Court Protects Excess Pension in Longstanding Case.
A retired government employee has secured a partial victory in a long-standing legal battle regarding his pension. The High Court recently issued a judgement on the case, determining how his pension should be calculated and addressing the issue of recovering previously paid amounts.
The Case:
The petitioner, a former employee of the Ministry of Defence (MoD), retired in 2004 and subsequently joined the Central Electricity Regulatory Commission (CERC). Upon retirement, he opted to receive a portion of his pension benefits (pro-rata) from the MoD based on his salary at that time.
However, after nearly 15 years, the MoD revised the petitioner's pension downwards, claiming an error in the initial calculation. This prompted the petitioner to challenge the revision before the Central Administrative Tribunal (CAT) and later, the High Court.
The Court's Decision:
The central question revolved around how the petitioner's pension should be determined under the Central Civil Services (Pension) Rules (CCS Pension Rules). The High Court, after analysing the specific rules, ruled that the petitioner's service at CERC falls under the category of "foreign service". This classification is due to CERC receiving government grants but not directly from the Consolidated Fund of India.
Consequently, the Court upheld the MoD's decision to refix the pension amount. However, the Court provided a crucial relief to the petitioner. Considering his retired status and the significant delay in refixation (around 15 years), the Court ruled that the MoD cannot recover any excess pension amount already paid to the petitioner. The High Court's verdict partially allowed the petitioner's writ petition. While the MoD can now pay the revised pension going forward, they are prohibited from claiming any reimbursement for the previously disbursed amount.