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Showing contexts for: average emoluments in Federation Of Retired Lic Class I ... vs Uoi & Ors. on 27 April, 2017Matching Fragments
16. Rule 38 which relates to determination of the period of ten months for average emoluments, reads:-
―38. Determination of the period of ten months for average emoluments -
(1) The period of the preceding ten months for the purpose of average emoluments shall be reckoned from the date of retirement.
(2) In the case of voluntary retirement the period of the preceding ten months for the purpose of average emoluments shall be reckoned from the date on which the employee voluntarily retires.
12. The liberalised pension scheme in the context of which the decision was rendered in Nakara [(1983) 1 SCC 305 : 1983 SCC (L&S) 145 : (1983) 2 SCR 165] provided for computation of pension according to a more liberal formula under which ―average emoluments‖ were determined with reference to the last ten months' salary instead of 36 months' salary provided earlier yielding a higher average, coupled with a slab system and raising the ceiling limit for pension. This Court held that where the mode of computation of pension is liberalised from a specified date, its benefit must be given not merely to retirees subsequent to that date but also to earlier existing retirees irrespective of their date of retirement even though the earlier retirees would not be entitled to any arrears prior to the specified date on the basis of the revised computation made according to the liberalised formula. For the purpose of such a scheme all existing retirees irrespective of the date of their retirement, were held to constitute one class, any further division within that class being impermissible. According to that decision, the pension of all earlier retirees was to be recomputed as on the specified date in accordance with the liberalised formula of computation on the basis of the average emoluments of each retiree payable on his date of retirement. For this purpose there was no revision of the emoluments of the earlier retirees under the scheme. It was clearly stated that ‗if the pensioners form a class, their computation cannot be by different formula affording unequal treatment solely on the ground that some retired earlier and some retired later'. This according to us is the decision inNakara [(1983) 1 SCC 305 : 1983 SCC (L&S) 145 : (1983) 2 SCR 165] and no more.
―49. ...In our opinion, it would make a marginal difference in the case of past pensioners because the emoluments are not revised. The last revision of emoluments was as per the recommendation of the Third Pay Commission (Raghubar Dayal Commission). If the emoluments remain the same, the computation of average emoluments under amended Rule 34 may raise the average emoluments, the period for averaging being reduced from last 36 months to last 10 months. The slab will provide slightly higher pension and if someone reaches the maximum the old lower ceiling will not deny him what is otherwise justly due on computation.‖ (emphasis supplied) Thus, D.S. Nakara's case (supra) had held that the formula computing pension by taking average of last ten months' emoluments would be applied universally. It did not lay down that quantum of emoluments drawn during the last ten months for each employee must be taken as uniform. The emoluments have to be calculated according to the pay scales applicable at the time of retirement.
62. In the present case, challenge to the expression/date ―on or after the 1st day of August, 1997‖ in paragraph 3(A) of Appendix IV of the Pension Rules is futile and pointless. Deletion or striking out of the expression "on or after the 1st day of August, 1997" would not result in the outcome sought by the retired employees/associations. The prayer is for revalorization of basic pension by merging dearness relief paid upto index of 1740 points into basic pension or by notional increase in emoluments. The prayer would require re-writing the Pension Rules including the definition of "average emoluments" and Rule 35, 37 and 38 relating to computation of the amount of pension, dearness relief, and re-calculation of average emoluments for the period of 10 months. In case we accept the contention of the retired employees/associations, whenever there is a revision in pay after a period of every 5 years, all retired employees would be entitled to revalorization of basic pension on the basis of enhanced pay scales, notwithstanding the fact that they have retired prior to enhancement of pay scales. For reasons stated, this challenge and submission predicated on Article 14 is to be rejected.