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Issues Involved:
1. Entitlement of pensioners to revised pension benefits based on the minimum scale of pay introduced with effect from 01.01.1996. 2. Validity of the office memorandum dated 11.05.2001 clarifying the office memorandum dated 17.12.1998. 3. Application of the pay scale revisions to pensioners who retired before the implementation of the 4th and 5th Pay Commissions. 4. Applicability of pay scales drawn during deputation to the calculation of pension. 5. Retrospective versus prospective application of revised pay scales. Issue-wise Detailed Analysis: 1. Entitlement of Pensioners to Revised Pension Benefits: The pensioners sought payment of pension calculated on the minimum scale of pay of Rs. 14,300 - 18,300, introduced with effect from 01.01.1996. The Central Administrative Tribunal (CAT) initially granted this relief, stating that pensions should be calculated based on the revised pay scale. However, the court concluded that the pensioners were not entitled to the revised scale of Rs. 14,300 - 18,300 as they never held the corresponding pre-revised scale of Rs. 2,000 - 2,250 before retirement. The court held that the pensioners' pensions should be fixed based on the revised scale of Rs. 12,000 - 16,500, which corresponded to their last drawn pay scale of Rs. 1,500 - 2,000. 2. Validity of the Office Memorandum Dated 11.05.2001: The court examined whether the clarification dated 11.05.2001 was an executive action in accordance with Article 77 of the Constitution of India. The court reviewed the file and found that the clarification had been approved by the relevant ministers and the Prime Minister, thus complying with the rules of business. The court concluded that the clarification was valid and formed an integral part of the office memorandum dated 17.12.1998. Consequently, the clarification was binding and valid. 3. Application of Pay Scale Revisions to Pensioners Who Retired Before the Implementation of the 4th and 5th Pay Commissions: The court found that the communication dated 18.12.1997, which merged the pay scales into a single scale of Rs. 14,300 - 18,300, applied only to those in service as of 01.01.1996 with 13 years of service in Group 'A'. Since the pensioners had retired before this date and were never in the selection grade pay of Rs. 2,000 - 2,250, they were not entitled to the upgraded revised scale of Rs. 14,300 - 18,300. Their pensions were correctly fixed based on the revised scale of Rs. 12,000 - 16,500. 4. Applicability of Pay Scales Drawn During Deputation to the Calculation of Pension: For the pensioner in W.P.No. 30047/2002, who was on deputation to MTNL and drew a higher pay scale, the court held that the emoluments drawn during foreign service could not be treated as emoluments for pension purposes. The pension should be calculated based on the pay scale of Rs. 3,700 - 5,000 drawn in the parent department, which was revised to Rs. 12,000 - 16,500. The court set aside the CAT's order granting pension based on the higher pay scale of Rs. 4,500 - 5,700. 5. Retrospective versus Prospective Application of Revised Pay Scales: In W.P.No. 32527/2004, the court addressed the issue of whether the revised pay scale of Rs. 24,050 - 26,000, introduced by the Ministry of Finance on 30.06.1999, applied retrospectively. The court held that the revision was prospective and did not apply to the pensioner who retired before the revision date. The pensioner's pension was correctly fixed based on the pay scale of Rs. 22,400 - 26,000, which was the revised scale applicable at the time of his retirement. Conclusion: The court dismissed the petitions of the pensioners seeking higher pension benefits based on the revised pay scale of Rs. 14,300 - 18,300. It upheld the validity of the office memorandum dated 11.05.2001 and clarified that pension calculations should be based on the revised scale corresponding to the last drawn pay scale at the time of retirement. The court set aside the orders of the CAT where they were found to be inconsistent with these principles.
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