Case Note & Summary
The case involved ex-servicemen who were re-employed by the Western Railways in 1990 under a 10% quota for ex-servicemen. They sought allowances and privileges based on their pay plus pension, citing Rule 1712(i) of the Indian Railway Establishment Code and Rule 65(1)(b) of the Pass Manual. The Central Administrative Tribunal granted their claims, leading to the present appeal. The Supreme Court examined the relevant rules, particularly the Central Civil Services (Fixation of Pay of Re-employed Pensioners) Order, 1986, which stipulated that allowances for re-employed pensioners should be calculated based solely on the pay fixed on re-employment, excluding pension. The Court found that the Tribunal incorrectly prioritized Rule 1712(i) over the 1986 Order. Regarding privilege passes, the Court noted that the Railway Servants (Pass) Rules, 1986, which govern the issuance of passes, do not allow for pension to be added to the pay for determining pass eligibility. The Court concluded that the Tribunal's reliance on the Pass Manual was misplaced. Consequently, the Supreme Court allowed the appeal, set aside the Tribunal's order, and dismissed the original application filed by the respondents.
Headnote
A) Administrative Law - Re-employment of Pensioners - Calculation of Allowances - Central Civil Services (Fixation of Pay of Re-employed Pensioners) Order, 1986 - The allowances for re-employed pensioners must be calculated based on the pay fixed on re-employment, excluding pension. The Tribunal's ruling that allowances should be based on pay plus pension was incorrect as it conflicted with the 1986 Order. Held that the allowances are to be calculated solely on the re-employment pay (Paras 1-2). B) Administrative Law - Privilege Passes - Railway Servants (Pass) Rules, 1986 - The entitlement to privilege passes for re-employed persons does not include pension in the pay calculation. The Railway Servants (Pass) Rules, 1986 supersede the Pass Manual, and thus, allowances and privileges cannot include pension for determining eligibility for passes. Held that the Tribunal erred in relying on the Pass Manual (Paras 2-3).
Issue of Consideration
Whether the allowances and privileges claimed by re-employed ex-servicemen should be calculated based on pay plus pension or only on pay fixed on re-employment.
Final Decision
The Supreme Court allowed the appeal, set aside the Tribunal's order, and dismissed the original application filed by the respondents.
Law Points
- Calculation of allowances
- Re-employment of pensioners
- Railway Servants (Pass) Rules
- 1986
- Central Civil Services (Fixation of Pay of Re-employed Pensioners) Order
