Full Text
HIGH COURT OF DELHI
Date of Decision: 16th May, 2023
MUKESH RAJORA ..... Petitioner
Through: Mr. Neeraj Dahiya, Advocate
Through: Mr. Sudhir Nandrajog, Senior Advocate with Mr. Sujit Kumar Singh, Advocates for R-2.
BHOOP SINGH RANA ..... Petitioner
Through: Mr. Neeraj Dahiya, Advocate
Through: Mr. Sudhir Nandrajog, Senior Advocate with Mr. Sujit Kumar Singh, Advocates for R-2.
JUDGMENT
1. Both the writ petitions are being disposed of by this judgment since they involve a similitude of facts and raise an identical question of law. Petitioners have sought the following reliefs:- “i. A writ/order/direction in the nature of mandamus directing the Respondent/s for releasing all terminal dues & retirement benefits (Pending Pension from 01/04/2020) of the Petitioner. ii. Pass an order thereby awarding cost, litigation and expenses in favour of the Petitioner.”
2. Facts to the extent relevant for adjudicating the present writ petitions are that Petitioners were employees of Delhi Vidyut Board (‘DVB’) and opted for voluntary retirement under Rule 48A of Civil Services (Pension) Rules, 1972 (hereinafter referred to as ‘Pension Rules’) which were applicable to DVB employees. Petitioner in W.P.(C) 5368/2021 was relieved on voluntary retirement w.e.f. 01.07.2008 while Petitioner in W.P.(C) 5459/2021 was relieved on 03.10.2005.
3. After unbundling of DVB, Petitioners were transferred to Tata Power Delhi Distribution Ltd./Respondent No.2. Petitioners started receiving their pension from the DISCOM, however, subsequently they received letters dated 23.01.2020 from Respondent No.2 intimating that a Division Bench of this Court in Tata Power Delhi Distribution Power Limited v. Smt. Rosy Jain and Ors., 2016 SCC OnLine Del 1650, has held that the liability to pay terminal and pensionary benefits to retirees under Rule 48A of Pension Rules from DISCOMS would rest on Delhi Vidyut Board Employees Terminal Benefit Fund, 2002/Respondent No.1 (hereinafter referred to as ‘Pension Trust’). On account of this, pensions of the Petitioners were stopped by the DISCOM from 01.04.2020.
4. This constrained the Petitioners to approach the Pension Trust for release of pension in terms of the judgment of this Court in Rosy Jain (supra). No relief was granted to the Petitioners and they sent further representations for release of the retiral benefits but to no avail and finally approached this Court.
5. Challenging the action of Pension Trust in not releasing the terminal and pensionary benefits, counsel for the Petitioners submits that the case of the Petitioners is squarely covered by the judgment of the Division Bench in Rosy Jain (supra) as well as subsequent judgments passed by this Court relying on the judgment of the Division Bench, wherein it is held that liability to release the pensionary benefits of employees seeking voluntary retirement under Rule 48A of Pension Rules would rest on the Pension Trust after their transfer from DVB on unbundling to the various DISCOMS.
6. Respondents are unable to dispute that the reliefs claimed by the Petitioners are covered on all four corners by the judgment in Rosy Jain (supra) as well as the subsequent judgments of this Court in Mrs. Asha Joshi v. GNCTD of Delhi and Ors., W.P.(C) 17416/2022 decided on 31.01.2023 and S.K. Goel v. M/s Tata Power Delhi Distribution Limited & Ors., W.P.(C) 656/2016 decided on 11.04.2023. Respondent No.2 has categorically stated in the counter affidavit that after the judgment was pronounced in Rosy Jain (supra), Respondent No.2 had written to the Pension Trust to release the pension of the Petitioners with arrears vide letter dated 23.01.2020 and pension papers were also forwarded. Pension Trust, on the other hand, takes a position that the liability rests with the DISCOMS and the Trust is not liable to pay the retiral benefits. In view of the judgment of the Division Bench, in my view, it is no longer open to the Pension Trust to take a conflicting position. In Rosy Jain (supra), the Division Bench while referring to the observations of this Court in North Delhi Power Ltd. v. Govt. of NCT of Delhi, 2007 SCC OnLine Del 919, (‘SVRS Judgment’) held that the Pension Trust cannot deny its liability towards employees retiring on voluntary retirement under Rule 48-A of the Pension Rules. Significantly, no appeal was filed by the Pension Trust against the SVRS Judgment, which has thus attained finality. The Division Bench has, after an in-depth analysis of and deliberation on the issue, also observed that the Circular dated 03.11.2009 issued by the GNCTD, shows that the Delhi Government was completely alive to the fact that those opting for voluntary retirement were to be equated with those superannuating in the normal course and the Pension Trust was to entertain the claims for fixation of pension. It was thus directed that the Pension Trust shall process or disburse the payments, if not already made and in case the payments have been made by the Appellants/the DISCOMS, the latter shall be able to claim and recover the amounts paid. Relevant passages from the judgment in Rosy Jain (supra) are as follows:-
18. The Court had, in the SVRS judgment, in para 93 issued elaborate directions for the constitution of a Tribunal and disbursement of amounts since the issue was pending for considerable period of time. These directions were sought to be modified/clarified by separate applications which were disposed of on 20.04.2011. That order was challenged in LPA 677/2011, 680/2011, 738/2011 and 739/2011. The Division Bench, in its common judgment (GNCT v. NDPL, LPA 677/2011, decided on 31.08.2015) rejected those appeals and held as follows:
19. Thus, the question as to whether voluntary retirement under Rule 48A was a normal condition of service amounting to superannuation and as to the location of liability for making payouts stood settled. In NDPL (supra), the Supreme Court had to decide two appeals. An appeal, which arose from the judgment and order, dated 30.03.2006 of a Division Bench of this Court in K.R. Jain (supra). The facts in K.R. Jain (supra), which led to the discussion and conclusions of the Supreme Court, are noticed as follows: “23. The Letters Patent Appeal filed by the appellant before the High Court was dismissed. It so happened, that respondent NO. 3 herein Shri K.R. Jain, who was an erstwhile employee of the Delhi Electric Supply Undertaking (DESU), superannuated from service on 31.07.1996. Eventually, Delhi Vidyut Board (DVB) became successor of Delhi Electricity Supply Undertaking (DESU). NDPL was incorporated on 04.07.2001 and inherited the distribution undertaking on 01.07.2002 along with the assets, liabilities, personnel and proceedings in pursuance of statutory transfer scheme notified by the Government pursuant to Sections 14-16 and 60 of the Delhi Electricity Reforms Act,
2000.
24. It was much before that, that respondent No. 3 was superannuated. His pension was paid from the Terminal Benefit Fund, 2002 of DVB. The DVB had floated Time Bound Terminal Scale Scheme by its Office Order dated 23.07.1997 and Resolution No. 216 dated 16.07.1997. Claiming that though he had superannuated on 31.07.96, still he was covered by the scheme, respondent No. 3 filed a Writ Petition No. 2337 of 2004 seeking appropriate direction against Delhi Government, Delhi Power Co. Ltd. and Delhi Power Supply Company and claimed benefits arising out of the Scheme. Significantly enough, NDPL was not made a party nor was there any claim against it.
25. This Writ Petition was allowed by the Learned Single Judge, holding that respondent No. 3 was entitled to avail the benefits under Time Bound Promotional Scale Scheme (TBPS) and that DVB had unjustly denied him his dues. Holding the present appellant as a successor, Mandamus was issued against the appellant who was not a party and was not given an opportunity of hearing. This was based on the statement of an advocate appearing for respondent Nos. 1 and 2 herein to the effect that it was the appellant-petitioner who was the successor and was as such responsible to implement the judgment dated 23.03.2004.” xxx xxx xxx xxx
21. It is thus clear that the question that arose for decision and was considered by the Supreme Court was not in relation to pension liability; it was whether the DISCOM was liable to make payouts towards service conditions, which had been denied, to the employee, by the DVB when it was in existence. In NDPL itself, the issue was denial of pay benefits on an interpretation of circulars issued in 1997, when DVB was in existence. The employee had retired. The question of bearing liability by any entity other than the DISCOM did not arise.
22. In the present case, what is apparent is that all the employeerespondents sought and were readily granted voluntary retirement. The Pension Trust had earlier denied its liability on account of voluntary retirement provisions under Rule 48-A; that issue was decided against it in the SVRS judgment. The Pension Trust never appealed that decision; rather the appeals preferred by it and the GNCTD related to the correctness of a later clarification- which had no connection with, or was unrelated to the issue of its liability to make payouts in respect of retirements under Rule 48A. Those appeals were disposed of; the Pension Trust succeeded only in respect of its contention vis-à-vis inapplicability of Rule 48-B. The tenor of that provision itself indicates that it applies when Rule 48A applies,[4] thus showing that pension liability upon voluntary retirement was payable by the Pension Trust. The SVRS judgment clearly discussed this issue as is evident from the following extracts: “53. Before proceeding to consider the rival submissions, it would be necessary to extract the relevant provisions of the Trust Deed and the pension rules. As noticed earlier, the Trust Deed was executed on 26.03.02. Part (b) of the preamble indicates that the Government of NCT decided to establish a superannuation fund for the benefit of those entitled to pension in accordance with the pension scheme of DVB, as detailed in the rules of the fund (annexed to the Trust Deed which are referred to hereafter as the ‘Trust Rules’). Clause(3) of the Deed enjoins the Trustees to pay pension and other terminal benefits in accordance with the Trust Rules. The Trust Rules, inter alia, define actual service by referring to Rule 30 of the CCS (Pension) Rules; the duration of pension payable, by Clause 2(x) is provided by Rule 54(6) of the CCS (Pension) Rules; ‘eligible members’ under Clause 2(xi) is defined as those covered by the CCS (Pension) Rules. The term ‘qualifying service’ has been defined as what is contained in Rule 3(q) of the CCS (Pension) Rules. The expression ‘retirement’ and ‘normal retirement date’ have been defined as follows: (xxvi) ‘RETIREMENT’ as defined under Rule 35 Central Civil Services (Pension) Rules, 1972, as amended from time to time. (xxvii) ‘NORMAL RETIREMENT DATE’ shall mean the date of retirement as defined in Fundamental Rules, 1956.
54. Rule 4 deals with contributions to the fund by the corporation and the members. It refers to the fund being a superannuation fund. Rule 4(b)(c) empowers the Trustees with the authority to fix additional contribution amounts to be paid by the ‘new entity’ i.e. DISCOM S and other successors, from time to time in consultation with the Government. Part V of the Trust Rules outlines the benefits. Rule 6.[1] provides that a member, on superannuation would be entitled to pension and other terminal benefits as available to the existing employees on the retirement commencing from the month following superannuation, as per the Fundamental Rules. Rule 6.[2] states that to qualify for benefit on superannuation, employees should have completed a minimum reckonable service as defined by Rule 14 of the CCS (Pension) Rules. The relevant parts of Rule 6 are extracted below:
6.1. A member on superannuation will be entitled to pension and other terminal benefits as available to the existing employees on the retirement commencing from the month following superannuation as per Fundamental Rules, 1956 as amended from time to time. A member would be entitled to pension life time.
6.2. TO QUALIFY FOR BENEFIT ON SUPERANNUATION: Employees must have completed a minimum reckonable service as per Rule 14 of the Central Civil Services (Pension) Rules, 1972 and any other applicable Rule as amended from time to time. xxxxx xxxx xxx 6.6. MINIMUM PENSION: In no case pension shall be less than the amount of pension payable as per Rule 40(3) of Central civil Services (Pension) Rules, 1972 and any other applicable Rule as amended from time to time.
6.7. On separation from service of a member by his resignation before completion of the qualifying service as specified in Rule 14 of Central Civil Services (Pension) Rules, 1972, shall be dealt with as per Rule 26 of Central Civil Services (Pension) Rules, 1972 and any other applicable Rule as amended from time to time.
6.8. On separation of a member who is dismissed/removed from the services of the Corporation and/or has otherwise lost his lien on his employment with the Corporation, the member shall be dealt with as per Rule 24 of Central Civil Services (Pension) Rules, 1972 and any other applicable Rule as amended from time to time.
55. From the above, it is apparent that the concepts such as the retirement, terminal benefits, qualifying service and superannuation have been borrowed from the CCS (Pension) Rules. Indeed the Trust's rules have incorporated those provisions. The relevant provisions of CCS (Pension) Rules are extracted below:
26. The appellant DISCOMS also rely on the GNCTD's order/letter/circular dated 03.11.2009. The said letter reads as follows: “GOVERNMENT OF NCT OF DELHI (DEPARTMENT OF POWER) DELHI SECRETARIAT, 8th LEVEL, B-WING NEW DELHI-110 002 No. F.11(01)/2009/Power/2909 Dated: the 03.11.2009 To, The Secretary Pension Trust, Rajghat Power House, Delhi-110002 Fax No. 23245619 Sub: Applicability of voluntary retirement under Rule 48(A), CCS Pension Rules, 1972 Sir, I am directed to advise you to entertain all cases of Rule 48(A), CCS Pension Rules, 1972 w.e.f. 01.07.2002 treating them at par with regular retirement by paying the terminal benefits and pension as per CCS (Pension) Rules and consequently raise demand on the successor entitles for subsequent funding of the trust on this account for meeting the future liabilities accordingly. This issues with the approval of competent authority. Yours faithfully, Sd/- (S.M. Ali) Dy. Secretary (Power)”
27. The above circular also shows that the GNCTD was alive to the fact that those opting for voluntary retirement were to be equated with those superannuating in the normal course and the Pension Trust was to entertain the claim for fixation of pension.
28. For the foregoing reasons, this Court is of opinion that the impugned judgment in Rosy Jain (supra) and the judgments in all other writ petitions that were allowed by the learned Single Judges cannot be sustained; they are set aside. The Pension Trust shall process and disburse the payments - if not already made; if made by the Appellants, they would be able to claim and recover the amounts paid out by them to the Pension Trust. The latter shall reimburse the amounts within 8 weeks. The appeals are allowed in the above terms; there shall be no order on costs.”
7. In view of the aforesaid, this Court finds no reason to deny the reliefs sought by the Petitioners and accordingly, it is directed that Respondent No.1/Pension Trust shall release the pensions and other terminal benefits, if any, due to the Petitioners w.e.f. 01.04.2020, in consonance with the observations and directions of the Division Bench in Rosy Jain (supra), within a period of three months from today. Needless to state that if any formalities are required to be completed by the Petitioners, the same shall be communicated to them at the earliest and Petitioners shall cooperate in completing the modalities required towards release of their dues.
8. Writ petitions are allowed and disposed of.
JYOTI SINGH, J MAY 16, 2023