High Court Dismisses Appeal Against Employee's Pension Benefits Claim — Upholds Right to Central Dearness Allowance. The court found that the delay in filing a representation does not negate the entitlement to pensionary benefits as it is a continuing cause of action under Section 12(A) of the Food Corporation of India Act, 1964.

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 was initially appointed under the Government of India and later transferred to the Food Corporation of India (FCI), opting for terminal benefits applicable to Central Government employees. After retirement, the respondent's terminal benefits were calculated based on industrial dearness allowance instead of the central dearness allowance, leading to the dispute. The Supreme Court in Union of India and another -vs- P.N.Natarajan and Others (2010 12 SCC 405) had previously ruled 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 should bar his claim. However, the court recognized pension-related grievances as a continuing cause of action and emphasized that the Food Corporation of India, as a model employer, should extend similar benefits without forcing employees to litigate. The court directed that the benefits be revised from the date of the Supreme Court's judgment, specifically from 10.02.2010, and ordered the appellants to settle the pensionary benefits within three months. The writ appeal was disposed of without costs.

Headnote

A) Administrative Law - Pensionary Benefits - Entitlement to Central Dearness Allowance - Food Corporation of India Act, 1964, Section 12(A) - The court held that the respondent, having opted for Central Government benefits, was entitled to Central dearness allowance as per the Supreme Court's ruling. The delay in filing the representation was not a valid ground to deny the benefits, as pension-related grievances are considered a continuing cause of action (Paras 2-6).

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Issue of Consideration

Whether the delay in filing the representation affects the entitlement to pensionary benefits based on 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
  • Continuing cause of action
  • Delay in filing
  • Central dearness allowance
  • Terminal benefits
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Case Details

2026 LawText (MAD) (09) 262

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

The respondent claimed entitlement to Central dearness allowance after retirement.

Previous Decisions

The Supreme Court had previously ruled on similar issues regarding pension benefits.

Issues

Entitlement to Central dearness allowance Impact of delay in filing representation on pension claims

Submissions/Arguments

The respondent's delay in filing should bar his claim. Pension-related grievances are a continuing cause of action.

Ratio Decidendi

The court emphasized that pension-related grievances are a continuing cause of action and that delay in filing does not negate entitlement to benefits.

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 writ appeal was filed against the order of the writ court dated 04.09.2023 in W.P.No.1975 of 2020.

Acts & Sections

  • Food Corporation of India Act, 1964: Section 12(A)
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