The High Court of Tripura, while allowing the petition of an employee seeking old pensionary benefits, held that the petitioner cannot be allowed to be treated arbitrarily and unequally with other retired employees who have been already provided such benefits under the previous scheme.
Brief Facts:
The petitioner joined the post of Research Officer [Engineering] under the Tripura State Council for Science & Technology. When he was in service, the State Council in its meeting of the Executive Committee passed a resolution on 22.12.2015, that a Trust would be formed to manage LICI Linked Defined Benefit Pension Scheme w.e.f. 01.01.2016. From the said Deed of Trust, it appears that the basic object of the trust was to make provisions for some post-retirement benefits for employees of the State Council upon their retirement. This way, the EPF Pension Scheme, as was prevalent at that time, was discontinued and the petitioner exercised his option in favor of the above-mentioned Defined Benefit Pension Scheme. It was the grievance of the petitioner that after his retirement he was not given full and final payment of all post-retirement benefits based on said Deed of Trust or the amount payable under said defined schemes of LICI.
Contentions of the Petitioner:
The learned counsel appearing on behalf of the petitioner contended that no retrospective effect of the said Deed of Variance could be given to the deprivation of the petitioner as already option was already taken by the department from the petitioner to be governed by the terms and conditions of the trust and therefore, rule of promissory estoppel will be applicable in this case.
Contentions of the Respondent:
The learned counsel appearing on behalf of the respondents contended that the State Government had made a certain observation for correction of the Deed of Trust and accordingly, the same was done and the petitioner himself being a person holding a responsible post in the State Council was under obligation for proper implementation of the actual object of the scheme and the directions of the Government.
Observations of the court:
The court noted that taking of option from the petitioner to come under the coverage of said schemes, was an implied promise of the employer giving rise to a legitimate expectation in the mind of the petitioner that he would be governed by the said scheme and would get all the benefits under the said scheme on his retirement.
The court referred to the judgment in the case of National Buildings Construction Corporation vs. S. Raghunathan and others, (1998) 7 SCC 66, and stated that the doctrine of "Legitimate Expectation" has its genesis in the field of administrative law. The Court observed that the Deed of Variance cannot be allowed to be applied retrospectively upon the petitioner by the respondents. The respondents have every right to make appropriate provisions for providing retiral benefits to the employees of the State Council but after such new provisions are made by the respondents, the same cannot be applied retrospectively.
The decision of the Court:
The court, allowing the petition, held that the post-retiral benefits of the petitioner will be guided by the scheme under the Deed of Trust i.e. LICI Linked Terminal Benefit Scheme as was introduced from 01.01.2016.
Case Title: Sri Nataraj Datta vs State of Tripura & Ors.
Coram: Hon’ble Mr. Justice S. Datta Purkayastha
Case No.: W.P.(C) No.377 of 2023
Advocate for the Petitioner: Mr. P. Roy Barman
Advocate for the Respondent: Mr. D. Bhattacharya
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