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Wednesday, 17 May 2017

GIST OF THE DELHI HIGH COURT JUDGEMENT OF 27-04-2017

The Supreme Court by its Judgement dated 31-03-2016 had asked Delhi High Court to consider the legal validity of Rule 3(A) of Appendix IV of the LIC Pension Rules, 1995. The other two High Courtsviz Jaipur and Chandigarh were asked to transfer the files relating to the case to DHC. Accordingly hearing in DHC commenced after some delay as they could not get the relevant files on time. The time given by SC to deliver the Judgement was up to 31-08-2016. However, this time limit extended twice by the SC and it was upto 30-04-2017.
The main issues before the two judge bench of the DHC were :
1.      To consider the correctness or otherwise of the payment of 20% / 40% Interim Relief paid by LIC in view of the SC orders dated 07-05-2015 / 31-03-2016.
2.      To decide the Constitutional validity or otherwise of the Rule 3(A) of Appendix IV of LIC Pension Rules, 1995 in the light of Article 14 and 21 of the Constitution of India.
The Delhi High Court after hearing the arguments from both the sides, decided the First issue in favour of LIC and said that LIC's calculation is correct since Rule 3(A) deals only with the Dearness Relief and does not deal with fixation of Basic Pension. This Judgement was delivered on 11-11-2016.
The Second issue which was more important to the Pensioners, the arguments commenced and Sr. Advocates representing the Unions argued forcefully for upgradation of Pension. LIC came down heavily objecting to this argument with statistics – contested by Unions – that it will be a huge burden to LIC and they cannot afford upgradation. It was agreed by the Actuary of LIC, who was on witness stand, that they have taken into account the future wage revisions and also the pension payable to the serving 90,000 employees on their retirement.
The DHC delivered its Judgement on the Second issue on 27-04-2017, the full text of which has already been sent to you which runs into 90 pages. I have also read the Judgement only once. It requires to be read and reread to arrive at the correct interpretation. However, since it is going to take much time, I thought I will give my impression on reading the Judgement only once and too in a haste.
1.      The Judgement says for Basic Pension above Rs.2130/- to Rs.3850/- for those retired between 01-01-1986 to 01-11-1993 DR of 0.17%  now paid, should be enhanced to 0.29%. and are to be paid 0.23% DR from 01-08-1997.
2.      For those retired between 01-11-1993 to 31-08-1997 whose Basic Pension is above Rs.3850/- the DR should be paid @ 0.23%.
3.      For those retirees who are paid the Minimum Basic Pension as announced by LIC in the Pension Rules, their minimum Basic Pension should be enhanced with respective dates of Wage Revision and DR applicable to that period should be paid on the revised MBP – if the MBP+DR paid to them is lower than the Revised MBP.
4.      There shall not be any refund by the retiree of 40% of the IR already paid to him/her.
5.      Corporation to recalculate the Pension as per the Court Judgement within 9 months from the date of receipt of this Judgement and arrears, if any, are payable from the date of First Writ Petition filed (i.e. from 1998).
6.      No interest on arrears is payable if they are paid within ONE YEAR from the date of receipt of Judgement, else 8% interest is payable.
This is impression I got from a first casual reading of the DHC Judgement. You have already been supplied with Original Judgement. You can go through the same and discrepency in the above may please be pointed out to me on my email id.
C T JOSHI.
VIJAYAPUR
28-04-2017                                                                             


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Posted By Blogger to PENSIONERS' VOICE & SOUND TRACK Editor: R K Sahni on 5/14/2017 06:50:00 pm

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