Respected Shri Mahadevan Sahab,
In the circular of AIRIEF, there is a passing reference of the discussions that took place in the meeting of LSG of AIRIEF. The discussions were mainly on the developments related/relevant to our pension updation case, which have taken place after 20/02/2024, the date of last hearing of our cases in the SC, particularly the judgment of DHC in respect of S 30 Pensioners case, duly upheld by SC and the validation of CCS Pension Rules through the Finance Act, 2025. As we discussed on the phone a few days earlier, DHC judgment in the case of S 30 Pensioners, upheld by the Supreme Court, is mainly based on the interpretation of D S Nakara Case in Union of India Vs. SPS Vains (2008) and All Manipur State Pensioners Association Vs. State of Manipur (2020).
Issues of our case (AIRIEF Vs. LIC of India & Ors. CA 3466 of 2024), resemble the issues of SPS Vains Case and All Manipur Pensioners Case and hence, the following principles/ratio, upheld in the said judgments, would be applicable to our Civil Appeal also.
i. the classification of the pensioners into two classes, whereby one class would draw pension not only less than those who retired from the same post after the cut-off date but also lesser pension than those who retired post cut-off date from the posts which are 2-3 grades below that of the applicants is absolutely unreasonable.
ii. the stand of the respondents (Union of India) that the judgment in SPS Vains case will not apply in the case of civil pensioners, cannot be a valid argument because the ratio laid down is that there cannot be a disparity in payment of pension to officers of the same rank, who had retired prior to the introduction of the revised pay scales, with those, who retired thereafter. The case of Brigadier and Major General in the Army is only an example. Thus, even if the facts of the case are different, the ratio would apply.
iii. the relief granted under the orders dated 20.11.2014 and 24.09.2015 would be granted to the members of the respondent (S 30 Pensioners Association) with effect from the date of revision of pension i.e. 01.01.2006.
The aforesaid ratio/tenets are relevant to our cases also.
As regards repealing of CCS Pension Rules, 1972, I shared my views long back that Sec 8 of the General Clauses Act, 1897 takes due care of the references in any other enactments to the provisions of the repealed Act.
We discussed at large as to how to protect interest of LIC Pensioners with regard to the benefit of Pension Updation from 01/08/1997. As regards the financial impact, we should restrict our arguments up to pension payment and not indulge in Pension Fund or contribution etc. as it falls under the ambit of the employer. In a strict legal sense, expense on pension payment is the amount which is paid to the pensioners/Family Pensioners every month. The Pension Fund is retained and controlled by LIC. Profit and yield from Pension Fund is used by LIC. This aspect is dealt with in detail in our SLP and was already discussed with the Sr. Advocate.
Whatever new points relevant to our cases come to our knowledge, we are sharing with Shri R K Singh, our Advocate and so that the same will be brought to the notice of our Sr Advocate during the next conference.
Thanks & regards,
M P Agnihotri.
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