Subject: A Faithful Presentation of Vital Points for crucial 23 sep 2015 SC Bench Hearingto clinchFavourable judgement 16 Sep 2015
Dear All,
A Faithful Presentation of Vital Points for Crucial 23 Sep.2015 SC Bench Hearing to Clinch Specific Favourable Judgement : No. 3
This is in continuation of my comprehensive coverage of many vital & significant points & issues in the final Marathon ,facing powerful adversaries like LIC, UOI & above all to queries which Hon SCBench may shoot,after listening to likely heated submissions on 23sep, 2015,which we must be everready to face the last opportunity,not to be a lost opportunity,but where many weaknesses of LIC, UOI actions can be forcefully x-rayed by our Sr Counsels to demolish their arguments lock, stock & barrel.As Oliver Cromwell said, be forewarned so that one is forearmed.1st one was on 8 Sep 2015, 2nd on 12 sep & this last one 15 sep 2015.Almost all data,I have painstakingly tried to update,all know how hard it is even to secure legitimate info,but efforts yields results.One does not want his last journey uphill to fail, but with renewed energy & bubbling confidence & courage, we all must stretch to the utmost to win & win only.Earlier 2 write-ups,I tried to cover some grey areas to dispel doubt.Here remainder of such issues or strengthening our arsenal with power-packed data & truth, neutral & impartial,without any motives are undertaken with usual Font 14 for Crucial Issues,Replies,Must appear, Clinching data,numbers & statistics which can win many arguments,as we are placed in that comfortable situation.
I)Can LIC afford : Question of Outlay: Arguments plenty, affordable
a)i)For FY 2014—15, LIC TPI stood at 2,39,483 cr ,Total Income Rs4,07,546 cr
Total Expenses of Management,2013-14, Rs34,447 cr,showing a rise of 9.4%
LIC paid advance IT of Rs5119 cr as against Rs4324cr for FY 2012-13
Service tax paid is Rs4022.4 cr ,provisional ,as against Rs3682.6 cr for FY2012-13
ii)IT Appellate Tribunal,Mumbai gave the judgement in favour of LIC for AY2007-08, 2008—09, & 2009-10,LIC received refund of Rs 4190.2 cr for AY 2007-08,& 2009-10 on 31/12/2013 .Refund for AY 2008-09 of Rs 9000cr app is expected .
iii) Staggering Assets of Rs17,69,192cr & Total Life FundRs 16,07,025cr as at 31/3/2014. For 2014-15,Total Assets Rs20,31,116cr .Total Life Fund Rs 18,24,195 cr LIC Total Investments in FY2014 –15 was Rs12,86,770 cr. LIC Investments in Social Sector stood at Rs2,26,806 cr in 2014–15
Peoples Money for peoples Welfare, befitting LIC Motto, tremendousfillip to Govt 5-Year Plans. LIC solvency & stability is unquestionable
iv)SURPLUS Last 16 yrs alone,LIC paid to Govt crossed Rs 10,000 cr ,a Kamadhenu indeed, & all on a mere Rs5cr given by Govt on 1/9/1956. WHAT AN ENTITY, in fact, ALL CONSTITUENTS of such EMINENT INSTNS must have ALL BENEFITS, PERKS much much HIGHER for the OUTSTANDING PERFORMANCE.
v))a)TOTAL OPERATING EXPENSES & EMPLOYEES REMUNERATION & WELFARE EXPENSES :
TOTAL OPERATING EXPENSES– –31/3/2011: Rs16,980cr: Rs497Cr PENSION Payments 2.93% only
How modest & realistic pensioners sincere demand for pension revision with wage revision & Full DR to pre-8/1997 pensioners becomes crystal clear
b) i)Total number of pensioners stood at 38,200 in 2006-07,38434 in 2007-08 & 43,043 in 2010-11, & 49,058 in 2013-14.It is less than 2000 pensioners only per Year added All India, app 250 per Zone.
ii)TOTAL PENSION PAYMENTS RIGHT from 1995-96 to 31/3/2011 for 16 long years comes to Rs 3707.84 Cr only .WE can also be HAPPY that PENSION PAYMENTS for ALL 45,476 PENSIONERS for 1 YEAR period ending 31/3/2012 is only Rs585.41Cr ie Rs10,728PM on an AVERAGE, very small AMOUNT .This rose to Rs793 cr for 2013-14 ,but for 49,058 pensioners, ie Rs13,470pm ONLY.
c)Salary & other benefits to Employees in LIC stood at Rs 11,895cr for 2012-13 & Rs14,705 cr for 2013-14. Pension payments for 2012-13 is a mere 6.6% of Salary expenses & for 2013-14,it was even lower at 5.4%.
d)The rising Pension bill of CGovt will hit Rs1.12 lakh crores in 2017-18 almost touching CG Salary bill of 2016-17 of Rs1.16 lakh crores with 7th Pay Commission impact.
If 10% DR RISE for GOVT EMPLOYEES cost Rs 10.869 cr , IMAGINE the COST OF PENSION UPGRADATION for them.
What more, % of Salary expenses to TPI-Total Premium Income was 5,7% & the ratio was 6.2 % for 2013-14 in LIC, salutary indeed.
e)CG Pension Expenditure for 2015-16 is estimated to be Rs88,521cr.
For LIC, Total Pension Payments for 45,476 pensioners was Rs585.41 cr for 31/3/2012. So,Per Capita Pension works out to a pittance of Rs1,28,729pa or Rs10,728 pm & for 2013-14 for49,058 pensioners Rs793 cr only working out to Rs1,61,645paor Rs13,470 pm only,very small amount indeed, as per capita pension.
f)After pension upgradation with Full DR to pre-8/1997 pensioners, from 1/8/97 to 31/1/2012 ,if total outlay on some realistic assumptions is Rs 100/110 cr per annum, every year will add decent addition to outlay obviously, we have been telling with every passing year,loss sustained mounts high & so naturally, outlay too,& as at 31/1/2015 ,with cumulative addition to all cadres account for Rs 140/150 cr pa ONLY, not Rs 250/300cr. I just added this enhanced outlay Rs150 cr to Rs793 cr pension payments for 2013-14,yet for 49,058 pensioners ,it works out to Rs1,92,221 pa or Rs 16,018 pm. Yet,it is far low a figure as after 7th PC, CG Pension & average per month will rise pretty high.
g)Similarly, for LIC, Salary & other benefits stood at Rs14,705 cr for 2013-14,which works out to an Average Per Capita of Rs1,22,542pa or Rs10212pm,employees app 1.20 lacs
For CG Employees, Salary bill alone is Rs1,00,619 cr , we know it is a whopping number, yet.
h)Look how favourable LIC Pension payments to TPI-Total Premium Income , it was 0.37 % in 2012-13 &0.33 % in 2013-14. If we work out in relation to Total Income including Investment Income which TI itself rose by 18 % in 2013-14,the ratio will be MINISCULE ;it is a mere 0.21 %conveying strong POINTERS to the SC Bench to be convinced to grant & allow Pension Upgradation & therefore, TWIN BENEFITS which we know we are cocksure we have to SECURE with unassailable points umpteen in our favour ,with a series of brilliant successes in 3 Courts & clarifications & protection by eminent SC Bench, indeed NO STAY order, a crucial one in pensioners favour, but that OPPORTUNE TIME or MOMENT has arrived on Wednesday 23 September, 2015.Whether it is 1 sitting or Plural sittings, the dice is in our favour ,undisturbed & clear-cut.
II)a)What a prudent, profitable organization LIC is must be dinned into the ears of SC Bench & retorting to LIC,UOI Sr Counsels & rejecting their contention Pension Upgradation cannot be granted.
b)” LIC is a jewel in our crown.& we will continue to nurture LIC. LIC is not only a market leader,but also a market maker. The 3 letter LIC stand as a synonym for insurance, for excellence in strengthening the economic fibre of this country. I dare to say that no other 3 letters taken together are more recognised in the length & breadth of India. I am proud of what LIC has achieved in 57 years,but as long as there are uninsured people,the task of LIC is not over.’ ,So said Former FM,Sri P.Chidambaram in September, 2013
c)Sri Arun Jaitley, present FM ,when he visited “Yogakshema” on 9th January, 2015, observed, ‘the Country depends on LIC to a great extent. LIC is a Role Model of how a state sector instrument can,while maintaining arm’s length distance,take prudent commercial decisions and LIC has done exceedingly well.The Market is going to be more competitive and the ‘Best of LIC’ is yet to come .’
Grace & magnanimity is required to honour fully in letter & spirit, the Court judgements , one by one, all in Pensioners favour.
d)It is here we must EMPHATICALLY present with modesty, Hon FM, Sri Arun Jaitley’s address in 46 th Indian Labour Conference on 20/7/2015, ‘efficient industries will be able to take higher wages & rich Govt will be able to provide higher wages & better social security’ .This indeed strengthens our argument that LIC deserves to pay much higher wages to employees & comfortably,without any murmur, allow graciously pension upgradation,without in any way creating any more obstacles ,having dragged the Court cases & legal battle for 14 years & more.
III)a)GOVT REGULAR PENSION is far far HIGHER for COMPARATIVE CADRES, Many are not aware that even Govt Family Pension is higher than LIC Regular pension.
b)For CG, the linkage of full pension with 33 years of service has been scrapped.
The maximum service length for full pension would now be 20 years.
c)The new rules also add more flexibility in retirement benefits. For instance, those who are due to retire can now get 40% of their pension commuted and get a lump sum amount in turn.
d)Maximum Pension for CG is a whopping Rs52,200 plus DR as against V PC maximum Rs33,075. FP as 30% of Basic Pay will shoot up to Rs21,000 plus DR.
e) Fine 6th PC PRAGMATIC Empathetic formula of value-added pension, so well appreciated by all pensioners of Govt , the graded rise in pension at AGES 80.85,90,95,100 , by 20% ,30,40,50,& 100%,which we don’t enjoy.
IV)a)That CG Pensioners get pension upgradation merrily all these years, plenty ,enjoy such high pension uplifted & upgraded ,let them, no envy, BUT denying the same relief to pensioners of Financial & Service institutions does not have any objective criteria for such classification for such discrimination & exclusion. As a corollary, such aberrations & deficiencies have to be corrected & equity restored at the hands of justice through the SC. It is applying equal laws applying alike to all in like situation.
b)Simply put,there cannot be a 1st class treatment for some & a 3rd class treatment for others similarly circumstanced,Factors affecting daily life & living are the same & so solutions also should be in similar directions.In fact, it applies with greater force for insurance pensioners as insurance RP is far less than Govt RP & ,in fact,Govt FP is higher than insurance RP itself . We cry for the poor state of FP in insurance industry, LIC Basic FP ranges ,after death of RP is, for Asst to ED pre-8/1992, pre 8/1997, pre8/2002, pre8/2007, to a woeful ,pittance of Rs572—1050,1100—2100,1349—3450 & 2048 —5260 plus DR
V)a)It is disturbing that Pensioners should be treated so bad & from 6676/ 1998writ on DRto 24/11/ 2001 LIC Board Resolution to 654/2007writ on Pension Upgradation to 12/1/2010 Hon SJ Jaipur judgement admitting Both Writs to dismissal of LIC Appeal493 & 494/2010 by DB Jaipur HC on 21/1/2011 to dismissal of LIC Review Petition 86 & 87/2011 by DB Jaipur HC on 19/8/2011 to SC Bench clarificatory Order 17/10/2012,amending their vague Order dt 14/11.2011 ,to Punjab & Haryana HC Order 9/11/2012 adding 12 % interest for delay, to Delhi HC Order 30/1/2013 affirming Jaipur verdict & adding “in rem’ to all Pensioners, to LIC SLPs 29956 & 29957 dismissed on 8/8/2013 to 30/9/2013 when SC Bench issued NO STAY Order on Hon SJ verdict 12/1/2010 & allied matters ,condonation of LIC inordinate delay of 6 months 14 days by SC Bench resulting in new Avatar of CAs 8959—8962/2013 to 25/3/2015 ,SC Bench hearing of CAs to 8/4/2015, to Interim Order dt 7/5/2015 giving 6 weeks time to pay 20% of impugned HC judgement, delay by LIC, to CGH CCP on 20 July & again to 27th July 2015,Hon HC ordering hearing on 7th Oct 2015,as admittedly the case is linked with SC hearing on 23 Sep,2015, to IA in respect of Punjab & Haryana HC in SC ,hearing on 7th Sep,2015 SC Bench ordering LIC to pay to CGH Petitioners interim 20% within a fortnight failing which LIC authority faces contempt before SC.
b)CO letter to Fedn of Retd LIC Class I Officers Fedn to give a list of their members pertaining to pre-8/1997 pensioners ,by July2015 end, & atlast about 1300 All India emerging ,which CO calculated & sent to respective ZM/SDMs with calculations gross & 20% indicated for credit to respective pensioners ‘ bank account,I know in respect of SZ,total Class I Officers as per List, numbering 287 in all,
c)a tardy,tortuous & tragic tale of agony & frustration,with a chain of Court victories & pronouncements & yet justice elusive playing havoc with pensioners, hopefully & prayerfully, a TRUE ,scintillating clearcut judgement to be in the offing with such true & profound facts & all points of law in pensioners’ favour strongly.
VI)a) NOW,Reverting to LIC Board Resolution dt 24/11/2001,where some doubts have been expressed on 1 or 2 points, let us have a clear look without any blinkers.
The Minutes of the 492nd Meeting of LIC of India held on 24/11/2001 at 11.30am, at Hotel Le Meridian ,New Delhi ,states in Heading “Amendment to LIC of India (Employees)Pension Rules 1995—“UPGRADING of Basic Pension to AICIPI 1740 Points and 100% DA neutralization thereon in respect of Retirees prior to 01/08/1997.”
I have used Same Font as in Original, which We AIRIEF secured then through RTI.
b)Clearly,emphasis is laid on UPGRADING of Basic Pension.
After 6 lines mentioning 3 different rates for different groups of pensioners,causing administrative inconvenience ,a communication from Dr S.Ram Khanna,Board Member requesting “examining the proposals as per Board Note in line with the demands made by the Federation viz. giving effect to the proposals from 01.11.1993 and upgradation by giving weightage of 11.25% as in the case of inservice employees, Chairman pointed out that these have been considered before placing the matter to the Board and it was felt that the same would increase the financial burden very substantially and may be unaffordable for the Corporation. Chairman pointed out that the implications of the proposal made have been actuarially determined at Rs51.37cr and the annual outlay would be in the region of 5 to 6 crore. After some time, the Board approved the proposal and suggested that it should be implemented prospectively after obtaining Govt approval ”
c) When we juxtapose this with the Office Note dt 18/09/2001 & Notings there on dt 19/9/2001,supplementary notings dt 11/10/2001,byAS/ER,ChiefP,EDP,MD, & Chairman,dt13/10/2001 approving the Board Note , the 2 demands taken up for consideration ,i)Allowing one more option to be governed by the Pension Rules ii)Upgrading of basic pension to AICPI 1740 & 100% DA neutralization thereon.
It was decided, ‘as the cost of allowing one more option appear to be prohibitive at this juncture, as it may not be possible to withstand the additional burden of an amount of Rs500cr ’,to wait for next valuation.
d)As regards Upgrading of basic pension to AICPI 1740 & 100 % DA neutralization thereon,it was mentioned ‘there is a need to rationalize the structure to reduce the administrative inconvenience & also to see that different generations of pensioners are protected by uplifting the pension to a suitable index point. It may be pointed out that the Central Civil Service Pension Rules (on which our Pension Scheme has been broadly designed)contains such an upgradation formula corresponding to Wage Revisions effected for Central Govt employees. As the cost implication is not much, it is suggested that we may accede to this demand & upgrade the pension payable in relation to AICPI 600 points & 1148 points respectively by merging the Dearness Relief payable upto the level of 1740 points. On the pension so upgraded, Dearness Relief of 0.23% shall be paid over every 4 points rise or fall from 1740 points.’ On this Note, MD noted ‘We may seek the approval of the Board to bring the basic pension to AICPI 1740 level & thereafter pay 100 % DA neutralization.The cost implication is not much.We may give effect to this from the date of notification’ .
Finally, Chairman approved the Board note on 13/10/2001.
e)So, it is clear LIC wanted to offer & allow pension upgradation,to ensure different generations of pensioners are protected by uplifting the pension to a suitable point. CCS Pension Rules is referred to & that contains pension upgradation. It is not correct to say that the word –upgradation–is not there. Reference is to 100% DR only etc,some say. On the other hand, the Note is out & out for pension UPGRADATION, read the word, UPLIFTING the pension ,it means as is stated ,by merging DR payable at 600,1148 upto the level of 1740 points. PLUS AS(ER)to all levels of authority mention, ‘ as the cost implication is not much ’.
f)One should not ,hereafter, again raise any doubt on this concept of pension upgradation delineated in the Board Note. When the Board Note was approved, only there 11.25% fitment weightage & financial burden very substantial & unaffordable etc were indicated .A mention must be made of the valiant efforts made by AIRIEF right from July 2001,preparation of Loss of Pension Chart for all cadres,meeting all Independent Directors camping at Mumbai for many days, 110 minutes meeting with Sri G.N.Bajpai in Conference Hall,threadbare discussions,AIRIEF delegation led by Sri Sunil Shastri,H.C.Mehta,President,CSMurty ,GS, R.B.Kishore VP, J.K.Karulkar,Mumbai ,in August 2001 & thanks to Dr Ram Khanna, AIRIEF consistent followup,& discussions in Board Meeting 24/11/2001, fructified for making reference to UOI for approval. Anything worthwhile we do for the benefit of all pensioners, we remember & recall with gratitude. In fact activists from Sister Organisations,writing to me, hail this as a critical document & unassailable piece of evidence for pension upgradation, making our task easier to clinch & achieve.
g)In order to make this still more transparent & doubt-free,one has to refer to GOI,MOF, Dept of Economic Affairs,Insurance Division letter dt 10/04/2002, to Chairman,GIC & Sy General, GIPSA ,Mumbai on Subject :Upgradation of basic pension in respect of LIC pensioners retired between 1/1/86 and 31/7/97,wherein UnderSy to GOI mentions ,enclosing a proposal received from LIC relating to upgradation of basic pension, ‘and are getting graded relief on pension based on AICPI of 600 points for those who retired between 1/1/1986 to 31/7/1992 & 1148 points for those who retired between 1/8/1992 & to 31/7/1997. It is now proposed by LIC to upgrade their basic pension by merging DR upto 1740 points with their basic pension & then providing 100% neutralization wef 1/8/1997 as is admissible to other pensioners who retired on or after 1/8/1997 ‘ .UOI/MOF sought their comments on the same.
VII) SEBI & UOI always want true Corporate governance to prevail & views & opinions of experts from all fields in Board to be taken into account & to count for impartial decision-making. LIC Board Members must be the harbingers of neutral, unbiased decision. In this connection, we must bring to the notice of SC Bench the recent & very valid order ,by way ofMOF Circular dt 5 January 2015 giving full freedom to PSBs/Financial Instns/Insce companies to take their own commercial & decisions & personnel matters, on the basis of facts & assures non-interference in clear terms.
VIII)a)Further ,many pages of Hon Bhandaris delineation contained Grotesque & monstrous anamolies being built up ,whereby 7/8 cadres below get more than their superiors,which also recently in a befitting Patna HC judgementdt 18/5/2015, characterised as hostile discrimination & to be remedied by adding pension to higher ups etc
b) As still some writers go on raising the issue of HON SJ Bhandaris verdict is not clear or categorical, full REPRODUCTION of CLINCHING Paras finally done again.
c)Extracts from Hon SJB Bhandari’s Judgement dt 12/1/2010 to confirm that TWIN Benefits of Full DR & pension revision with successive wage revision conspicuously figure so elaborately :
“The legal position in that regard is quite clear. In view of the catena of judgments of the Hon’ble Apex Court, if there is a change in the benefit of existing pensioners, change has to be made effective to all without a cut off date inasmuch as cut off date in such cases are held to be arbitrary. In a case where pension is allowed for the first time, then a cut off date can be provided. My attention was drawn towards the judgment of the Hon’ble Apex Court in the case of V. Kasturi Vs. State Bank of India reported in AIR 1999 SC 61 wherein aforesaid issue has been dealt with. Same view has been expressed by the Hon’ble Apex Court in the case of Union of India Vs. Dr. Vijayappurapu Subhayamma reported in AIR 2000 SC 3113 and was even reiterated in the case of Subrata Sen Vs. Union of India reported in (2001) 8 SCC 71. In reference to aforesaid judgments, it was urged that there can be no difference in the benefit of dearness allowance to the employees retired before 31.7.1997 and those retired after the aforesaid date.
“Learned counsel for petitioners has further submitted that there exists anomaly even in regard to the revision of the pay scale. The benefit of revision in the pay scale from time to time was not extended to the pensioners. In view of aforesaid, even an officer retiring in the higher pay scale started getting less pension than to the employee retiring subsequently in lower pay scale. Aforesaid aspect was also considered along with the first issue, by the Board in its meeting held on 24.11.2001 and following decision was taken:-
“ In view of the several judgments of the Hon’ble Apex Court, issue regarding cut off date for providing pensionary benefits can be summarized in the following manner:-
i)If there are change in benefit of pension then no cut off date can be provided. The benefit on account of change in pensionary benefits would have retrospective effect.
(ii) If the pension is introduced for the first time, a cut off date can be fixed.
“Aforesaid issue has been settled by the Hon’ble Apex Court in various judgments cited by learned counsel for petitioners.
Nakara judgment has itself drawn a distinction between an existing scheme and a new scheme. Where an existing scheme is revised or liberalized all those who are governed by the said scheme must ordinarily receive the benefit of such revision or liberalization and if the State desires to deny it to a group thereof, it must justify its action on the touchstone of Article 14 and must show that a certain group is denied the benefit of revision/liberalization on sound reason and not entirely on the whim and caprice of the State. The underlying principle is that when the State decides to revise and liberalize an existing pension scheme with a view to augmenting the social security cover granted to pensioners,it cannot ordinarily grant the benefit to a section of the pensioners and deny the same to others by drawing an artificial cut-off line which cannot be justified on rational grounds and is wholly unconnected with the object intended to be achieved. But when an employer introduced an entirely new scheme which has no connection with the existing scheme, different considerations enter the decision making process.
One such consideration may be the financial implications of the scheme and the extent of capacity of the employer to bear the burden. Keeping in view its capacity to absorb the financial burden that the scheme would throw, the employer would have to decide upon the extent of applicability of the scheme. That is why inNakara case this Court drew a distinction between continuance of an existing scheme in its liberalized form and introduction of a wholly new scheme; in the case of the former all the pensioners had a right to pension on uniform basis and any division which classified them into two groups by introducing a cut off date would ordinarily violate the principle of equality in treatment unless there is a strong rational discernible for so doing and the same can be supported on the ground that it will subserve the object sought to be achieved. But in the case of a new scheme, in respect whereof the retired employees have no vested right, the employer can restrict the same to certain class of retirees, having regard to the fact-situation in which it came to be introduced, the extent of additional financial burden that it will throw, the capacity of the employer to bear the same, the feasibility of extending the scheme to all retirees regardless of the dates of their retirement, the availability of records of every retiree, etc.It must be realized that in the case of an employee governed by the CPF scheme his relations with the employer come to an end on his retirement and receipt of the CPF amount but in the case of an employee governed under the pension scheme his relations with the employer merely undergo a change but do not snap altogether.
This is the reason why this Court in Nakara case drew a distinction between liberalization of an existing benefit and introduction of a totally new scheme. In the case of pensioners it is necessary to revise the pension periodically as the continuous fall in the rupees value and the rise in prices of essential commodities necessitates an adjustment of the pension amount but that is not the case of employees governed under the CPF scheme,since they had received a lump sum payment which they were at liberty to invest in a manner that would yield optimum return which would take care of the inflationary trends. This distinction between those belonging to the pension scheme and those belonging to the CPF scheme has been rightly emphasized by this Court in Krishena case”.
Perusal of aforesaid Paras reveals that there exists difference between introduction of new Scheme then the existing Scheme. In the light of the aforesaid, if the facts of this case are looked into, then it becomes clear that amongst the pensioners there exists discriminationmore specifically when the pension has been made admissible to the employees who retired on or after 1.1.1986. In view of aforesaid, there can be no different basis for dearness allowance or other benefits to those retired on or before 31.7.1997. The existing pensioners are entitled for the benefit of dearness allowance with the same measure as is admissible to the pensioners on or after 31.7.1997. The discrimination amongst the pensioners on that count is not permissible and if there exists rule, making discrimination amongst the existing pensioners, it is held to be violative of Articles 14 & 16 of the Constitution of India.
The respondent Corporation has already taken up the aforesaid issue in its Board meeting and a resolution was also passed on 24.11.2001 after taking note of the fact that three different rates for different groups of pensioners exist depending upon their dates of retirement. It is not only causing administrative inconvenience but creating anomaly amongst the pensioners also. Accordingly, decision was taken but was made subject to final approval by the Central Government.
In fact, implementation of the Board’s resolution would take away discriminatorytreatment amongst the pensioners apart from keeping the LIC away from the administrative inconvenience.Thus, in the light of the aforesaid discussion, there cannot be a cut off date for existing pensioners for providing benefits but further fact is thatto cure the aforesaid mistake, the Board’s resolution should have been given effect to, which will otherwise redress the entire grievance of the petitioners. In the facts and circumstances of the case, I am of the view that resolution passed by the Board of LIC does not need approval of the Central Government thus the Corporation may give effect to its resolution dated 24.11.2001 to avoid discrimination amongst existing pensioners.
In the light of the discussion made above, both the writ petitions are allowed.The respondent Corporation is directed to take a decision for implementation of the resolution dated 24.11.2001 passed by the Board. The respondent Corporation cannot provide different criteria for grant of dearness allowance to the existing pensioners based on cut off date i.e. 31.7.1997.The benefit arising out of the directions above would, however, be considered by the respondent Corporation so that every retired employee may get the same benefit. Costs made easy. ”
(M.N. BHANDARI) J.
IX)a)While dismissing the appeal of LIC on 21/1/2011, the HC Division Bench of Jaipur observed as follows: The Board of LIC, who is the appellant before us against the judgment of the learned Single Judge, had itself taken a decision to remove the disparities and the discrimination with regard to the payment of Dearness Allowance and Pension to the retired employees under its resolution of the Board dt. 24.11.2001.It could not and should not have filed the present appeal against the judgment of the learned Single Judge as the learned Single Judge has provided an umbrella to the appellant for the implementation of the decision of the Board dt. 24.11.2001on the categorical statement made by the learned counsel appearing on behalf of the Union of India and not assailed in appeal by the Union of India.”
b)In fact,as at the time of LIC Board Resolution, subsequent Wage Charter has not taken place,Hon SJ judiciously utilised LIC Board Resolution as a plank & foundation for further pension revisions as & when wage revision takes place to avoid discrimination & terrific anamolies continuously arising & being perpetrated without solution.
c)Then again LIC went in for Writ Review 86 & 87/2011 which was also dismissed on 19/8/2011 by DB JAIPUR HC
d)How beautifully SC ordered in 5/2014 Verdict dismissing CURATIVE PETITION OF CG with disdain sticking to the date when anamolies had started 1/1/2006 & not 1/9/2012 as conveyed by CG & hopefully justifiable & reasonable that DR FULL should be from 1/8/1997 & not prospective belittling full benefits , only to rectify a wrong inflicted on pensioners, &
e)look here with CG 6th Pay Commission anamolies 1st CAT, then ARMED FORCES TRIBUNAL,then DELHI HC, then again CG SLP, dismissed rightly mercilessly, still CG as is its wont with subverting law & justice to citizens, REVIEW PETITION, rejected, still wanting to pursue with a CURATIVE PETITION ,also finally dismissed by 5 -JUDGE SC BENCH headed by former CJ Sri R.M .LODHA .Heavens will shower petals & blessings on CJ for allowing benefit to lacs of CG pensioners & soldiers.
X)a)There appears to be an unnecessary apprehension & doubt whether the FINAL VERDICT will cover only Petitioners & not embrace ALL Pensioners. SC always upholds concept of universal application , whenever the grievance or anamoly is extensive & adversely affects the Whole Group in similar situation.The APEX Court has extended application of the judgement to ALL SIMILARLY PLACED Pensioners.That was explicitly made clear in Gratuity case of 2008 & Delhi HC Judgement applying Jaipur judgement ‘ in rem ’ .
b)SC Judgement under Case No Appeal( Civil)No1289/2007 (Para 25) which read “the revision of scales of pay as also other allowances is technical in nature. When a benefit is extended to group of employees the effect of such benefit ,if otherwise comes within the purview thereof, must be held to be applicable to other groups of employees ” & the Jaipur HC judgement was in tune with this Apex Court verdict
XI)When it is written in National Litigation Policy, which is now 4 years old, “that litigation will not be resorted to for the sake of litigating,. that false pleas and technical points will not be taken and shall be discouraged, that Government must cease to be a compulsive litigant, that the philosophy that matters should be left to the Courts for ultimate decision has to be discarded, that the easy approach, “Let the court decide,” must be eschewed and condemned ”,
The following observations of Hon’ble SC in a path-breaking judgement is quite apt :
“Rajeshwar Singh Vs. Subrata Roy Sahara & Ors.
[Contempt Petition (Civil) No.224 of 2011]
[Civil Appeal No.10660 of 2010]
K.S. Radhakrishnan, J.
Courts, if they are to serve the cause of justice, must have the power to secure obedience to its orders to prevent interference with the proceedings and to protect the reputation of the legal system, its components and its personnel,who on its behest carry on a court monitored investigation. The court is duty bound to protect the dignity and authority of this Court, at any cost, or else, the entire administration of justice will crumble and law and order would be a casualty.
……………………….J. (G.S. Singhvi)
……………………….J. (K.S. Radhakrishnan)
New Delhi,
December 9, 2013.”
XIII) The Human Rights enshrined for all citizens & with special emphasis for Elders & Sr Citizens have to be protected & strengthened by the SC, not weakened.Supreme Court is not a mere noun, it is an adjective too.Therein lies its Supreme importance & impartiality to protect the weak against arbitrary policies of Govt & institutions.
The Human Rights enshrined for all citizens & with special emphasis for Elders & Sr Citizens have to be protected & strengthened by the SC, not weakened.Supreme Court is not a mere noun, it is an adjective too.Therein lies its Supreme importance & impartiality to protect the weak against arbitrary policies of Govt & institutions.
XIV) What we are pleading to Hon SC Bench is to effectuate meaningful implementation of the judgements & also, in that direction, to issue orders to UOI & LIC to operationalise & implement both Full 100% DR to Pre-8/97 Pensioners & pension revision with successive wage revisions for all groups of pensioners to enable all to come under one homogeneous group of pensioners, without pre &post labels & to establish equity & equality .
XV) EVEN with all these facts, figures , reason & logic, public tribute & standing, unqualified praise from FM & PM, it is disturbing that Pensioners should be treated so bad , UNWEPT, UNHONOURED & UNSUNG & so the propitious & striking Moment of Truth has arrived .There is tremendous responsibility on the part of Sr Counsel to play his befitting ROLE at his best,marshall all his honed talents & skills & above all,make bold & assertive submissions with the flair for repartees & solid case laws,plethora of arresting DATA & any number of case laws on Constitutional matters like Fundamental Rights enshrined,removing treatment which is not only arbitray but also discriminatory.
XVI) Further,after pension upgradation is granted after wage revision,
i)subsequent fitments to the next group,after wage revision, will consume a moderate outlay only.
ii)Deaths of employees during service & so Family Pension only
iii)Deaths of pensioners, increasing by leaps & bounds
iv)pensioners not alive to secure Commuted Pension 15 yrs after retirement,a savings for LIC,
v)See the rising numbers of Family Pensioners, 17 % to 36% to RP & in some Zones ,even 38/40%
vi)so parity also tapers off,
vii)NPS wef 1/5/2010 hence all new recruits of the last 5 yrs and further recruitments in future WILL NOT COME UNDER THE PURVIEW OF PENSION UP-GRADATIONmakes this upgradation pensioners cadre slowly a closed one.
viii)Hence after 2-3 decades, there will be huge balance in the Pension Fund, but the number of pensioners availing pension from this fund will be diminishing sharply and finally will become zero.
ix)Consequently, the remaining balance of this fund will be finally transferred to LIC’s capital.”
XVII)TWIN BENEFITS is the CREDO & MISSION of KMLA & AIRIEF.14500 is app pre-8/1997 retirees & 26000 will be the app Post-8/1997 retirees eligible upto 31/7/2007 &
a growing number ,about to face Monstrous Anamolies & GAPING GAPS in Pension amount ,every quinquennium . More so, very soon after Wage Charter 1/8/2012-31/7/2017 comes into fruition, Pensioners retired 1/8/2007–31/7/2012 will notice some chips down for them with anamolies amongst grades & willing to join the bandwagon of Pension ‘ in continuum.’
XVIII)Depending on final outcome , in the case of Family Pensioners,Widow will get benefit of Regular Pension Revision from THAT DATE stipulated & secured by us in SC submissions ,till DATE of DEATH in FULL & thereafter REVISED Family Pension on Upgraded Regular Pension.This doubt is also, therefore, removed, as many had expressed concern.This happened in Gratuity case also,(1/8/92—31/7/94) where though pensioner has died,widow alive got difference in Gratuity with interest announced by the Court.
It is gratifying & we have to remind the SC Bench that 17/10/2012 SC Bench clarificatory Order grants pension revision wef the date of retirement of pensioners ,as SC observed ‘pay retiral benefits from the date of eligibility ‘ & for Retirees what other date is there other than date of Retirement.This should enable pensioners to secure benefits from their date of retirement.Sr Counsel must address to secure this benefit for pensioners,which will be a boon to all.
XIX)When all promises are kept, when LIC has donned such a powerful & instrumental role in nation’s economy,helped Govt to stabilise stock markets, lent tremendous assistance by way of Social Security for Aam Admi, inclusive growth & above all such a sterling contribution to Govt 5Yr Plans, Peoples Money for Peoples Welfare, in almost all sectors of people & society & nation development, lo, Total policy payments Rs 1,46,026 cr in 2014-15, which outwits Premium Income of ALL private insurance companies put together ,& when
XX) Pensioners for long yrs 35 & more have done yeoman service & built Foundation, erected fine Superstructure, ably galvanized with Reorganisation in the 80s ,made the INSTITUTION bear INTENSE COMPETITION with CONFIDENCE & COURAGE, such a Paltry pension, continuing loss in pension because of anamolies & pre-8/97 pensioners monstrous loss in DR too significant, must be resolved with a principled stand of pension upgradation to remove discrimination & such serious anamolies 7/8 cadres below cadres getting more than superiors.
XXI)It is paradoxical & even anachronism to say, on the one hand ,Govt from rooftops praise Elders & Sr Citizens for their signal service & contribution to institutions & society, lays down many norms with All India Sr Citizens Confederation , but when the question of satisfying & redressing the problems of Pensioners ,which are genuine, modest & legitimate,ignore them with a cavalier attitude & above all, driving them to legal recourse & remediesconsuming enormous time, labour, energy & finances,without even an iota of empathy for them & the 1000s who have died in the interrugnum.
XXII) Hon Courts must come to the rescue of pensioners who after being driven pillar to post ,with untold expenditure, unwarranted treatment. agony, anxiety & frustration writ large on their faces resort to litigation not by choice, but by compulsion as all other avenue approaches failed, here too delays, unwanted adjournments for long solicited by instns have adverse impact on delivery of justice . SC Bench must honour the dignity & prestige of Elders with a Specific Order in an unqualified manner with no qualifying clause to enable pensioners to experience justice,equity & timeliness. SC Bench must fix deadline of 8/10 weeks to settle in full, must place an order for An ACTION TAKEN REPORT every 4 weeks to complete fulfillment of entire SC Bench order in toto.
XXIII)The more I think of 23 Sep 2015, I strongly feel as a devout, as a God-loving, not God-fearing person & family , THERE IS NO WAY by which to FAIL, EVERYTHING POINTS OUT to ONLY END RESULT to SUCCEED & umpteen times, we reinvigorate that SC Verdict should be all- embracing for ALL pensioners so aggrieved in similar position & SPECIFIC with Effective date for Full DR, Effective date for Pension Revision with every wage revision & DEADLINE for calculation & DISBURSEMENT of Arrears . We know with how much impunity Govt functions & even delays & delays till Strictures are passed again by SC . As in many final Verdicts, imposing the condition of submitting Monthly report to SC Registrar is a dire need for poor pensioners , so that LIC, UOI are under the SC lens always & so,eminent Hon SC Bench must be feverishly persuaded poignantly, to ensure this binding clause for a satisfactory response ,more so we are Elders & Sr Citizens & cannot afford to indulge in pursuing a won-case again for fulfillment of stipulated conditions.
XXIV) Let us pray the final verdict becomes unique in Pensioners History ,
Let it alleviate our sufferings, let it recompense us adequately,
Let it heal our wounds , remove the fetters, & repair the damage,
Let this enable us all pensioners lead a good life, pursue the path of healthy living.
Let us all salute the Verdict with folded hands , lead a life of dignity,worthy of we
Founders & do our duty to Society & Nation.
XXV)It has been a labour of love , of tremendous hard work,jotting for days & weeks,without rest, as we will otherwise rust,brave attempt at methodical enumeration & clearance for doubts ,with a holistic touch,as any & every matter affecting our UNDAUNTED legal battle for so many years, can pop up. It has taken a heavy toll of dear friends & comrades, as we attended here Sri Ramjis mourning ,where before a good gathering ,I read out my Tribute. Juxtapositioning old manual records & charts with PC archives is not easy.The self-imposed assignment has also to be done on time for activists,other pensioners to go through ,digest & atleast have some solace & comfort.Rest ,we leave it to the laps of God
XXVI)I am deeply aware that on 23 Sep,2015,condonation of delay,SC interim Order & compliance may come up,ok. UOI SLP Counter Affidavit also, I had already long before provided some serious ammunition. Real battle to annex Twin benefits, I concentrated with true bhakthi & devotion in these 3 Releases. Spare some time to go through,anybodys sincere & serious finished work cannot go in vain. Moreso when it is done with modesty,humility & accuracy. We shall be alert for any other developments, catch the bull by its horn & be ready to address the emerging situation & scenario with justifiable pride.
Greetings, Goodluck & Godspeed,
R.B.KISHORE,VP,AIRIEF
A I R I E F Website 