On 26.6.86, after the workers made representations, the Board passed a resolution numbered B.P.Ms F.B. No.
11228/2003 etc.
64 Dated 31st March, 2003 Chitrabanu, Panguni 17, Thiruvalluvar Aandu 2034 Read.
In our view, what was granted by a mere Board Proceeding companyld be validly altered by another Board Proceeding.
These Regulations dealt with the companyditions of service specifically pension and death cum retirement gratuity.
12349 and 12351 of 2003 by companymon order of the High Court of Madras dated 23.10.03 in W.P. 10727/03 etc.
Further, by Central Government numberification dated 25.6.1986, exemption under Section 17 14 of the Employees Provident Funds and Miscellaneous Provisions Act, 1952, was granted from the operation of all the provisions of the Employees Family Pension Scheme, 1971 on the ground that the benefits in the nature of Family Pension under the Tamil Nadu Electricity Board Employees Family Pension Regulations, 1964 Family Pension Regulations, 1964 were number less favourable than the benefits provided under the Employees Family Pension Scheme, 1971.
It was companytended by the Trade Union that the Board being a Statutory Board was number required to mechanically follow the G.O.s and, in any event, the action of the Board adversely affecting the pensions of employees was unfair, arbitrary and unconstitutional.
The amended Regulation 9 took effect from the dates on which the Tamil Nadu Pension Rules and Tamil Nadu Pension Rules, 1978 were brought into force i.e. 18.7.76 and 1.1.79 respectively .
On 17.2.95, the Board passed a resolution No.
5 by which it ordered that all the Regular Work Establishment Workmen retiring expiring on or after 1.7.86 would be governed by the pension scheme of the Board.
After the framing of the 1960 Regulations and the Family Pension Regulations, 1964, the provisions of the said Regulations which were number inconsistent with the Civil Service Regulations were followed.
74 dated 19.3.03, for identical reasons, the State Government directed that the maximum limit for companymutation of portion of pension by the pensioner would be 33 1/3 of pension only.
The impugned judgment held inter alia as under That the Settlement dated 8.7.98 between the Board and its employees provided for revised pension schemes of the Government to be applied to the Boards pensioners and hence numberprior numberice under Section 9A of the Industrial Disputes Act, 1947 was necessary.
These orders shall be applicable to Board employees retiring on or after 1.4.2003.
11899, 11900 and 11902/2003 before the High Court of Judicature at Madras challenging these three orders i.e. B.P. Ch.
71 Finance Pension Department, dated 19.3.2003.
11937 and 12372 of 2003 by companymon order of the High Court of Madras dated 23.10.03 in W.P. 10727/03 etc.
7 which amended Regulation 9 of the 1960 Regulations.
These sought to impugn the changes brought about in their pensionary companyditions by G.O. Nos.
It has also been ordered therein that pension shall be determined based on 50 of average emoluments drawn during the last 10 months service rendered or 50 of pay last drawn sic Board employee, whichever is higher.
72 and 73 by which the State Government increased the discount rate of companymutation of pension and curtailed the encashment of leave on retirement on the ground that these were accrued rights which companyld number be prejudicially affected by the Government.
Under Regulation 3 of the 1960 Regulations, the qualifying service for earning pension was a period of thirty years.
In exercise of its powers under Section 79 c of the 1948 Act, the Board brought into force a set of regulations styled as the Tamil Nadu Electricity Board Liberalised Pension Regulations, 1960 1960 Regulations with effect from 1.7.60.
208 dated 18.8.98 , the companymutation percentage was increased to 40.
On 1.7.57, the Board was companystituted by the State Government under Chapter III of the Electricity Supply Act, 1948 the 1948 Act .
Around the same time, similar writ petitions W.P. No.
4750 4751/04 are filed by the Trade Union representing the Tamil Nadu Electricity Board Stores Union aggrieved by the dismissal of their Writ Petitions Nos.
By a Board Proceeding B.P. Ch No.
Tamil Nadu Electricity Board Abstract Pension Qualifying Service for pension and calculation of pension Revised orders Issued.
64 dated 31.3.03 brought about companyresponding changes in the rules of pension applicable to its employees.
Hence, the State Government by Government Order G.O. No.
By another G.O. No.
Prior to 1.7.57, the State of Tamil Nadu was departmentally carrying on the work of distribution and supply of electric energy.
Regulation 9 of the 1960 Regulations as amended by B.P. No.
While granting this exemption, a specific companydition was imposed by clause 4 enumerated to the Schedule to the numberification, which reads as under No amendment to the provision of the said regulations shall be made without the prior approval of the Central Provident Fund Commissioner and there sic any amendment is likely to affect adversely the interest of the employees of the Board the Central Provident Fund Commissioner shall before giving his approval give reasonable opportunity to the employees to explain their view point.
were moved by Government servants The Madras High Court Staff Association .
7 dated 17.12.95 , provided for the adoption of the Pension Rules of the Government as amended from time to time.
A change brought about by the Board that has also been impugned is with regard to the decrease in the maximum permissible companymutation of pension from 40 to 33 1/3 by following G.O. No.
Civil Appeals arising out of S.L.P. C Nos.
The 1960 Regulations also companytained a Savings Clause incorporated in Regulation 9, which reads as under SAVING No provision in the Civil Service Regulations shall, so far as it is inconsistent with any of the provisions of these regulations have any effect.
The employees of the Board companysisted of two different classes i Employees who were already employed by the State Government and were taken over into the service of the Board upon its companystitution and ii Employees directly recruited by the Board after its companystitution.
253 SB dated 23.9.96.
This group of appeals by special leave raises the same issues of facts and law for a decision by this Court.
64 and 66, which rely upon them, are valid.
In addition, the provisions of the Civil Service Regulations, with respect to matters number specifically governed by the Boards regulations, were also applicable.
11565 and 11567 of 2003 by companymon order of the High Court of Madras dated 23.10.03 in W.P. 10727/03 etc .
Since G.O. No.
To By a similar worded Board Resolutions B.P. Ch No.
In other words, can pensions be changed particularly, when the change is to the detriment of the employees companycerned without recourse to the proper procedure prescribed for changing them?
It observed that the cut off date of 1.4.03 for the revised pension package was number arbitrary since only the terminal benefits of future retirees were being affected and that numberaccrued rights were affected.
The Facts in the Connected Special Leave Petitions Civil Appeals arising out of S.L.P. C Nos.
The receipt of the Board Proceedings may be acknowledged in slip enclosed.
As far as this change is companycerned, the argument of number following the proper procedure i.e. amending the Regulations does number apply.
This Board Proceeding is the crucial one and necessitates reproduction in its entirety.
66 dated 31.3.03 .
66 fails by the same token.
Following the amendments made by the State Government to the Pension Rules, the Board by its Resolution B.P. Ch No.
The Board had its own Pension and Provident Fund Schemes, which, in the opinion of the State of Tamil Nadu, gave to the employees benefits which were on the whole number less favourable than the benefits provided under the Employees Provident Fund Act, 1952 or the Employees Provident Fund Scheme, 1952.
11228/2003 dated 23.10.03 , B.P. Nos.
For the sake of companyvenience, the facts shall be mentioned from the appeal arising out of Special Leave Petition Civil Nos.
71 to 74 was motivated by financial companystraints and was, therefore, number arbitrary.
1 Per B.P. CH No.
This order also took effect from 1.4.03.
65 based thereon was illegal.
988 dated 13.7.70 exempted, under Section 17 1 b of the Employees Provident Fund Act, 1952, the establishment of the Board from the operation of all the provisions of the Employees Provident Fund Scheme, 1952 framed under the provisions of the Employees Provident Fund Act, 1952.
3759 3760/04.
A Division Bench of the High Court of Madras dismissed their Writ Petitions through order dated 23.10.03 .
Civil Appeals arising out of S.L.P. C Nos.
The Government have sic number issued orders in the Government Order second cited enhancing the maximum qualifying service to 33 years from 30 years to become eligible for full pension by the Government Servants after retirement.
This has number been reduced to 33 1/3 by another Board Proceeding B.P. Ch No.
71 to 74.
A Survey of the Facts These appeals have been filed by a registered Trade Union, which represents nearly 30,000 employees of the Tamil Nadu Electricity Board the Board .
Civil Appeals arising out of S.L.P. C Nos.
The provisions in the Tamil Nadu Pension Rules 1978 have been made applicable to the employees of the Tamil Nadu Electricity Board also by an amendment to Regulation 9 of Tamil Nadu Electricity Board Liberalised Pension Regulations 1960.
PROCEEDINGS In the B.P. first cited orders have been issued reducing the maximum qualifying service from 33 years to 30 years to become eligible for full pension by a Board employee after retirement.
In fact, the change made by P. Ch No.
However, the High Court set aside G.O. Nos.
With a view to creating a companyplete Pension Code, the Tamil Nadu Government framed the Tamil Nadu Pension Rules brought into force with effect from 18.7.76 and the Tamil Nadu Pension Rules, 1978 brought into force with effect from 1.1.79 .
65 dated 31.3.2003 and B.P. Ch No.
66 dated 31.3.03 actually brings the level of companymutation to what was originally given by the 1960 Regulations.
B.P. Ch No.
16305 16306/04 are filed by the Tamil Nadu Electricity Workers Federation challenging the impugned companymon judgment in dismissing their Writ Petitions Nos.
B.P. F.B. No.
8882 8883/04 are filed by the Tamil Nadu Electricity Board Workers Progressive Union challenging the impugned companymon judgment dated 23.10.03 in W.P. 10727/03 etc insofar as it dismisses their Writ Petitions Nos.
SECRETARIAT BRANCH Per.
The exemption was, however, subject to the companyditions specified in the G.O. itself.
In other words, what was granted by a Board Proceeding, without amending the Regulations, is sought to be taken away by another Board Proceeding with a view to following G.O.Ms.
The Government have sic also ordered that Pension shall be determined based on the average emoluments drawn during the last 10 months of service rendered only.
G.O. Ms. No.
11228/03 dated 23.10.03 , B.P. No.
By order of the Chairman Gnanaselvam Secretary.
These amendments were directed to take effect respectively from 18.7.76 and 1.1.79.
66 dated 31.3.2003 , companymutation level for pension was substantially revised downwards.
the High Court of Madras decided W.P. Nos.
4598 4599/04 are filed by the Tamil Nadu Electricity Board Accounts and Executive Staff Union on behalf of the Accounts and Executive staff who are aggrieved by the disposal of their Writ Petitions Nos.
73 enhancing the rate of companymuted pension was set aside vide Madras High Court order in W.P. No.
Similar exemption was granted by the Central Government by another numberification dated 25.6.86 from the provisions of the Employees Deposit Linked Insurance Scheme, 1976, on the same ground i.e. that the Boards Family Benefits Subsidiary Scheme provided numberless favourable benefits to the employees , but again subject to a companydition of a similar nature.
These amendments were directed to become operative in respect of Government servants retiring on or after 1.4.03.
The Proceedings in the High Court The Appellant Trade Union filed Writ Petition Nos.
SRIKRISHNA, J. Leave granted in all the Special Leave Petitions.
As far as this change is companycerned, it would appear that Regulation 7 as framed in 1960 permitted a maximum companymutation of one third.
In the proceedings of the Board it was pointed out that, since the formation of the Board on 1.7.57 till the Boards 1960 Regulations came into force, the employees of the Board were governed only by the Civil Service Regulations with respect to quantum of pension, death cum retirement gratuity etc.
The Boards Service Regulation No.17 did number provide for payment of pension and hence the qualifying service of 30 years mentioned therein companyld number be relied upon.
Since G.O.Ms Nos.
Therefore, the challenge to the change in the companymutation percentage brought about by B.P. Ch No.
Nos.64 66 of the Board.
