Haryana high court has restrained the Haryana government from recovering the amount of commuted value of pension from employees who have completed 10 years of retirement.

 CHANDIGARH: In an order, which may have huge ramifications on lakhs of retired employees or pensioners in the region, the Punjab and Haryana high court has restrained the Haryana government from recovering the amount of commuted value of pension from employees who have completed 10 years of retirement.3

A division bench, comprising Justice Sanjeev Prakash Sharma and Justice Sudeepti Sharma, passed these orders while hearing a bunch of petitions filed by Sham Sunder (71), retired taxation inspector, and several other pensioners who retired from different departments of the Haryana government.
The bench has also issued notice to Haryana through chief secretary and accountant general (A&E), seeking response on the issue by August 21.
Petitioners sought directions to restore full pension on expiry of recovery period

“In the meanwhile, further recovery shall remain stayed. While we have passed the said interim order in several cases restraining the respondents from making any recovery, it is clarified that the same would be a direction in cases where the concerned petitioner has completed 10 years of retirement or above,” the bench clarified in its order released on Thursday.
The petitioners had sought quashing of the provisions of

Rules 95 and 106 of the Haryana Civil Services (Pension) Rules, 2016 by holding the same to be illegal as these were causing undue enrichment to the state. The petitioners also sought directions to restore their full pension immediately on expiry of the actual period of recovery i.e. 11.5 years since the commuted value of pension along with prescribed rate of interest 8.1% stands recovered and the purpose of same stands achieved.
The counsel for the petitioners, advocate Vikas Chatrath, submitted that the state govt is recovering excess amount of commuted value of pension along with prescribed rate of interest i.e. 8.1% p.a. in a period of 15 years (180 instalments) whereas the same stands recovered in 11.5 years (around 135 instalments). “Consequently, it is tantamount to unjust enrichment as enhancement in the period of restoration from 12 years to 15 years wef March 4, 2003 by bringing state employees at par with central government employees, same contravenes Articles 14 and 16 of the Constitution, since the employees of state stand retired at the age of 58 years as compared to 60 years in case of central government employees, which makes the entire difference in calculation of the amount,” Chatrath contended.
The counsel argued that bare perusal of impugned Rule 95 of the Haryana Civil Services (Pension) Rules, 2016 shows that underlying intent of the authorities is that in any event they do not wish to suffer any loss, yet keeping in view the fixation of 15-year period for restoration is not justified as it has no basis and foundation, since in the event the commuted pensioner dies before the period, state does not suffer any loss as family pension becomes payable to the extent of 30% of last emoluments at the time of retirement or death after an afflux of time, the HC was informed.

Share to Twitter