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Wednesday, September 02, 2015

Letter to Shri RB Kishore


I refer to the feedback of Mr V S Prakasa Rao reproduced in your mail received by me  which states inter alia,“How  is (KMLA) going to take care of the 5 petitioners  of post Aug.97 , especially  when GNS and AIIPA took the stand that  the benefit  of the Nov.2001 resolution relate to only the Pre Aug 97  pensioners to get 100% D.R neutralisation  which was taken advantage by the L.I.C “.

I wish to hasten to air my opinion  that we need not dwell too much  exclusively on the Board Resolution of 24/11/2001 passed by LIC.What is more important as far as Jaipur SJB judgment is concerned is that the Bench allowed two writ petitions.

The first writ petition  was for removing the DR anomaly and neutralisation of DR on equitable basis  on par with in-service employees.This means that the DR formula  has been  in fact ordered to be amended  w.e.f  1/11/1993  with the slabs which were applicable to in-service employees  as per 1/8/1987 & 1/8/1992 wage revisions instead of cutting the slabs by half.

The other writ petition (654/2007) was for upgradation of pension on substituted scales of pay with every wage revision. This means that irrespective of the LIC Board Resolution, pensions will have to be upgraded for all eligible pensioners on 1/8/1997, 1/8/2002, 1/8/2007 and all future wage revision dates.

No doubt the operative part of the Jaipur judgment has directed LIC  to take steps to implement the LIC Board Resolution.It is true that considering the context in which the Resolution was passed ,the decision applies to  only pre-August 1997 retirees. LIC is taking advantage of the ambiguities in the wordings of the Resolution to interpret it to its own advantage  taking only the merger of DR as on 1/8/1997 and revising the pension and leaving weightage  as done for in-service employees and similar upgradation on 1/8/2002 and future effective wage revision dates. If the true spirit of the LIC Board Resolution is understood, it provides for upgradation of pension for pre-August 1997 retirees on all wage revision dates from 1/8/1997 onwards, besides removing the DR anomaly from 1/11/1993.

As a corollary, once the Jaipur judgment is properly implemented, the Board Resolution gets automatically implemented besides the removal of DR anomaly and 100% DR neutralization besides providing upgradation of pension for all post-July 1997 retirees also.I am sure Mr K M L A sthana is very well aware of this and definitely press for  justice for the five post-July 1997 retirees  also. 

Consequently, as long as the Jaipur SJB judgment remains  stay-refused, our focus should  be on  emphasizing on implementation of the Justice Bhandari  judgment without segregated reference to the Board Resolution.At best the LIC Board Resolution is only to be taken as an enabling document  even considering the that the Jaipur Bench has taken cognizance of it.

Kind regards.

C H Mahadevan