High Court Dismisses Appeal Against Employee's Pension Claim — Affirms Right to Central Dearness Allowance. The court ruled that delay in claiming pensionary benefits does not negate entitlement, referencing the Supreme Court's directive on pension benefits.

High Court: Madras High Court Bench: Principal
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Case Note & Summary

The writ appeal was filed by the Union of India challenging the order dated 04.09.2023 made in W.P.No.1975 of 2020. The respondent, initially appointed under the Government of India, opted to transfer to the Food Corporation of India (FCI) upon its formation, thereby adopting the service conditions applicable to FCI employees. The respondent opted for terminal benefits based on Central Government standards, but upon retirement, received benefits calculated on industrial dearness allowance instead of central dearness allowance. This discrepancy led to litigation, with the Supreme Court previously ruling that employees opting for Central Government benefits were entitled to central dearness allowance. The appellants argued that the respondent's delay in filing a representation after 17 years post-retirement should disqualify him from relief. However, the court recognized pension-related grievances as a continuing cause of action, emphasizing that the delay should not preclude the respondent from receiving his entitled benefits. The court directed that the benefits be revised from the date of the Supreme Court's judgment on 10.02.2010, mandating the appellants to settle the revised pensionary benefits within three months. The appeal was disposed of without costs.

Headnote

A) Administrative Law - Pensionary Benefits - Delay in Claim - Central Government Employees' Pension - Delay in filing for pensionary benefits does not bar entitlement to benefits as it is a continuing cause of action. The court held that the benefits should be extended from the date of the Supreme Court's judgment, ensuring that employees are not forced to litigate for their entitled benefits (Paras 4-6).

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Issue of Consideration

Whether the delay in filing for pensionary benefits can bar the respondent from receiving the benefits entitled under the Supreme Court's judgment.

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Final Decision

The court upheld the writ order, directing the appellants to revise the pensionary benefits including central dearness allowance from 10.02.2010 and settle the same within three months.

Law Points

  • Pension rights
  • dearness allowance
  • continuing cause of action
  • delay in filing
  • employee benefits
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Case Details

2026 LawText (MAD) (09) 261

WA No. 888 of 2024

2026-09-15

S. M. Subramaniam, Krishnaswamy Govindarajan

Mr.AR.L.Sunderesan, Ms.S.Ambika

Union of India, Food Corporation of India

T.V.Ramachandran Nair

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Nature of Litigation

Writ appeal challenging the order regarding pensionary benefits.

Remedy Sought

Union of India sought to set aside the order granting pension benefits.

Filing Reason

Dispute over the calculation of terminal benefits based on dearness allowance.

Previous Decisions

Supreme Court ruled that employees opting for Central Government benefits are entitled to central dearness allowance.

Issues

Entitlement to pension benefits despite delay Applicability of Supreme Court ruling on dearness allowance

Submissions/Arguments

Delay in filing should bar the respondent from relief Pension grievances are a continuing cause of action

Ratio Decidendi

Delay in claiming pensionary benefits does not negate entitlement; pension-related grievances are considered a continuing cause of action.

Judgment Excerpts

The present writ appeal has been instituted by Union of India under Clause XV of the Letters Patent challenging the order dated 04.09.2023 made in W.P.No.1975 of 2020. Delay cannot be the sole ground to deny the pensionary benefits in the present case.

Procedural History

The appeal was filed against the order of the writ court dated 04.09.2023, which had granted pensionary benefits to the respondent.

Acts & Sections

  • Food Corporation of India Act: Section 12(A)
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