Service law:
Pensionary benefits – Entitlement to, under the Pension Scheme – On facts, employee opted for receiving 90% pension during his life time as provided under the Pension Scheme and on his death, his widow-appellant entitled to receive in lump sum, an amount equal to 100 times his full monthly pension, in addition to family pension – On employee’s death on 12.01.11, appellant’s claim for lump sum amount rejected on the ground that the provision was abolished w.e.f 21.02.2011 and the 10% surrendered amount had been refunded to all pensioners with interest – Writ petition by the appellant seeking disbursal of the pensionary benefits and quashing of the letter whereby she was communicated that no other payment was due – Writ petition dismissed by the Single Judge on the ground of lack of territorial jurisdiction – Said order upheld by the Division Bench – On appeal, held: The Pension Scheme was framed as a measure of social security for ensuring socio-economic justice for the employees in the coal sector – Pension is the deferred portion of the compensation for rendering long years of service – In view thereof, the sum due and payable under the Pension Scheme to be disbursed to the appellant after adjusting the amount refunded earlier – Coal Mines Pension Scheme, 1998 – Para 15(1)(b), Para 15(2).
Retiral benefits – Pension – Nature of – Held: Pension is the deferred portion of the compensation for rendering long years of service – It is a hard-earned benefit accruing to an employee and is in the nature of property.
Allowing the appeal, the Court
HELD: 1.1 Pension as is well known, is the deferred portion of the compensation for rendering long years of service. It is a hard-earned benefit accruing to an employee and has been held to be in the nature of property. [Para 11][407-A-D]
1.2 The High Court did not consider her entitlement on merit, but had dismissed both the Writ Petition and the LPA, citing want of territorial jurisdiction. The employment of the appellant’s husband with the respondent employer is however not in dispute. Nevertheless, for over a decade, the widow of the employee is forced to litigate to secure the pension benefits. In the peculiar circumstances of the instant case, without commenting on the legality of the decision to discontinue the said provision in the pension scheme by the employer, as the pensioner was not alive on the date of discontinuance, it is ordered that the sum due and payable under the Pension scheme be computed and be disbursed to the appellant. The amount earlier refunded to the appellant be adjusted suitably during the remittance process. [Para 12, 13][407-B-E]
All India Reserve Bank Retired Officers’ Association & ors v. Union of India & Ors, (1992) 1 Suppl. SCC 664; State of Jharkhand and Others v. Jitendra Kumar Srivastava and Another (2013) 12 SCC 210 – relied on.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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