http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 3  

PETITIONER: WELFARE ASSOCIATION OF ABSORBED CENTRAL GOVERNMENT EMPLOYEES

       Vs.

RESPONDENT: ARVIND VERMA & ORS.

DATE OF JUDGMENT:       01/05/1998

BENCH: S. SAGHIR AHMAD, K. VENKATASWAMI, S. RAJENDRA BABU

ACT:

HEADNOTE:

JUDGMENT:                          O R D E R K. Venkataswami,      This Court  in a  judgment dated  15.12.1995 in Welfare Association of  Absorbed  Central  Government  Employees  in Public Enterprises  & Ors. Vs. Union of India & Anr. [(1996) 2 SCC 187], inter alia, held as follows:-      "From the  above extracts,  it will      be   seen    that    a    clear-cut      distinction is  made in  Rule  37-A      itself between one-third portion of      pension to  be commuted without any      condition  attached  and  two-third      portion of  pension to  be received      as terminal benefits with condition      attached and  two-third portion  of      pension to  be received as terminal      benefits  with  condition  attached      with it.  It follows that so far as      commutation  of  one-third  of  the      pension    is     concerned,    the      petitioners  herein   as  well   as      petitioners in "common Cause" stand      on   similar    footing   with   no      difference. So  far as  the balance      of two-third  pension is concerned,      the   petitioners    herein    have      received   the    commuted    value      (terminal benefits  ) on  condition      of  their   surrendering  of  their      right  of   drawing  two-thirds  of      their pension.  This  was  not  the      case  with   the   petitioners   in      "Common Cause" case. That being the      position  the   denial  of  benefit      given to "common Cause" petitioners      to the present petitioners violates      Articles   14   and   16   of   the      Constitution.  The   reasoning  for      restoring    one-third     commuted      pension  in  the  case  of  "Common

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 3  

    Cause" petitioners  equally applies      to  the  restoration  of  one-third      commuted pension  in  the  case  of      these petitioners as well.      ...................................      ...................      ...................................      .......................      For the  foregoing reasons, we hold      that the  petitioners are  entitled      to the  benefits as  given by  this      Court in "Common Cause" case so far      as it  related  to  restoration  of      one-third of  the commuted pension.      consequently, the  impugned para  4      of Office Memorandum dated 5.3.1987      is quashed.  The writ petitions are      accordingly allowed  to the  extent      indicated above, No costs."      As the respondents did not give effect to the judgment, the petitioners, on an earlier occasion, moved this Court in Contempt petition  No. 310  of 1996, which was disposed o by this Court on 7.10.1996 by passing the following order:-      "  The   counter  has   been  filed      wherein it has been stated that the      directions of this Court are in the      process of being complied with.      The contempt  Petition is  disposed      of."      Thereafter, it  appears that the respondents construing the judgment  of this  Court literally restored one-third of the commuted pension and denied all other attendant benefits as  made   available  to   the  other   Central   Government pensioners. Aggrieved  by that,  the petitioners  have moved this Court once again by filing this Contempt Petition.      Shri Altaf Ahmad, learned Additional Solicitor General, once  again   attempted  to   re-open  the  issue  that  the petitioners cannot  be  treated  at  par  with  the  Central Government pensioners  even though  such  a  contention  was raised and negatived by this Court in the said judgment. For the reasons already stated in the judgment, we hold that the petitioners have  to be  treated at  par  with  the  Central Government pensioners.  When we  directed the respondents to restore the  one-third portion  of the  commuted pension, it was intended  to be  given effect  to in  letter and spirit, which means  that the  restoration of  pension must  be with attendant  benefits  as  given  to  the  Central  Government pensioners. The learned Additional Solicitor General brought to  our   notice  the  statement  in  paragraph  15  of  the Additional Affidavit  on behalf  of Respondent  Nos. 1 to 3, which reads as follows:-      "In the case of PSU absorbees, they      have  drawn  lump  sum  capitalized      value  for  the  2/3rd  portion  of      pension  as  one  time  settlement.      This portion is therefore no longer      available to the absorbed employees      in  the   nature  of   pension  and      according to  the Supreme  Judgment      dated  15.12.1995  the  petitioners      have received  the  commuted  value      (terminal benefits) on condition of      their surrendering  their right  of      drawing 2/3rds of their pension. In      view   of    this,   the   absorbed

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 3  

    employees are  not entitled  to the      grant of  dearness relief  on  this      2/3rd commuted  portion of  pension      (terminal benefits)."      It  will   be  noticed   that  the  Central  Government pensioners are  given revision in the pension, which was not given to  the petitioners  on the ground that this Court had ordered only restoration of pension.      After hearing  counsel on  both sides, we make it clear that the  respondents are  liable to  restore not  only  the pension as  ordered by  this Court in the said judgment, but also  all   attendant  benefits  as  given  to  the  Central Government pensioners.  We hold  that there was some genuine doubt on  they part  of the  respondents in  construing  and giving effect  to the judgment of this Court and, therefore, there is  no contempt.  We now  direct  the  respondents  to comply  with   the  judgment  of  this  Court  as  explained hereinbefore within three months from this date.      The  contempt   petition   will   stand   disposed   of accordingly.