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[Cites 6, Cited by 0]

Himachal Pradesh High Court

Shadi Lal Sharma vs Reserve Bank Of India And Others on 14 December, 2018

Author: Tarlok Singh Chauhan

Bench: Tarlok Singh Chauhan

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA.

.

                                             CWP No. 2618 of 2016 





                                                                        Reserved on: 27.11.2018
                                                                          Decided on: 14.12.2018





                 Shadi Lal Sharma                                                ...Petitioner
                                      Versus 
            Reserve Bank of India and others            ...Respondents.

___________________________________________________________________ Coram:

Hon'ble Mr. Justice Tarlok Singh Chauhan, Judge.
Whether approved for reporting? 1 Yes For the Petitioner:    In person.
For the Respondents:    Mr. Neeraj K. Sharma, Advocate. Justice Tarlok Singh Chauhan, J. 
This   writ   petition   has   been  filed   for   the   following substantive reliefs:   
(i) That   the   impugned   Circular   dated   07.06.2016, Annexure P­3 may kindly be quashed and set­aside, by issuing writ of certiorari.
(ii) That   sub   para   (2)   of   para   1   of   impugned   notification dated 28.08.2017 which fixes the date of operation of the amendment as 06.10.2017 may kindly be quashed and set­aside as petitioned in paragraph No.23 of this petition.
(iii) That the respondents may kindly be directed to re­fix the basic pension of the petitioner on the basis of 'last pay   drawn'   effective   from   01.02.2013   and   also   pay 1 Whether reporters of the local papers may be allowed to see the judgment? yes ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 2 commuted   value   of   pension   on   that   basis   (last   pay drawn).
.
(iv) That   the   respondent  Bank   may  kindly  be   directed  to refund   Rs.1,14,111/­   (Rupees   One   Lac   Fourteen Thousand   One   Hundred   Eleven)   recovered   from   the petitioner illegally without giving any notice."

2. The   petitioner   retired   as   an   Assistant   General Manager from the Reserve Bank of India, Chandigarh, Office on 31.01.2013 after putting in more than 32 years of service. At the time of retirement, the total emoluments of the petitioner as per the   Administrative   Circular   No.4,   dated   09.09.2010   for   the purpose   of   basic   pension   was   Rs.56,750/­   and,   therefore,   the basic pension was fixed at Rs.28,375/­ (before commutation of pension).   The   respondent­Bank   vide   Circular   No.7   dated 11.4.2016   revised   the   upward   pay   and   allowances   of   its employees   with   retrospective   effect   w.e.f.   01.11.2012.   The petitioner   vide   letter   dated   27.7.2016   was   asked   to   give   the details   of   the   pension   paid/payable   or   recoverable   and   also commuted value of pension paid and payable on the basis of the revised   pay   and   allowances.   At   the   same   time,   the   petitioner's last emoluments/last pay drawn was re­fixed at Rs.1,05,600/­, yet an amount of Rs.95,301/­was fixed as an average pay for the purpose of re­fixation of basic pension and payment of commuted value of pension. It is the case of the petitioner that he has been ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 3 denied the benefit of full pension as laid down under Regulation .

28 of the RBI Pension Regulations, 1990 (as amended in the year 2012)   and   had   instead   been   relied   entirely   on   average   pay method   of   calculation   of   pension   prescribed   under   the Regulation/ Rule No.28 read with Regulation No.2 of RBI Pension Regulations, 1990 and due to adoption of this method, the Bank has partially given the benefit of revision of pay and allowances i.e.   only   for   three   months   i.e.   November,   December,   2012   and January, 2013 in the revised basic pension of the petitioner and his   emoluments   for   the   purpose   of   pension   were   re­fixed   at Rs.95,301/­(average   pay)   instead   of   Rs.1,05,600/­   (last   pay drawn). Due to this average pay method of calculation of pension, the respondent­Bank has decreased the monthly gross pension of the petitioner from Rs.54,117/­ to Rs.52,068/­ as on 30.06.2016 and   has   shown   a   cumulative   recovery   of   Rs.1,14,111/­   as   an excess   amount   of   pension   paid   to   the   petitioner   between February,   2013   to   June,   2016.   This   amount   according   to   the petitioner already stands recovered from him, that too, without issuing any show cause notice.

3. It was further averred that the bank has not only re­ fixed the petitioner's monthly basic pension to his disadvantage, but   also   decreased   commuted   value   of   pension   payable   from Rs.9,59,183/­   to   Rs.7,56,351/­   by   application   of   average   pay ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 4 method of calculation of pension and thus denied the benefit of .

full   pension   to   the   petitioner.   However,   during   the   pending disposal   of   this   writ   petition,   the   respondent­Bank   issued   a notification   dated   28.08.2017   thereby   notified   amendment   to Regulation   28   relating   to   'last   pay   drawn'   to   the   RBI   Pension Regulations,   1990.   This   notification   in   fact   would   have completely redressed the grievances made by the petitioner, but then   the   operation   thereof   was   made   prospective   from 06.10.2017   and   did   not   apply   to   the   employees   of   the respondent­Bank,   who   retired   between   the   period   01.11.2012 and   05.10.2017,   constraining   the   petitioner   to   file   the   instant petition.

4. The respondents have contested the petition by filing reply wherein various preliminary objections with regard to there being no cause of action, any violation of fundamental right, no case   having   been   made   out   by   the   petitioner   for   exercise   of extraordinary   jurisdiction   under   Article   226,   there   being   a disputed   question   of   fact,   maintainability,   petition   being misconceived etc. have been raised. Thereafter, as many as four preliminary submissions have been made. However, these need not be noticed as the contents thereof in fact have been reiterated in the reply on merits. It is averred that the petitioner's pension was   calculated   after   taking   into   account   the   'average ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 5 emoluments'   drawn   by   him   from   the   month   of   April,   2012   to .

January, 2013 in terms of Regulation 2(2) and Regulation 28 of the Pension Regulations. The petitioner  drew pre­revised salary for 7 months i.e. from April 2012 to October, 2012 and revised salary only for 3 months i.e. from November, 2012 to January, 2013. The benefits   of the pay revision  as per  the instructions contained   in   Circular   dated   07.06.2016,   were   given   to   the petitioner     for   the   period   April,   2012   to   October,   2012   during which he drew  pre­revised salary from the bank. Accordingly, his basic pension  of Rs.28,375/­  per  month, which was calculated on pre­revised salary, was raised to Rs.47,651/­ per month after pay revision. The revised pension of the petitioner was fixed at Rs.47,651/­ and the 2/3rd pension after commutation was fixed at   Rs.31,768/­   with   effect   from   February,   2013.   Further,   the petitioner was paid Rs.52,068/­ (pension Rs.31,768 + dearness relief of Rs.20,300) in June, 2016. The pre­revised pension plus dearness   relief   for   the   month   of   June,   2016   was   Rs.54,117/­ (pension   Rs.18,917/­   +   dearness   relief   of   Rs.35,200/­).   The decrease   in   the   pension   is   on   account   of   the   increase   in commuted   value   of   pension   from   Rs.9,458/­   to   Rs.15,883/­ leading   to   increase   in   total   commutation   value   of   pension   by Rs.7,56,351/­.   Thus,   the   cumulative   recovery   of   pension   from February,   2013   to   June   2016   was   Rs.1,14,111/­.   It   is   denied ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 6 that the respondent had re­fixed the petitioner's pension as last .

emoluments/last salary drawn at Rs.1,05,600/­. It was further denied that the respondent had denied the benefit of full pension as  laid  down  under   Regulation  28  of  RBI   Pension   Regulations, 1990,   but   amendment   in   the   Regulations   was   brought   about w.e.f. 12.01.2013. The petitioner retired on 31.01.2013 and was sanctioned   proportionate   pension   for   32   years   as  per   the   then Regulation   28   of   Pension   Regulations.   Thereafter,   as   per amendment   in   Regulation   28   of   Pension   Regulations,   the petitioner  was given   the benefit  of full service  w.e.f.  February, 2013. It is further averred that the Central Government  accorded approval  to the Bank's proposal for amendment of Regulation 28 of the RBI Pension Regulations, 1990 vide letter dated 31.3.2017 according to which the rate of basic pension would be 50% of the average  emoluments  or the 'last pay drawn', whichever is more beneficial   to   the   employee   and   the   same   was   notified   in   the official gazette on 28.8.2017. Accordingly, the present method of calculation of pension of an employee is 10 months average or the 'last pay drawn', which is more beneficial to the employee.

However,   an   Administrative   Circular   dated   26.10.2017   was issued   by   the   respondents   wherein   in   para­2,   it   is   clearly circulated   that   amendment   would   be   applicable   only   to   the employees retiring from the Bank's service on or after October 6, ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 7 2017. However, the same will not have any effect  on the pension .

drawn by the employees prior to October 6, 2017.

5. The   petitioner   filed   rejoinder   wherein   it   has   been averred that the respondent­Bank should have given effect to the stipulation/prescription contained in para­5 of the RBI Pension Regulations,   1990   while   issuing   impugned   circular   dated 7.6.2016   as   the   Committee   of   CBODs   in   its   meeting   dated 5.10.2011   had   already   approved   adoption   of   'last   pay   drawn' method of computation of basic pension. Further, amendments to the existing Regulations of RBI Pension Regulations, 1990 are not governed  by clause (j) of sub section (2) of Section 58 of the RBI   Act,   1934   (for   short   'Act'),   but   had   to   be   dealt   with   in accordance with   the instructions contained in Regulation No.5.

It is further claimed that cut­off­date fixed vide notification dated 28.8.2017   by   the   respondent­Bank   is   arbitrary,   unfair,   illegal and discriminatory.

6. The respondents have filed Sur­rejoinder reiterating the averments made in the reply and in addition thereto, it has been   stated   that   cut­off­date   in   the   impugned   notification   was fixed in terms of para­7 of the proposal (memorandum submitted to CCB), wherein it is stated that with a view to restricting the financial   implication,   the   amendments   were   proposed   to   be implemented with a prospective date so that the arrears are not ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 8 required to be paid and only future liabilities are accounted for.

.

The bank vide letter dated 19.1.2017 requested the Government of India to approve the proposal to amend Regulation 28 of RBI Pension Regulations, 1990 and the Ministry of Finance vide its letter dated 31.3.2017 accorded its approval.  It has further been stated   that   while   amending   Regulations,   the   respondents   have followed the procedure as envisaged under Section 58 of the RBI Act and accordingly Regulation 28 was amended by the Central Board  of the respondent­Bank after obtaining  the prior approval from   the   Central   Government.   In   terms   of   sub   section­4   of Section   58   of   the   RBI   Act,   thereafter   the   Regulation   was published in the Gazette of India dated 6.10.2017 to be laid on the table of both the Houses of the Parliament in October, 2017.

7. I have heard the petitioner and learned counsel for the   respondents   and   have   gone   through   the   petition  alongwith the   accompanying   documents   annexed   with   it   and   also   the records of the case that was directed to be produced.

8. There   can   be   no   dispute   that   in   matters   regarding fixation of cut­off­dates, the scope of interference of the Court is extremely limited. Cut­off­date is fixed by the executive authority keeping  in view the economic  conditions,  financial   constraints and   many   other   administrative   and   other   attending circumstances.   This   is   within   the   domain   of   the   executive ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 9 authority and the Court should not normally interfere with the .

fixation of the cut­off­date by the executive authority unless such order   on   the   face   of   it   appears   to   be   blatantly   arbitrary   and discriminatory. The Government must be left with some leeway and free play at the joints in this connection. But that does not mean that the Court does not interfere even with the cut­off­date, is   arbitrary   or   the   reasons   for   fixing   the   cut­off­date,   are otherwise bad in any justifiable reasons.

9. Adverting to the facts, it would be noticed that it was the respondent­Bank, who of its own had sought the amendment in the Regulation and in this context, it would be necessary to reproduce   the  letter   dated  January  19,   2017  addressed  by   the respondent­Bank   to   the   Government   of   India   wherein   it   had sought its approval and the same reads thus:

"RESERVE BANK OF INDIA www.rbi.org.in CO HRMD No.13440/21.01.00/2016­17  January 19,2017 Shri Sewa Ram Mehar The Deputy Secretary to the Government of India Ministry of Finance Department of Financial Service Jeevan Deep Building Parliament Street New Delhi - 110001.
Dear Sir, RBI Pension  Regulations,  1990 - Amendment  to Regulation  28   ­ Rate of basic pension at fifty percent of the last pay.
::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 10
At present in terms of Regulation 28 of RBI Pension Regulations, 1990   the   rate   of   basic  pension  is   fifty   per  cent  of   the   average emoluments (i.e. average of pay drawn by an employee  during .
the last 10 months of his/her service) subject to a minimum of Rs.3,500/­ per mensem.  Due to this method, the employees who retire after drawing salary partly on pre­revised  scale and partly on   revised   scale   during   last   10   months   of   service   draw   basic pension   at  much  lower   rate   compared   to   employees  who   retire after drawing salary on revised   basic during last 10 months of service. The reduction in monthly pension depends on number of months   they   draw   salary   on   revised   pay   scales.   This   has generated a lot of distress among the affected employees, several of whom have requested for review.
2. The RBI Pension Regulations have been framed on the lines of CCS (Pension) Rules, 1972. In Government pension is calculated at   50%   of   the   emoluments   of   the   last   month   or   average emoluments   received   during   last   10   months,   whichever   is beneficial   to   the   employees.   Accordingly,   Bank   vide   letter   DO HRMD   No.2851/21.01/2011­12   dated   October   11,   2011   had forwarded   a   proposal   to   amend   Regulation   28   of   RBI   Pension Regulations, 1990 as per Annexure.
3.  As   this   will   benefit   only   a   few   employees,   the   financial implication   will   be   negligible.   However,   it   will   go   long   way   in removing   an   anomaly   which   exists   today.   In   view   of   this, Government is requested to kindly consider Bank's proposal to amend   Regulation   28   of   Pension   Regulations   as   above   and accord approval.
Yours faithfully Sd/­   (Ramesh Iyer) Assistant General Manager, Encl: As above."

10. Now, in the teeth of what is contained in para­3 of the letter (supra), it does not lie in the mouth of the respondents to   claim   that   since   there   was   financial   implications,   therefore, they   granted   the   benefit   of   this   amended   Regulation   from   the date   of   notification   i.e.   6.10.2017,   without   granting   benefit   to ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 11 those employees, who retired between the period i.e. 01.11.2012 .

and 5.10.2017.

11. In   addition   thereto,   it   would   be   noticed     that   in response to the aforesaid letter dated 19.1.2017 seeking approval of the Government for amendment of the RBI Regulations with respect to the rate of pension at 50% of the average emoluments of last 10 months or last pay drawn, the proposal sent by the RBI was   approved   as   such   without   any   modification   by   the Government as is evident from the letter dated 31.3.2017, which reads thus:

Most Immediate "F.No.11/1/2017­IR Government of India Ministry of Finance Department of Financial Services    Jeevan Deep Building         Parliament Street      New Delhi ­110001       Dated, the March 31, 2017.
To CGM(HR) Reserve Bank of India, Central Office Building, Shahid Bhagat Singh Marg, Mumbai.
Subject: RBI   Pension   Regulations,   1990   -   Amendment   to Regulation 28 - Rate of basic pension at fifty percent of the last pay.
Sir, I   am   directed   to   refer   to   RBI's   letter   CO   HRMD No.13440/21.01.00/2016­17,   dated   19th  Jan,   2017 and   20th  March,   2017   seeking   approval   of   the Government for amendment in RBI Pension Regulations w.r.t.   the   rate   of   basic   pension   at   50%   of   average emolument (of last 10 months)  or the last pay drawn whichever is more beneficial to the employee.
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2. The said proposal was examined in the Department in consultation   with   D/o   Expenditure   and   it   has   been .

decided to convey the approval on the same.

3. This has the approval of competent authority.

Yours faithfully, Sd/­ (Manish Kumar) Under Secretary to the Government of India."

12. In addition to the aforesaid, it may be noticed that there was no contemporaneous official record placed before this Court with regard to the actual financial implications in case the amendment in the Regulation 28 of the Pension Regulations was to be brought about from 3.10.2011. Even during the course of hearing,   the   respondents   had   to   candidly   admit   that   no   such data was in fact available with the Bank and therefore there was no question for placing the same before the Board etc.

13. Thus, what stand established on the record is that the   reasons   assigned   for   applying   the   Regulations   with   effect from prospective date are not borne out from the records and are further   not   substantiated   by   any   contemporaneous   official record.   Once   that   be   so,   then   the   decision   to   enforce   the amended Regulation No. 28 prospectively i.e. unilaterally rather arbitrary.

14.  Lastly  and  more  importantly, the aforesaid  Pension Regulations, 1990 could be framed only under Clause (j) of sub ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 13 section (2) of Section 58 of the Reserve Bank of India Act, 1934, .

which reads thus:

"58.(2)   (j)   The   constitution   and   management   of   staff   and superannuation funds for the officers and servants of the Bank."

15. The Pension Regulations so framed were admittedly after sanction of the Central Government and as observed above, the   Central   Government   had   approved   the   amendment     of   the RBI Regulations as it is as was proposed by the respondent vide its letter dated 19.1.2017.

16. It   is   more   settled   that   Regulations   once   framed cannot   be   amended   or   altered   by   administrative   circular.

Reference in this regard can conveniently be made to the three Judges   Bench   decision   of   the   Hon'ble   Supreme   Court   in  V.T. Khanzode and others vs. Reserve Bank of India and another AIR 1982 SC 917,  wherein it was observed as under:

"23.  Having seen that the Central Board has the power to provide   for   service   conditions   of   the   staff   by   issuing administrative   circulars,   the   next   question   for consideration   is   whether   the   Staff   Regulations   of   1948 were issued under Section 58 of the Act. The importance of this question lies in the fact that, quite clearly, if the 1948 Regulations   are   statutory,   they   cannot   be   altered   by administrative circulars and, in that event, the impugned circular   will   not   have   the   effect   of   superseding   them.
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Having   considered   the   entire   material   on   this   subject, including the correspondence that has transpired between .
the Reserve Bank and the Central Government, we find it difficult to take the view that the Staff Regulations of 1948 were framed in the exercise of power conferred by Section
58.   One   fact   which   stands   out   in   this   regard   is   that whereas   Section   58   (1)   envisages   the   making   of regulations"with   the   previous   sanction   of   the   Central Government",   the   Regulations   of   1948   do   not   purport   to have been made with such sanction. Indeed, in so far as the   ex   facie   aspect   of   the   matter   is   concerned,   the Regulations   of   1948   do   not   purport   to   have   been   made under Section 58 at all. It is true that this by itself is not conclusive because, failure to mention the source of power cannot   invalidate   the   exercise   of   power,   if   the   power   is possessed   by   the   authority   which   exercises   it.   But,   the common course of the manner in which the Central Board exercises its power when it purports to do so under Section 58 is not without relevance and has an important bearing on   the   question   under   consideration.   The   Employees' Provident   Fund   Regulations   of   1935,   the   Note   Issue Regulations of 1935 the General Regulations of 1949, the Scheduled Banks' Regulations of 1951 and the Guarantee Fund Regulations,which were all framed under section 58, contain a preamble reciting that they were framed under that section and that they were framed with the previous sanction of the Central Government. By way of illustration, we may cite  the  preamble of  the  Reserve  Bank  of India General Regulations, 1949, which runs thus: 
"In exercise of the powers conferred by Section 58 of the Reserve Bank of India Act, 1934 (II of 1934) and in supersession of the Reserve Bank of India ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 15 General   Regulations,   1935,   the   Central   Board   of the   Reserve   Bank   of   India,   with   the   previous .
sanction of the Central Government, is pleased to make the following Regulations..."

It is significant that such a recital is conspicuously absent in   the   Regulations   of   1948.   That   renders   it   safe   and reasonable   to   accept   the   statement   contained   in   the counter affidavit filed on behalf of the Reserve Bank by Shri   Shamrao   Laxman   Jathar   Deputy   Manager   in   the Department of Administration and Personnel to the effect that   the   Staff   Regulations   of   1948   are   not   statutory   in character, not having been made under Section 58 of the Act of 1934.  The rejoinder affidavit dated July 16, 1979 filed on behalf of the petitioners by Shri Jamnadas Gupta reiterates   the   contention   that   the   Regulations   of   1948 were framed under Section 58 (1) with the sanction of the Central Government. Support is sought to that contention from the correspondence annexed to the affidavit filed in support   of   the   writ   petition   and   the   correspondence annexed to the rejoinder. Of particular importance is the statement  contained  in the 'Memorandum  to the Central Board'   dated   January   21,   1949,   submitted   by   the   then Governor  of  Reserve  Bank, Shri  C.D. Deshmukh,  on the subject   of   "Reserve   Bank   of   India   Regulations".   That Memorandum   contains   a   list   of   regulations   which   were made   by   the   Central   Board   "with   the   approval   of   the Central   Government".   The   very   first   item   in   the   list is"Reserve   Bank   of   India   (Staff)   Regulations".   Having considered the correspondence bearing on the subject and particularly   the   aforesaid   Memorandum,   we   see   no reason   to   doubt   the   contention   of   the   Bank   that   the Regulations   of   1948   were   not   framed   under   section   58 ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 16 and that they were not made with the previous sanction of   the   Central   Government.   The   then   Governor   of   the .

Reserve   Bank   of   India,   Shri   C.   D.   Deshmukh,   a distinguished   Economist   and   Civilian,   was   perhaps justified   in   assuming   from   the   correspondence   that   the Central   Government   has   no   objection   to   the   proposed regulations, which explains his statement, that they were made with the "approval" of the Central Government. But, it   is   one   thing   to   infer   that   the   Regulations   had   the approval   of   the   Central   Government   since   no   objection was   raised   by   it   to   the   making   of   the   regulations   and quite   another   that   they   were   made   with   its   previous sanction. The supplementary affidavit dated March, 1980 which was filed on behalf  of the Reserve  Bank by Shri Pradeep   Madhav   Joshi,   Deputy   Manager   in   the Department   of   Administration   and   Personnel,   has   dealt fully with the correspondence on the subject of previous sanction   of   the   Central   Government   to   the   Regulations of1948. We are inclined to accept the statement contained in paragraph 9 of the said affidavit that the Memorandum of January 21, 1949 contains a "factual mistake" to the effect that the Staff Regulations, (which would include the Regulations   of   1948)   were   made   with   the   approval   of Central   Government.   We   therefore   conclude   that   the Reserve  Bank   of   India  (Staff)   Regulations  of  1948   were not made under Section 58 of the Act and that, in fact, the Central   Board   had   not   obtained   the   sanction   of   the Central Government to the making of those Regulations."

17. Therefore, once the Central Board recommended  for changes in the Pension Regulations including the cut­off­date for ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 17 its implementation then sanction of the Central Government was .

mandatory   because   unless   the   recommendations   for   the amendment   were   approved,   there   is   no   binding   force   of   such amendment. Reference in this regard can conveniently be made to the judgment of the Hon'ble Supreme Court in Reserve Bank of India  and another vs. Cecil Dennis Solomon and another AIR 2004 SC 3196, wherein it was observed as under:

"8.... In Reserve Bank and Another v. S. Jayarajan (1995 rsupp(4) SCC 584)   the view expressed in V.T. Khanzode and Ors. v. Reserve Bank of India  and Anr. (1982 (2) SCC
7)   was   reiterated   that   the   Staff   Regulations   are  administrative in nature. The Central Board is authorized to   take   such   administrative   decisions   and   Central Government's   approval/decision   is   not   necessary.

Therefore,  if changes were to be introduced  in the Staff  Regulations   and   the   Central   Board   takes   a   decision, there would not be   any necessity for taking approval of the Central Government.     But the      position is different so  far as the Pension Regulations are concerned.      The said Regulations were framed with the sanction of the Central  Government   and   are   framed   in   exercise   of   the   powers  conferred by clause     (j) of sub­section (2) of Section 58.    If  the   Central   Board   recommended     for   changes   in   the  Pension Regulations, sanction of the Central     Government is mandatory. This aspect seems to have been lost sight  by    the High Court and the respondents cannot derive any  advantage from the    mere recommendations made by the  Central   Board   suggesting   changes   to   the     Regulations.  The Central  Government  has  specifically dealt with the ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 18  recommendations and has turned them down. Unless the  recommendations for   the amendment are approved, they .

 have no binding force or application to     make any claim thereon.   Further,   the   respondents   who   claim   that   they  were   not   claiming   the   benefit   under   the   Pension Regulations could not  point out any other source to which their claims could be linked. The  respondents­employees were   getting   superannuation   benefits   accruing   to   them under  the  contributory  provisions  and gratuity  schemes. The High  Court was also in error in equating the case of resignation   to   voluntary   retirement.   The   two   are conceptually   different   in   the   service   jurisprudence   and different   consequences   would   flow   depending   upon   one  or the other of the courses."    

18. Thus, what is evident from the aforesaid discussion is that the respondent­Bank vide its letter  dated 19.1.2017 had itself requested the Central Government to accord approval in the amendment   of   Regulations   28   which   at   the   relevant   time provided for basic pension of 50% of the average emoluments (i.e. average of pay drawn by an employee during the last 10 months of   his/her   service)   subject   to   a   minimum   of   Rs.3,500/­   per mensem.     According   to   the   respondent   by   implementing   this method, the employees who retire after drawing salary partly on pre­revised     scale   and   partly   on   revised   scale   during   last   10 months   of   service   draw   basic   pension   at   much   lower   rate compared   to     employees     who   retire   after   drawing   salary   on ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP 19 revised basis during last 10 months of service. The reduction in .

monthly pension depends on number of months they draw salary on revised pay scales. This had generated a lot of distress among the affected employees, several of whom had requested for review.

The revision was sought to be justified by the respondents on the ground that   the RBI Pension Regulations   had been framed on the   lines   of   CCS   (Pension)   Rules,   1972   and   in   Government, pension   is   calculated   at   50%   of   the   emoluments     of   the   last month or average emoluments received during last 10 months, whichever is beneficial to the employees.

19. It   was   on   the   aforesaid   basis   that   the   respondent­ Bank had forwarded the proposal to amend the Regulation 28 of RBI Pension Regulations, 1990 so as to bring it at par or provide for   pari­materia   pension   as   was   being   given   to   the   Central Government  employees in terms of CCS (Pension) Rules, 1972.

Evidently, this proposal was to apply to all sections of the retired employees   as   is   evident   from   para­3   of   the   letter   wherein   the respondent­Bank itself had categorically mentioned that in case the amendment is carried out, then the benefit arising therefrom would   be   only   to   few   employees   and,   therefore,   the   financial implication   would   be   negligible   and   would   go   long   way   in removing an anomaly which exists today.

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20. It   is   also   not   in   dispute     that   the   proposal   of   the .

bank was accepted as such by the Government of India without there being any modification as is evident from the letter dated 31.3.2017 (supra) wherein it was categorically observed that the proposal of the bank had been examined in the Department in consultation with D/o Expenditure  and it had been  decided  to convey the approval on the same.

21. Once that be so, then obviously, the benefits of the amendment of the Regulations could not have been amended or altered by administrative circular. [Refer:  V.T. Khanzode's  case (supra].  Apart  from  the  above,  if  the  Central  Board  was  of  the view that the changes were required to be made in the Pension Regulations   including   cut­off­date   for   its   implementation,   then sanction   of   the   Central   Government   was   mandatory   because unless the recommendations for the amendment were approved.

There   is   no   binding   force   of   such   amendment   [Refer:  Cecil Dennis Solomon's case (supra].

22. Indubitably,   the   respondent­Bank   did   not   seek approval of the Central Government before deciding to implement the   Pension   Regulations   from   the   prospective   date   or   from   a particular   date.   Therefore,   its   action   is   illegal   and   cannot therefore be withstand judicial scrutiny.

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23. Accordingly,   the   impugned   circular   dated   7.6.2016 .

(Annexure   P­3)   is   quashed   and   set­aside   and   resultantly,   the impugned   notification   dated   28.8.2017   which   fixes   the   date   of operation of the amendment  as 06.10.2017 is also quashed and set­aside   and   the   respondents   are   directed   to   re­fix   the   basic pension of the petitioner  on the basis of 'last pay drawn' effective from   01.02.2013   and   also   pay   commuted   value   of   pension   on that   basis   i.e.   last   pay   drawn.   The   respondent­Bank   is   also directed   to   refund   Rs.1,14,111/­   to   the   petitioner   which   was recovered   from   the   petitioner   illegally   without   giving   him   any notice.

24. The   writ   petition   is   disposed   of   in   the   aforesaid terms,   so   also   the   pending   application(s)   if   any,   leaving   the parties to bear their own costs. Copy of judgment be sent to the petitioner free of cost on his address as given in memo of parties.

December 14th,2018.    (Tarlok Singh Chauhan) (GR)                 Judge ::: Downloaded on - 15/12/2018 22:56:47 :::HCHP