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Saturday, 18 July 2015

RANDOM THOUGHTS ON THE MANAGEMENT OF OUR PENSION CASE IN THE SUPREME COURT


Shri A.S.Ramanathan Writes,



Dear Friends,
We are in the final phase of our fight in our pension case in the Supreme Court. We have read, heard and discussed so far on the merits, legal points, strengths of our case and seen the tortuous course it had thus far taken. Much research has also gone to strengthen our case by digging into the legal, logical points and the justification of our case. I am sure that the captains, leading our case have noted all those points and appraised our counsels handling the case. Nonetheless, it is extremely important for us to once again go through and formulate a draft of the defence we are going to present, at the time of the final arguments. We should be equivocal in our arguments and unified in our approach. It is important to realise that our counsels are seasoned advocates and, I may be pardoned to say, that some time they may take it easy, because what we may see as important, is a usual thing for them. Yet, I feel bold enough to emphasize on this, from my experience in interacting and briefing, so that no point is missed. While arguing our case, first we are selling our points to the Judges. There will be questions from the Bench. The best we have to do, is to present our points cogently (this is less arduous now as the LIC & Govt. will have to present their case first). By now we are well aware of the arguments that may arise from the Appellants side and I am sure, we have the defence. We must be present in the court with our Advocates to take note of any new points that may be raised, in order to immediately appraise our counsel. Of course, our advocates know to counter arguments, still we have a duty to give them a feedback, because we have to ensure that they have been briefed correctly so that any attempt to confuse the court, as it happened earlier as regards the number of retirees and the total cost etc., may be cleared. It is suggested that a written argument and detailed a point by point arguments with supporting case laws and our legal and moral justification to our contentions may be prepared and given to our Advocates.
Our captains would have taken appropriate decisions as to the next step, if any, to be taken in the light of the LIC’s response to paying 20% of our claim as per the directive of the SC. There appears to be no clear cut action and many of us are talking about the intransigence of the LIC to the SC order. As I have earlier written, I strongly feel there should be no attempt to drag the LIC over the coals, through another contempt petition, for the simple reason we may miss the woods for the timber, and lose precious time and money. The contempt course may well drag on and our date 23-9-15 may be missed in the process. We will not gain anything through a contempt petition, expect delay in the final hearing of the case. I have suggested that we may move a prayer to the SC to fix an early date for final arguments and can mention the reluctance of the LIC to obey the orders of the SC. I feel, there is nothing wrong even if we submit that LIC is not interested to implement the SC’s directions and are trying to delay the judicial process, we are not interested to initiate contempt proceedings, which, if the SC feels, may be done at the pleasure of the Court. Our prayer should be for an early final hearing, in view of the fact that the Respondents are senior citizens in their 70 & 80’s and every passing day is reducing their numbers.
Now coming to the points of our final arguments, I seek your indulgence, if you are feeling bored reading the same points on which I have been writing time and again. The purpose of this imposition is not to leave any points since we have to throw all our weapons at our adversaries, so as to cause maximum damage.
Technical points can be relegated to the last. The strongest point in our case is the decision of the SC in  Nakaras case holding that there cannot be a division of the retirees into batches by their retirement dates, for the purposes of extending benefits, and denial of any benefits by such a method of segregation is discrimination, amounting to violation of the Fundamental Rights under the Constitution of India. Nakara’s case was decided by a Constitution Bench of the Supreme Court consisting of 5 Judges and the Bench of two judges hearing this Appeal will have no difficulty or reason not to follow suit. A number of cases have been decided by different courts by following this ruling, and this ruling is the law of precedence established. Once this point is established, there is no place for any contrary view. There is also no remedy against a violation of the constitution except to follow the law laid down by the court. It is a well established legal principle that there cannot be an estoppel against a statute and more so against a constitutional proviso. There is no logic to hear, again and again, this accepted principle. Pleas of cost or the so called ‘ripple effect’ are irrelevant, for the simple reason that the benefit will accrue only to a few, who retired from the services of the LIC during the period 1-4-86 to 31-7-97. It is to be remembered that the pension scheme itself was introduced only in June 1995, with the benefits extended to those retired from 1-4-86. It is also to be remembered that pay scales were much less then. Further pay scales were revised in 1997 and the increased benefits, including pension, were given to the serving employees, who are much larger in numbers than those retired after 1-4-86. Therefore, the logic of ripple effect is only imaginary. LIC is seeing the ripple effect only now, but not at the time extending pay revision in 1997 to a much larger number of serving employees, whose pay scales were revised upwards. Therefore the ripple effect is only a mirage in the sight of the LIC. The LIC had itself, in a note submitted to its Board for consideration, accepted that there are serious anomalies in the pension rules that require to be rectified and the cost, estimated by its own Actuaries, is not large and can be easily absorbed.                 
The HC’s and the SC are only the two authorities to decide on the violation of the Constitutional provisions and take appropriate decision to give relief in such cases, to the affected citizens. The Legislature, Executive i.e the Govt. and the Judiciary swear to preserve and protect the Constitution before they take Office but only the Judiciary is vested with power to proclaim and punish such violation. That being so, how a High Court Judge, while deciding a case for establishing this Fundamental Right, said to have committed an error or is it not empowered to do it ? Is the Govt. not aware of the Constitutional provisions on Fundamental Rights. The SB of the Jaipur HC has not decided the case giving its own interpretations, although entitled to do so, but found exact similarities of our case and in the Nakaras case, with regard to grouping of retirees on the basis of their respective retirement dates and therefore simply followed the SC decision, which it is obliged to. If the Govt. has accepted the ruling of the SC in Nakaras case, how can they say now that the HC Judge has erred, when his decision is in line with the decision of the SC. Why the Govt. have accepted similar judgements, in favour of some of the Govt. employees ?.
When discrimination is established beyond doubt, can anything be done to avoid that, contrary to the oath of Office taken by the Executive. Can such a decision be denied by simply sleeping over it or contending that a judgement is subject to the consent or approval of the Govt. .  It is not contemplated in the scheme of the constitutional form of government we practice and in any system of democracy. Our Constitution provides for the supremacy of the judiciary in matters of interpretation of law, to avoid misuse or abuse of power by the other wings of the democratic set up, lest every judgement that is against the ruling party can be vetoed by them. This is to ensure justice and fair play. The substance of this principle is to establish the rule of law. That being the case, there is the constitutional obligation that nobody shall be punished other than by an established law and every law is subordinate to the Constitution of India. An executive order or rule made the Govt., such as the one made under Sec.48 of the LIC Act, shall be lawful and within the ambit of the constitution.  Discrimination, as in Nakaras case, is an eminent example of this principle. The SB of the Jaipur HC had no choice, in view of the clear cut finding of the SC, on grouping of the retirees as mentioned earlier. The contention of the LIC that without a notification, it has no authority to carry out the orders of the HC becomes untenable. . In law, a person has to speak where he should and silence cannot be interpreted by someone else as an act and such silence can only go against him, who is expected to speak, as held by the D.B of the Rajasthan HC. The recent case of our friend Shri M.C.Jain, where the LIC has carried out the decision of the SC, belies this contention, in our pension case. That is why I am repeatedly saying that even if the Govt. issues a new notification denying the benefits of the judgement, it shall not be valid. Over and above, the notification issued under Sec.48 of the LIC act giving benefits of higher neutralisation still stands and is valid and acted upon by the LIC.  The SB of the Jaipur HC has given a harmonious reading to remove the discriminatory and unconstitutional part of the notification and held the benefits shall be applicable to all retirees as a single class. There can undoubtedly be no challenge to this fact. Where then is the need for another notification ?
 There is also an accepted principle that once an action is held as illegal, it cannot be enforced in an indirect manner. There cannot be a back door entrance when main door entrance is blocked by law. But unfortunately, these two points were not placed before the HC’s SB or DB’s. Had this been done, there would have been no arguments on Sec.48 entitlements of the Govt. We must put forth this principle VEHIMENTLY, quoting the precedents. Every legal point/weapon in our armoury should be thrown against such silly arguments. Thus far, I believe, our case for equal treatment with our other retired friends will certainly succeed.
Now let us see our arguments on revision of pension.
LIC is well known for creating anomalies such as the one during 1975-1985, when for instance, an Officer of the rank of a Divisional Manager was getting a total pay less than his own stenographer. The revision of 1997 resulted in gross injustice in two employees recruited on the same date, but one in a higher cadre four steps ahead than the other, as  a result of promotions earned, getting a smaller pension than the one who retired in a lower cadre. Even where two employees on the same grade and appointed on the same date who retire, say on 1-7-97 and the other on 1-8-97, the one who retired earlier will get a much lower pension. The LIC was aware of this injustice, as its recommendations to its Board, was as a result of this realisation. Still no action was taken to redress the grievance and every imaginary argument is advanced to deny equality. The Govt. is prepared to extend OROP to the armed forces now. The Vth & VI Pay Commissions Recommendations contain provisions for giving increases in pension.  The LIC Pension Rules are drafted on the lines of the Central Govt. Pension Rules. The chairman of the LIC is empowered to adopt the Central Govt. Pension Rules in situations where LIC Pension Rules are not clear. In fact he can even implement the Order of the SB of the Jaipur HC. Now there is the latest demand, by our own Law Makers, to enhance their pension by as much as 75%. It is reported that the Govt. is  planning to introduce a Bill, in the Monsoon session of Parliment, to rectify an anomaly under which the Judges selected and appointed from the Barto the HC Bench, get lesser pension than those from the State Judicial Services. This proposal to amend the High Court Judges (Salaries and Conditions of Services) Act, 1954 is coming more than a year after a SC ruling that such a discrepancy must be removed.  As compared with all this, LIC pensioners are only seeking to remove the acknowledged anomalies that have crept in. The liability arising is, a fast reducing sum for the simple reason that the revision is applicable only in the case of a very limited number of pensioners whose age is now more than 70yrs. There appears to be no application of mind, in the decision and in the approach to file appeals, without any valid legal or moral responsibility.
Not appreciating the recommendations of its Board, acting on the basis of LIC’s own brief to it, which the LIC said was to remove anomalies that have arisen, tantamount blowing hot and cold and insensible. It is to be remembered that the LIC Board consists of two members at Secretaries level of the Govt. besides others nominated. The Secretaries level representatives of the Finance Ministry after going with the resolution, turn head down, soon after reaching their seat, to say no to the same recommendation. Were they not aware of the agenda for the Board Meeting and come prepared. The SC should see through the game of holding with the hare and running with the hound, adroitly adopted here. In such a case where is the need for an ornamental and dumb Board and a representation for the Govt.
And finally let us consider the technical points and the logic of the present Appeal. The Govt. was made a party to the writ filed before the SB of the Jaipur HC. The Govt. appeared and argued the case through their counsel. After losing the case, LIC alone appealed against the decision of the SB. The DB had given specific notice to the Govt. to specially hear the Govt. but the Govt, did not opt to file even an affidavit. Under the circumstances, after many adjournments, the DB of the Jaipur HC concluded that Govt. have no grievance and held that by the decision of the SB, the LIC has no grievance and dismissed the appeal. The Review petition of the LIC was also dismissed for devoid of merit. The special leave petition of LIC was also dismissed. The dismissal is for a technical reason but is that the only one reason. In my opinion, the stronger and more pertinent legal point is, according to the decision of the DB itself, the LIC, being a separate person besides the Govt., is not aggrieved and in the circumstances of the case, the points raised on Sec.48 Of the LIC Act and by the decision of the Court, if at all there is legal grievance, it is only the Govt. that is aggrieved. There is no contest by them before the DB and therefore, LIC by itself, has no cause of action to file the Special Leave Petition or the Appeal. With no lis, the Appeal itself is not maintainable. The writ filed against Sri Asthana is also not maintainable. He is a humble citizen trying to establish his right under Art.14 & 16 of the Constitution of India. What is that the Govt. trying to enforce by the writ, which with all its power vested under various statutes the Govt. is not able to enforce? And what the Judiciary can do if the Govt. itself feel helpless. The judiciary can only interpret laws and the Govt. if it feels helpless, their choice has to surrender. Their option was to seek legal remedy and by not choosing to file an appeal, they have surrendered that right course of action. The writ petition now, is only an attempt to get a (lost) foot hold in the case. They are trying to get a new definition of, perhaps, the Nakaras case and that is asking for the re-examination of that decision. It will be therefore a hypothetical case as well as the other points raised in the Appeal. There are no new points of law that have been argued and any other proposition is best suited for an Academic discussion in a mock trial in a law school. Perhaps news paper reports of a letter written to the Prime Mininster by one of his own party member, high lighting the “poor judgement” of the law officers and its own Secretaries pertinently applies in our case, where a legal principle established by the ruling of a Constitution Bench is sought to be annulled, to clothe the Executive with the veto power by pleading that a High Court Judgement is subject its nod.  It is clear with the right of appeal lost due to failure to appear before the DB of the Rajasthan HC in the appeal, review petitions, the SLP, the Govt. has foregone its right to hear and perhaps the present writ petitions against Shri Asthana, are an afterthought of the doubt on the maintainability of the Appeal itself.
In the ultimate analysis, there is no doubt that the LIC is engaged in a vexatious litigation, inviting exemplary damages. Our case is very simple that may be disposed without much arguments and let me conclude by saying: This appeal is against the finding of the Supreme Court, that there is discrimination in grouping the pensioners into groups, for the purpose of conferring benefits. The HC’s had no difficulty in deciding because of the clear cut decision of a Constitution Bench of the SC, which they have correctly followed.  Once breach of a Fundamental Rights is established, the smudge of illegality arising cannot be washed away by the Govt. The Govt. is bound to act as per the direction of the HC/SC. All the other arguments raised are irrelevant and the Appeal by the LIC is not maintainable and the writs by the Govt. ill conceived and devoid of merit for the reason they have forfeited the right of appeal and the appeals are hopelessly time barred. There is no scope for the SC to determine, if there is any reasonable delay, recognisable in law, to condone because legal right once lost is irredeemable through any other process. The Govt. having not opted to contest, their lost chance is attributable only to their callous attitude at the relevant time. A writ is not a solution and there is no illegality in the decision of the HC’s. A writ petition is not an appropriate solution in the face of negligence to file an appeal. LIC is not a party considered aggrieved by the DB of the Jaipur HC. The Govt. is not a party before that Court at all and there is no judgement against the Govt. to be appealed against.         
 Friends, these are my thoughts and every one of the pensioners, especially those with legal back ground, may add, supplement or record their difference, so that a considered view is before our captains to prepare the grounds of our defence.    
A.S.Ramanathan,
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