Court Upholds Rule Against Dual Dearness Allowance for Re-employed Pensioners
In a recent judgment, the Madras High Court, presided over by Justice C. Kumarappan, dismissed a writ petition filed by Tmt. P. Vanajakshi against the Metropolitan Transport Corporation regarding the non-receipt of dearness allowance (DA) with her regular pension. The court upheld Rule 20A of the Tamil Nadu State Transport Corporation Employees Provident Fund, which prohibits pensioners from claiming DA during re-employment.
The petitioner, appointed on compassionate grounds after her husband's death, argued that she was not receiving DA along with her regular pension post-superannuation. However, the respondents provided records indicating that the petitioner had been receiving both family pension and regular pension with DA. The court noted that the petitioner was under a misconception of the facts, as the records clearly showed the payment of DA with her pension.
Justice Kumarappan emphasized the principle of "no double dearness allowance," referencing Supreme Court judgments that clarified the prohibition on dual DA for pensioners who are re-employed. The court reiterated that the rule ensures that a pensioner cannot draw DA on pension during re-employment, aligning with the rationale that DA compensates for inflation and should not be duplicated.
The court found no fault with the decision of the authorities, thereby dismissing the petition and closing the connected miscellaneous petition.
Bottom Line:
Pension and Dearness Allowance - Rule 20A of Tamil Nadu State Transport Corporation Employees Provident Fund specifies that a pensioner cannot draw Dearness Allowance on pension during the period of re-employment. However, petitioner contended non-receipt of Dearness Allowance along with regular pension, but counter statement and records confirmed payment of pension with Dearness Allowance.
Statutory provision(s): Tamil Nadu State Transport Corporation Employees Provident Fund Rule 20A
Tmt. P. Vanajakshi v. Metropolitan Transport Corporation, (Madras) : Law Finder Doc id # 2866971
