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P. Sivasamy Vs. Tamil Nadu State Transport Corporation (Madurai) Ltd., - Court Judgment

LegalCrystal Citation
CourtChennai Madurai High Court
Decided On
Case NumberW.P.(MD) Nos. 20305, 20306, 20307 of 2016
Judge
AppellantP. Sivasamy
RespondentTamil Nadu State Transport Corporation (Madurai) Ltd.,
Excerpt:
.....pay by taking dearness allowance at the rate of 119% of the basic pay and grade pay as per tamil nadu government g.o.no.264 finance (allowances) department dated 16.10.2015 issued by the government of tamil nadu and consequently direct the respondent to compute and pay him, the difference amount in gratuity, leave salary by taking into account revised rate of dearness allowance, i.e. at the rate of 119% of basic pay + grade pay as fixed in g.o.no.264 finance (allowances) department dated 16.10.2015 within the time that may be stipulated by this hon'ble court.) 1. the petitioner joined the services of the respondent corporation as conductor with effect from 02.08.1989; that he was subsequently promoted as special grade conductor and he retired from service on 31.08.2015 in the said post.....
Judgment:

(Prayer: Petition filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Mandamus, directing the respondent to revise the petitioner's last drawn pay by taking dearness allowance at the rate of 119% of the basic pay and grade pay as per Tamil Nadu Government G.O.No.264 Finance (Allowances) Department dated 16.10.2015 issued by the Government of Tamil Nadu and consequently direct the respondent to compute and pay him, the difference amount in gratuity, leave salary by taking into account revised rate of dearness allowance, i.e. at the rate of 119% of basic pay + Grade Pay as fixed in G.O.No.264 Finance (Allowances) Department dated 16.10.2015 within the time that may be stipulated by this Hon'ble Court.)

1. The petitioner joined the services of the respondent corporation as Conductor with effect from 02.08.1989; that he was subsequently promoted as Special Grade Conductor and he retired from service on 31.08.2015 in the said post and the petitioner seeks to direct the respondent to revise the petitioner's last drawn pay by taking dearness allowance at the rate of 119% of the basic pay and grade pay as per Tamil Nadu Government G.O.No.264 Finance (Allowances) Department dated 16.10.2015 issued by the Government of Tamil Nadu and consequently direct the respondent to compute and pay him, the difference amount in gratuity, leave salary by taking into account revised rate of dearness allowance, i.e. at the rate of 119% of basic pay + Grade Pay as fixed in G.O.No.264 Finance (Allowances) Department dated 16.10.2015

2. Whenever the Government orders increase in Dearness Allowance to Government employees, the same shall be extended to Transport Corporation Employees, is the commitment made by the respondent in the settlement effected under Section 12(3) of the Industrial Disputes Act.

3. Rule 20-A of the Tamil Nadu State Transport Corporation Pension Fund Rules deals with Dearness Allowance payable to pensioners, which states that in addition to basic pension, the pensioners are eligible for nominal Dearness Allowance at the rates that may be determined by the Government of Tamil Nadu. But, the provision was not immediately made applicable to the employees of the Transport Corporation. The practise was that every time, the Pension Trust had to seek the approval of the Government for enhancement of Dearness Allowance. Therefore, in order to avoid delay, the retired employees Welfare Association filed W.P.34530 of 2012 before the Principal Seat of Madras High Court, seeking amendment of Rule 20(A) of the TNSTC Pension Fund Rules.

4. The Principal Seat directed the Trust to forward the proposal to Government seeking amendment to Rule 20(A) of the Pension Fund Rules.

5. The Trust filed an affidavit stating that whenever Government orders enhancement of D.A., the subject will be placed before the Trustees of the Trust and after getting approval of the Board of Trustees, the increased D.A., will be effected to pensioners / family pensioners in future. Therefore, according to the stand taken by the Trust, the approval of the Government is no longer required.

6. However, there is also a Government Order in G.O.No.264 Finance (Allowances) Department dated 16.10.2015 for enhancement of Dearness Allowance to all its State Employees from 113% to 119% and as per the stand of the Trust, the said benefits should also be extended to Transport Corporation Employees.

7. Thus, it is clear that the petitioner is entitled to the applicable Dearness Allowance, which shall be calculated, taking the rate of Dearness Allowance as 119% and not as 113%. Therefore, the writ petition is ordered. The respondent shall effect fresh calculation by taking the D.A. as 119% on the Basic Pay and Grade Pay and pay the dues / balance to the petitioner within a period of four weeks from the date of receipt of a copy of this order. No costs.


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