High CourtsDIVISION BENCH(2017) 03 RAJ CK 0052

Smt.Meera Bhargava vs Jaipur Vidyut Vitran Nigam Limited

Rajasthan High Court · Decided on 10 March 2017

HON’BLE JUDGES
Ajay Rastogi, Vijay Kumar Vyas
RESULT
Disposed
CASE NUMBER
8713 of 2006

AI Structured Summary

Not yet generated for this judgment

Judgment

262 paragraphs · 4,211 words
1.

Since a common question emerges for our consideration in

both the writ petitions, the same are being decided by the present

order.

2.

In CWP No.8713/2006 the petitioner is working as a Teacher

in the Department of Education in Government of Rajasthan for a

quite long time & her late husband Vinod Kumar was also serving

in the erstwhile Rajasthan State Electricity Board in the office of

the Assistant Engineer (B-IV), Kota on the post of Lower Division

Clerk and he died while in service on 04.02.1997 and accordingly

family pension was granted to the petitioner vide PPO No.2677(R)

dt.21.04.1999.

3.

After the death of her husband, the petitioner applied for

appointment of her son in place of his late father on preferential

basis under the Compassionate Appointment Rules, 1996 but his

son was denied appointment on preferential basis on the pretext

that the petitioner is substantively working in Government service

vide letter dt.31.08.2002.

4.

In CWP No.8081/2015, the petitioner was appointed as a

Lecturer (Political Science) in the department of College Education

in 1996 and the petitioner''s husband Dr.Bhanwar Lal Gadhwal was

appointed as a Lecturer (Political Science) on 09.09.1995 but

while working as Lecturer, unfortunately he met with an accident

and died during the course of treatment in the SMS Hospital,

Jaipur on 17.08.2003 and after the death of her husband

Dr.Bhanwar Lal Gadhwal, application was moved for sanction of

family pension under the provisions of the Rajasthan Civil Service

(Pension) Rules, 1996 although she was granted family pension

w.e.f. 18.08.2003 but Dearness Allowance/Relief has been

withheld on enquiry from the office of the Pension Disbursing

Officer wherein it was informed that vide order dt.14.09.1995

issued by the Finance Department, the Dearness Allowance/Relief

shall remain suspended in view of R.77(ii) of the Rajasthan Civil

Services (Pension) Rules, 1996 and according to the respondents

no Dearness Allowance/Relief is payable to the pensioner

(including family pensioner) who is employed/re-employed in a

State/Central Government Department or any other State/Central

owned agencies/authorities vide letter dt.16.10.2014.

5.

It is not disputed even by the respondents that both the

petitioners were already serving in the department of Education/

College Education as Teacher/Lecturer at the time of death of their

husband who were serving in the erstwhile State Electricity Board,

now on unbundling of the State Electricity Board it is the Jaipur

Vidyut Vitran Nigam Limited who is defending the matter/Director,

College Education.

6.

The main thrust of submission of counsel for the petitioners

is that where the family pensioner is already in employment at the

time of death of their spouse working on the post in their own

independent capacity & getting the family pension to which the

pensioner is entitled for includes Dearness Allowance/Relief and

the term ''employed/re-employed'' of which reference has been

made u/R.77(ii) of the Rules, 1996 may relate to re-employment

of pensioner or the first regular appointment/employment of the

family pensioner, at least may not be misconstrued to derive the

term ''employed/re-employed'' of which reference has been made

u/R.77(ii) of the Rules, 1996 depriving the Dearness

Allowance/Relief to the family pensioner to which they are

legitimately entitled for under the scheme of Rules, 1996.

7.

Counsel for the petitioner further submits that without going

into any further controversy, the Government of India,

Department of Pension vide their Office Memorandum

dt.02.07.1999 clarified regarding the payment of Dearness

Allowance/Relief to the re-employed pensioner and employed

family pensioners at the rates applicable from time to time shall

be admissible on their family pension.

8.

Counsel submits that at least in the light of the Office

Memorandum of the Central Government, Dearness

Allowance/Relief could not have been denied on the family pension

to the family pensioners who are employed in the State/Central

Government Department or any other State/Central owned

agencies in their own independent capacities and submits that the

State authorities have mis-interpreted R.77(ii) of the Rules, 1996

and at the same time such an interpretation which has been made

by the respondents in denying the benefit of Dearness

Allowance/Relief to the family pensioners is arbitrary & violative of

Art.14 of the Constitution.

9.

Counsel for the respondents, on the other hand, submits that

since Dearness Allowance/Relief is being denied on family pension

to such of the eligible family pensioners who are employed/re-

employed, as being contemplated/envisaged from R.77(ii) of the

Rules, 1996 and submits that it is not the case of the petitioners

that the State does not hold competence to withhold Dearness

Allowance/Relief on family pension and since Dearness Allowance/

Relief cannot be claimed as a matter of right, it does not violate

any of their fundamental rights, as such what has been prayed for

in claiming declaration of R.77(ii) of the Rules, 1996 as arbitrary &

unconstitutional, without being supported by any justification,

needs no further indulgence.

10.

We have heard counsel for the parties and considered their

rival submission and also perused the material placed on record

with their assistance.

11.

Indisputably, the petitioners are working on the post of

Teacher/Lecturer in their own independent capacity and their

spouse was also working under the erstwhile RSEB/Department of

College Education when they died in harness & none of the

petitioner or dependents are appointed in the State of Rajasthan

on compassionate grounds on account of death of their spouse

and indisputably, the petitioners are neither employed/re-

employed in the State of Rajasthan claiming benefit of family

pension inclusive of Dearness Allowance/Relief under the relevant

scheme of Rules, 1996.

12.

The grievance of the petitioners is that although they have

been granted family pension but they have been denied Dearness

Allowance/Relief, which is admissible to them, on the family

pension. As per the defence of the respondents, the benefit of

Dearness Allowance/Relief has been denied to the petitioners on

the ground that they being in employment are already getting

Dearness Allowance on the salary they earn.

13.

Under the scheme of the Rajasthan Civil Services (Pension)

Rules, 1996, Dearness Relief, family pension & pension have been

defined u/R.3(c), 3(f) & 3(p) and Dearness Relief is defined

separately u/R.77 of the Rules, 1996. R.3(c), 3(f), 3(p) & R.77(ii)

of the Rules, 1996, with which were are presently concerned, are

reproduced ad infra:-

"3(c) ''Dearness relief'' means relief as defined in rule 77;

3(f) ''family pension'' means family pension admissible under Chapter V C, but does not include Dearness Relief and Interim Relief;

3(p) ''pension'' includes gratuity except when the term pension is used in contradistinction to gratuity; but does not include dearness relief and Interim Relief.

77.

Dearness Relief on Pension/Family Pension

(i) XX XX XX

(ii) The payment of Dearness Relief will remain suspended when the family pensioner is employed/re- employed in a Central/State Government Department or employed/re-employed/permanently absorbed in a Central or a State Government Company, Corporation, Undertaking or autonomous body/statutory body, local body cooperative society, institution etc. if it is wholly or substantially owned or controlled by the Central/State Government or in which the Government has substantial financial interest or receiving Grant-in- Aid from the Government to meet its administrative expenditure or in Reserve Bank of India or in a Public Sector Bank or in GIC/LIC etc."

14.

Indisputably, pension/family pension does not include

Dearness Relief and is admissible on pension/family pension as

defined u/R.77 of the Rules, 1996. Ordinarily, Dearness Relief

depends upon price rise & is always granted to the pensioners and

family pensioners but that remain subject to the condition that

Government may specify from time to time laying down

percentage of Dearness Allowance/Relief to which the pensioner/

family pensioner is entitled for as per Appendix-III but at the

same time, u/R.77(ii) of the Rules, 1996 payment of Dearness

Relief shall remain suspended when the family pensioner is

employed/re-employed either in a Central or State Government

Department or under any other Central or State Government

owned agencies.

15.

The petitioners are being denied Dearness Relief on the

family pension on the premise that they are in employment of the

State Government.

16.

The Apex Court had an occasion to consider the word

''employed'' or alike word, as being indicated in the R.77(ii) of the

Rules, 1996 & which was made to be a basis by the Government

of Haryana vide its circular dt.20.03.1980 whether could apply to

such of the family pensioners who are working on the post in their

own independent capacities could that employment would also

cover the matters as being indicated in terms of the word

''employed'' u/R.77(ii) of the Rules, 1996 as well and also taking

note of the R.55-A of the Central Civil Services (Pension) Rules,

1972 & while examining the issue in the case of H.S.E.B. &

Others Vs. Azad Kaur reported in (2000) 2 SCC 227, the Apex

Court observed that the word ''employed'' can refer to the kind of

employment which is secured by the widow or a family member

on account of or in the context of the death of the employee in

respect of whom family pension is being paid but in the case

where the widow or family member is independently in

employment even prior to the death of the employee, that cannot

deprive the family of the benefit of Dearness Relief on the family

pension. The extract of para 6 & 7 of the judgment being relevant

for the present purpose are reproduced ad infra:-

"6. The appellants have relied upon a letter dated 20.3.1980 from the Secretary to the Government, Finance Department, Government of Haryana circulated to all the Heads of the Departments under which it is clarified that the payment of ad hoc relief on pension shall remain suspended when a person in receipt of family pension/extraordinary pension is employed/re- employed. The appellants contend that whenever a recipient of a family pension is employed, the ad hoc relief on pension shall not be granted. In our view, this is not a correct interpretation of the letter of 20.3.980. As the ratio of the judgment of this Court in Union of India v. G.Vasudevan Pillay shows, the principle on which ad hoc relief is withheld, is that if a recipient of a family pension has received an additional benefit in the form of either re-employment or an employment on compassionate grounds on account of the death of the employee, the need to provide another cushion in the form of ad hoc relief is not there. The word "employed" used in the letter of 20.3.1980 in that context can only refer to the kind of employment which is secured by the widow or a family member on account of or in the context of the death of the employee in respect of whom family pension is being paid. It can have no reference to any independent employment or any other independent source of livelihood which the family members may possess. The mere fact that the widow is independently employed as a teacher elsewhere even prior to the death of her husband, cannot deprive the family of the benefit of the ad hoc relief on family pension.

7.

Our attention is drawn to a decision of the Division Bench of the Punjab & Haryana High Court in the case of Swaran Kaur v. State of Punjab where the High Court, after ascertaining that the petitioner therein had not secured any job on compassionate grounds on account of the death of her husband, nor had any

family member done so, held that dearness allowance on family pension could not be withheld. It said that the fact that the widow was in service at the time when her husband died would not deprive her of dearness allowance on family pension when the employment was not on compassionate grounds. We, therefore, agree with the reasoning and conclusion reached by the High Court in the impugned judgment."

17.

The issue further came up before the Apex Court in Union of

India & Others Vs. Rekha Majhi reported in (2000) 10 SCC

659 but in that case the family pensioner who was appointed on

compassionate grounds in Railway Establishment & sub-rule (21)

of R.75 of the Railway Services (Pension) Rules, 1993 when came

up for consideration where denial to the family pensioner was in

regard to those who are in re-employment of Central or State

Government, the Apex Court further enlarged the scope of

employment and also construed that employment will also include

first regular appointment in the service. The extract of para 6 of

the judgment being relevant for the present purpose is reproduced

ad infra:-

"6. We have heard learned counsel for the parties. A perusal of Rule 75(21)(ii) shows that the object behind framing the Rule is that a pensioner cannot enjoy two dearness reliefs simultaneously, one on his pension and the other on his salary if he takes up re-employement, and, therefore, in such a situation to deny dearness relief on the pension. It is not disputed that the respondent is getting family pension and, therefore, she is a pensioner. That being the object of the Rule, we have to give a wider meaning to the expression "re- employed" which finds place in Rule 75(21)(ii) of the Rules. The expression "re-employed", if construed in the light of the object behind the Rule and facts of this case, would also include first regular appointment in the service."

18.

At least those who are already in employment at the time of

death of their spouse and neither re-employed nor got

appointment on compassionate grounds, they could not be made

disentitled to claim Dearness Allowance/Relief on family pension.

The Central Government also vide its Office Memorandum

dt.02.07.1999 has made its clarification that such of the family

pensioners who are already employed and family pension is

received by the eligible dependents of the Central Government

employees, they are entitled for Dearness Relief at the rates

applicable from time to time & shall be admissible on their family

pension and this court considers it appropriate to quote the

extract of Office Memorandum dt.02.07.1999 being relevant for

the present purpose, which reads ad infra:-

"No. 45/73/97-P&PW(G)

Government of India

Ministry of Personnel, Public Grievances & Pensions

Department of Pension & Pensioners Welfare

Third Floor, Lok Nayak Bhavan,

Khan Market, New Delhi 110003

Date : 2nd July, 1999

OFFICE MEMORANDUM

Subject: Recommendations of the 5th Central Pay Commission-Payment of Dearness Relief to re employed pensioners and employed family pensioners- Decision regarding.

*******

In terms of the existing orders, Dearness Relief of pensioners and family pensioners is to remain suspended during the period a pensioner/family pensioner is re-employed/employed under the Central or State Government or in a Stationary Corporation/

Company/Body/Bank under them in India or abroad. These orders are also applicable to pensioners and family pensioners permanently absorbed in a Statutory Corporation/Company /Body/Bank under the Central or State Government.

2.

In Paragraph 138.21 of their Report, the 5th Central Pay Commission had recommended that Dearness Relief should be paid to employed family pensioners and re-employed pensioners in cases where their pay is fixed at the minimum of the pay scale of the post of re-employment ignoring the entire pension, and that, in other cases of re-employment, Dearness Relief shall be payable on pay plus the non ignorable portion of pension as was the case at present. The Commission had further recommended in paragraph 141.12 that, with a view to maintaining the original value of the pension, the payment of Dearness Relief should not be suspended where pay is fixed at the minimum of the pay scale during employment/re- employment of a family pensioner/pensioner.

3.

These recommendation have been considered and accepted by the Government. The President is accordingly pleased to decide as follows:

(a) In so far as re-employed pensioners are concerned, the entire pension admissible is to be ignored at present only in the case of those civilian pensioners who held posts below Group "A" and those ex- servicemen who held posts below the ranks of Commissioned Officers at the time of their retirement. Their pay, on re-employment, is to be fixed at the minimum of the pay scale of the post in which they are re-employed. Such civilian pensioners will consequently be entitled to Dearness Relief on their pension in terms of the recommendations of the 5th Central Pay Commission at the rates applicable from time to time.

(b) In terms of the existing order on the subject, the pay of re-employed pensioners who held Group "A" post or posts of the ranks of Commissioned Officers

at the time of their retirement is to be fixed at present.

- at the same stage as last drawn before retirement or, if there is no such stage, at the stage next above the pay last drawn.

- at the maximum of the pay scale, if the pay last drawn is more than the maximum of the pay scale of the post in which re-employed;

- at the maximum of the pay scale of the post in which re-employed. if it is more than the pay last drawn.

Further, the pay on re-employment is required to be fixed after ignoring only a portion of the pension [Rs. 1,500] received for the previous employment, In view of the fact that (i) the pension is taken into account in such cases and is not entirely ignore; (ii) the pay the post of re-employment is not required to be fixed at the minimum of the scale in all cases; and

(iii) Dearness Allowance at the rates applicable from time to time is also admissible on the pay fixed in terms of the orders on the subject, these re-employed pensioners will not be entitled, in addition, to any Dearness Relief on their pension.

(c) As regards employed family pensioners, since the family pension received by the eligible dependents of Central Government employees is in any case, not taken into account in determining their pay on employment, Dearness Relief at the rates applicable from time to time shall be admissible on their family pension.

(d) While implementing these decisions, orders issued by the Department of Personnel & Training vide OM No. 3/1/85-ESTT (Pay-II) dated 31.07.1986 and as amended from time to time regarding fixation of pay of re-employed pensioners shall be duly kept in view."

(Emphasis supplied.)

19.

In furtherance Finance (Pension) Department, Government

of Tamil Nadu vide G.O.No.112 dt.24.03.2008 sanctioned

Dearness Allowance on family pension to those State Government

Family Pensioners who are already employed. The para-3 of the

G.O.No.112 dt.24.03.2008 being relevant for the present purpose

is reproduced ad infra:-

"3. Government after considering the above order of Government of India has decided to allow Dearness Family Pension wherever admissible and Dearness Allowance on family pension in the case of employed family pensioners. Accordingly, Government direct that Dearness Family Pension at the rate of 50% of Family Pension and Dearness Allowance on family pension including Dearness Family Pension wherever admissible shall be paid to all the employed family pensioners in State or Central Government or a Government Undertaking or a Corporation or an Autonomous Body or a Local Fund in a post on fixed pay or on time scale of pay where Dearness Allowance on pay is allowed."

20.

This very issue came up for consideration before the Division

Bench of Punjab & Haryana High Court in Amarjit Kaur Sodhi &

Others Vs. State of Punjab & Others reported in 2003(1) SLR

33 and para 3, 4 & 6 of the judgment being relevant are

reproduced ad infra:-

"3. The short grievance of the petitioners is that although the petitioners have been granted family pension but they have been denied dearness allowance on the family pension. The benefit of Dearness Allowance has been denied to the petitioners on the ground that they are already being granted Dearness Allowance on the salary they earn. Consequently, the petitioners were constrained to move this Court under Articles 226/227 of the Constitution of India for necessary directions by way of writ of mandamus.

4.

Mr. R.C. Chatrath, learned counsel appearing for the petitioners, states that the controversy raised in this

petition is no longer res-integra as the matter is squarely covered by a Division Bench judgment of this Court in the case Swaran Kaur Vs. State of Punjab and others, 1997(1) RSJ 325 : [1996(3) SLR 644 (Pb. & Hry.)]. It is submitted that the case of the petitioners is para materia to the case of the petitioners Swaran Kaur. In this case also none of the petitioners have been employed on compassionate grounds.

5.

XX XX XX

6.

It is submitted by Shri R.C. Chatrath that the afore- said judgment in the case of Swaran Kaur has in fact been upheld by the Supreme Court in the case of H.S.E.B. and Ors. v. Azad Kaur, 2002(1) RSJ 402. In the aforesaid judgment, the Supreme Court has held as under:

"The appellants have relied upon a letter dated 20.3.1980 from the Secretary to the Government, Finance Department, Government of Haryana circulated to all the Heads of the Department under which it is clarified that the payment of adhoc relief on pension shall remain suspended when a person is in receipt of family pension/extra-ordinary pension is employed/re-employed. The appellants contend that whenever a recipient of a family pension is employed, the Ad-hoc relief on pension shall not be granted. In our view, this is not a correct interpretation of the letter of 20.3.1980. As the ratio of the judgment of this Court in Union of India v. G. Vasudevan Pillay and Others (supra) shows, the principles on which ad-hoc relief is withheld, is that if a recipient of a family pension has received an additional benefit in the form of either re- employment or an employment on compassionate grounds on account of the death of the employee, the need to provide another cushion in the form of ad-hoc relief is not there. The word employed used in the letter of 20.3.1980 in that context can only refer to the kind of employment which is secured by the widow of a family member on account of or in the context of the death of the employee in respect

of whom family pension is being paid. It can have no reference to any independent employment or any other independent source of livelihood which the family members may possess. The mere fact that the widow is independently employed as a teacher elsewhere even prior to the death of her husband, cannot deprive the family of the benefit of the ad- hoc relief on family pension.

Our attention is drawn to a decision of the Division Bench of the Punjab and Haryana High Court in the case of Smt. Swaran Kaur v. The State of Punjab and Others., (CWP No. 17698/1995) reported in 1997(1) RSJ 325 where the High Court, after ascertaining that the petitioner therein had not secured any job on compassionate grounds on account of the death of her husband, nor had any family member done so held that Dearness Allowance on family pension could not be withheld. It said that the fact that the widow was in service at the time when her husband died would not deprive her of Dearness Allowance on family pension when the employment was not on compassionate grounds. We, therefore, agree with the reasoning and conclusion reached by the High Court in the impugned judgment."

21.

While taking note of the scheme of Rules, 1996 and sub-rule

(ii) of R.77 in particular we are of the view that the word

''employed'' has been mis-understood/mis-interpreted by the

respondents and this may refer to the employment which is

secured by the widow or the family member on account of or in

the context of the death of the employee in respect of whom

family pension is being paid but if the family pensioner is

independently in employment or any other source of livelihood

which the family pensioner possess that may not deprive them

from the benefit of Dearness Allowance/Relief on the family

pension u/R.77(ii) of the Rules, 1996.

22.

Indisputably, in the instant case, the petitioners are working

in the department of Education/College Education of the State of

Rajasthan in their independent capacities & their spouse were

working in the erstwhile RSEB/College Education when they died

in harness and none of the petitioner or the dependent is

appointed on compassionate grounds after the death of their

spouse and since their employment is not dependent upon the

death of their spouse who died in harness that would not deprive

the family pensioners of the benefit of Dearness Allowance/Relief

on family pension under the garb of R.77(ii) of the Rules, 1996.

23.

Consequently, both the writ petitions succeed and are

allowed. The respondents are directed to grant Dearness

Allowance/Relief on the family pension to the petitioners in

accordance with the Rules, 1996. Let the revised pension be

computed within a period of two months of the receipt of copy of

this order and after the pension is re-computed, the arrears of the

family pension be released to the petitioners within two months

thereafter. It is made clear that if the arrears are not paid within

the period stipulated above, the petitioners shall be entitled to

receive the aforesaid benefits with interest @ 12% p.a. from the

date it became due until actual payment.

24.

Both the writ petitions are disposed of accordingly. No costs.