2007 (3) TMI 828 - SC - Indian Laws

Summary

Issues Involved:

1. Calculation of Ordinary Pension
2. Calculation of Special Additional Pension

Summary:

Re: Ordinary Pension:

The appellant, a retired Judge of the Kerala High Court, contended that his ordinary pension should be calculated based on the emoluments of Rs. 4,237/- per month, which included Basic Pay, Dearness Allowance, and Special Allowance. The State Government argued that "emolument" u/s Rule 62 of Part III of the Kerala Service Rules included only basic pay and dearness pay, not dearness allowance or other allowances. The Supreme Court held that "emolument" for calculating pension should be specific and not expansive, thus only including basic pay and dearness pay. Consequently, the appellant's emolument was rightly taken as Rs. 3,500/- per month, and the consolidated ordinary pension was correctly calculated at Rs. 29,220/- per annum from 1.1.1986.

Re: Special Additional Pension:

Special additional pension is governed by Para 2(b) of Part III of the First Schedule to the High Court Judges (Conditions of Service) Act, 1954. The ceiling on special additional pension was held unconstitutional in M.L. Jain (III), making the ceiling of Rs. 8,000/- invalid. Therefore, the special additional pension should be Rs. 5,600/- per annum from 1.1.1986 and Rs. 12,800/- per annum from 1.11.1986. The Supreme Court upheld this calculation, resulting in a total pension of Rs. 34,820/- per annum from 1.1.1986 and Rs. 42,020/- per annum from 1.11.1986.

Conclusion:

The Supreme Court directed the recalculation and settlement of the pension accordingly, with no recovery of any excess payment from the legal representatives of the deceased appellant. Each party was to bear their respective costs.