Case Note & Summary
The petitioner, M.A. Dhavaleshwar, was appointed as a Professor on 26-07-1982 and later became Principal of Sangolli Rayanna Grade-I College, Rani Chennamma University. He retired on 30-06-2017. After retirement, he was re-employed as Principal on a contract basis from 01-07-2017 to 30-06-2019. Upon final retirement, the respondents calculated his pension based on a reduced salary, not his last drawn basic salary at the time of his initial retirement. The petitioner filed a writ petition seeking a mandamus to direct the respondents to grant regular pension calculated on his last drawn basic salary of Rs. 1,03,470/- and to release arrears of Rs. 12,72,097/- with interest. The court heard arguments from both sides. The petitioner argued that pension is a right earned by past service and cannot be reduced due to re-employment. The respondents contended that the re-employment was on a fresh contract and pension should be based on the reduced pay. The court analyzed Rule 107 of the Karnataka Civil Services Rules, 1964, and held that pension must be calculated on the last pay drawn at the time of retirement, and re-employment does not affect that entitlement. The court allowed the petition, directing the respondents to grant regular pension based on the last drawn salary of Rs. 1,03,470/- and to pay arrears of Rs. 12,72,097/- with interest at 6% per annum from the date of retirement until realization.
Headnote
A) Service Law - Pension - Regular Pension - Entitlement - Petitioner, a retired Principal, sought regular pension based on last drawn salary - Respondents denied on ground of re-employment - Court held that pension is a right earned by past service and cannot be reduced due to re-employment - Directed grant of regular pension with arrears and interest (Paras 1-10). B) Service Law - Pension Calculation - Last Drawn Salary - Rule 107 of Karnataka Civil Services Rules, 1964 - Pension must be calculated on actual last pay drawn at retirement - Re-employment does not justify reduction - Court directed respondents to recalculate pension accordingly (Paras 5-9).
Issue of Consideration
Whether the petitioner is entitled to regular pension calculated on his last drawn basic salary at the time of retirement, and whether the respondents can reduce pension on account of re-employment after retirement.
Final Decision
The court allowed the writ petition, directing the respondents to grant regular pension to the petitioner calculated on his last drawn basic salary of Rs. 1,03,470/- at the time of retirement, and to pay arrears of Rs. 12,72,097/- with interest at 6% per annum from the date of retirement until realization.
Law Points
- Pension is not a bounty but a right earned by past service
- Pensionary benefits must be calculated on last drawn salary at time of retirement
- Re-employment does not reduce pension entitlement
- Rule 107 of Karnataka Civil Services Rules
- 1964
