High CourtDivision BenchAppeal dismissed. No order as to costs.

STATE OF KERALA & ANOTHER v. ANIE LUKOSE

Case / Petition Number:Civil Appeal No. 835 of 2022
Neutral Citation:[2022] 2 S.C.R. 729

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Indira Banerjee
  • J. K. Maheshwari
Judgment Date
2022-02-01
Court Decision / Holding
Appeal dismissed.
Final Disposition
Appeal dismissed. No order as to costs.

Parties to the Case

Appellants / Petitioners

  • State of Kerala
  • Another

Respondents

  • Anie Lukose

Legal Representation & Advocates

Counsels for Petitioners

  • • G. Prakash
  • • Ms. Priyanka Prakash
  • • Ms. Beena Prakash
  • • Manan B Sanghai

Counsels for Respondents

  • • Roy Abraham
  • • Ms. Reena Roy
  • • Akhil Abraham
  • • Himinder Lal

Case Synopsis & Summary

State of Kerala and another (“the appellants”) challenge the fixation of pension of the respondent, a retired selection grade Lecturer who availed voluntary retirement on 31 July 2006. The respondent’s basic pension was fixed in the pre-revised scale at Rs. 8,907, later enhanced to Rs. 11,127 in the revised scale with effect from 1 January 2006. The fixation was challenged in earlier writ petitions, and the High Court’s orders ultimately upheld the revised fixation as correct, resulting in a pension of Rs. 19,334 per month with effect from 1 March 2010 on the basis of completing the qualifying service. The central issue concerns computation of the 10 months’ emoluments for the purpose of determining average emoluments under Kerala Service Rules for those who retired after 1 January 2006, particularly when part of the 10 months includes periods of pre-revised pay and leave without allowances. The appellants rely on Circulars GO (P) 211/2011 (7 May 2011) and GO (P) 230/2012 (19 April 2012), arguing that the pre-revised pay can be notionally enhanced to the initial pay drawn in the revised scale; they contend the 2012 circular clarifications do not alter prior calculations and that the months of absence should affect the computation. The Court ultimately holds that the fixation at Rs. 19,334 w.e.f. 1 March 2010 was correct and declines to interfere, dismissing the appeal with no order as to costs.

Provisions of Law Cited

Circular G.O. (P) No. 211/2011/Fin dated 7.5.2011 (Para 2.2 and Note 1, Annexure P-18, Kerala Service Rules)Circular GO (P) No. 230/2012/Fin dated 19.4.2012 (modification to Para 2.2; Para 2.1 not applicable)Kerala Service Rules (Annexure P-18, Note 1, Clause 63)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contend that pension fixation should be governed strictly by the applicable circulars and the rules governing average emoluments. They argue that under GO 211/2011 and its modification by GO 230/2012, the 10 months’ emoluments for employees who retired after 1 January 2006 must be calculated by notionally enhancing the pre-revised pay to the initial pay drawn in the revised scale, with due regard to periods of absence or suspension. They submit that the respondent’s retirement after a short re-joining period following leave without allowances led to an improper computation in the impugned order, and that the fixing authority should not have treated all months as qualifying. They seek interference with the impugned order and a recalculation consistent with the circulars.

Contentions of Respondents

The respondents defend the fixation, arguing that the Accountant General correctly applied the circulars and prior High Court orders. They rely on the revised pay scale with effect from 1 January 2006 and the benefit of completing the qualifying service, which together yield a pension of Rs. 19,334 per month from 1 March 2010. They assert that the circulars and the High Court’s orders were correctly interpreted and applied, and that no interference is warranted.

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Extracted Judgment Text

Exact text extracted from official judgment records.

729 [2022] 2 S.C.R. 729 STATE OF KERALA & ANOTHER A v. ## ANIE LUKOSE (Civil appeal No. 835 of 2022) FEBRUARY 01, 2022 B ## **[INDIRA BANERJEE AND J. K. MAHESHWARI, JJ.]** _Service Law – Revision of pay scale – Fixation of pension – Respondent retired w.e.f 31.07.06 – Filed writ petition seeking fixation of pension @ Rs.8907/- in pre-revised scale and Rs.19333/ - in the revised scale – Allowed by Single Judge holding that the pension in the revised scale was rightly fixed @ Rs.19,333/- on account of completing the qualifying service – Judgment affirmed by Division Bench – Appellant_ inter alia _contended that the respondent had retired after one month of re-joining from the leave for about two years without allowances, therefore, the order impugned, confirming the order of the Single Judge is wholly unjustified – On appeal, held: Pension of the respondent was fixed @ Rs. 19334/- w.e.f. 1.3.2010 – As per Circular G.O.(P) dtd. 19.04.12, for computing 10 months emoluments for the purpose of average emoluments in respect of an employee, who retired from service on or after 1.1.2006 and who during the part 10 months draws pay in the pre-revised scale, their pay in the pre-revised scale may be enhanced notionally to the initial pay drawn in the revised scale, which came into force w.e.f. 1.1.2006 – Average emolument is required to be calculated as per Note 1 Clause 63 of Annexure P- 18, from which it is clear that if during this period, an employee had been absent from duty, on leave with or without allowances, which qualified for pension or having been suspended, but reinstated in service, without forfeiture of service, his emoluments for the purpose of ascertaining the average would be taken, at what they would have been, had he not been absent from duty or suspended – Thus, it is clear that part of 10 months would not mean the past 10 months and if the employee had remained on leave without allowances, even their calculation as per the last pay drawn had rightly been made by the office of Accountant General– No error in the impugned order warranting interference._ C D E F G H 729 730 SUPREME COURT REPORTS [2022] 2 S.C.R. A CIVIL APPELLATE JURISDICTION: Civil Appeal No. 835 of 2022. From the Judgment and Order dated 30.07.2018 of the High Court of Kerala at Ernakulam in W.A. No. 1513 of 2018. G. Prakash, Ms. Priyanka Prakash, Ms. Beena Prakash, Manan B Sanghai, Advs. for the Appellants. Roy Abraham, Ms. Reena Roy, Akhil Abraham, Himinder Lal, Advs. for the Respondent. The Judgment of the Court was delivered by C **J. K. MAHESHWARI, J.** ## 1. Leave granted. 2. This appeal arises out of the judgment dated 30.7.2018 passed in Writ Appeal No. 1513 of 2018 confirming the judgment dated 19.2.2018 passed by the learned Single Judge allowing the Writ Petition (C) No. D 2573 of 2016. 3. The facts giving rise to the present appeal are that the respondent had retired as selection grade Lecturer on availing voluntary retirement w.e.f. 31.7.2006. His basic pension was fixed in the pre-revised scale at Rs. 8907/- p.m.. Inadvertently, in the verification report, the basic pension E was erroneously shown as Rs. 7138/- p.m. (pre-revised). Thereafter, on revision in the scale of pay, it was enhanced to Rs. 11,127/- and made effective from 1.1.2006. The fixation of the said basic pension was challenged in the earlier round of litigation in W.P. (C) No. 30847 of 2012. The High Court vide judgment dated 28.02.2013 held that the F fixation of pension at Rs. 7138/- was erroneous and his pension of Rs. 8907/- (pre-revised) ought to have been taken into account at the time of revision of the pay and pension w.e.f. 1.1.2006. The said judgment has not been challenged and therefore became final. In view of the said fact, prayer was made in WP(C) No. 2573 of 2016 to fix the pension @ Rs. 8907/- in pre-revised and Rs. 19333/- as per revision of pay and G pension of the appellant. 4. Learned Single Judge of the High Court has taken note of the fact that the last pay drawn by the appellant was Rs. 46,400/- and according to the same, his pension in the revised scale has rightly been fixed at Rs. 19,333/- on account of completing the qualifying service by H 731 STATE OF KERALA & ANOTHER v. ANIE LUKOSE her. In the previous round of litigation, the fixation made @ Rs. 7138/- in A pre- revised scale and Rs. 11,127/- in revised scale was found erroneous by the High Court. However, as per the direction made by the High Court, fixation had rightly been proposed by the office of the Accountant General on completion of the qualifying service by her. The appellants filed a Writ Appeal and by the order impugned, the Division Bench of B the High Court held that the Accountant General had correctly prepared the pension paper, fixing the pension at Rs. 19,334/- in the revised scale. The Division Bench declined to interfere with the order of the learned Single Judge. 5. Learned counsel for the appellant would contend that as per the Circular being G.O.(P) No. 230/2012/Fin. dated 19.04.2012, it is clarified that for computing the 10 months’ emoluments for the purpose of average emoluments in respect of employees who retired from service on or after 1.1.2006, the average emoluments are required to be counted. The average emoluments have been clarified in Clause 63 of Annexure P-18 regarding Kerala Service Rules. It is contended that the respondent had retired after one month of re-joining from the leave for about two years without allowances, therefore, the order impugned, confirming the order of the learned Single Judge, is wholly unjustified. 6. On the other hand, learned counsel for the respondent has argued with vehemence and contended that the Accountant General has rightly made the fixation of the pension in the pre-revised and revised scales of pay, relying upon the circulars and the order of the High Court passed earlier. Therefore, the order impugned has rightly been passed by the High Court, which does not warrant interference. 7. After having heard learned counsel for the parties at length and on perusal of the fixation made by the office of the Accountant General, sent to the Principal Secretary (Finance), Finance (Pension B) Department, Thiruvananthapuram, it is clear that the pension of the respondent was fixed at @ Rs. 19334/- w.e.f. 1.3.2010. The said fact has not been controverted in the counter-affidavit, as apparent from the order of the learned Single Judge. For reverting the arguments of the appellants with reference to the revised Circular dated 19.4.2012, it is necessary to refer to the original Circular G.O. (P) No. 211/2011/Fin dated 7.5.2011, specially Clause 2(2) relevant to the facts of the present case, which is reproduced as thus: C D E F G H 732 SUPREME COURT REPORTS [2022] 2 S.C.R. A B “For computing 10 months’ emolument for the purpose of average emoluments, in respect of employees who retired from service on or after 1.1.2006 and who , during part of the said period of 10 months, drawn pay in the pre-revised scale, their pay in the pre-revised scale may be enhanced notionally by adding DA at 74%”. 8. The said clause has been modified vide Circular G.O.(P) No. 230/2012/Fin dated 19.4.2012 , which is reproduced as thus: “For computing 10 months’ emoluments for the purpose of average emoluments in respect of employees who retired from service on C or after 1.1.2006 and who, during the part of 10 months, drew pay in the pre-revised scale, their pay in the pre-revised scale may be enhanced notionally to the initial pay drawn in the revised scale which came into force with effect from 1.2.2006. Para 2.2 of GO read above and modified to this extent. Para 2.1 of the GO read above shall not be applicable to the above category.” D 9. On perusal of the aforesaid, it is clear that for computing 10 months emoluments for the purpose of average emoluments in respect of an employee, who retired from service on or after 1.1.2006 and who during part 10 months draws pay in the pre-revised scale, their pay in E the pre-revised scale may be enhanced notionally to the initial pay drawn in the revised scale, which came into force w.e.f. 1.1.2006. Average emolument, as specified in the Rules, is required to be calculated as per Note 1 Clause 63 of Annexure P-18, from which it is clear that if during this period, an employee had been absent from duty, on leave with or without allowances, which qualified for pension or having been F suspended, but re-instated in service, without forfeiture of service, his emoluments for the purpose of ascertaining the average would be taken, at what they would have been, had he not been absent from duty or suspended provided that the benefit of pay in any officiating post would be admissible only if it is certified that he would have continued to hold G that officiating post but for leave or suspension. Therefore, it is clear that part of 10 months would not mean the past 10 months and if the employee had remained on leave without allowances, even their calculation as per the last pay drawn had rightly been made by the office of Accountant General as referred by learned Single Judge as well as the Division Bench in the orders impugned. H STATE OF KERALA & ANOTHER v. ANIE LUKOSE 733 [J. K. MAHESHWARI, J.] 10. In view of the foregoing discussion, we do not find any error A in the order impugned, warranting interference in this appeal. Accordingly, this appeal is dismissed. No order as to costs. Divya Pandey (Assisted by : Deepak Panwar, LCRA) Appeal dismissed. B C D E F G H