ups_01167 — Pensionary benefits is to be disbursed based only on those emoluments that were applicable as on the last date of retirement, i.e. the end of the month in which an employee retires on normal course

Pensionary benefits is to be disbursed based only on those emoluments that were applicable as on the last date of retirement, i.e. the end of the month in which an employee retires on normal course — This chunk discusses the interpretation of pension rules regarding leave encashment, gratuity, and DA (Dearness Allowance) in relation to an employee's retirement benefits, referencing specific rules... — Facts : There are six Applicants in this OA who had retired on 30-6-2010 and were paid pensionary benefits that were applicable as on 30th June. The Applicants relying on the previous judgment of the Tribunal No. 553 and 555 of 2003, dated 3-10-2008 in which Applicants are not a party, sent a representation during July and August, 2011 to grant them DCRG and leave encashment taking into account the enhanced DA to which they were entitled on 1-7-2011 deducting the amount already paid. That demand was rejected as they were not parties in O.A. Nos. 553 and 555 of 2003. Aggrieved by that rejection, this OA is filed. Respondents rejected their demand based on FR 56 (a). The short issue that arises for consideration is, whether the relief sought for by the Applicants can be granted. The Tribunal recalled the various Pension Rules for leave encashment, gratuity, etc. Rule 33 of Pension Rules provides that the expression "emoluments" means basic pay as defined in Rule 9 (21)

(a)

(i) of the Fundamental Rules, which a Government servant was receiving immediately before his retirement. As per Department of Pension and Pensioners' Welfare, O.M. No. 38/37/2008-P&PW (A), dated 2-9-2008, DA has to be treated as emoluments on gratuity and the DA admissible is on the date of retirement. This position is also admitted by the Applicant. Leave encashment including DA as per Rule 39 (2)

(a) and

(b) of Leave Rules is payable as a one-time lumpsum benefit. The Pension Rule and Leave Rule are clear with respect to admissibility of DA. The rule stands unchanged. The various decisions of the High Court were considered and in those decisions the retirement comes into force on the 1st day of next month after the last of the previous month. Those orders were set aside by the Apex Court in the case of Chief General Manager, Telecom BSNL and another v. K.J. George and others in C.A. No. 2907 of 2005 and 2008/2005 decided on 22-2-2007. Based on the Apex Court judgment, High Court of Kerala allowed the writ petition filed by Railways in Union of India and others v. A.N. Viswanathan and others decided on 27-3-2008 and held that only the emoluments on the date of retirement is the criterion for payment of leave encashment and DCRG. In another case, the Applicant, a school teacher born on 1-7-1943 was retired on 30-6-2003 as per Rule 29 (1) of Uttar Pradesh Basic Education (Teachers) Service Rule, 1981. He contended that he should be continued till 30-6-2004 when the school session 2003-2004 ends. That was considered by Apex Court in Achhaibar Maurya v. State of Uttar Pradesh and others decided on 13-12-2007 reported in 2008 (1) SCC (L&S) 519. The Apex Court held that academic season ended on 30-6-2003 and hence the Applicant therein is not entitled to the "seasons benefit". The relevant portion of the judgment is reproduced in the present judgment. It is further said that a cut-off date fixed by a statute may not be struck down unless it is held to be arbitrary. The last working day of an employee depends on the wordings of the Rule. CCS (Pension) Rules, 1972, FR 56 and CCS (Leave) Rules are very clear with regard to date of retirement. Similar retirement cases and the final settlement dues to be disbursed as ordered by Apex Court and High Courts were also discussed in the judgment.