PARA 54B OF THE GIC PENSION SCHEME 1995 CREATS UNEQUAL AMONG EQUALS

The appointment of CMD is on contract basis for a specific period.CMD can be appointed from the employees as well as from outside the industry. In order to count his service during the period of engagement as CMD for terminal benefits, if he is an employee prior to his appointment as CMD, amendment to GIC employees Pension scheme 1995 vide gazette notification S.O 475(E) dated 3^rd July 1996 is resorted were by a proviso to clause k of Para to was inserted to include CMD in the definition of employee. Thus CMD is made one among the equal (among all the employees)

Thus by this amendment, he is again brought to the status of an employee during his tennure as CMD & he is made one among the equals.

 A gain in the year of 2001 by a subsequent amendment to GIC Pension scheme 1995, Para 54B is inserted vide S.O. 775(E) dated 13^th Aug 2001 where in all amendment to CCS pension rules 1972 from time to time was made applicable to CMD only with retrospective effect from 01/01/1996 without allowing the same to all other employees. This is arbitrary, unilateral & against the spirit of article 14 of the constitution of India.

Thus this amendment with retrospective effect has created unequal among equals & should either be made applicable to all or should be struck down.

Amendment is made in CCS pension rules 1972 after every periodic Pay & Pension revision due to the implementation of Central Pay commissions by the central govt. GIC Pension rule 1995 was drafted according to the CCS Pension rules as updated up to 4^th Pay commission. At present CCS Pension rules stands amended up to 7^th Pay commission, Consequently GIC pension rule 1972 has been reduced to an out dated scheme. Provisions in the Para 55 of GIC Pension scheme 1995 have not been invoked in general to incorporate the basic changes of CCS Pension rules in GIC Pension scheme. The major basic changes in the incorporated in the CCS Pension rule is removal of linkage of 33 service for 50% pension, uniform rate of 30 % Family pension & increase in quantum of minimum pension.

The CCS Pension rules 1972 do not have any provision for periodic revision of pension, still it is revised after every Pay revision. Employees have joined the scheme surrendering their Provident Fund Contribution by the company to their credit till 1995 on the good faith that the pension will be updated with the future changes of CCS Pension rules by invoking the provisions under Para 55 of the scheme & will be revised along with every wage revision in industry.

Unilateral insertion clauses to original scheme in a manner detrimental to the interest of a section of the employees are arbitrary unconstitutional & against the spirit of article 14 of the constitution of India.

For the reason stated above and for the reasons to be argued at the time of hearing it is here by prayed that this Hon’ble  court may be pleased to:

1)    Declare that the order exhibit-P2 (S.O 775 (E))  to the extent it restrict the benefits of changes of CCS Pension rules 1972 to Chairman & managing Director is null & void and quash exhibit P-2 to that extent by issuing a writ of certiorari or  other appropriate writ, order of direction.

2)    Issue a writ of mandamus or other appropriate writ, order or direction directing the respondents to revise the basic pension/ family pension/ minimum pension  of petitioners after every wage revision & after every amendment to CCS Pension rules 1972  in accordance with   exhibit P-1(Para 55)

3)    Issue Direction to the Respondents to grand an interim payment of 10 % of  basic pension to petitioners.

4)    Grant such other reliefs as may be prayed for and the court may deem fit to grant, and

5)    Grant the Cost of this original Petition.