Bombay High Court Allows Writ Petition in Pension Anomaly Case - Extension on Lower Post Results in Reduced Pension. Court directs recalculation of pension based on last pay drawn on higher post of Personal Assistant, holding that extension on lower post cannot reduce pension entitlement under Rule 68 of Maharashtra Civil Services (Pension) Rules, 1982.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, Chandrakant Govardhan Berad, joined the District Judicial Service as a Stenographer (Lower Grade) in June 1976 and was promoted to Stenographer (Higher Grade) in June 1981. He was further promoted to Personal Assistant to the Principal District and Sessions Judge, Ahmednagar on 07.12.1993 and retired on attaining superannuation on 31.01.2014. The post of Personal Assistant carried a Pay Band of Rs. 9300-34800 with Grade Pay of Rs. 5200, and his last pay drawn at retirement was Rs. 31,790 + Grade Pay Rs. 5200 = Rs. 36,990. Due to a shortage of Stenographers, the Principal District and Sessions Judge offered a one-year extension after retirement, which the petitioner opted for. However, the extension order dated 05.02.2014 granted extension on the lower post of Stenographer (Higher Grade) instead of Personal Assistant, with salary in the same pay as at retirement. This resulted in an anomalous situation where the petitioner's pension was calculated based on the lower post, leading to a lesser pension than if he had not opted for extension. The petitioner filed a writ petition seeking recalculation of pension based on the last pay drawn as Personal Assistant. The court held that pension must be calculated on the last pay drawn on the higher post before retirement, and extension on a lower post cannot reduce pension entitlement. The court directed the respondents to recalculate the petitioner's pension treating the last pay drawn as that of Personal Assistant and pay arrears with interest.

Headnote

A) Service Law - Pension Calculation - Last Pay Drawn - Extension on Lower Post - Rule 68 of Maharashtra Civil Services (Pension) Rules, 1982 - The petitioner retired as Personal Assistant but was granted extension on the lower post of Stenographer (Higher Grade). The court held that pension must be calculated based on the last pay drawn on the higher post before retirement, and extension on a lower post cannot reduce pension entitlement. The anomalous situation where the petitioner would draw lesser pension due to extension was held to be unjust. (Paras 2-10)

B) Service Law - Extension in Service - Reversion to Lower Post - The court observed that extension ought to have been granted on the post of Personal Assistant, but was erroneously granted on the lower post of Stenographer (Higher Grade). The court directed that the petitioner's pension be recalculated treating the last pay drawn as that of Personal Assistant. (Paras 4-10)

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Issue of Consideration

Whether the petitioner's pension should be calculated on the basis of the last pay drawn on the post of Personal Assistant or on the lower post of Stenographer (Higher Grade) on which he was granted extension after retirement.

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Final Decision

The court allowed the writ petition and directed the respondents to recalculate the petitioner's pension treating the last pay drawn as that of Personal Assistant and pay arrears with interest.

Law Points

  • Pension calculation
  • last pay drawn
  • extension on lower post
  • anomalous situation
  • Rule 68 of Maharashtra Civil Services (Pension) Rules
  • 1982
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Case Details

2022 LawText (BOM) (08) 57

WRIT PETITION NO. 4507 OF 2017

2022-08-25

Mangesh S. Patil, Sandeep V. Marne

Shri Ajay S. Deshpande for Petitioner, Smt. Vaishali N. Patil Jadhav for Respondent Nos. 1 and 4, Shri Rajendra Deshmukh Senior Advocate a/w Ms. Ashwini Sahastrabudhe for Respondent Nos. 2 and 3

Chandrakant Govardhan Berad

The State of Maharashtra, The Principal District & Sessions Judge, Ahmednagar, The High Court of Bombay, The Accountant General of Maharashtra (Accounts & Entitlement) – 1

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Nature of Litigation

Writ petition challenging pension calculation based on extension on lower post.

Remedy Sought

Petitioner seeks recalculation of pension based on last pay drawn as Personal Assistant.

Filing Reason

Petitioner's pension was calculated on lower post of Stenographer (Higher Grade) due to extension, resulting in lesser pension.

Issues

Whether pension should be calculated on last pay drawn on higher post before retirement or on lower post on which extension was granted.

Submissions/Arguments

Petitioner argued that pension must be based on last pay drawn as Personal Assistant, and extension on lower post cannot reduce pension. Respondents argued that extension was granted on lower post and pension should be calculated accordingly.

Ratio Decidendi

Pension must be calculated on the basis of the last pay drawn on the higher post from which the employee retired, and extension on a lower post cannot reduce the pension entitlement.

Judgment Excerpts

The petitioner faces a unique conundrum. Extension in service opted by him on the post of Stenographer (Higher Grade) after retiring from service on the post of Personal Assistant has resulted in a anomalous situation where he is drawing lesser pension than what he would have drawn had he not opted for extension.

Procedural History

The petitioner retired on 31.01.2014 as Personal Assistant. Extension was granted on 05.02.2014 on the lower post of Stenographer (Higher Grade). Pension was calculated on the lower post. Petitioner filed writ petition in 2017.

Acts & Sections

  • Maharashtra Civil Services (Pension) Rules, 1982: Rule 68
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