Employees who retired on the last day of the month, entitled to revised pay

Supreme Court Upholds Pension Benefits for Employees Retiring on Month-End Employees retiring on the last day of March 2016 entitled to revised pay under the 2017 Pay Rules, rules Supreme Court.

In a significant ruling, the Supreme Court of India has decided in favor of retired employees of the Assam Power Generation Corporation Ltd., granting them the benefits of the revised pay scales as per the Assam State Electricity Board and its Successor Companies Revised Pay Rules, 2017. The judgment, delivered by a bench comprising Justices Ahsanuddin Amanullah and K. Vinod Chandran, overturned a previous decision by the Division Bench of the High Court.

The case revolved around whether employees who retired on March 31, 2016, were eligible for the pay revision effective from April 1, 2016. The appellants argued that under Fundamental Rule 56(a), their retirement was extended to the last day of the month, thus making them eligible for the revised pay benefits. The Supreme Court agreed with this interpretation, emphasizing that the rule does not limit its application to pay and allowances alone.

The Court highlighted that Rule 5(2) of the Central Civil Services (Pension) Rules, 1972, considers the day of retirement as a working day, thereby entitling the appellants to the benefits of the revised pay structure applicable to those in service on March 31, 2016. The ruling ensures that retirees are not deprived of their rightful benefits due to technical interpretations of retirement dates.

The Supreme Court's decision restores the judgment of the Single Judge, affirming that the appellants are entitled to the revised pay scales effective March 31, 2016, and mandates the payment of arrears with interest if not disbursed within a stipulated period. This judgment sets a precedent for similar cases, reinforcing employee rights concerning retirement benefits and pay revisions.

Bottom Line:

Employees who retired on the last day of the month as per Fundamental Rule 56(a) are entitled to revised pay benefits if the revision rule applies to employees in service on that date.

Statutory provision(s): Fundamental Rule 56(a), Rule 5(2) of CCS (Pension) Rules, 1972, Assam State Electricity Board and its Successor Companies Revised Pay Rules, 2017.

Mukut Das v. Assam Power Generation Corporation Ltd., (SC) : Law Finder Doc Id # 2819647