers Assn; Retd LIC Class 1 Officers Assn; Sri KML Asthana; Sri M L Gandhi & ors; LIC of India & another.

The respondents are : LIC of India; Union of India. The case still pending for Final disposal at Admission Stage.

Now the case is tentatively listed for hearing on 20-02-2024.

A WP was filed in Punjab and Haryana HC (M L Gandhi Vs LIC), which was decided in favour of Pensioners and LIC has filed an SLP in SC after some delay and SC has condoned the delay.

Retired Class 1 Officers Association had filed a WP in Delhi HC, where in only 100% DR neutralization was demanded. The writ was decided in favour of Pensioners based on the Jaipur case.

But both the above cases have come to Supreme Court, by SLPs (above list includes these).

BELGAUM 18-12-2023

C. T. JOSHI Spl Invitee to NOIP Secretariat.

Email id : joshi.chidabart@gmail.com Mobile Nos : 9731955044 / 7483371761

WhatsApp : 9731955044.

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