The Supreme Court has dismissed on 18/12/2024, a Review Petition No. 21872 of 2023( DIARY No.46979 OF 2023) as the SLP 21864 of 2023 ( 33054/2023 of14-08-2023) filed by BSNL earlier was already dismissed.
In the original petition, O.A./1192/2017 before the CAT Chandigarh, a pivotal issue has been conclusively resolved—whether "Pension" encompasses retiral benefits as well. This landmark judgment has clarified that pension is not to be treated in isolation but includes key retiral benefits such as Death-cum-Retirement Gratuity (DCRG), leave encashment, and the commuted value of pension. The ruling ensures that these benefits are based on the re-fixed pay, aligning all related entitlements with the revised pay structure, thereby setting a significant precedent.
This judgment is very much applicable to the present notional increment fixation case. This revised notional fixation should be extended for all pensionary benefits .The government's argument that notional fixation applies only to pensions and not for other pensionary benefits is rejected in this judgment. The court finds that when pay has been revised, the retiree is entitled to benefits based on the revised pay, including pension, DCRG (Death-cum-Retirement Gratuity), leave encashment, and the commuted value of pension. The classification by the respondents to differentiate between pension and other benefits is deemed unreasonable, and all related benefits must be based on the revised pay.
In the peculiar facts of this case, the term “Pension” used in the decisions would cover the element of DCRG, Leave encashment, Commuted Value of Pension as well and the applicants are held entitled to these revised dues on the basis of revised pay carried out by the respondents.
Supreme Court dismissed review petition also - Notional pay fixation is to be extended to all pensionary benefits
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