{"id":46571,"date":"2001-09-18T00:00:00","date_gmt":"2001-09-17T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/subrata-sen-and-ors-vs-union-of-india-and-ors-on-18-september-2001"},"modified":"2017-07-07T18:13:21","modified_gmt":"2017-07-07T12:43:21","slug":"subrata-sen-and-ors-vs-union-of-india-and-ors-on-18-september-2001","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/subrata-sen-and-ors-vs-union-of-india-and-ors-on-18-september-2001","title":{"rendered":"Subrata Sen And Ors vs Union Of India And Ors on 18 September, 2001"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Subrata Sen And Ors vs Union Of India And Ors on 18 September, 2001<\/div>\n<div class=\"doc_bench\">Bench: M.B. Shah, R.P. Sethi<\/div>\n<pre>           CASE NO.:\nWrit Petition (civil)  372 of 1999\n\nPETITIONER:\nSUBRATA SEN AND ORS.\n\nRESPONDENT:\nUNION OF INDIA AND ORS.\n\nDATE OF JUDGMENT: 18\/09\/2001\n\nBENCH:\nM.B. SHAH &amp; R.P. SETHI\n\nJUDGMENT:\n<\/pre>\n<p>JUDGMENT<\/p>\n<p>2001 Supp(3) SCR 140<\/p>\n<p>The Judgment of the Court was delivered by<\/p>\n<p>SHAH, J. This petition under Article 32 of the Constitution of India is<br \/>\nfiled by the petitioners who were employees of the Indian Oil Corporation<br \/>\nLimited (Assam Oil Division) and retired prior to 1st December 1994. It is<br \/>\npointed out that Assam Oil Division was formed by transfer of the<br \/>\nUndertaking of the Assam Oil Co. Ltd., a 100% subsidiary of the Burmah Oil<br \/>\nCompany which has been nationalized w.e.f. 14.10. 1981. Petitioners were<br \/>\ntransferred from Assam Oil Co. Limited to the Indian Oil Corporation &#8211;<br \/>\nAssam Oil Division (In short&#8221; AOD&#8221;), As per the Assam Oil Company Staff<br \/>\nPension Fund Scheme, they were getting pension on the following basis :\n<\/p>\n<p>&#8220;A sum equal to 40 percent of the average annual basic salary for the last<br \/>\nfive years of service immediately preceding the date of retirement&#8221;\n<\/p>\n<p>It is pointed out that the Government of India has issued Notification<br \/>\ndated 10.3.1995 providing for revision of pension formula in respect of<br \/>\nIndian Oil Corporation (AOD) Officers covered by AOD Staff Pension Scheme<br \/>\nwhich reads thus :\n<\/p>\n<p>&#8220;Pension for the officers retiring from December, 1994, onwards may be<br \/>\ncomputed on the basis of 40% of the average of the last 10 months salary<br \/>\nincluding averages dearness allowance drawn by the officer over the last 10<br \/>\nmonths of his service. If and when pay revision take place retrospectively,<br \/>\nthe amount of pension may be adjusted accordingly. No dearness allowance<br \/>\nwill be paid on pension.&#8221;\n<\/p>\n<p>Petitioners submit that the cut-off date is discriminatory and that there<br \/>\ncannot be any classification of retiree who have retired prior to December,<br \/>\n1994 and who are to retire from December, 1994 onwards and, therefore, they<br \/>\nare entitled to have pension on the basis of revised formula. For this,<br \/>\nthey have relied on the decision rendered by this Court in <a href=\"\/doc\/1416283\/\">D.S. Nakara v.<br \/>\nUnion of India,<\/a> [1983] 1 SCC 305. In this petition, they have prayed as<br \/>\nunder :\n<\/p>\n<p>(a)    Issue a writ, direction or order in the nature of certiorari of any<br \/>\nother appropriate writ, direction of order quashing the cut off date<br \/>\nmentioned in the impugned communication No. F. No. F.29011\/1\/95-IOC dated<br \/>\n10.3.1995 (Annexure &#8216;E&#8217;), as December, 1994 as having been arbitrarily<br \/>\nfixed; and<\/p>\n<p>(b)    Issue a writ, direction of order in the nature of mandamus or any<br \/>\nother appropriate writ, direction or order to the respondents directing<br \/>\nthem to extend benefits of the impugned communication No. F. No.<br \/>\n29011\/1\/95-IOC dated 10.3.1995 to all the pensioners of IOC (AOD)<br \/>\nirrespective of date of retirement.\n<\/p>\n<p>(c)    Issue a writ, direction or order in the nature of mandamus or any<br \/>\nother appropriate writ, direction or order directing the respondents to<br \/>\nliberalize the AOC Pension Scheme so as to include the Ad hoc Pension<br \/>\nRelief to all retirees and who are still in service and to superannuate<br \/>\nunder the AOC Pension Scheme as is being granted to the ex-employees of AOC<br \/>\nwho stood transferred to OIL;\n<\/p>\n<p>(d)    Issue a writ, direction or order in the nature of mandamus or any<br \/>\nother appropriate writ direction or order directing the respondents to<br \/>\nliberalize the AOC Pension Scheme so as to include the benefits of the CLI<br \/>\nlinked Pension Relief to all retirees and who are still in service and to<br \/>\nsuperannuate under the AOC Pension Scheme, as in being granted to the<br \/>\neligible pensioners of OIL, BPCL and HPCL;\n<\/p>\n<p>(e)    Issue a writ, direction or order in the nature of mandamus or any<br \/>\nother appropriate writ, direction or order directing the respondents to<br \/>\nliberalize the pension scheme of the respondent no. 2 so as to include the<br \/>\nbenefit of restoration of the commuted portion of pension after 15 years as<br \/>\nis being granted to the sister companies of the respondent no. 2 i.e. BPCL<br \/>\nand HPCL.\n<\/p>\n<p>At the outset, we may state that Mr. V.R. Reddy, learned senior counsel for<br \/>\nthe petitioners has not pressed for prayer (c) and with regard to prayers\n<\/p>\n<p>(d) and (e) as they involve disputed questions of fact, the issues are not<br \/>\nrequired to be decided and are left open. In affidavit-in-reply filed on<br \/>\nbehalf of respondent No. 2 also it has been submitted that it would have<br \/>\nbeen appropriate for the petitioners to approach the High Court for sorting<br \/>\nout the disputed facts. For the said reliefs, it would be open to the<br \/>\npetitioners to approach the competent forum.\n<\/p>\n<p>Mr. Raj Birbal, learned senior counsel for respondent No. 2 Indian Oil<br \/>\nCorporation submitted that in the present case there is no question of<br \/>\napplying the principles laid down in Nakara &#8216;s case. It is his submission<br \/>\nthat petitioners were governed by the non-contributory Pension Scheme,<br \/>\nnamely, IOC (DOD) -Staff Pension Fund approved under the Income Tax Act,<br \/>\n1961. Under the Rules of the Pension Fund, annuity is purchased by the<br \/>\ntrustees in respect of such members on their retirement\/death from LIC and<br \/>\npension is paid by the LIC. The right of and to receive the annuity and the<br \/>\nquantum gets crystallized at the time of purchase of the annuity. It is<br \/>\nalso pointed out that an improvement in the pension scheme in an approved<br \/>\nPension Fund is effected on the basis of the fund&#8217;s financial position as<br \/>\ndetermined by actuarial valuation based on current resources of the fund<br \/>\nand future contribution to be received by the fund only in respect of the<br \/>\nexisting members in service.\n<\/p>\n<p>On the question as to when retired employees are entitled to the benefit of<br \/>\nrevised pension scheme, this Court after considering earlier decisions in<br \/>\n<a href=\"\/doc\/790911\/\">V. Kasturi v. Managing Director, State Bank of India, Bombay and Another,<\/a><br \/>\n[1998] 8 SCC 30 specified two categories as under :\n<\/p>\n<p>&#8220;Category-I<\/p>\n<p>Para 22. If the person retiring is eligible for pension at the time of his<br \/>\nretirement and if he survives till the time of subsequent amendment of the<br \/>\nrelevant pension scheme, he would become eligible to get enhanced pension<br \/>\nor would become eligible to get more pension as per the new formula of<br \/>\ncomputation of pension subsequently brought into force, he would be<br \/>\nentitled lo get the benefit of the amended pension provision from the date<br \/>\nof such order as he would be a member of the very same class of pensioners<br \/>\nwhen the additional benefit is being conferred on all of them. In such a<br \/>\nsituation, the additional benefit available to the same class of pensioners<br \/>\ncannot be denied to him on the ground that he had retired prior to the date<br \/>\non which the aforesaid additional benefit was conferred on all the members<br \/>\nof the same class of pensioners who had survived by the time the scheme<br \/>\ngranting additional benefit to these pensioners came into force. The line<br \/>\nof decisions tracing their roots to the ratio of Nakara case would cover<br \/>\nthis category of cases<\/p>\n<p>Category-II<\/p>\n<p>Para 23. However, if an employee at the time of his retirement is not<br \/>\neligible for earning pension and stands outside the class of pensioners, if<br \/>\nsubsequently by amendment of the relevant pension rules any beneficial<br \/>\numbrella of pension scheme is extended to cover a new class of pensioners<br \/>\nand when such a subsequent scheme comes into force, the erstwhile non-<br \/>\npensioner might have survived, then only if such extension of pension<br \/>\nscheme to erstwhile non-pensioners is expressly made retrospective by the<br \/>\nauthorities promulgating such scheme; the erstwhile non-pensioner who has<br \/>\nretired prior to the advent of such extended pension scheme can claim<br \/>\nbenefit of such a new extended pension scheme.&#8221;\n<\/p>\n<p>Learned counsel for the petitioners submitted that petitioners would be<br \/>\ncovered by the Category (1) and would be entitled to get pension under the<br \/>\nrevised pension scheme.\n<\/p>\n<p>As against this, learned counsel for the respondents submitted that there<br \/>\nis a third category wherein the pension is paid from pension fund scheme<br \/>\nand on the date of retirement, right to receive the pension amount is<br \/>\ncrystallized. Hence, petitioners are not entitled to get benefit of<br \/>\nsubsequent modification with respect to determinative factor for grant of<br \/>\npension such as qualifying service.\n<\/p>\n<p>For appreciating this contention, we would refer to the averments made in<br \/>\nthe affidavit-in-reply and the relevant rules which provided for grant of<br \/>\npension to the petitioners. In the affidavit-in-reply, it has been stated<br \/>\nthat petitioners were part of the group which came from erstwhile Assam Oil<br \/>\nCompany and are getting pension on the basis of non-contributory pension<br \/>\nscheme, i.e. &#8220;they do not contribute at all and are getting the pension on<br \/>\nmonth to month basis and on the other hand, the other employees of<br \/>\nrespondent no. 2 only get the benefit of contributory scheme.&#8221;\n<\/p>\n<p>From the aforesaid admission, it is clear that petitioners were not<br \/>\nrequired to contribute any amount for getting pension. May be that the<br \/>\nCompany allocated separate fund and created a trust for paying pension to<br \/>\nthe retiring employees but their right to get pension is crystallized as<br \/>\nper the rules and was not dependent upon availability of the fund and was<br \/>\nto be determined on the basis of a rule which provided that they would get<br \/>\na sum equal to 40 percent of the average basic salary for the last five<br \/>\nyears of service immediately preceding the date of retirement.\n<\/p>\n<p>For this purpose, we would refer to relevant part of the rules of Assam Oil<br \/>\nStaff Pension Fund, which read thus :\n<\/p>\n<p>&#8220;1.   The following employees shall be Members of the Fund :\n<\/p>\n<p>(b) Persons who enter into a specified category of service with the Company<br \/>\nas detailed hereinafter the 1st day of January, 1973 and who are members of<br \/>\nthe Burmah Oil (India) Provident Fund or Provident &amp; Insurance Fund (India)<br \/>\nRecognised.\n<\/p>\n<p>2. A Pension will be granted to a Member on retirement from the Service at<br \/>\nor after Normal Pension Age provided that at the date of such retirement:\n<\/p>\n<p>(i)     he has completed at least fifteen years of Pensionable Service;\n<\/p>\n<p>(ii)    he shall have been a member of the Provident Fund continuously of<br \/>\nnot less than ten years.\n<\/p>\n<p>The pension payable to such a Member:\n<\/p>\n<p>(a)      who has completed at least twenty years&#8217; Pensionable Service will<br \/>\nbe the Basic Figure as reduced by the Authorised Deduction; or<\/p>\n<p>(b)     who has completed at least fifteen years&#8217; Pensionable Service but<br \/>\nless than twenty years&#8217; Pensionable Service will be a proportion of the<br \/>\nBasic Figure equal to the ratio which the number of years of Pensionable<br \/>\nService (calculated to the nearer month) bears to twenty years and the<br \/>\namount so calculated will be reduced by the Authorised Deduction.\n<\/p>\n<p>8.       The Trustees may at the request of the Employer withhold or<br \/>\ndiscontinue a pension or annuity or any part thereof payable to a Member or<br \/>\nhis Dependents or exclude him or them from all or any benefits hereunder if<br \/>\nsuch Member is dismissed for fraud or dishonesty or Misconduct or leaves<br \/>\nhis employment without the consent of the Employer or having left such<br \/>\nemployment acts to the detriment of such employer&#8217;s interest of assigns or<br \/>\ncharges his rights hereunder or attempts to do so. Any sum so withheld<br \/>\ndiscontinued or excluded shall be forfeited to the Fund.\n<\/p>\n<p>9.       No person shall be entitled to transfer or assign whether by way<br \/>\nof security or otherwise however his interest or any part thereof in the<br \/>\nFund and no such transfer or assignment shall be valid and neither the<br \/>\nEmployers nor the Trustees shall recognise or be bound by notice to them<br \/>\nrespectively of any such transfer or assignment.\n<\/p>\n<p>10.     Notwithstanding anything to the contrary in the Rules contained:\n<\/p>\n<p>(a) (b)<\/p>\n<p>(c) All pensions and allowances shall be non-assignable and (subject to the<br \/>\nprovisions of Rule 4) non-commutable and shall be paid monthly in advance<br \/>\nwithout a proportion to the date of cessation or at the discretion of the<br \/>\nTrustees at longer intervals and at such times at such places and in such<br \/>\nmanner and subject to such evidence of health, age survival, marital<br \/>\nstatus, educational status and identity as the Trustees may prescribe.&#8221;\n<\/p>\n<p>Under Rule 16 &#8220;Basic Figure&#8221; means a sum equal to forty per centam of the<br \/>\nMember&#8217;s average annual Basic Salary for the last five years of Service<br \/>\nimmediately preceding the date of retirement. Likewise, &#8220;Normal Pension<br \/>\nAge&#8221; means the fifty-fifth birthday for men and the forty-fifth birthday<br \/>\nfor women.\n<\/p>\n<p>Keeping in mind the aforesaid rules, we would first refer to the contention<br \/>\nof Mr. B.A. Mohanty and Mr. Raj Birbal, learned senior counsel for Union of<br \/>\nIndia and respondent No. 2 respectively who, in support of their<br \/>\nsubmissions, relied upon paragraph 45 of the judgment in Nakara&#8217;s case,<br \/>\nwhich reads thus:\n<\/p>\n<p>&#8220;45. Let us clear one misconception. The pension scheme including the<br \/>\nliberalised scheme available to the government employees is non-<br \/>\ncontributory in character. It was not pointed out that there is something<br \/>\nlike a pension fund &#8230;. The payment of pension is a statutory liability<br \/>\nundertaken by the Government and whatever becomes due and payable is<br \/>\nbudgeted for. One could have appreciated this line of reasoning where there<br \/>\nis a contributory scheme and a pension fund from which alone pension is<br \/>\ndisbursed. That being not the case, there is no question of pensioners<br \/>\ndividing the pension fund which, if more persons are admitted to the<br \/>\nscheme, would pro-rata affect the share.&#8221;\n<\/p>\n<p>In our view the aforesaid para does not in any way support the contention<br \/>\nof the respondents. On the contrary, on parity of reasoning, we would also<br \/>\nreiterate that let us be clear about this misconception. Firstly, the<br \/>\nPension Scheme including the liberalised scheme available to the employees<br \/>\nis non-contributory in character. Payment of pension does not depend upon<br \/>\nPension Fund. It is the liability undertaken by the Company under the Rules<br \/>\nand whenever becomes due and payable is to be paid. As observed in Nakara<br \/>\n&#8216;s case (supra), pension is neither a bounty, nor a matter of grace<br \/>\ndepending upon the sweet will of the employer, nor an ex-gratia payment. It<br \/>\nis a payment for the past services rendered. It is a social welfare measure<br \/>\nrendering socio-economic justice ,to those who in the hey-day of their life<br \/>\nceaselessly toiled for the employer on an assurance that in their old age<br \/>\nthey would not be left in lurch. May be that in the present case, the Trust<br \/>\nfor pension fund is created for Income Tax purposes of for smooth payment<br \/>\nof pension, but that would not affect the liability of employer to pay<br \/>\nmonthly pension calculated as per the Rules on retirement from service and<br \/>\nthis retirement benefit is not based on availability of pension fund. There<br \/>\nis no question of pensioners dividing the Pension Fund or affecting the<br \/>\npro-rata share on addition of new members to the Scheme. As per Rule (1)<br \/>\nquoted above, an employee would become member of the Fund as soon as enters<br \/>\ninto a specified category of service of the Company. Under Rule (8)<br \/>\nTrustees may withhold or discontinue a pension or annuity or any part<br \/>\nthereof payable to a member or his dependants, and that pension amount is<br \/>\nnon-assignable. Further, the payment of pension was the liability of the<br \/>\nemployer as per the rules and that liability is required to be discharged<br \/>\nby the UOI in lieu of its taking over of the Company. The rights of the<br \/>\nemployees (including retired) are protected under Section 11 of the Burmah<br \/>\nOil Company (Acquisition of Shares of Oil India (Act 41) Limited and of the<br \/>\nUndertakings in India of Assam Oil Company Limited and the Burmah Oil<br \/>\nCompany (India Trading) Limited Act, 1981.\n<\/p>\n<p>In support of his contention that petitioners are not entitled to get<br \/>\nbenefit of revised scheme, learned senior counsel for respondent No. 2,<br \/>\nfurther, relied upon the decision of this Court in <a href=\"\/doc\/1778113\/\">Sasadhar Chakravarty and<br \/>\nAnr. v. Union of India and Ors.,<\/a> [1996] 11 SCC 1, wherein the Court<br \/>\nconsidered the Indian Oxygen Ltd. Staff Pension Fund and the Pension Scheme<br \/>\nthereunder. It was the contention of the petitioners that improvements made<br \/>\nin the existing pension scheme after retirement of. employees should also<br \/>\nbe made available to such retired employees who are the existing pensioners<br \/>\nof the Fund. Negativing the said contention, the Court held thus :\n<\/p>\n<p>&#8220;&#8230;..This contention is based on a misunderstanding of the nature of the<br \/>\nannuity which is purchased in respect of each employee as under when he<br \/>\nretires. The right of an employee to receive the annuity and the quantum of<br \/>\nthis annuity gets determined at the time when the annuity is purchased. Any<br \/>\nsubsequent improvements in a given Pension Fund Scheme would not be<br \/>\navailable to those persons whose rights are already crystallized under the<br \/>\nannuity scheme by which they are governed because the amounts contributed<br \/>\nby the employer in respect of such persons are already withdrawn from the<br \/>\nPension Fund to purchase an annuity. Any subsequent improvement in the<br \/>\nPension Fund will benefit only those whose moneys form a part of the<br \/>\nPension Fund.&#8221;\n<\/p>\n<p>In paragraph 11, the Court further observed :\n<\/p>\n<p>&#8220;In these circumstances the ratio of <a href=\"\/doc\/1416283\/\">D.S. Nakara v. Union of India,<\/a> [1983]<br \/>\n1 SCC 305 cannot be applied to extend the benefit of improvement in the<br \/>\npension schemes of such funds to the existing pensioners. By the very<br \/>\nnature of this scheme, such benefits are available only to members in<br \/>\nservice. In the present case, the Pension Fund is created out of<br \/>\ncontributions made by the employer in respect of is employees who are in<br \/>\nservice in the manner provided under the Income Tax Act and the Rules. The<br \/>\ncontribution is in the form of a fixed percentage of salary of each of the<br \/>\nemployees. There is, therefore, no provision for an employer making any<br \/>\nadditional payment in respect of its past employees who are the existing<br \/>\npensioners. In Nakara case the increase in pension could be met from the<br \/>\ngeneral revenue of the Central Government. No such reserve of funds is<br \/>\navailable to the trustees of an approved superannuation fund.&#8221;\n<\/p>\n<p>In our view, the ratio of the aforesaid judgment is not applicable in the<br \/>\npresent case. In the said case, Indian Oxygen Ltd. had set up a &#8216;non-<br \/>\ncontributory Superannuation fund&#8217; known as the Indian Oxygen Ltd. Executive<br \/>\nStaff Pension Fund. As per the Rules, an employee was entitled to receive<br \/>\nan annuity under a policy purchased by the trustee of the Fund from the<br \/>\nLife Insurance Corporation of India. Petitioners in that case contended<br \/>\nthat the scheme of such non-contributory approved superannuation fund<br \/>\nshould be modified so as to provide for disbursement of pension by the fund<br \/>\nthemselves or in the alternative by a statutory body to be newly<br \/>\nconstituted under a new scheme. Further, the Fund was constituted for the<br \/>\npurpose of providing an annuity to the beneficiaries and the trustees were<br \/>\nrequired to accumulate the contribution in respect of each beneficiary and<br \/>\npurchase an annuity from the Life Insurance Corporation of India at the<br \/>\ntime of retirement or death of each employee or on his becoming<br \/>\nincapacitated prior to retirement as per Rule 89(2) of the Income Tax<br \/>\nRules, 1962. Therefore, when an employee retired; all accumulated<br \/>\ncontribution in respect of employee concerned made by the employer to the<br \/>\npension fund of the trust was crystallized for the benefit of employee. In<br \/>\nthat set of circumstances, the Court observed that the right of the<br \/>\nemployee to receive the annuity and quantum of his annuity gets<br \/>\ncrystallized at the time of purchase of annuity under the then existing<br \/>\nscheme of Life Insurance Corporation of India. The Court also observed that<br \/>\nthe contention was based on misunderstanding of the nature of the annuity<br \/>\nwhich is purchased in the interest of each employee as and when he retires.<br \/>\nThe position in the present case is altogether different. Right to get<br \/>\npension is obviously different from getting annuity on the basis of<br \/>\naccumulated contribution. The rules for grant of pension provide that an<br \/>\nemployee mentioned in specified category shall automatically be member of<br \/>\npension fund and is entitled to get pension on the date of his retirement.<br \/>\nAmount of pension is to be determined as per the Rules. That Rule is<br \/>\nmodified and the petitioners seek relief on the basis of the amended rule<br \/>\non the ground that there cannot be any discrimination between the employees<br \/>\nwho retired prior to or after a particular date, as held in Nakara &#8216;s case<br \/>\nwhich is followed by this Court in various decisions including V. Kasturi<br \/>\n(Supra). Further, there, is no question of pensioners (retired employees)<br \/>\ndividing the pension fund and\/ or payment of pension to be made only from<br \/>\nthe pension fund. The liability to pay pension arises because of provision<br \/>\nmade in the rules. In this view of the matter, the decision in Sasadhar<br \/>\nChakravarty (Supra) would have no bearing.\n<\/p>\n<p>Further, in <a href=\"\/doc\/100829\/\">All India Reserve Bank Retired Officers Association v. Union of<br \/>\nIndia,<\/a> [1992] Supp. 1 SCC 661, Ahmadi J., (as he then was) speaking for the<br \/>\nCourt in the aforesaid decision highlighted the observations in Nakara&#8217;s<br \/>\ncase found at p.333 para 46 to the following effect (SCC p. 674 para 7):\n<\/p>\n<p>&#8220;&#8230; the pension will have to be recomputed in the light of the formula<br \/>\nenacted in the liberalised pension scheme and effective from the date the<br \/>\nrevised scheme comes into force. And beware that it is not a new scheme, it<br \/>\nis only a revision of existing scheme. It is not a new retiral benefit. It<br \/>\nis an upward revision of an existing benefit. If it was a wholly new<br \/>\nconcept, a new retiral benefit, one could have appreciated an argument that<br \/>\nthose who had already retired could not expect it.&#8221;\n<\/p>\n<p>The Court further observed :\n<\/p>\n<p>&#8220;&#8230;..It must be realised that in the case of an employee governed by the<br \/>\nCPF (Contributory Provident Fund) scheme his relations with the employer<br \/>\ncome to an end on his retirement and receipt of the CPF amount but in the<br \/>\ncase of an employee governed under the pension scheme his relations with<br \/>\nthe employer merely undergo a change but do not snap altogether. That is<br \/>\nthe reason why this Court in Nakara case drew a distinction between<br \/>\nliberalisation of an existing benefit and introduction of a totally new<br \/>\nscheme. In the case of pensioners it is necessary to revise the pension<br \/>\nperiodically as the continuous fall in the rupee value and the rise in<br \/>\nprices of essential commodities necessitates an adjustment of the pension<br \/>\namount but that is not the case of employees governed under the CPF scheme,<br \/>\nsince they had received the lump sum payment which they were at liberty to<br \/>\ninvest in a manner that would yield optimum return which would take care of<br \/>\nthe inflationary trends. This distinction between those belonging to the<br \/>\npension scheme and those belonging to the CPF scheme has been rightly<br \/>\nemphasised by this Court in Krishena case.&#8221;\n<\/p>\n<p>Same is the position in the present case. As observed in the aforesaid<br \/>\ncase, in case of an employee governed under the Pension Scheme, relations<br \/>\nwith the employer merely undergo a change, but are not snapped altogether.<br \/>\nThere is no new scheme of payment pension, but it is only a revision of the<br \/>\nexisting pension scheme. Under the new Pension Scheme, pension is required<br \/>\nto be paid on the basis of 40 per cent of the average of the last 10 months<br \/>\nsalary including average dearness allowance drawn by the officer over the<br \/>\nlast 10 months of his service instead of earlier 40 per cent of the average<br \/>\nannual basic salary for the last five years of service immediately<br \/>\npreceding the date of retirement.\n<\/p>\n<p>In view of the aforesaid legal position, this petition is required to be<br \/>\npartly allowed and the Respondents are directed to give pensionary benefits<br \/>\nto the petitioners on the basis of notification dated 10th March, 1995 by<br \/>\ndeleting the Words &#8220;retiring from December, 1994 onwards&#8221; from the said<br \/>\nnotification. The Writ Petition stands disposed of accordingly. There shall<br \/>\nbe no order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Subrata Sen And Ors vs Union Of India And Ors on 18 September, 2001 Bench: M.B. Shah, R.P. Sethi CASE NO.: Writ Petition (civil) 372 of 1999 PETITIONER: SUBRATA SEN AND ORS. RESPONDENT: UNION OF INDIA AND ORS. DATE OF JUDGMENT: 18\/09\/2001 BENCH: M.B. SHAH &amp; R.P. SETHI JUDGMENT: JUDGMENT 2001 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-46571","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Subrata Sen And Ors vs Union Of India And Ors on 18 September, 2001 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/subrata-sen-and-ors-vs-union-of-india-and-ors-on-18-september-2001\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Subrata Sen And Ors vs Union Of India And Ors on 18 September, 2001 - Free Judgements of Supreme Court &amp; 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