CENTRAL ORGANISATION OF TAMIL NADU ELECTRICITY EMPLOYEES versus TAMIL NADU ELECTRICITY BOARD

Citation: [2005] SUPP. 4 S.C.R. 407 · Decided: 21-10-2005 · Supreme Court of India · Bench: B.N. SRIKRISHNA · Disposal: Appeal(s) allowed

Judgment (excerpt)

CENTRAL ORGANISATION OF TAMIL NADU ELECTRICITY 
A . 
EMPLOYEES 
v: 
TAMIL NADU ELECTRICITY BOARD 
OCTOBER 21, 2005 
B 
[B.N. SRIKRISHNA AND C.K. THAKKER, JJ.] 
Labour Laws: 
Industrial Disputes Act, 1947: Sections 9A and 18-Settlement between C 
employer-Electricity Board and its employees that revised pension scheme of 
State Government and any amendments thereon applicable to the pensioners 
of the Board-Effect of-Held: Settlement merely operates to exempt employer 
from giving notice under s. 9A-Board not barred from changing even those 
conditions of service that were not subject matter of Regulations, fresh D 
settlement or award-Conditions of service settled by a binding settlement/ 
award cannot be changed-Tamil Nadu Electricity Board Liberalised Pension 
Regulations, 1960. 
TN. Electricity Board Liberalised Pension Regulations, 1960: 
E 
Regulations 9 and 3-Amendment made to Regulation 9-'Expression' 
Civil Service Regulations in Regulation 9 replaced by Tamil Nadu Pension 
Rules and Tamil Nadu Pension Rules, 1978-Permissibility of-Held: Decision 
taken by Board to amend its own pension Rules and bring it in line with State 
Government Rules, those applicable to Government servants was per se 
unexceptionable-However, it could not have been done by mere amendment F 
in Regulation 9 but by amending the Regulations in accordance with law-
Electricity (Supply) Act, 1948. 
Regulation 7-Commutation of pension-Commutation percentage 
increased to 40% by Board Proceedings, without amending the Regulations- G 
Thereafter, another Board Proceeding reducing it to 33 113 'Yo-Permissibility 
of-Held: Grant of benefit by mere Board Proceeding could be validly altered 
by another Board Proceeding-Change in maximum permissible commutation 
of pension from 40% to 33113% brought level of commutation to what was 
originally given by 1960 Regulations-Thus, not liable to be interfered with-
407 
II 
408 
SUPREME COURT REPORTS [2005] SUPP. 4 S.C.R. 
A Electricity (Supply) Act, 1948. 
Regulation 3-Aspect with regard to qualifYing period of service for 
pension and quantification of pension covered by 1960 Regulations-Board 
Proceedings enhanced qualifving service for pension from thirty years to thirty 
three years and made pension relatable to average emoluments draw_n during 
B last ten month service instead of last drawn pay-Legality of-Held: Board 
Proceedings could not have brought adverse changes in quantification of 
pensions and the qualifYing period of service for pension without amendment 
to 1960 Regulations-Hence, bad in law and illegal-Electricity (Supply) Act, 
1948 
c 
Judicial Process: If case can be decided on narrower grounding-statutory 
construction, constitutional grounds should be avoided-Practice and 
Procedure. 
The question which arose for consideration in these appeals was 
D whether an establishment can modify pensions (and connected benefits) 
payable to employees without first changing the Regulations that govern 
those pensions. 
State Government constituted the Tamil Nadu Electricity Board in 
1957. Thereafter, the Board brought into force "Tamil Nadu Electricity 
E Board Liberalised Pension Regulations, 1960 which dealt with the 
condition of service specifically pension and death-cum-retirement 
gratuity. At that time the Board had in its employment the erstwhile Tamil 
Nadu Government servants as well as employees directly recruited by it. 
They were governed by the Civil Service Regulations inter a/ia with regard 
to their pensionary benefits. Under Regulation 3 of the 1960 Regulations, 
F the qualifying service for earning pension was thirty years. A Saving 
Clause was incorporated in Regulation 9 that no provision in the Civil 
Service Regulations to the extent of its inconsistency with any of the 
provisions of the 1960 Regulations would have any effect and that the 
provisions made in the Regulations would be in addition to and not in 
G derogation of the provisions in the Civil Service Regulations as amended 
from time to time. 
The Board had its own Pension and Provident Fund Schemes. It 
passed a resolution that all the Regular Work Establishment Workmen 
retiring/expiring on or after l. 7.86 would be governed by the pension 
H scheme of the Board. State Government replaced the then existent Civil 
CENTRAL ORGANISATION OFT AMIL NADU ELEC EMP. , .. TAMIL NADU ELECT. BOARD 
409 
Service Regulations with the Tamil Nadu Pension Rules and Tamil Nadu A 
Pensio;i Rules, 1978. In 1995, the Board p

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