LexBANK OF INDIA AND OTHERS versus UNITED BANK OF INDIA RETIREES’ WELFARE ASSOCIATION AND OTHERS ETC.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
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SUPREME COURT REPORTS
[2018] 5 S.C.R.
UNITED BANK OF INDIA AND OTHERS
v.
UNITED BANK OF INDIA RETIREES’ WELFARE
ASSOCIATION AND OTHERS ETC.
(Civil Appeal Nos. 5252-5255 of 2018)
MAY 16, 2018
[ADARSH KUMAR GOEL AND UDAY UMESH LALIT, JJ.]
Service law: Pension – Dearness allowance – Claim of retirees
for full compensation against price rise on dearness relief –
Grievance of retirees was that appellant-bank made distinction in
terms of dearness relief on the basis of dates of retirement of
pensioners and that denial of benefit of full dearness relief to retirees
prior to 1.11.2002 was arbitrary – High Court held that there was
no justification for making distinction between pre November 2002
retirees and post November 2002 retirees and the appellant must
pay dearness relief to all pensioners at the same rate – Aggrieved,
Banks appealed – Held: Each class is governed by distinct and
different parameters – The conferral of advantages of benefits on
two different classes of retirees has a completely distinct formula
and rates and it is not possible to have a synthesis on any count or
to put both the sets of retirees on any common parameters – It is
thus hazardous to adopt a flat rate – Any attempt to tinker with
either the formula or the rate would make the whole scheme
unworkable – Both the categories of retirees, namely, pre November
2002 and post November, 2002 stand on different footing, the
parameters which govern the computation of dearness relief are
also on a different level – High Court failed to appreciate these
aspects – The impugned judgment was completely erroneous and is
set aside.
Allowing the appeals and dismissing writ petition, the Court
HELD: 1.1 Appendix II to the Pension Regulations had
categorized employees in three different segments and the
dearness relief payable on basic pension in respect of employees
in these three categories was on the basis of tapering formula
which differed in each of the categories. In respect of those who
were in the first category i.e. those who had retired earliest, the
[2018] 5 S.C.R. 436
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dearness relief was 0.67% on the first slab namely upto
Rs.1250/- of basic pension. The rate then tapered and finally
was 0.17% of basic pension in excess of Rs.2130/-. At the same
time in respect of retirees in the second category, the rate of
dearness relief was 0.35 per cent in respect of first slab namely
upto Rs.2400/-. Here also the dearness relief was on a tapering
formula and finally was 0.09% of basic pension in excess of
Rs.4100/-. The third category which was in respect of employees
who retired after 01.04.1998, the rate was 0.25% for the first
slab upto Rs.3380/-. Going by the tapering formula, the rate was
0.06 per cent of the basic pension in excess of Rs.5770/-. If
Clause 7(2) of the 9th Bipartite Settlement dated 27.04.2010 is
compared with the last category of the Appendix II of the Pension
Regulations, there is hardly any change in respect of retirees
during the period 01.04.1998 to 31.10.2002. Thus, whatever
benefit was conferred and was enjoyable by the employees who
retired before November 2002 was not taken away. [Para 21]
[464-G-H; 465-A-D]
1.2 If both categories dealt with by 9th Bipartite Settlement
dated 27.04.2010 are further compared, the retirees prior to
01.11.2002 would be entitled to dearness relief on a tapering
formula where the initial slab upto Rs.3550/- is to be governed
by quotient of 0.24%. The tapering formula then ends with 0.06%
of basic pension in excess of Rs.6010/-. The starting point is at a
level of 0.24% while the end point tapers to 0.06%. The maximum
advantage is sought to be given to those who are getting basic
pension at lower levels of slab who would get the dearness relief
at 0.24%. As against this, the retirees after 01.11.2002 are to be
given dearness relief at a flat rate of 0.18% of the basic pension.
Theoretically, the starting level for the retirees prior to 01.11.2002
is at a higher level of 0.24% as against the retirees after
01.11.2002. It could possibly be said that for those who are with
basic pension in the region of Rs.6000/-, on the basis of a tapering
formula may well, in the ultimate analysis, average to the same
level of 0.18%.[Para 22] [465-E-G]
2. The parity that was sought in the petition was not so
much regarding applicability of same rate of 0.18% but was in
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