Petitioners denied retrospective Non-Practicing Allowance in pension benefits; Court rules division based on retirement date as reasonable
In a significant ruling, the Punjab and Haryana High Court has dismissed petitions seeking retrospective inclusion of Non-Practicing Allowance (NPA) in the pensionary benefits of veterinary doctors who retired before July 1, 2011. The judgment was delivered by Justice Namit Kumar, addressing the grievances of multiple retired veterinary doctors who argued that they were unjustly excluded from receiving the NPA, unlike their counterparts who retired after the stipulated date.
The petitioners, led by Major Dr. Bhupindra Singh, contended that the State of Punjab's decision to divide retirees into two categories—those receiving pensions with NPA and those without—was arbitrary and discriminatory. They sought to have the NPA included in their pension retrospectively, aligning their benefits with those provided to medical doctors.
However, the court found that the notification dated May 20, 2011, clearly stipulated that the NPA would only be applicable prospectively from July 1, 2011. Justice Kumar ruled that the financial implications and adherence to a specific date for the policy’s implementation were reasonable, dismissing claims of arbitrariness. The court relied on precedents set by the Supreme Court in similar cases, such as State of Punjab v. J.L. Gupta and State of Punjab v. Amar Nath Goyal, which upheld the classification of retirees based on the date of retirement as justified and not discriminatory.
The judgment emphasized that changes in pensionary benefits can have substantial financial impacts and that setting a specific date for the implementation of such benefits cannot be deemed arbitrary. The court further noted that the petitioners did not challenge the notification itself but only sought its retrospective application, which was not permissible under the law.
This decision underscores the principle that pensionary benefits are governed by the rules applicable at the time of an employee’s retirement, and subsequent changes do not automatically apply to those who retired earlier. The ruling is expected to have significant implications for similar cases across various sectors, where retirees seek retrospective application of new benefits.
Bottom Line:
Pensionary benefits - Petitioners, retired veterinary doctors, not entitled to Non-Practicing Allowance (NPA) retrospectively before the notification date of 01.07.2011 - Division of retirees into two categories based on retirement date upheld as not arbitrary.
Statutory provision(s): Articles 226/227 of the Constitution of India
Major Dr. Bhupindra Singh v. State of Punjab, (Punjab And Haryana) : Law Finder Doc id # 2838556
