High Court of KeralaDivision BenchWrit Appeals dismissed with costs; pay fixation...

Life Insurance Corporation of India v. Ex-servicemen (W.A. Nos. 1875, 1878, 1881, 1882, 1887, 1897, 1914, 1915, 1923, 1924, 1940, 1941 of 2022)

Case / Petition Number:W.A. Nos. 1875, 1878, 1881, 1882, 1887, 1897, 1914, 1915, 1923, 1924, 1940, 1941 of 2022

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • A.K. Jayasankaran Nambiar
  • Mohammed Nias C.P.
Judgment Date
2023-01-20
Court Decision / Holding
Writ Appeals are dismissed with costs. The 2017 re‑fixation shall have prospective effect from 6 January 2017; amounts recovered in arrears due to retrospective fixation shall be released within one month. LIC shall complete any necessary fresh fixation within three months and disburse the due amounts. An amount of Rs. 7,500 as costs per writ petition is awarded to the petitioners.
Final Disposition
Writ Appeals dismissed with costs; pay fixation directed to be prospective from 6.1.2017; release of withheld sums within one month; LIC to complete new fixation within three months; costs of Rs. 7,500 per writ petition.

Parties to the Case

Appellants / Petitioners

  • Life Insurance Corporation of India (LIC) Central Office, Yogakshema, Jeevan Bima Marg, Mumbai-400021 (represented by its Chairman)
  • Senior Divisional Manager LIC of India, Divisional Office, Jeevan Prakash, Pattom, Thiruvananthapuram-695004

Respondents

  • Manoj.P.G
  • Sunny.V
  • Rajesh.K.G
  • Ajmal.A
  • Venu Kavile Veettil
  • Jayesh Kumar.K.N
  • Mohammed IQBAL.C.A
  • Unnikrishnan.V
  • Unus.V.M
  • Sasikumar.A
  • P.C.Gopakumar
  • Anil Kumar.V.B
  • Krishna Pillai.K.S
  • Tharun Kumar.M
  • Sures N.C
  • Madhava V.S
  • Rajesh J. (as applicable)
  • P C Gopakumar
  • P C Gopakumar

Legal Representation & Advocates

Counsels for Petitioners

  • • S. Easwaran, SC

Counsels for Respondents

  • • C. E. Unnikrishnan
  • • Manu S., DSG of India

Case Synopsis & Summary

These writ appeals arise from a common judgment dated 25 August 2022 of a learned Single Judge in W.P. (C). No. 32144 of 2017 and connected petitions, filed by ex‑servicemen who joined Life Insurance Corporation of India (LIC) as Assistants under direct recruitment against an ex‑servicemen quota. Their pay on joining LIC was fixed by reckoning their last drawn defence salary including components such as MSP, X‑pay, Grade Pay and Dearness Allowance. In 2017, LIC re‑fixed the pay of these ex‑servicemen in light of central government directions allowing MSP not to form part of the last drawn salary for re‑employment, and treated the re‑fixation as legal; however, it sought recovery from earlier periods for any excess paid due to the prior fixation. The learned Single Judge held the 2017 refixation could have prospective effect from 6 January 2017 and directed release of withheld arrears, while staying recoupment. The LIC appealed, urging that fixation was legitimate and retrospective effects were permissible. The petitioners argued that retrospective recovery was impermissible and relied on Rafiq Masih (White Washer) and related circulars. The Kerala High Court held that MSP and similar components were never part of initial fixation, that the 2017 re‑fixation should be prospective, and dismissed the appeals with costs, directing release of withheld sums within a month and payment of costs to petitioners.

Provisions of Law Cited

O.M. No. 3/1/85-Estt (P II) dated 31-7-1986 (Pay fixation: Pay in Pay Band + Grade Pay; exclude MSP and Group Pay)CO circular ref:ZD/687/ASP/89 dated 2.6.1989 (Pay fixation; MSP and Group Pay excluded)CO/PER/ER-A/009/2012 dated 17/11/2012 (Re: Fixation of Pay of Ex-servicemen re‑employed with LIC)CO circular ref:CO/ER/Pen/1011/L001 dated 19/11/2010 (Pay fixation guidelines)Pay fixation principles: Pay = Pay Band + Grade Pay; MSP and Group Pay not included (as clarified in 2012 circular)State of Punjab and others v. Rafiq Masih (White Washer) – [2014 KHC 4818] (cited for pay/fixation principle)Uflex Ltd. v. Government of Tamil Nadu & Others – [(2022) 1 SCC 165] (costs following the event)

Legal Doctrines & Maxims

  • Costs following the cause (costs should follow the event)
  • Costs following the cause should curb frivolous litigation (as cited via Uflex)

Submissions & Arguments

Contentions of Appellants / Petitioners

The LIC contends that the petitioners’ last drawn defence salary, for fixation at entry, included MSP and other components, and LIC fixed basic pay accordingly in 2009/2010. Following central government directions, MSP would not form part of last drawn salary for re‑employment; LIC issued circulars to re‑fix pay and sought recovery of alleged excess pay from 2009/2010 onward. The 2017 refixation is legal and prospective; arrears must be recovered only if legitimately due, with no retroactive effect, and the communication demanding recovery was misconceived. The circulars establishing pay fixation basis (Pay Band + GP, excluding MSP) support the impugned decisions; the matter should not be retroactively disturbed.

Contentions of Respondents

The ex‑servicemen petitioners submit that retroactive recovery is unlawful; MSP and related allowances were included in the original fixation, thus 2017 refixation cannot be retrospective. They rely on Rafiq Masih to argue against recovery of amounts withheld; the Centre’s circulars must be strictly applied, and pay fixation cannot be altered to cause retrospective recovery. They urge the court to uphold the Single Judge’s order releasing withheld sums and to grant costs as per law.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
State of Punjab and others v. Rafiq Masih (White Washer)[2014 KHC 4818]PositiveCited to support the principle that pay fixation and recovery must follow correct, non-retroactive guidelines; reliance on circulars clarifying pay components.
Uflex Ltd. v. Government of Tamil Nadu & Others[(2022) 1 SCC 165]PositiveCited for the 'costs following the event' principle and for aligning cost orders with judicial outcomes.
W.A. No. 2094/2019 (Punjab National Bank context)nullPositiveReferenced as a basis for adopting similar principles on pay fixation and prospective effect of re-fixation in the present case.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE A.K.JAYASANKARAN NAMBIAR** **&** **THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.** **FRIDAY, THE 20[TH] DAY OF JANUARY 2023/30TH POUSHA, 1944** **W.A.NO.1875 OF 2022** **AGAINST THE JUDGMENT DATED 25.8.2022 IN WP(C).NO.1438/2018 OF HIGH COURT OF KERALA** ## **APPELLANTS/RESPONDENTS 1 & 2 IN THE WRIT PETITION:** **1 LIFE INSURANCE CORPORATION OF INDIA CENTRAL OFFICE, YOGAKSHEMA,JEEVAN BHEEMA MARG, MUMBAI- 400 021, REPRESENTED BY ITS CHAIRMAN.** - **2 THE SENIOR DIVISIONAL MANAGER LIC OF INDIA, DIVISIONAL OFFICE, JEEVAN PRAKASH,PATTOM,THIRUVANANTHAPURAM, PIN - 695004** **BY SRI.S.EASWARAN, SC** ## **RESPONDENTS/PETITIONER 1 & RESPONDENT 3 IN THE WRIT PETITION:** - **1 MANOJ.P.G AGED 51 YEARS S/O LATE V.GOPALAKRISHNAN, SR.NO.537973, HIGHER GRADE ASSISTANT, LIC OF INDIA, BRANCH-1,KOLLAM, RESIDING AT "NAVYAM", 215, SRIBHADRA NAGAR, ULLYAKOVIL, KOLLAM-691019** - **2 UNION OF INDIA, REPRESENTED BY ITS SECRETARY TO THE GOVERNMENT MINISTRY OF FINANCE, DEPARTMENT OF FINANCIAL SERVICES, JEEVAN DEEP BUILDING, PARLIAMENT STREET, NEW DELHI, PIN - 110001** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 2 ::** **1915, 1923, 1924, 1940** **& 1941 OF 2022** **BY ADV.SRI.C.E.UNNIKRISHNAN BY SRI.MANU S. DSG OF INDIA** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 17.01.2023 ALONG WITH W.A.NO.1878/2022 AND CONNECTED CASES, THE COURT ON 20.01.2023 DELIVERED THE FOLLOWING:** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 3 :: 1915, 1923, 1924, 1940** **& 1941 OF 2022** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** # **PRESENT** **THE HONOURABLE MR.JUSTICE A.K.JAYASANKARAN NAMBIAR** **&** **THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.** **FRIDAY, THE 20[TH] DAY OF JANUARY 2023/30TH POUSHA, 1944** **W.A.NO.1878 OF 2022** **AGAINST THE JUDGMENT DATED 25.8.2022 IN WP(C).NO.38533/2017 OF HIGH COURT OF KERALA** ## **APPELLANTS/RESPONDENTS 1 & 2 IN THE WRIT PETITION:** - **1 LIFE INSURANCE CORPORATION OF INDIA CENTRAL OFFICE, YOGAKSHEMA, JEEVAN BHEEMA MARG, MUMBAI- 400021, REPRESENTED BY ITS CHAIRMAN.,** - **2 THE SENIOR DIVISIONAL MANAGER LIC OF INDIA,DIVISIONAL OFFICE, JEEVAN PRAKASH,PATTOM, THIRUVANANTHAPURAM-695004** **BY SRI.S.EASWARAN, SC** **RESPONDENTS/PETITIONERS 1 TO 3 & RESPONDENT 3 IN THE WRIT PETITION:** - **1 BOBEN.K.JOHN AGED 55 YEARS, S/O LATE K.C.JOHN, SR.NO.538019, ASSISTANT, CBO-1, LIC OF INDIA, THIRUVANANTHAPURAM, RESIDING AT T.C8/1425,ANC-17, ARCHANA NAGAR,PONGUMMOODU, MEDICAL COLLEGE.P.O, THIRUVANANTHAPURAM-695011** - **2 GIREESH.J S/O JANARDHANAN PILLAI, SR.NO.537984, ASSISTANT,** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 4 ::** **1915, 1923, 1924, 1940** **& 1941 OF 2022** **LIC OF INDIA,CHATHANNOOR BRANCH, RESIDING AT MEDAYILVEEDU, POZHIKKARA, KONGAL, PARAVUR, KOLLAM-697003** - **3 UNNIKRISHNAN.V** **AGED 54 YEARS, S/O LATE VELAYUDHAN NAIR, SR NO.537979, LIC OF INDIA, KILIMANOOOR BRANCH, RESIDING AT 'KRISHNNASRI'. CHOOTTAYIL, KILIMANUR-695601** - **4 SECRETARY TO THE GOVERNMENT MINISTRY OF FINANCE, DEPARTMENT OF FINANCIAL SERVICES, JEEVAN DEEP BUILDING,PARLIAMENT STREET, NEW DELHI-110001** **BY ADV.SRI.C.E.UNNIKRISHNAN BY SRI.MANU S., DSG OF INDIA** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 17.01.2023 ALONG WITH W.A.NO.1875/2022 AND CONNECTED CASES, THE COURT ON 20.01.2023 DELIVERED THE FOLLOWING:** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 5 :: 1915, 1923, 1924, 1940** **& 1941 OF 2022** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE A.K.JAYASANKARAN NAMBIAR** **&** **THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.** **FRIDAY, THE 20[TH] DAY OF JANUARY 2023/30TH POUSHA, 1944** **W.A.NO.1881 OF 2022** **AGAINST THE JUDGMENT DATED 25.8.2022 IN WP(C).NO.32144/2017 OF HIGH COURT OF KERALA** ## **APPELLANTS/RESPONDENTS 1 & 2 IN THE WRIT PETITION:** - **1 THE LIFE INSURANCE CORPORATION OF INDIA CENTRAL OFFICE, YOGAKSHEMA, JEEVAN BHEEMA MARG, MUMBAI- 400021, REPRESENTED BY ITS CHAIRMAN.** - **2 THE SENIOR DIVISIONAL MANAGER LIC OF INDIA, DIVISIONAL OFFICE, JEEVAN PRAKASH, ERNAKULAM, COCHIN-682011** **BY SRI.S.EASWARAN, SC** **RESPONDENTS/PETITIONERS 1 TO 3 & RESPONDENT 3 IN THE WRIT PETITION:** - **1 SUNNY V AGED 52 YEARS S/O LATE K.A.VASU, VAISAKAM,VARANADU (PO), CHERTHALA,ALAPPUZHA DISTRICT., PIN - 688539** - **2 CHANDRAN S AGED 59 YEARS S/O LATE K.A.SUPRAN, KAITHAKATTU HOUSE, 18/1986B, VALUMMEL ROAD, THOPPUMPADY,** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 6 ::** **1915, 1923, 1924, 1940** **& 1941 OF 2022** ## **KOCHI-682005** - **3 MOHAMMED IQBAL.C.A AGED 55 YEARS S/O C.B.ABDUL KHADIR, BUKHARI MANZIL, PANAYIKKULAM, ERNAKULAM DISTRICT. PIN - 623522** - **4 UNION OF INDIA REPRESENTED BY SECRETARY TO THE GOVERNMENT, MINISTRY OF FINANCE, DEPARTMENT OF FINANCIAL SERVICES, JEEVAN DEEP BUILDING, PARLIAMENT STREET, NEW DELHI-110001** **BY ADV.SRI.C.E.UNNIKRISHNAN BY SRI.MANU S., DSG OF INDIA** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 17.01.2023 ALONG WITH W.A.NO.1875/2022 AND CONNECTED CASES, THE COURT ON 20.01.2023 DELIVERED THE FOLLOWING:** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 7 :: 1915, 1923, 1924, 1940 & 1941 OF 2022** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE A.K.JAYASANKARAN NAMBIAR** **&** **THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.** **FRIDAY, THE 20[TH] DAY OF JANUARY 2023/30TH POUSHA, 1944** ## **W.A.NO.1882 OF 2022** ## **AGAINST THE JUDGMENT DATED 25.8.2022 IN WP(C).NO.37656/2017 OF HIGH COURT OF KERALA** ## **APPELLANTS/RESPONDENTS 1 & 2 IN THE WRIT PETITION:** - **1 THE LIFE INSURANCE CORPORATION OF INDIA, CENTRAL OFFICE, YOGAKSHEMA, JEEVAN BHEEMA MARG, MUMBAI-400021 REPRESENTED BY ITS CHAIRMAN,** - **2 THE SENIOR DIVISIONAL MANAGER LIC OF INDIA, DIVISIONAL OFFICE, KOVILAKATHU PADAM, THIRUVAMPADY.P.O,THRISSUR, PIN - 680022** **BY SRI.S.EASWARAN, SC** ## **RESPONDENTS/PETITIONER 1 & RESPONDENT 3 IN THE WRIT PETITION:** - **1 RAJESH.K.G AGED 47 YEARS S/O GOPIKAIMAL, SR.NO.585292,** - **ASSISTANT, LIC OF INDIA, ALATHUR BRANCH, RESIDING AT "ANAGHAM", KANNADI, KANNANNUR, PALAKKAD, PIN - 670307** - **2 UNION OF INDIA REPRESENTED BY SECRETARY TO GOVERNMENT, MINISTRY OF FINANCE, DEPARTMENT OF FINANCIAL SERVICES, JEEVAN DEEP BUILDING, PARLIAMENT STREET,** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 8 ::** **1915, 1923, 1924, 1940** **& 1941 OF 2022** ## **NEW DELHI-110001** **BY ADV.SRI.C.E.UNNIKRISHNAN BY SRI.MANU S., DSG OF INDIA** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 17.01.2023 ALONG WITH W.A.NO.1875/2022 AND CONNECTED CASES, THE COURT ON 20.01.2023 DELIVERED THE FOLLOWING:** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 9 :: 1915, 1923, 1924, 1940 & 1941 OF 2022** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE A.K.JAYASANKARAN NAMBIAR** ## **&** ## **THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.** **FRIDAY, THE 20[TH] DAY OF JANUARY 2023/30TH POUSHA, 1944** **W.A.NO.1887 OF 2022** **AGAINST THE JUDGMENT DATED 25.8.2022 IN W.P(C).NO.35749/2017 OF HIGH COURT OF KERALA** ## **APPELLANTS/RESPONDENTS 2 TO 4 IN THE WRIT PETITION:** - **1 THE LIFE INSURANCE CORPORATION OF INDIA CENTRAL OFFICE, YOGAKSHEMA, JEEVAN BHEEMA MARG, MUMBAI-486021, REPRESENTED BY ITS CHAIRMAN.** - **2 THE SENIOR DIVISIONAL MANAGER LIC OF INDIA, DIVISIONAL OFFICE, JEEVAN PRAKASH, KOZHIKODE - 673001** - **3 THE BRANCH MANAGER LIC OF INDIA, PERINTHALMANNA BRANCH,KIDANGU ROAD, PERINTHALMANNA-679322** **BY SRI.S.EASWARAN, SC** ## **RESPONDENTS/PETITIONER & RESPONDENT 1 IN THE WRIT PETITION:** - **1 SASIKUMAR A AGED 52 YEARS, S/O.SANKARAN NAIR,** - **'AYODHYA', MANGALAMKUNNU, KATTUKULAM.P.O, PALAKKAD – 679514** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 10 ::** **1915, 1923, 1924, 1940** **& 1941 OF 2022** - **2 UNION OF INDIA, REPRESENTED BY ITS SECRETARY TO THE GOVERMENT, MINISTRY OF FINANCE, DEPARTMENT OF FINANCIAL SERVICES, JEEVAN DEEP BUILDING, PARLIAMENT STREET, NEW DELHI-110001** **BY ADV.SRI.VARGHESE P.CHACKO BY SRI.MANU S., DSG OF INDIA** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 17.01.2023 ALONG WITH W.A.NO.1875/2022 AND CONNECTED CASES, THE COURT ON 20.01.2023 DELIVERED THE FOLLOWING:** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 11 :: 1915, 1923, 1924, 1940 & 1941 OF 2022** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE A.K.JAYASANKARAN NAMBIAR** ## **&** ## **THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.** **FRIDAY, THE 20[TH] DAY OF JANUARY 2023/30TH POUSHA, 1944** ## **W.A.NO.1897 OF 2022** **AGAINST THE JUDGMENT DATED 25.8.2022 IN WP(C).NO.1602/2018 OF HIGH COURT OF KERALA** ## **APPELLANTS/RESPONDENTS 1 & 2 IN THE WRIT PETITION:** - **1 LIFE INSURANCE CORPORATION OF INDIA CENTRAL OFFICE, YOGAKSHEMA, JEEVAN BHEEMA MARG, MUMBAI- 400021, REPRESENTED BY ITS CHAIRMAN.** - **2 THE SENIOR DIVISIONAL MANAGER LIC OF INDIA,DIVISIONAL OFFICE, JEEVAN PRAKASH, PATTOM, THIRUVANANTHAPURAM PIN - 695004** **BY SRI.S.EASWARAN, SC** ## **RESPONDENTS/PETITIONER 1 & RESPONDENT 1 IN THE WRIT PETITION:** - **1 AJMAL.A AGED 50 YEARS S/O ALIKUNJU.M.K, WORKING AS HIGHER GRADE ASSISTNAT (ADMIN), CLAIMS DEPARTMENT, LIC OF INDIA,KOTTARAKKARA BRANCH, KOLLAM DISTRICT, RESIDING AT ASHISH VILLA, KANNAM CODE, ADOOR, PATHANAMTHITTA DISTRICT., PIN – 691523** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 12 ::** **1915, 1923, 1924, 1940** **& 1941 OF 2022** - **2 UNION OF INDIA REPRESENTED BY ITS SECRETARY TO GOVERNMENT, MINISTRY OF FINANCE, DEPARTMENT OF FINANCIAL SERVICES, JEEVAN DEEP BUILDING, PARLIAMENT STREET, NEW DELHI - 110001** **BY ADV.SRI.MANOJ RAMASWAMY BY SRI.MANU S., DSG OF INDIA** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 17.01.2023 ALONG WITH W.A.NO.1875/2022 AND CONNECTED CASES, THE COURT ON 20.01.2023 DELIVERED THE FOLLOWING:** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 13 :: 1915, 1923, 1924, 1940 & 1941 OF 2022** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE A.K.JAYASANKARAN NAMBIAR** **&** ## **THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.** **FRIDAY, THE 20[TH] DAY OF JANUARY 2023/30TH POUSHA, 1944** **W.A.NO.1914 OF 2022** **AGAINST THE JUDGMENT DATED 25.8.2022 IN WP(C).NO.37632/2017 OF HIGH COURT OF KERALA** ## **APPELLANTS/RESPONDENTS 2 TO 4 IN THE WRIT PETITION:** - **1 THE LIFE INSURANCE CORPORATION OF INDIA CENTRAL OFFICE, YOGAKSHEMA, JEEVAN BHEEMA MARG, MUMBAI- 400021, REPRESENTED BY ITS CHAIRMAN.** - **2 THE SENIOR DIVISIONAL MANAGER LIC OF INDIA, DIVISIONAL OFFICE, KOZHIKODE-673001** - **3 THE BRANCH MANAGER LIC OF INDIA, VADAKARA BRANCH, OPPOSITE TOWN HALL, VADAKARA, KOZHIKODE-673101** **BY SRI.S.EASWARAN, SC** ## **RESPONDENTS/PETITIONER & 2ND RESPONDENT IN THE WRIT PETITION:** - **1 MR.THARUN KUMAR M AGED 51 YEARS S/O P.BALAKISHNA KURUP, MANOTH HOUSE, KURIAKKALAD.P.O, VADAKARA, KOZHIKODE-673104** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 14 ::** **1915, 1923, 1924, 1940** **& 1941 OF 2022** - **2 UNION OF INDIA REPRESENTED BY SECRETARY TO THE GOVERNMENT, MINISTRY OF FINANCE, DEPARTMENT OF FINANCIAL SERVICES, JEEVAN DEEP BUILDING,PARLIAMENT STREET, NEW DELHI-110001** - **BY ADV.SRI.VARGHESE P.CHACKO BY SRI.MANU S., DSG OF INDIA** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 17.01.2023 ALONG WITH W.A.NO.1875/2022 AND CONNECTED CASES, THE COURT ON 20.01.2023 DELIVERED THE FOLLOWING:** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 15 :: 1915, 1923, 1924, 1940** **& 1941 OF 2022** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE A.K.JAYASANKARAN NAMBIAR** **&** ## **THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.** **FRIDAY, THE 20[TH] DAY OF JANUARY 2023/30TH POUSHA, 1944** **W.A.NO.1915 OF 2022 AGAINST THE JUDGMENT DATED 25.8.2022 IN W.P(C).NO.37445/2017 OF HIGH COURT OF KERALA** ## **APPELLANTS/RESPONDENTS 1 & 2 IN THE WRIT PETITION:** - **1 THE LIFE INSURANCE CORPORATION OF INDIA CENTRAL OFFICE, YOGAKSHEMA, JEEVAN BHEEMA MARG, MUMBAI- 400021, REPRESENTED BY ITS CHAIRMAN.** - **2 THE SENIOR DIVISIONAL MANAGER LIC OF INDIA,DIVISIONAL OFFICE, JEEVAN PRAKASH, KOZHIKODE-673001** **BY SRI.S.EASWARAN, SC** **RESPONDENTS/PETITIONERS 1 TO 5 & RESPONDENT 3 IN THE WRIT PETITION:** - **1 VENU KAVILE VEETTIL AGED 52 YEARS S/O.P.V.KUNHIRAMAN, SR.NO.585318, CASHIER, LIC OF INDIA, PAYYANNUR BRANCH, RESIDING AT KAVIL HOUSE, MAVICHERY, PAYYANNUR-670307** - **2 JAYESH KUMAR K N AGED 51 YEARS S/O C.K.NARAYANA PANICKER, SR.NO.585265,** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 16 ::** **1915, 1923, 1924, 1940** **& 1941 OF 2022** **HGA, LIC OF INDIA, NILAMBUR BRANCH, RESIDING AT "SREENILAYAM", CHENAPARAMBU, FEROKE-673631** - **3 UNUS.V.M** - **AGED 50 YEARS** **S/O HUSSAIN V.M, SR.NO.585319, HGA, LIC OF INDIA, NILAMBUR BRANCH, RESIDING AT AKKARA KARAKATH,ELATHUR, KOZHIKODE-673303** - **4 DILEEP KUMAR.K.V AGED 51 YEARS S/O K.K.VIJAYAN, SR.NO.585257, HGA(PROGRAMMER), LIC OF INDIA, SULTHAN BATHERY BRANCH, RESIDING AT P.KANAVULLYPADATHU HOUSE, POTHADIP.O, KENICHIRA, WAYANAD. PIN - 673596** - **5 SAJEEVAN.A.M AGED 51 YEARS S/O K.BALAN NAMBIAR, SR.NO.585297, AAO LIC OF INDIA, PERAMBRA BRANCH, RESIDING AT ARAVALLAM MULLIL HOUSE, AVITANALLUR, KOZHIKODE-673614** - **6 UNION OF INDIA REPRESENTED BY ITS SECRETARY TO THE GOVERNMENT, MINISTRY OF FINANCE, DEPARTMENT OF FINANCIAL SERVICES, JEEVAN DEEP BUILDING, PARLIAMENT STREET, NEW DELHI-110001** **BY ADV.SRI.C.E.UNNIKRISHNAN BY SRI.S.MANU, DSG OF INDIA** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 17.01.2023 ALONG WITH W.A.NO.1875/2022 AND CONNECTED CASES, THE COURT ON 20.01.2023 DELIVERED THE FOLLOWING:** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 17 :: 1915, 1923, 1924, 1940 & 1941 OF 2022** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE A.K.JAYASANKARAN NAMBIAR** ## **&** ## **THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.** **FRIDAY, THE 20[TH] DAY OF JANUARY 2023/30TH POUSHA, 1944** ## **W.A.NO.1923 OF 2022** **AGAINST THE JUDGMENT DATED 25.8.2022 IN WP(C).NO.40725/2017 OF HIGH COURT OF KERALA** ## **APPELLANTS/RESPONDENTS 2 & 3 IN THE WRIT PETITION:** - **1 THE LIFE INSURANCE CORPORATION OF INDIA CENTRAL OFFICE, YOGAKSHEMA,JEEVAN BHEEMA MARG, MUMBAI-400021 REPRESENTED BY ITS CHAIRMAN.** - **2 THE SENIOR DIVISIONAL MANAGER LIC OF INDIA, DIVISIONAL OFFICE,** - **JEEVAN PRAKASH, PATTOM, THIRUVANANTHAPURAM, PIN - 695004** **BY SRI.S.EASWARAN, SC** ## **RESPONDENTS/PETITIONER 1 & RESPONDENTS 1 IN THE WRIT PETITION:** - **1 KRISHNA PILLAI K S AGED 53 YEARS** - **S/O LATE SRI.K.K.SUBRAMANIA PILLAI, WORKING AS HIGHER GRADE ASSISTANT, O.S.DEPARTMENT, S.R.NO.538000, LIC OF INDIA, NEDUMANGAD BRANCH OFFICE (CODE 78N), NEDUMANGAD.P.O, THIRUVANANTHAPURAM-695541 RESIDING AT TC 6/715, "KRISHNA KRIPA, SNRA 45, SIVASAKTHI NAGAR, THURUVIKKAL.P.O,** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 18 ::** **1915, 1923, 1924, 1940** **& 1941 OF 2022** **MEDICAL COLLEGE.P.O, THIRUVANANTHAPURAM-695011** - **2 UNION OF INDIA REPRESENTED BY SECRETARY TO THE GOVERNMENT, MINISTRY OF FINANCE, DEPARTMENT OF FINANCIAL SERVICES, JEEVAN DEEP BUILDING, PARLIAMENT STREET, NEW DELHI - 110001** **BY ADV.SRI.MANOJ RAMASWAMY BY SRI.MANU.S., DSG OF INDIA** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 17.01.2023 ALONG WITH W.A.NO.1875/2022 AND CONNECTED CASES, THE COURT ON 20.01.2023 DELIVERED THE FOLLOWING:** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 19 :: 1915, 1923, 1924, 1940** **& 1941 OF 2022** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE A.K.JAYASANKARAN NAMBIAR** **&** ## **THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.** **FRIDAY, THE 20[TH] DAY OF JANUARY 2023/30TH POUSHA, 1944** **W.A.NO.1924 OF 2022** **AGAINST THE JUDGMENT DATED 25.8.2022 IN WP(C).NO.21430/2018 OF HIGH COURT OF KERALA** ## **APPELLANTS/RESPONDENTS 1 & 2 IN THE WRIT PETITION:** - **1 LIFE INSURANCE CORPORATION OF INDIA CENTRAL OFFICE, YOGAKSHEMA, JEEVAN BHEEMA MARG, MUMBAI-400021, REPRESENTED BY ITS CHAIRMAN.** - **2 THE SENIOR DIVISIONAL MANAGER LIC OF INDIA,DIVISIONAL OFFICE, JEEVAN PRAKASH,NAGAMPADOM, KOTTAYAM-686001** **BY SRI.S.EASWARAN, SC** **RESPONDENTS/PETITIONERS 1 TO 6 & RESPONDENT 3 IN THE WRIT PETITION:** - **1 ANIL KUMAR V B AGED 54 YEARS S/O BHASKARAN.G, SR.NO.577604,ASSISTANT, LIC OF INDIA, KAYAMKULAM BRANCH, RESIDING AT VALLYATHU VEEDU, ELIPPAKULAM, PALLICKAL-690503, ALAPPUZHA DISTRICT.** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 20 ::** **1915, 1923, 1924, 1940** **& 1941 OF 2022** **2 KURIAN P.M AGED 54 YEARS S/O VARKEY MATHAI, SR.NO.577593,HGA, LIC OF INDIA, MUNDAKKAYAM BRANCH, RESIDING AT PULPAKUNNEL HOUSE, ANDOOR, MARANGATTUPALLY-686635, KOTTAYAM DISTRICT.** **3 SAJI S AGED 50 YEARS S/O SEKARAN NAIR.M.R, SR.NO.577645,HGA, LIC OF INDIA, KAYAMKULAM BRANCH, RESIDING AT SAROVARAM HOUSE, PEROOR, ETTUMANOOR-686637, KOTTAYAM DISTRICT.** - **4 SHAJI GEORGE AGED 53 YEARS S/O K.K.O.F GEORGE, SR.NO.577657, HGA, LIC OF INDIA, NEDUMGANDAM BRANCH, RESIDING AT OZHAKKAL HOUSE, KANCHIYAR-685511, IDUKKI DISTRICT.** - **5 SEBASTIAN P T AGED 60 YEARS SR.NO.577658, ASSISTANT, LIC OF INDIA, RANNI BRANCH, RESIDING AT POTTOMPLACKAL, KANDAYANIKKADU-686541, KOTTAYAM DISTRICT** - **6 SURESH N C AGED 53 YEARS SR.NO.577621, ASSISTANT, LIC OF INDIA, KOTTAYAM-II BRANCH,RESIDING AT BEENA NIVAS, PATTITHANAM, ETTUMANOOR-686631, KOTTAYAM DISTRICT.** - **7 UNION OF INDIA REPRESENTED BY ITS SECRETARY TO GOVERNMENT, MINISTRY OF FINANCE, DEPARTMENT** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 21 ::** **1915, 1923, 1924, 1940** **& 1941 OF 2022** **OF FINANCIAL SERVICES, JEEVAN DEEP BUILDING, PARLIAMENT STREET, NEW DELHI-110001** **BY ADV.SRI.C.E.UNNIKRISHNAN BY SRI.MANU.S, DSG OF INDIA** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 17.01.2023 ALONG WITH W.A.NO.1875/2022 AND CONNECTED CASES, THE COURT ON 20.01.2023 DELIVERED THE FOLLOWING:** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 22 :: 1915, 1923, 1924, 1940** **& 1941 OF 2022** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE A.K.JAYASANKARAN NAMBIAR** **&** **THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.** **FRIDAY, THE 20[TH] DAY OF JANUARY 2023/30TH POUSHA, 1944** **W.A.NO.1940 OF 2022** **AGAINST THE JUDGMENT DATED 25.8.2022 IN WP(C).NO.38239/2017 OF HIGH COURT OF KERALA** ## **APPELLANTS/RESPONDENTS 1 & 2 IN THE WRIT PETITION:** - **1 THE LIFE INSURANCE CORPORATION OF INDIA CENTRAL OFFICE, YOGAKSHEMA, JEEVAN BHEEMA MARG, MUMBAI-400021, REPRESENTED BY ITS CHAIRMAN.** - **2 THE SENIOR DIVISIONAL MANAGEER LIC OF INDIA, DIVISIONAL OFFICE, JEEVAN PRAKASH, THIRUVANANTHAPURAM - 695004** **BY SRI.S.EASWARAN, SC** **RESPONDENTS/PETITIONERS 1 TO 3 & RESPONDENT 3 IN THE WRIT PETITION:** - **1 ANILKUMAR.S AGED 54 YEARS S/O P.G.SURENDRA PANICKER, SR.NO.537983, CASHIER.F& A DEPARTMENT, DIVISIONAL OFFICE, LIC OF INDIA, F & A DEPARTMENT, DIVISIONAL OFFICE, LIC OF INDIA, THIRUVANANTHAPURAM, RESIDING AT "SOORYAGAYATHRI", D-41, LAKSHMI NAGAR, PATTOM, THIRUVANANATHAPURAM-695004** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 23 ::** **1915, 1923, 1924, 1940** **& 1941 OF 2022** - **2 JAYARAJ.M.NAIR AGED 46 YEARS S.O A.J.MADHAVAN NAIR, SR.NO.538027, CASHIER, DIVISIONAL OFFICE, LIC OF INDIA, THIRUVANANTHAPURAM, "MADHAVAM", K.P.20/181 C, THIRUVANANTHAPURAM-695043** - **3 MADHU.V.S AGED 53 YEARS S/O K.M.THRIVIKRAMAN NAIR,SR NO.537981, ASSISTANT, DIVISIONAL OFFICE, LIC OF INDIA, THIRUVANANTHAPURAM, RESIDING AT "SAROJA BHAVAN", THEKKUMKARA, NEDUMANGAD-695541** - **4 UNION OF INDIA REPRESENTED BY ITS SECRETARY TO THE GOVERNMENT, MINISTRY OF FINANCE, DEPARTMENT OF FINANCIAL SERVICES, JEEVAN DEEP BUILDING,PARLIAMENT STREET, NEW DELHI-110001** **BY ADV.SRI.C.E.UNNIKRISHNAN BY SRI.MANU.S., DSG OF INDIA** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 17.01.2023 ALONG WITH W.A.NO.1875/2022 AND CONNECTED CASES, THE COURT ON 20.01.2023 DELIVERED THE FOLLOWING:** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 24 :: 1915, 1923, 1924, 1940 & 1941 OF 2022** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE A.K.JAYASANKARAN NAMBIAR** ## **&** ## **THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.** **FRIDAY, THE 20[TH] DAY OF JANUARY 2023/30TH POUSHA, 1944** **W.A.NO.1941 OF 2022** **AGAINST THE JUDGMENT DATED 25.8.2022 IN WP(C).NO.40175/2017 OF HIGH COURT OF KERALA** ## **APPELLANTS/RESPONDENTS 2 & 3 IN THE WRIT PETITION:** - **1 THE LIFE INSURANCE CORPORATION OF INDIA CENTRAL OFFICE, YOGAKSHEMA, JEEVAN BHEEMA MARG, MUMBAI-400021, REPRESENTED BY ITS CHAIRMAN.** - **2 THE SENIOR DIVISIONAL MANAGER LIC OF INDIA, DIVISIONAL OFFICE, JEEVAN PRAKASH, PATTOM, THIRUVANANTHAPURAM-695004** **BY SRI.S.EASWARAN, SC** ## **RESPONDENTS/PETITIONER 1 & RESPONDENT 1 IN THE WRIT PETITION:** - **1 P.C.GOPAKUMAR AGED 50 YEARS S/O P.CHANDRASEKHARAN NAIR, WORKING AS HIGHER GRADE ASSISTANT, P.S.DEPARTMENT, SR.NO.537980, LIC OF INDIA, KARUNAGAPPALLY BRANCH, KOLLAM, RESIDING AT :** **SMRA-99, THEMBAZHUTHU VEEDU, MANAYIL KULANGARA, KOLLAM DISTRICT-691012** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 25 ::** **1915, 1923, 1924, 1940** **& 1941 OF 2022** - **2 UNION OF INDIA REPRESENTED BY ITS SECRETARY TO THE GOVERNMENT, MINISTRY OF FINANCE, DEPARTMENT OF FINANCIAL SERVICES, JEEVAN DEEP BUILDING, PARLIAMENT STREET, NEW DELHI-110001** **BY ADV.SRI.MANOJ RAMASWAMY BY SRI.MANU.S., DSG OF INDIA** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 17.01.2023 ALONG WITH W.A.NO.1875/2022 AND CONNECTED CASES, THE COURT ON 20.01.2023 DELIVERED THE FOLLOWING:** **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 26 :: 1915, 1923, 1924, 1940** **& 1941 OF 2022** ## **J U D G M E N T** ## **A.K. Jayasankaran Nambiar, J.** The Life Insurance Corporation of India [LIC] and its Senior Divisional Manager are the appellants before us aggrieved by the common judgment dated 25.8.2022 of a learned Single Judge in W.P. (C).No.32144 of 2017 and connected cases. The brief facts necessary for disposal of these writ appeals are as follows: The writ petitioners were ex-servicemen who got appointment in the LIC in the cadre of Assistants. Their appointments were through direct recruitment against a quota earmarked for ex-servicemen. After their discharge from the Defence service, they were appointed as Assistants in the LIC on various dates between 2009 and 2010, and at the time of their joining service of LIC, their pay was fixed by reckoning their last drawn defence salary in the manner stipulated under the O.M's issued by the Central Government in the Department of Personnel and Training, and thereafter other allowances such as Dearness Allowance, House Rent Allowance, City Compensatory **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 27 :: 1915, 1923, 1924, 1940 & 1941 OF 2022** Allowance etc. were added thereto to arrive at the gross salary payable to them. The writ petitioners were drawing the said salary till 2017. 2. In 2017, a re-fixation of the pay of the writ petitioners was effected based on instructions issued by the Central Government in regard to fixation of pay of ex-servicemen re-employed in public sector banks and like organisations. While re-fixing the pay of the writ petitioners, the appellants found that, as per the instructions issued by the Central Government, the component of Military Service Pay [MSP] that was paid to the writ petitioners when they were in Defence service was not to be reckoned in the computation of pay at the time of their re-employment with LIC. Assuming that the MSP component had been erroneously reckoned while fixing the pay and gross salary of the writ petitioners at the time of their initial appointment as Assistants, the appellants issued communications to the writ petitioners pointing out that the re-fixation of pay was done as per the Central Government instructions in force, and that certain amounts were liable to be recovered from them towards alleged excess pay drawn by them consequent to the MSP component of their military pay having been reckoned at the time of fixing their pay in the LIC at the time of their **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 28 :: 1915, 1923, 1924, 1940 & 1941 OF 2022** initial appointment in 2009/2010. It was the said communication that was impugned by the writ petitioners in the writ petitions referred above. 3. The learned Single Judge, who considered the issue, found that the re-fixation effected by the appellants in 2017 could not be said to be illegal since it was pursuant to Government instructions issued in this regard. The learned Judge however found that the re-fixation could only have prospective effect from 6.1.2017, the date of the decision taken by the appellants on the directions of the Central Government. The learned Judge however set aside the recovery steps attempted by the appellants from the arrears of pay due to the writ petitioners on account of retrospective operation of the re-fixation, and directed a release of the withheld amounts. The directions of the learned Single Judge read as follows: “5. Having considered the contentions advanced, I am of the opinion that though the judgment in W.A.No.2094 of 2019 was in respect of reemployed Ex-servicemen in the Punjab National Bank, the principles as well as the circulars which were considered are identical in this case as well. On a writ petition being filed by re-employed ex-servicemen, the learned single Judge had set aside the orders which directed re-fixation of pay. However, after considering the contentions of the parties and other factual aspects of the matter, the Division Bench came to the conclusion that the revision of pay, as carried out by the impugned orders in question was perfectly legal and valid. However, it was held that the orders and circulars could have only prospective effect and that recovery from anterior dates would not be **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 29 :: 1915, 1923, 1924, 1940 & 1941 OF 2022** justified. 6. In the instant cases also, the LIC had passed orders on 6.1.2017 refixing the pay drawn by the petitioners with effect from the date of their entry in service, which is under challenge. The contentions are also identical. I find no reason to depart from the findings of the Division Bench in W.A.No.2094/2019. In the result, the writ petitions are allowed in part. The impugned orders to the extent they direct refixing of the petitioners' basic pay with retrospective effect from the date of their appointments is set aside. The refixation shall be prospective and can have effect only from the date of the decision taken by the LIC on the directions of the Central Government, that is, 6.1.2017. The amounts recovered from the arrears of pay due to the petitioners on account of the retrospective operation of the refixation shall be duly released to the petitioners. Any refixation which is found necessary consequent to these directions shall be carried out by the LIC, without fail, within a period of three months from the date of receipt of a copy of this judgment and all benefits of this declaration shall also be released to the petitioners within the said time limit. With regard to the contention raised in these writ petitions that the directions of the Government are not binding on them and that there can be no refixation of pay at all, the said contentions are repelled since there is no challenge raised to the directions on any sustainable grounds.” 4. In the appeals before us, the contention of Sri. S.Easwaran, the learned Standing counsel appearing on behalf of the appellants is essentially that the last pay of all the writ petitioners in the Armed Forces was calculated by including the components like MSP, X-pay, Grade Pay, Dearness Allowance etc. and the LIC had fixed their basic pay taking into account all the ingredients which they were entitled to as per their last pay in the Armed Forces. He contends that it was on this basis that the basic pay of the petitioners was fixed and communicated to them at the time when they joined the service of LIC **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 30 :: 1915, 1923, 1924, 1940 & 1941 OF 2022** in 2009/2010. It is his further contention that since the Central Government had directed that the component of MSP will not form part of the last drawn salary of the ex-servicemen, instructions had to be issued to all public sector undertakings to re-fix the salary of such ex-servicemen who were re-employed. The contention, in other words, is that the writ petitioners were not justified in challenging the re-fixation. As regards the arrears of pay due to the writ petitioners consequent to the revision of pay, it is contended that while the petitioners were entitled for arrears of salary consequent to the pay fixation, the appellants had kept the amount in a suspense account, since the question of recovery consequent to the erroneous fixation of initial pay was pending consideration before the writ court. It is the stand of the appellants that the writ petitioners had drawn excess pay/gross salary from the appellants during the period between 2009/2010 to 2017 when the re-fixation was done, on account of the accidental inclusion of the MSP component while reckoning their pay at the time of entering into the service of the appellants. 5. Per contra, it is the submission of Sri. C.E. Unnikrishnan, Sri. Manoj Ramaswamy as also Sri. Varghese P. Chacko, the learned counsel appearing for the writ petitioners that, in view of the judgment **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 31 :: 1915, 1923, 1924, 1940 & 1941 OF 2022** of the Supreme Court in **State of Punjab and others v. Rafiq Masih (White Washer) – [2014 KHC 4818]** , the re-fixation and recovery attempted by the appellants was wholly incorrect. Although the learned Single Judge had upheld the re-fixation of salary, the release of withheld amounts was directed by the learned Single Judge following the principles laid down in **Rafiq Masih (supra)** . 6. On a consideration of the rival submissions and on going through the material produced before us, we are of the view that for the reasons that are to follow, these writ appeals must necessarily fail. When the writ appeals came up for hearing before us on 11.1.2023, we had requested the learned counsel for the appellants to produce the relevant Circulars issued by the appellants that formed the basis for the fixation of pay of the writ petitioners at the time of their initial entry into service of the appellants as Assistants in 2009/2010. We had sought for the said documents so as to ascertain whether the component of MSP, which the appellants claimed, had in fact entered into the reckoning of pay of the writ petitioners at the time of their entry into service as Assistants. The learned counsel for the appellants has since produced a copy of the Circular dated 17.11.2012, which reads as follows: **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 32 :: 1915, 1923, 1924, 1940** **& 1941 OF 2022** ## **LIFE INSURANCE CORPORATION OF INDIA** ## **CENTRAL OFFICE, MUMBAI** 'Yogakshema', Jeevan Bima Marg, Mumbai – 400 021. Department : Personnel/ER/A Circular No : CO/PER/ER-A/009/2012 Date : 17/11/2012 ## **ALL H.O.D.s OF CENTRAL OFFICE, ALL ZONAL MANAGERs-IN-CHARGE OF ZONES AND SR./DIVISIONAL MANAGERs-IN-CHARGE OF THE DIVISIONS.** ## **Re:** Fixation of Pay of Ex-servicemen re-employed with LIC of India This is further to instructions contained in CO circular letter ref:CO/ER/Pen/1011/L001 dated 19/11/2010 (copy enclosed). It was informed that the fixation of pay shall be governed by instructions contained in CO circular ref:ZD/687/ASP/89 dated 2.6.1989 and 'Pay' in para 3.3(i) of the said circular shall include only 'Pay in Pay Band'. It was also informed that revised instructions will be issued after receipt of further directions from the Government of India. Now, we are in receipt of the directions from the Department of Financial Services, Ministry of Finance, Government of India clarifying that 'Pay' in 'Last drawn defence salary (X)' is to be taken as 'Pay in the Pay Band' plus 'Grade Pay' in respect of those Ex-servicemen who were released from the defence services on or after 1.1.2006 and re-employed with the Corporation. Therefore, 'Pay in the Pay Band' and 'Grade Pay' shall be considered for the purpose of pay fixation of ex-servicemen who were released from the defence services on or after 1.1.2006. As such, Military Service Pay (MSP) and X Group Pay shall not be considered for the purpose of pay fixation. Hence, 'X' i.e. last drawn gross salary in the Defence Service at the time of release in para 3.3 of the above circular shall be the aggregate of the following components. - (i) Pay as defined in sub-para 3(ix) of the Dept. of Personnel & Training O.M. No.3/1/85-Estt (P II) dated 31-7-1986 (Pay shall include 'Pay in the Pay Band' plus 'Grade Pay'. However, Pay shall not include Military Service Pay (MSP) and Group Pay); - (ii) Dearness Allowance on “Pay as per Pay Band” and “Grade Pay” but excluding Dearness Allowance on Military Service Pay (MSP) and Group Pay; - (iii) Interim Relief, if any; - (iv) Compensation in lieu of Quarters (C.I.L.Q)/House Rent Allowance; **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 33 ::** **1915, 1923, 1924, 1940** **& 1941 OF 2022** ## (v) Ration Allowance Further, 'Y' i.e. gross salary in L.I.C. in para 3.4 of the above circular shall be the aggregate of the following: - (i) Basic salary in which the Ex-serviceman is re-employed; (ii) Dearness Allowance; - (iii) House Rent Allowance; - (iv) City Compensatory Allowance. It may also be noted that the other guidelines for pay fixation of Ex-serviceman contained in CO circular ref:ZD/687/ASP/89 dated 2.6.1989 shall remain unchanged. The above instructions are applicable in respect of Ex-servicemen who were released from the defence services on or after 1.1.2006 and re-employed with the Corporation. Hence, you may review past cases of pay fixation of Ex-servicemen who were released from the defence services on or after 1.1.2006 and the pay, upon their re-employment with the Corporation, was fixed with reference to our earlier instructions contained in CO circular letter ref:CO/ER/Pen/10-11/L001 dated 19/11/2010. These instructions may be brought to the notice of all the offices under your jurisdiction. Sd/- **Executive Director (Personnel)** Encl: as above 7. It can be seen from the said Circular, that refers to the earlier Circulars of the LIC of 1989 and 2010, that the MSP and Group Pay had not been considered for the purposes of pay fixation of persons like the writ petitioners. If that be the case, it is evident that the communication issued to the writ petitioners that was impugned in the writ petitions, and which contemplated a recovery of alleged excess amounts drawn by the writ petitioners was on a wrong premise and wholly misconceived. Since the MSP component had never entered into the fixation of pay of the writ petitioners when they entered service under the appellants in 2009/2010, the re-fixation **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 34 :: 1915, 1923, 1924, 1940 & 1941 OF 2022** effected in 2017 also did not change the basis of the fixation of pay in relation to the writ petitioners. In other words, while the writ petitioners were entitled to the benefit of re-fixation effected in 2017, there was no occasion whatsoever for seeking a recovery of alleged amounts paid in excess to the writ petitioners for the period between 2009/2010 and 2017. We find therefore that the directions issued by the learned Single Judge, albeit without taking note of the aforesaid aspects, does not require to be interfered with in these appeals. 8. We might however add that, as it has become clear from the documents produced before us at the time of hearing of the writ appeals that the entire proposal for recovery of alleged excess amounts that was communicated to the writ petitioners was misconceived, and it was the said communication that led the writ petitioners to approach this Court and wage a long drawn legal battle with the appellants between 2017 and 2022, the appellants should be made liable to pay costs to the writ petitioners. As observed in the judgment of the Supreme Court in **Uflex Ltd. v. Government of Tamil Nadu & Others – [(2022) 1 SCC 165]** , the principle of 'costs following cause' is being followed in many countries but with hesitancy in India. Under the 'costs following cause' principle, a losing party in a **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 35 :: 1915, 1923, 1924, 1940 & 1941 OF 2022** dispute has to pay the succeeding party the legal cost incurred on the litigation. The court also observed that the common thread in the judicial pronouncements are the reiteration of salutary principles-costs should ordinarily follow the event, realistic costs ought to be awarded keeping in view of the ever increasing litigation expenses and the costs should serve the purpose of curbing frivolous and vexatious litigation. The said observations apply with added rigour in these cases when we notice that the amounts due to the writ petitioners, consequent to the pay fixation, were withheld by the appellants on the specious plea that there were amounts that were due from the writ petitioners to the appellants towards alleged excess amounts drawn by the former. Under the circumstances, while dismissing the writ appeals by upholding the directions issued by the learned Single Judge with regard to release of the amounts due to the writ petitioners, which are currently kept by the appellants in a suspense account, and directing the appellants to disburse the same to the writ petitioners within one month from the date of receipt of a copy of this judgment, we also deem it appropriate to direct the appellants herein to pay an amount of Rs.7,500/- [Rupees seven thousand five hundred only] by way of costs, to each of the writ petitioners, within the aforesaid period of one month from the date of receipt of a copy of this **W.A.NOS.1875, 1878, 1881, 1882, 1887, 1897, 1914, :: 36 ::** **1915, 1923, 1924, 1940** **& 1941 OF 2022** judgment. The Writ Appeals are thus dismissed with costs. **Sd/-** **A.K.JAYASANKARAN NAMBIAR** **JUDGE** **Sd/MOHAMMED NIAS C.P. 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