- (1.) This appeal has been preferred by Life Insurance Corporation of India (for short, 'the LIC') against judgment of learned Single Judge dated 13.09.2012 in Writ Petition No.1454/2009 filed by Mahesh Chandra Jain (respondent herein). In the writ petition, he firstly prayed for issuance of writ of mandamus to give benefit of Rule 27 of the L.I.C. of India (Employees) Pension Rules, 1995 (for short, 'the Rules of 1995) to the extent it falls short of 33 years of qualifying service and determine the pension on full basic pay as come to be fixed under the revised pay scales; secondly, he prayed that respondents be directed to fix his basic pay in revised pay scale of Zonal Manager at Rs.11,7501- as effective from 01.08.1992 and after giving benefit of Rule 27 of the Rules of 1995, pay pension at 50% of Rs.11,750/- with commensurate dearness relief as payable on such amount from time to time. While first prayer of Mahesh Chand Jain was rejected by learned Single Judge, his second prayer was allowed and thus the writ petition was partly allowed. It is against that direction that present special appeal has been preferred by the LIC.
(2.) Learned counsel for appellant has argued that respondent was not entitled to benefit of revised pay scale in term of proviso to Rule 2 of the Life Insurance Corporation of India Class I officers (Revision of Terms and Conditions of Service) Amendment Rules, 1996, (hereinafter shall be referred to 'the Rules of 1996'). No direction can be issued for payment of arrears to him for the period from 01.08.1992 to 31.03.1993 because the respondent already stood retired from service on 31.03.1993 and, therefore, he could not be held entitled to arrears of pay revision prior to that date. Learned counsel referred to notification dated 18.07.1996 issued by the Chairman of the LIC of India. The Chairman issued such direction on 19.07.1996 providing for the method of fixation of scale of pay and other matters connected therewith or incidental thereto. He argued that effective dates for revision of different components of wage were fixed as per aforementioned notification of Government of India. It was contended that since Mahesh Chand Jain retired prior to issuance of notification dated 18.07.1996, he could not be granted benefit of pay revision particularly the basic pay and dearness allowance with was given with effect from 01.04.1993, wheres the respondent retired on 31.01.1993. Since he was not granted benefit of revision of pay, there does not arise any question for fixing him in revised pay scale as pension has to be calculated on the basis of actually drawn pay during last ten months of service. Learned counsel argued that the Chairman has power under Rule 51 of the LIC of India (Staff) Regulations, 1960 to issue instructions with regard to adoption of method of fixation of scale of pay in new scale of pay, according to which his components of basic pay and dearness allowance with was to be taken with effect from 01.04.1993, whereas HRA, CCA and Hill Allowance with effect from 01.08.1993, Gratuity, Conveyance Allowance with effect from 01.08.1994 and Computer Increment with effect from 01.11.1993. In terms of Rule 3 of the said Rules, the employees, who were in service of the Corporation on or after 01.01.1986 but had retired before 01.11.1993, after exercise of an option in writing, were allowed pension with effect from 01.11.1993 subject to refund of Corporation's Contribution to Provident Fund with accrued interest with a further simple interest. In terms of Rule 35 of the Rules of 1995, basic pension shall be calculated at 50% of the average emoluments of last ten months. Pension was, therefore, to be calculated on actually drawn pay and not on notional pay.
(3.) We have given our anxious consideration to submission made by learned counsel for appellant and perused impugned judgment.;