Appeal of Govt Against CAT Judgment in OA 655-2010
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Transcript of Appeal of Govt Against CAT Judgment in OA 655-2010
IN THE HIGH COURT OF DELHI AT NEW DELHI EXTRAORDINARY WRIT JURISDICTION
W.P. (C) No. 1535 of 2012
IN THE MATTER OF : Union of India & Ors. … Petitioners.
Versus Central Government SAG & Ors. …. Respondents. A petition under Articles 226 & 227 of the Constitution of India for the issuance of a writ, order or direction in the nature of Certiorari or any other writ, direction or order for quashing and set-aside the order dated 01.11.2011 issued by Central Administration Tribunal in O.A.No. 0655/2010, O.A. No. 3079 of 2009, O.A. No. 0306 of 2010 and O.A. No. 0507 of 2010. MOST RESPECTFULLY SHOWETH : 1. The present writ petition is being filed against the order dated
01.11.2011 passed by Hon’ble Central Administrative Tribunal in O.A.
No. 0655/2010, O.A. No. 3079 of 2009, O.A. No. 0306 of 2010 and O.A.
No. 0507 of 2010.
Copy of the common order dated 01.11.2011 passed by Central
Administrative Tribunal in O.A. No. 0655/2010, O.A. No. 3079 of 2009,
O.A. No. 0306 of 2010 and O.A. No. 0507 of 2010 are annexed
herewith and marked as Annexure P-1.
2. Relevant facts leading to this Writ Petition are that the Government
has so far set up six Central Pay Commissions. These pay
commissions made separate recommendations for revision of
pension of the past pensioners without linking it with the pension
that would be admissible to a Government servant of the
corresponding level. The Sixth Central Pay Commission is no
exception to that principle.
3. On 24.01.2008 sixth central pay commission (hereinafter referred to
as on 6th Pay Commission) submitted its report to the Government of
India.
4. Amongst the various important features of 6th Pay Commission, one
of the important feature was introduction of concept of clubbing of
pay scales in pay bands called 1S, PB-1, PB-2, PB-3, and PB-4.
5. 6th Pay Commission had inter alia recommended for clubbing of pay
scales. Clubbing of scales may be noted from the following table :-
Sl. Pay Scale Pay band 1 S-1, S-2, S-2A and S-3 1-S (440-7440) 2 S-4, S-5, S-6, S-7 and S-8 PB-1 (4860-20200)
3 S-9, S-10, S-11, S-12, S-13, S-14 and S-15 PB-2 (8700-34800)
4 S-16, S-17, S-18, S-19, S-20, S-21, S-22, S-23, S-24, S-25, S-26 and S-27
PB-23 (15600-39100)
5 S-28, S-29, S-30, S-31 and S-32 PB-4 (39200-67000)
The apex scales S-33 and Scale S-34 were not part of any pay band,
and they were recommended to be given Rs.80,000/- (fixed) per
month and Rs.90,000/- (fixed) per month respectively.
6. In addition to the clubbing and merger of pay scales in the pay bands
as per the aforesaid table, 6th Pay Commission has recommended a
fixed grade pay for each of the pay scale which were later on
modified by the government of India vide resolution of 29.08.2008.
Though the petitioners have made relevant submissions about this
resolution dated 29.08.2008 in the paragraphs hereinafter, however,
for the sake of convenience, petitioner while giving the grade pay for
each scale as recommended by 6th Pay Commission as also giving
the modified grade pay decided by the government.
Sl Pay Scale
Grade Pay recommended by 6th Pay Commission.
Grade Pay decided by Government.
1 S-1 1300/- 1300/- 2 S-2 1400/- 1400/- 3 S-2A 1600/- 1600/- 4 S-3 1650/- 1650/- 5 S-4 1800/- 1800/- 6 S-5 1900/- 1900/- 7 S-6 2000/- 2000/- 8 S-7 2400/- 2400/- 9 S-8 2800/- 2800/- 10 S-9 4200/- 4200/- 11 S-10 4200/- 4200/- 12 S-11 4200/- 4200/- 13 S-12 4200/- 4200/- 14 S-13 4600/- 4600/- 15 S-14 4800/- 4800/- 16 S-15 5400/- 5400/- 17 S-16 5400/- 5400/- 18 S-17 5400/- 5400/-
19 S-18 6100/- 6600/- 20 S-19 6100/- 6600/- 21 S-20 6500/- 6600/- 22 S-21 6600/- 7600/- 23 S-22 7500/- 7600/- 24 S-23 7600/- 7600/- 25 S-24 7600/- 8700/- 26 S-25 8300/- 8700/- 27 S-26 8400/- 8900/- 28 S-27 8400/- 8900/- 29 S-28 9000/- 10000/- 30 S-29 9000/- 10000/- 31 S-30 11000/- 12000/-* 32 S-31 13000/- -NIL- ** 33 S-32 13000/- -NIL- **
* Vide Notification dated 16.07.2009 amending the CCS(RP)
Rules, 2008, pre-revised S-30 pay scale was given a separate pay
scale of Rs.67000-79000.
** While accepting the recommendations of the Pay Commission,
instead of including them in the Pay Band-4, Pertinently the Apex
scales S-33 and Scale S-34 were not part of any pay band, as they
were recommended to be given by 6th Pay Commission, fixed pay of
Rs.80,000/- per month and Rs.90,000/- per month respectively,
therefore, no grade pay was recommended by the Commission nor
any grade pay was decided by the Government for scale S-33 and S-
34.
7. After careful consideration of recommendation 6th Central Pay
Commission, Department of Expenditure, Ministry of Finance vide
resolution of 29.08.2008 accepted the recommendations of Sixth Pay
Commission subject to the modifications mentioned in the
resolution, Copy of the resolution dated 29.08.2008 of Department of
Expenditure is annexed hereto and marked as Annexure P-2.
8. Vide above resolution dated 29.08.2008 pay bands PB-1, Pb-2 and
PB-3 were improved and modified as under :-
Recommended by the Commission
Decision of the Government.
PB-1 Rs.4850-20200 PB-1 Rs.5200-20200 PB-2 Rs.6700-34800 PB-2 Rs. 9300-34800 PB-4 Rs. 39200-67000 PB-4 Rs.37400-67000
9. As pointed out hereinabove vide resolution of 29.08.2008 grade pay
for each of the pay scale (as recommended by 6th Pay Commission)
was also modified.
10. Importantly vide resolution dated 29.08.2008, Government of India
not only improved the pay bands and grade pay but also
modifications with respect to clubbing of scale in the pay bands,
accordingly.
(i) Pay scales S-24, S-26, S-26 and S-27 which were
recommended to be clubbed in the pay band PB-3 were kept
by government in PB-4. Therefore, pay scales from S-24 to S-
30 were kept in PB-4.
(ii) Pay scales S-31 and S-32 which were recommended to be
clubbed in PB-4 and were decided to be given different pay
scale namely HAG + scale.
11. As such, as per resolution dated 29.08.2008 of the Government of
India Pay band PB-4 comprised of Pay Scale S-24 to S-30.
12. On 29.08.2008 itself, Department of Expenditure, Ministry of Finance
issued, in view of acceptance of recommendation of 6th Pay
Commission, a notification dated 29.08.2008 being GSR 622 (E)
notifying thereby Central Civil Service (Revised Pay) Rules, 2008
(hereinafter referred to as revised pay rules) A copy of a notification
dated 29.08.2008 being GSR 622 (E) notifying thereby Central Civil
Service (Revised Pay) Rules, 2008 is annexed here to and marked as
Annexure P-3.
13. The revised pay rules were made effective from 01.01.2006. 14. Under Rule-3 of the revised pay rules pay in the pay band and grade
pay have been defined as under :-
“(5) “Pay in the pay band” means pay drawn in the running pay bands specified in Column 5 of the First Schedule.
(6) “grade pay” is the fixed amount corresponding to the pre-revised pay scales/posts.”
15. Section 1, Part-A of the first Schedule to the revised pay Rules
provides for revised pay bands and grade pay for posts carrying pay
scales (S-1) to (S-34) whereas Section II provide for “entry pay” in
the revised pay structure for direct recruits appointed on or after
01.01.2006.
16. Second schedule to the revised pay rules provided for a format in
which government servant were required to exercise their option so
as to enable them to continue to draw pay in the existing scale until
the date on which he earns his next or any subsequent increment.
17. Thereafter, office memorandum dated 30.08.2008 was issued,
Annexure 1 to the OM dated 30.08.2008 provide for fitment tables,
inter alia, providing for revised basic pay of the employees I service
as on 1.1.2006. It has been clearly stated in this memorandum that
detailed fixation tables for each stage in each of the pre-revised
scales have been worked out in the manner recommended by the 6th
Pay Commission and are enclosed as Annexure - ! of this OM. These
may be used for the purpose of fixation in the revised pay structure
as on 01.01.2006.
Pertinently, the fitment tables as provided in Annexure – 1 to
Memorandum dated 30.08.2008 are to be used exclusively for the
purpose of fixation in the revised pay structure as on 01.01.2006,
however, these tables are nothing to do with the calculation of
pension of retirees who were Government Servant before
01.01.2006. Despite this, Hon’ble CAT has directed for fixation of
revised pay of pre-2006 retirees by taking into consideration the
minimum basic revised pay of Government Servant on or after
01.01.2006. A copy of office Memorandum state 30.08.2008 being
F.No. 1/1/2008-1C of Ministry of Finance, Department of Expenditure
is annexed here to and marked as Annexure-P-4.
18. As per the said fitment table following is the position of the revised
pay of pre-revised scale (S-29) 18400-500-22400.
Pre-revised basic pay.
Revised Pay
Pay in the pay band
Grade Pay
Revised Basic Pay
18,400
44,700
10,000
54,700
18,900
46,050
10,000
56,050
19,400
46,050
10,000
56,050
19,900
47,440
10,000
57,440
20,400
47,440
10,000
57,440
20,900
48,870
10,000
58,870
21,400
48,870
10,000
58,870
21,900
50,340
10,000
60,340
22,400
51,850
10,000
61,850
22,900
53,410
10,000
63,410
23,400
55,020
10,000
65,020
23,900
56,680
10,000
66,680
Regarding revision of pension of past pensioners, the Government
made the following recommendations :
As past pensioners should be allowed fitment benefit equal to 40% of the pension excluding the effect of merger of 50% dearness allowance / dearness relief as pension (in respect of pensioners retiring on or after 1/4/3004) and dearness pension (for other pensioners) respectively. The increase will be allowed by subsuming the effect of conversion of 50% dearness relief / dearness allowance as dearness pension/darkness pay. Consequently, dearness relief at the rate of 74% on pension (excluding the effect of merger) has
been taken for the purposes of computing revised pension as on1/1/2006. This is consistent with the fitment benefit being allowed in case of the existing employees. The fixation of pension will be subject to the provision that the revised pension, in no case, shall be lower that fifty percent of the sum of the minimum of the pay in the pay band and the grade pay thereon corresponding to the pre-revised pay scale from which the pensioner had retired (Para 5.1.47 of the Report).
The above recommendation of the Commission was accepted by the
Government vide aforesaid Resolution dated 29.08.2008 (marked as
Annexure P-2A) with the modification that fixation of pension shall
be based on a multiplication facts of 1.86 i.e. basic pension +
Dearness Pension (wherever applicable) + dearness relief of 24% as
on 1.1.2006, instead of 1.74.
19. Thereafter, office memorandum being F.No.1/1/2008-IC dated
30.08.2008 was issued by Department of Expenditure, inter alia,
requiring Government servant to exercise their option for withdrawal
of their pay in the revised pay structure in the format prescribed in
the second schedule to the rules.
20. After resolution of 29.08.2008 and notification of revised pay rules,
office memorandum (OM) being F.No. 38/37/08P&PW(A) dated
01.09.2008 was issued by Department of Pension and Pensioners
Welfare, Ministry of Personnel, Public Grievances and Pensions,
inter alia, for revision of pension of pre-2006 pensioners/family
pensioners etc. in consequent to implementation of Governments
decision on the recommendation of 6th Pay Commission. A copy of
office memorandum being F.No. 38/37/08P&PW(A) dated 01.09.2008
was issued by Department of Pension and Pensioners Welfare,
Ministry of Personnel, Public Grievances and Pensions is annexed
here to and marked as Annexure P-5.
21. The aforesaid office memorandum specifically states in Para-1 that
separate orders will be issued in respect of employees retired /died
on or after 01.01.2006 i.e. post 2006 pensioners as in terms of para-
2.1 of OM that the same is applicable to all pensioners / family
pensioners who were drawing pension / family pension on
01.01.2006 under the Central Civil Services (Pension) Rules 197, CCS
(Extra ordinary pension) Rules and the corresponding rules
applicable to Railway Pensioners and Pensioners of All India
Services including officers of Indian Civil Service Retired from
service on or after 01.01.1973. As such, OM dated 01.09.2008 was
made applicable to all pre-2006 pensioners, whose pensions were to
be revised in the manner specified in the memorandum.
22. Para-4.1 of the memorandum, inter-alia provided for mechanism to
calculate and arrive and consolidated pension / family pension w.e.f.
01.01.2006, with the following guarantee in para-4.2 of the
memorandum, which reads as under :-
“4,2 The fixation of pension will be subject to the provision that the revised pension, in no case, shall be lower than fifty percent of the minimum of the pay in the pay band plus the grade pay corresponding to the pre-revised pay scale from which the pensioner had retired. In the case of HAG+and above scales, this will be fifty percent of the minimum of the revised pay scale.”
23. Thereafter a separate office memorandum F.No. 38/37/08P&PW(A)
dated 02.09.2008 was issued by Department of Pension and
Pensioners Welfare, Ministry of Personnel, Public Grievances and
Pensions for regulating the issue of payment of pension of post 2006
retirees i.e. Government servants who retire on or after 01.01.2006. A
copy of office memorandum being F.No. 38/37/08P&PW(A) dated
02.09.2008 was issued by Department of Pension and Pensioners
Welfare, Ministry of Personnel, Public Grievances and Pensions is
annexed herewith and marked as Annexure P-6.
24. Clarifying the memorandum dated 01.09.2008, another office
memorandum being OM F.No. F.No. 38/37/08P&PW(A)pt.1 dated
03.10.2008 was issued by Department of Pension and Pensioners
Welfare, Ministry of Personnel, Public Grievances and Pensions
whereby amongst the other clarifications, above paragraphs 4.2. of
office memorandum dated 01.09.2008 was also clarified. Relevant
extract of the clarificatory memorandum dated 03.10.2008 reads s
under:-
“The pension calculated at 50% of the minimum of pay in the pay ban plus grade pay would be calculated (i) at the minimum of the pay in the pay band (irrespective of the pre-revised scale of pay) plus the grade pay corresponding to the pre-revised pay scale. For example, if a pensioner had retired in the pre-revised scale of pay of Rs.18400-22400, the corresponding pay band being Rs.37400-67000 and the corresponding grade pay being Rs.10,000/- p.m., his minimum guaranteed pension would be 50% of Rs.37,400 + Rs.10,000 (i.e. Rs.23,700/-) A statement indicating the minimum pension corresponding to each of the pre-2006 scales of pay is enclosed at Annexure.”
A copy of the office memorandum being OM F. F.No.
38/37/08P&PW(A)pt. dated 03.10.2008 issued by Department of
Pension and Pensioners Welfare, Ministry of Personnel, Public
Grievances and Pensions is annexed here to and marked as
Annexure P-7.
25. In furtherance of memorandum dated 03.10.2008 and in view of a
large number of representations received by Government of India
regarding the delay in payment of pension and arrears to the pre-
2006 pensioners / family pensioners, office memorandum being OM
F.No. 38/37/08P&PW(A)pt.1 dated 14.10.2008 was issued by
Department of Pension and Pensioners Welfare, Ministry of
Personnel, Public Grievances and Pensions, inter alia, to facilitate
payment of revised pension in terms of para 4.2. of the OM dated
01.09.2008 as clarified by OM dated 03.10.2008, and for this purposes
a table (being annexure-I to OM dated 14.10.2008) was provided and
column 8 of the table represented 50% of sum of minimum of pay
band + grade pay. A copy of memorandum being OM F.No.
38/37/08P&PW(A)pt.1 dated 14.10.2008 was issued by Department of
Pension and Pensioners Welfare, Ministry of Personnel, Public
Grievances and Pensions is annexed here to and marked as
Annexure P-8.
26. Being aggrieved with the aforesaid memorandums of Government of
India, representations were made by pre-2006 pensioners, inter alia,
claiming parity and equal treatment with those who retires after
01.10.2006 i.e. post 2006 pensioners.
27. At this stage it is relevant to point out, representation dated
21.11.2008 was made by respondent wherein respondent claimed
parity in the matter of grant of pension with post-2006 pensioners,
inter alia alleging that the Government of India accepted the parity of
pension vide para 4.2 of the office memorandum dated 01.09.2008,
however, while issuing clarification on para 4.2 vide memorandum
dated 03.10.2008 the concept of the parity was neglected by the
Government. Copy of representation dated 21.11.2008 is annexed
hereto and marked as Annexure P-9
28. Department of Pension and Pensioners Welfare, Ministry of
Personnel, Public Grievances and Pensions, disposing of
representations / references received by them, inter alia, alleging
that instructions with regard to pension of pre-2006 pensioners are
discriminatory and are not in conformity with the decision taken on
the recommendations of 6th Pay Commission, issued memorandum
being F.No. 38/37/08P&PW(A) dated 11.02.2009, inter alia, to the
effect that no change is required to be made in that respect. A copy
of memorandum being OM F.No. 38/37/08P&PW(A) dated 11.02.2009
was issued by Department of Pension and Pensioners Welfare,
Ministry of Personnel, Public Grievances and Pensions is annexed
hereto and marked as Annexure P-10.
29. Now coming to the bottom line controversy as agitated before
Hon’ble Central Administrative Tribunal and observation and finding
of Hon’ble CAT on the same, it is submitted that relying upon
judgments of Hon’ble Supreme Curt of India, mainly in the matter of
D.S. Nakara & Ors. Vs. Union of India (1983) 1 SCC 305 and Union of
India vs. S.P.S. Vains (2008) 9 SCC 125, resolution dated 29.08.2008
and article 14 of the Constitution of India and alleging that vide OM
dated 01.09.2008, 03.10.2008 and 14.10.2008 criteria and principals
for determining the pension has been given a complete go-by
original applications being OA No. 3079 of 2009, 306 of 2010, 507 of
2010, 655 of 2010 were fied by pre-2006 pensioners (who retired from
S-29 pre-revised scale of pay) before Hon’ble principal bench of CAT,
inter alia.
(i) Claiming parity in pension with post 01.01.2006 retirees.
(ii) praying for quashing of clarification memorandums dated
03.10.2008, 14.10.2008 and 11.02.2009.
(iii) Direction for their notional pay fixation and consequently
pension fixation should not be less than 50% of the sum of the
pay in the pay band and the grade pay thereon corresponding
the scale of pay from which they had retired.
Copy of 3079 of 2009, 306 of 2010, 507 of 2010, 655 of 2010 filed
before the CAT is annexed hereto and marked as Annexure P-11
(Colly).
30. Petitioners has filed their counter affidavit to each of the
aforesaid OA, inter alia, submitting therein that the orders /
clarifications issued by the Government for revision of provision for
calculation of pension re in consonance with the decision of the
Government on the recommendations of 6th Pay Commission and
that the Government had taken a policy decision to revise the
provisions for determination of pension and this policy decision is
not discriminatory. It was also submitted by the petitioners in their
counter affidavits that policy of the Government with regard to
payment of pension to pre-2006 and post-2006 retirees is legally
sound, hence do not call for any interference by Hon’ble CAT. A
copy each of the counter affidavit filed by the petitioners to 3079 of
2009, 306 of 2010, 507 of 2010, 655 of 2010 respectively is annexed
hereto and marked as Annexure P-12 (Colly).
31. The above OA were decided and disposed of by Hon’ble CAT vide
impugned order dated 01.11.2011 whereunder Hon’ble CAT though
held that
(i) It cannot be said that fixation of cut off date for the purpose of
extending retrial benefit is arbitrary and it is permissible for
the government to fix a cut off date for introducing any new
pension / retirement scheme or for discontinuing of any
existing scheme.
(ii) The challenge made by the applications based upon the
judgement in D.S. Nakara that they should be extended the
same pensionary benefits as that of post – 2006 retirees
cannot be accepted.
(iii) Pre-01.01.2006 and post 2006 retirees cannot be extended the
same pensionary benefits as on the basis of recommendations
of 6th Pay Commission to different schemes for pre-2006 and
post-2006 retirees have been issued and that applicants
(respondents before this Hon’ble Court) have not challenged
the validity of the OM dated 02.09.2008, therefore, pre-2006
retirees cannot claim benefit as par with posy 2006 retirees
who are governed by the separate set of scheme.
(iv) Judgement in the matter of SPS Vains was of no assistance to
the applicants which was rendered in different facts and
circumstances and relate to Army Personnel.
Yet nevertheless such finding, Hon’ble CAT by comparing the
pension of pre-01.01.2006 retirees and post 01.01.2006 retirees
quashed memorandum dated 03.10.2008, 14.10.2008 and 11.10.2009
and directed to re-fix the pension of all pre-2006 retirees based on
the resolution dated 29.08.2008 holding that OM dated 03.10.2008
substantially changed the modified parity / formula adopted by the
Central Government pursuant to the recommendations made by 6th
pay Commission and thus caused great prejudice to the applicant.
32. It is submitted that findings of Hon’ble CAT are self contradictory as
Hon’ble CAT on the one hand accepted that there was no
arbitrariness and discrimination on the part of the petitioners in
fixing cut-off dated as 01.01.2006 and that pre-2006 and post 2006
retirees are governed by separate schemes and memorandums and
that pre 2006 retirees cannot claim benefit at par with post 2006, on
the other hand Hon’ble CAT by comparing the pension of pre 2006
retirees who retired in December 2005 with the pension of post 2006
retiree who retired in January 2006, quashed memorandums dated
03.10.2008, 14.10.2008 and 11.10.2009 without appreciating that vide
these memorandums principles of pension as mentioned in
resolution dated 29.09.2008 were not changed at all.
33. It is submitted that impugned order is against principle of law and
the same is liable to be set aside, inter-alia, on the following
grounds:-
GROUNDS
A. For that Hon’ble CAT erred in not appreciating that memorandums
dated 03.10.2008, issued clarifying memorandum dated 01.09.2008
are in no way deviating from the decision of the government for
acceptance of recommendation of 6th Pay Commission under
Resolution dated 29.08.2008 nor do the same give a go-by to the
principle of modified parity. Therefore, while issuing memorandums
dated 03.10.2008 and 14.10.2008, modified parity / formula adopted
by Central Government pursuant to recommendation of 6th pay
commission was neither changed nor the same on the face of it go-o
to introduce or demonstrate any change or go-by to the principles of
modified parity accepted vide Resolution dated 29.08.2008.
B. For that Hon’ble CAT failed to appreciate that the following two
phrases (a) and (b) only explain the exact meaning of “That the
revised pension in no case shall be 50% of the sum of the minimum
of the pay in the pay band and the grade pay thereon corresponding
to the pre-revised pay scale from which the petitioner had retired” for
the purpose of application without introducing any change.
(a) That the revised pension in no case, shall be 50% of the
minimum of the pay in the pay band plus the grade pay
corresponding to the pre-revised pay scale from which the
petitioner had retired.
(b) That the pension calculated at 50% of the minimum of the pay
in the pay band plus grade pay would be calculated (i) at the
minimum of the pay in the pay band (irrespective of pre-
revised scale of pay) plus the grade pay corresponding to the
pre-revised pay scale.
© For that Hon’ble CAT failed to appreciate that “minimum of the pay in
the pay band” refers to the starting point of the pay band, therefore,
pension of S-29 grade retirees (retired before 01.01.2006) was to be
calculated in the pay band of Rs.37400 – Rs.67000, by taking
Rs.37400 (starting point of pay band) as minimum pay for the
purpose of pension.
D. For that Hon’ble CAT failed to appreciate that when there was no
arbitrariness in fixing cut-off dated (as 01.01.2006) and issuing to
separate memorandums / schemes for pre-2006 and post-2006
retirees respectively, then how pension of pre-2006 retirees could be
directed for re-fixation, on erroneous comparison of pension amount
payable to retiree in December 2005 with the pension amount of
retiree of January 2006.
E. For that Hon’ble CAT failed to appreciate that when it found no
illegality and infirmity in the memorandum dated 01.09.2008, then it
was not justified to quash memorandums dated 03.10.2008 and
14.10.208 as these memorandums only clarified the meaning of
memorandum dated 01.09.008, for the sole purpose of practical
application dated calculation of pension of pre-2006 retirees.
F. For that Hon’ble CAT erred in not appreciating that fitment tables
(Annexure 1 to Memorandum dated 30.08.2008) were to be applied
for revising pay of Government servants who were in service as on
01.01.2006, therefore, pre-2006 retirees can not demand for re-
fixation of their pension on the basis of revised pay fitment tables in
general and in particular on the basis of minimum revised pay of
pre0revised scales.
G. For that Hon’ble CAT erred in not appreciating and further erred in
quashing memorandum dated 14.10.2008, Annexure 1 whereof
provides for table based on which pension of pre-2006 pensioners is
to be calculated and that the said table is in accordance with
decision of the Government in accepting the recommendations of 6th
Pay Commission vide Resolution dated 29.08.2008.
H. For that Hon’ble CAT failed to appreciate that improvement of pay
scale of S-29 category from 39200-67000+grade pay of Rs.9000/- with
minimum pay of Rs.43280/- to Rs.37400/- - Rs.67000/- with grade pay
Rs.10,000/- with minimum pay of Rs.44700/- was meant for existing
Government employees who were in service as on 01.01.2006 and
had nothing to do with the Government employees who retired
before 01.01.2006, therefore, no benefit could have been granted to
pre-2006 retirees on the ground that the Government did not intend
to reduce the pension of pre-2006 retirees while improving the pay
scale of S-29 grade.
I. For that Hon’ble CAT failed to appreciate that financial constraints
and implications are always vital and important factor in
interpretation of economic / fiscal policies of Government as paying
capacity of employer cannot be ignored in granting and denying
monetary benefits to employees including ex-employees.
J. For that Hon’ble CAT, on the on hand find two separate schemes of
pension respectively for pre-2006 and post-2006 retirees as good in
law and held that they are governed by their respective schemes, on
the other hand erred in comparing of pension of pre and post 2006
retirees and holding that pension of Rs.23700/- of pre-2006 retirees
(retired in December 2005) being less than the pension of Rs.27,350/-
of post 2006 retiree (retired in January 2006) has the principal of
modified parity.
K. For that Hon’ble CAT failed to appreciate that pre-2006 retirees and
post 2006 retirees are not similarly situated, therefore, there could
not be equality among unequal, as such pre-2006 retirees could not
claim the same benefit of pension as that of available to post-2006
retirees.
L. For that Hon’ble CAT though noticed that pre-2006 retirees before it,
had not challenged memorandum dated 02.09.2008 issued for
determining of pension of post-2006 retirees and memorandum
dated 01.09.2008 for pre-2006 retirees found to be valid and legal, yet
Hon’ble CAT comparing the pension of Post-2006 retirees and
pre=2006 retirees granted those benefit of pension to pre-2006
retirees which were not meant for them but for post 2006 retirees.
M. For that revised pay rules providing for revised pay were applicable
to Government employees as on 01.01.2006, therefore, by taking into
consideration and importing minimum revised pay of Government
employee as on 01.01.2006, no benefit of pension could be granted
to pre-2006 employees on the basis of minimum revised pay.
N. For that Hon’ble CAT failed to appreciate that though the
phraseologies used in the resolution dated 29th Autust, 2008, para 4.2
of the OM dated 1st September 2008 and the clarificatory OM dated
3rd October 2008 were not identical, in so far as the Government is
concerned, the intent when reference is drawn to minimum of the
pay in the pay band, was always to refer to the starting point of the
pay band i.e. the minimum of the pay band. The minimum of pay in
the pay band is the pay from which the pay band starts and not the
minimum of pay which a serving employee is entitled to in
accordance with the fitment table. As such the petitioners who were
not in service as on 01.01.2006 cannot claim replacement of pay on
the ground of modified parity at par with those who were in service it
has accrued to the latter only by virtue of their being in service in the
respective pay scales as on 01.01.2006. The contention of the
petitioners that their pension must be fixed at 50% of the minimum of
the pay in the pay band in accordance with the Fitment Tables for
serving employees cannot be conceded by the Government. The
fitment tables in Annexure 1 of Ministry of Finance (Department of
Expenditure)’s OM No. 1/1/2008-IC dated 30.08.2008 are of very
limited application. They are meant to only indicate the pay fixation
of serving employees as on 1.1.2006 who are moving over from the
5th CPC to 6th CPC Scales. These pay fitment tables are not relevant
even for subsequent drawals of increment and/or pay fixation on
promotion of serving employees. The contention of the petitioners
that their pension must be fixed with reference to the minimum of the
pay in the pay band as depicted by the pay fixation tables is,
accordingly, based on a completely incorrect understanding of the
principles of pay and pension fixation and is without merits.
O. For that in regard to the difference in pension of those who retired
from S-29 grade in December 2005, Hon’ble CAT failed to appreciate
that in comparison to an officer in the same or lower grade who
retired in January 2006, fixation of a cut-off date for the purpose of
extending retiral benefits is perfectly permissible and legitimate for
the Government. Pre-2006 and Post-1.1.2006 retirees cannot be
extended the same pensionary benefits as the Government of India
have, on the recommendations of the 6th CPC, issued two different
schemes for pre-2006 and post-2006 retirees. It is, therefore, not
correct to compare a retiree in December 2005 with a retiree in
January 2006, both of whom are governed by a separate scheme of
pensionary benefits.
P. For that Hon’ble CAT failed to appreciate that the 5th CPC had
enunciated the concept of ‘Modified Parity’ which has also been
adopted by the 6th CPC for revision/consolidation of pre-2006
pensioners. At the same time, with a view to de-layering the
Government, the 6th CPC also introduced, for the first time, the
concept of pay bands and grade pay. A number of pre-revised
scales of pay, which were in operation before 6th Central Pay
Commission, have, accordingly, been merged into running pay
bands. The present disparities that have been referred to by the CAT
are mainly on account of this fact.
Q. For that Hon’ble CAT failed to appreciate that the Government has
allowed a uniform fitment benefit of 40% of basic pension in all
cases. Over and above this, if the pension, after consolidation falls
short of 50% of the minimum of the pay in pay band + grade pay,
stepping up is done. It is logical that when a number of pre-revised
pay scales are merged into a single pay band it may happen that
those individuals who are in the higher pay scales do not get
benefits in the same ratio and proportion as those who are in the
lower pay scales. The pre-revised scales of S-24 to S-29 ranging
from Rs.14330-18300 and going upto Rs.18400 – 22400 have all been
merged in PB-4 separated only by different grade pays of Rs.8700,
Rs.8900 and Rs.10000. Accordingly, the pension of pre-2006 retiree
in the pre-revised pay scale of S-24 shall be worked out at 50% of the
minimum of the pay in the pay band corresponding to the pre-
revised scale of pay along with grade pay thereon (in terms of OM
dated 1st September 2008) and this shall be 50% of Rs.37400+8700
which is equal to Rs.23050. In so far as the pre-revised pay scale of
S-29 is concerned, by the same formula, the revised pension shall
work out to Rs.23700. It would be seen that there is a difference of
only RS.650 (Rs.23700 – Rs.23050) in the pension of pre-2006 retiree
at the minimum of the pre-revised S-24 scale i.e. Rs.14300 and the
maximum of the pre-revised S-29 scale which is Rs.22400. This is,
not because of any illegal, arbitrary or capricious move by the
Government but merely on account of the bundling of several pre-
revised pay scales into one pay band. In case succeeding Pay
Commissions continue with the concept of running pay bands, the
individual discrepancies or aberrations currently arising, because of
first time application, shall no loner arise.
R. For that Hon’ble CAT failed to appreciate that the Pay Commissions
are expert bodies and their recommendations are to be accepted as
part of an overall package. It, therefore, cannot be anybody’s
contention that recommendations which are manifestly to the
advantage of pensioners shall be wholeheartedly accepted while
those which may not yield the same degree of relative benefits are
liable to challenged and struck down in Court of Law.
S. For that Hon’ble CAT failed to appreciate that in a catena of
judgements, various Courts, including the Apex Court, have held that
it is the prerogative of the executive authorities to fix cut-off dates
and to determine issues of pay and pension fixation. The executive
takes these decisions based on a variety of considerations including
financial, administrative and other constraints. The Courts do not
generally interfere in this regard unless the principles adopted are
patently arbitrary or malafide. This is not the case in the present
instance.
T. For that Hon’ble CAT failed to appreciate that granting of benefit of
pay and pension is a matter of policy and the Government is entitled
to take into account various factors including financial implications
and availability of resources to decide what benefit or how much
benefit should be granted and from which particular time. Such a
policy is not open to judicial review unless the same is arbitrary and
against the public policy with the object to be achieved.
U. For that Hon’ble CAT failed to appreciate that the wisdom in a policy
decision of the Government as such is not justiciable unless such
policy decision is wholly capricious, arbitrary and whimsical thereby
offending the rule of law as enshrined in Article 14 of the
Constitution or such policy decision violates any statutory provision
or the provisions of the Constitution.
Save as aforesaid, the Court need not embark on unchartered area of
public policy.
V. For that findings of Hon’ble CAT are self contradictory, therefore,
liable to be set aside.
W. For that findings Hon’ble CAT failed in the impugned order are
contrary to material on record.
X. For that impugned order of Hon’ble CAT is not tenable nor is the
same in accordance with the law.
38. The impugned order is liable to be set-aside as the same is
mechanical, perverse and contrary to material on record.
39. It is submitted that petitioners have not filed any other petition or
application against the impugned common order dated 01.11.2011
passed by Central Administrative Tribunal in O.A.No.0655/2010,
O.A.No.3079 of 2009, O.A. No. 0306 of 2010 and O.A. No.0507 of 2010
before any other court, authority, tribunal and Hon’ble Supreme
Court.
PRAYER
In view of the above, it is submitted that this Hon’ble Court may
graciously be pleased to :
(a) pass appropriate writ, directions or order in the nature of
certiorari or any other writ, direction on order dated 01.11.2011
passed by Hon’ble Central Administrative Tribunal, principal
Bench in O.A.No.0655/2010, O.A.No.3079 of 2009, O.A. No.
0306 of 2010 and O.A. No.0507 of 2010;
(b) Such other further direction which this Hon’ble Court may
deem fit and proper in the facts of the case.
PETITIONER THROUGH:
RUCHIR MISHRA, ADVOCATE,
H-1337, LGF, LAGPAT NAGAR, NEW DELHI – 110024
New Delhi Date : /02/2012