TaxTMI 
TaxTMI 
TaxTMI 
2022 (8) TMI 1577
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....ticle 309 of the Constitution of India. Rule 3(3) of the Pension Rules, 2009 which was under challenge before the High Court, which has been struck down by the High Court by the impugned judgment and order, is as under: ­ "3(3) The revised rate of pension within the above limits of minimum and maximum pension shall be computed notionally from 1st January 2006 or, as the case may be, from the date of superannuation/retirement whichever is later. But financial benefit according to this computation will be admissible from 1st January 2009 or from the date of superannuation/retirement whichever is later" 2.2 On the request made by the Government of India to consider adoption and implementation of Revised Pay Structure in UGC System for Teachers in Colleges w.e.f. 01.01.2006 following revision of pay scales of Central Government employees as per 6th Central Pay Commission's recommendations, the State of Tripura issued a notification dated 02.02.2010 and introduced revised pay structure with 2 Band Pay Rs. 15600­39100 and 37400­67000 respectively with appropriate academic Grade Pay and it was specified that arrears would be payable subject to receipt of financial assistanc....
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....period. It was submitted on behalf of the original writ petitioner that such a policy decision being arbitrary and violative of Article 14 of the Constitution of India should be struck down. It was submitted that there must be a reasonable nexus to the object which the policy seeks to achieve. 2.6 That the writ petition was vehemently opposed by the State. A counter affidavit was filed opposing the writ petition in which it was specifically submitted on behalf of the State that due to the financial burden on the State, which the State was not in a position to bear the additional burden of revised pension, a policy decision has been taken to grant the benefit of revised pension notionally from 01.01.2006 to 31.12.2008 and to grant the actual benefit of the revised pension from 01.01.2009 only. It was vehemently submitted on behalf of the State before the High Court that being a policy decision, the same may not be interfered with in a writ petition under Article 226 of the Constitution of India. It was submitted that it is not normally within the domain of any court to weigh the pros and cons of the policy or to scrutinize it and test the degree of its beneficial or equitable dispo....
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....uer has not satisfied the Court at all. 3.3 It is further submitted that the financial burden on the State can be a valid ground to fix a cut­off date for the purpose of payment of revision of pension. Heavy reliance is placed on the decisions of this Court in the cases of State of Punjab and Ors. Vs. Amar Nath Goyal and Ors.; (2005) 6 SCC 754 and State of Bihar and Ors. Vs. Bihar Pensioners Samaj; (2006) 5 SCC 65 in this regard. 4. Though served none has appeared on behalf of respondent No. 1, may be because pursuant to the earlier interim order passed by this Court, she has been paid the entire arrears of pension from the date of her retirement. It is required to be noted that the impugned judgment and order passed by the High Court has been stayed by this Court. 5. We have heard learned counsel appearing on behalf of the State at length. We have gone through and considered the impugned judgment and order passed by the High Court. Before the High Court, Rule 3(3) of the Pension Rules, 2009 was under challenge, which is reproduced hereinabove. Rule 3(3) of the Pension Rules, 2009 has been struck down by the High Court by holding that the same is arbitrary and violative of A....
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....the year 2008­09 and Rs. 413.83 crores during the year 2009­10. This is an increase of approximately 9% over 2007­08 and 21% over 2008­ 09. However, as per actual implication, the expenditure during 2008­09 and 2009­10 has been Rs. 356.43 crores and Rs. 559.89 crores respectively which is 14% and 57% higher than that of previous years. Thus, due to under assessment of the state's Financial position by the Finance Commission, there has been a shortfall in funding on Non­Plan revenue expenditure. It was now required to make payment of pension without compromising with the State's Finances on development front. As such Financial benefit towards payment of pension was considered from 01­01­2009. All other cases of retirement falling within 01­01­2006 to 31­12­2008 were allowed pension fixed notionally. Further, payment of arrears of pension will have a huge impact on the State Finances as there are large numbers of retirees during that period. Considering, the constrained financial position of the State, it is not possible to consider further payment of arrears of pension to the similarly situated persons as it would give rise to huge....
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....the financial crunch/financial constraint due to additional financial burden can be a valid ground to fix a cut­off date for the purpose of granting the actual benefit of revision of pension/pay has been dealt with and/or considered by this Court in the case of Amar Nath Goyal (supra). In the aforesaid decision, it is observed and held by this Court that financial constraint can be a valid ground for fixation of cut­off date for grant of benefit of increased quantum of death­cum­retirement gratuity. In paragraphs 26, 32 and 33 of the said judgment, it is observed and held as under: ­ "26. It is difficult to accede to the argument on behalf of the employees that a decision of the Central Government/State Governments to limit the benefits only to employees, who retire or die on or after 1­4­ 1995, after calculating the financial implications thereon, was either irrational or arbitrary. Financial and economic implications are very relevant and germane for any policy decision touching the administration of the Government, at the Centre or at the State level. xxx xxx xxx 32. The importance of considering financial implications, while providing benefits f....