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Thursday, July 21, 2016

POINTS EMERGING FROM DELHI HC ORDER


I reproduce the following extract from the order dt 12/7/2016 of the Delhi High Court in respect of WP No 3984/2016:

“We are not satisfied with the affidavit filed by the Life Insurance Corporation of India in compliance with the directions given in paragraph 27 of the aforesaid judgment of the Supreme Court. The Life Insurance Corporation will file a detailed affidavit within 7 days clearly stating that they have complied with the direction given by the Supreme Court to pay 40% as per para 3A of the appendix to each of the employees (pensioners) within six weeks. The manner in which computation has been made for payment of 40% of the amount as per para 3A of the appendix would be stated. The affidavit would also specify whether the pensioners have been disbursed the amount payable to them”.

The points that emerge from the above are:

1.       The affidavit filed by LIC on 40% payment of interim relief is not satisfactory to the Court.
2.       LIC has to  clearly  establish through the fresh affidavit  to be filed that the payments of IR have been  made as per para 3A of Appendix IV;
3.       The manner in which computation has been made for payment of 40% of the amount as per para 3A has to be stated in the affidavit. This means not merely the manner in which they have prepared the calculation sheets for the payment, but LIC has also  to establish in the affidavit how the calculation sheet to the satisfaction of the Delhi High Court  conforms to the para 3A of Appendix IV;
4.       The affidavit should also specify whether the pensioners have been disbursed the amount payable to them.

This becomes relevant because, against 21762 pre-August 1997 retirees alive on 1/8/2003, only 15969 pensioners have been paid   what LIC determined as interim relief. The remaining  5769 pensioners have not been accounted for in the payment.LIC  needs to explain  why the amount  due to these 5769 pensioners has not been paid besides explaining how the amount paid to the 15969 pensioners have been paid the due amounts in conformity with para 3A.
Let us now wait and see how LIC complies with the directions of the Delhi High Court in this regard.

Kind regards.
C H Mahadevan