Ranchi Nagar Nigam Pensioners Samaj Through Its Secretary Santosh Kumar Bhagat Vs. State of Jhakrhand Through Chief Secretary - Court Judgment

SooperKanoon Citationsooperkanoon.com/64881
CourtJharkhand High Court
Decided OnAug-20-2015
AppellantRanchi Nagar Nigam Pensioners Samaj Through Its Secretary Santosh Kumar Bhagat
RespondentState of Jhakrhand Through Chief Secretary
Excerpt:
in the high court of jharkhand at ranchi l.p.a. no. 413 of 2008 ranchi nagar nigam pensioners samaj, having its office in the campus of ranchi  municipal   corporation,   ranchi,   po   ranchi,   ps   and   district   ranchi,   through   its  secretary, santosh kumar bhagat, s/o late dr. maheshwar bhagat, r/o s.n.ganguly  road, ps kotwali, po and district ranchi                                 ….......    appellant              vs.      1.   the state of jharkhand through chief secretary   2.   secretary, urban development department, government of jharkhand, ranchi 3.   ranchi municipal corporation, ranchi 4.   administrator,ranchi municipal corporation, ranchi                                                                                    …......     respondents                                   ­­­­­­­­­­­                    coram: hon'ble mr. justice d.n.patel : hon'ble mr. justice ratnaker bhengra ---------- for the appellant :mr. a.k.sahani,adv. for the respondents : j.c. to s.c.1 ---------- 11/dated:20. th august, 2015 per d.n. patel, j.1. this letters patent appeal has been preferred against the judgment  and order dated 10.6.2008 passed by the learned single judge in w.p.(s)  no. 3906 of 2004 whereby the claim of this petitioner to get gratuity by  adding 97% of the dearness allowance and as well as pension by adding  295% of the dearness allowance and medical allowance at par with the  government servant which has been rejected by the finance commissioner,  patna, bihar vide order dated 16th february, 2000 and similarly it was also  rejected   by   the   order   passed   by   the   secretary,   urban   development  department, government of jharkhand.  2. counsel   appearing   on   behalf   of   appellant   submits   that   in   view   of  annexure 2 whatever may be the calculation of the pension and gratuity  given to the government employee is applicable to the employee of ranchi  nagar   nigam   because   members   of   this   appellant     retired   from   ranchi  nagar nigam. this aspect of the matter has not been properly appreciated  by the learned single judge. counsel for the appellant further submitted  that the retired employees of ranchi nagar nigam  are in fact employees of  state government and therefore, gratuity and pension should be calculated  on the basis of dearness allowance, released by the state of jharkhand.  there   cannot   be   two   separate   calculations   i.e.   one   for   government  employees and another for ranchi nagar nigam employees. these aspects  of the matter have not been properly appreciated by the learned single                                                ­2­ judge  nor by the secretary, urban development department, government  of jharkhand  while passing the order dated 27th march, 2004 which was  under challenge in the writ petition.  3. counsel  appearing  for  respondent   nos. 3 and 4  submitted  that   no  error   has   been   committed   by   the   secretary,   urban   development  department while passing the order dated 27th march, 2004. (annexure 5  to   the   memo   of   this   l.p.a.).   it   is   further   submitted   by   counsel   for  respondent nos. 3 and 4 that the employees of ranchi nagar nigam , at the  relevant time were not the employees of state of jharkhand and therefore  dearness allowance increased by the state government is not applicable to  the   employees   of   ranchi   nagar   nigam.   ranchi   nagar   nigam   is   an  autonomous body which can sue and which can be sued. this aspect of the  matter has been properly appreciated while passing the impugned order  dated   27.3.2004   by   the   secretary,   urban   development   department,  government   of   jharkhand   as   well   as   by   learned   single   judge   while  dismissing the writ petition preferred by this appellant. pension has to be  paid by ranchi nagar nigam at the relevant time from their own fund. no  financial   assessment   was   given   by   the   government   for   payment   of   the  pension   at   the   relevant   time   and   therefore,   what   dearness   allowance  should   be   given   i.e.   left   at   the   discretion   of   ranchi  nagar   nigam.   it   is  further submitted that the calculation made by respondents for payment of  gratuity   as   well   as  pension  right   from  the   order  passed  by   the  finance  commissioner,   patna,bihar   vide   order   dated   16.2.2000   as   well   as   order  passed   by   the   respondent   no.   2   i.e.   secretary,   urban   development  department,   government   of   jharkhand   dated   27.3.2004   are   absolutely  true, correct and in consonance with the facts of law as the employees of  ranchi nagar nigam are not the employees of the government and hence,  this letters patent appeal may not be entertained by this court.  4. counsel   appearing   for   rest   of   the   respondents   have   accepted   the  arguments   canvassed   by   respondent   nos.   3   and   4   and   it   is   vehemently  submitted   by   counsel   for  the   state   of  jharkhand  that  the  employees  of  ranchi   nagar   nigam   now   ranchi   municipal   corporation   are   not   the  employees of state of jharkhand at all and therefore, directly thereafter  dearness allowance paid by the state of jharkhand are never applicable to                                               ­3­ the employees of ranchi nagar nigam unless a resolution passed by the  ranchi   nagar   nigam   for   increasing   the   dearness   allowance     and   it   is  proved by the government of jharkhand. there is nothing like automatic  application of increase of dearness allowance for the employees of ranchi  nagar nigam. there ought to be resolution by ranchi nagar nigam for this  purpose and ought to be an approval given by the government. counsel for  the respondent­state has also relied upon the decision rendered by hon'ble  supreme court in a case reported in (2007)8 scc 279.    5. having   heard   counsel   for   both   sides   and   looking   to   the   facts   and  circumstances of the case we see no reason to entertain this letters patent  appeal mainly for the following reasons: i) the demand of the appellant members is to get dearness  allowance   at   par   with   the   state   government   employees.   in   fact   these  employees have already been retired and the dearness allowance will be  useful in calculation of the gratuity and pension. ii) therefore, the question arises whether the employees of  ranchi nagar nigam who have retired are the employees of government of  jharkhand or not. no error has been committed by learned single judge in  not   treating   these   employees   as   employees   of   the   government.   ranchi  nagar   nigam   is   an   autonomous   body,   it   sue   and   can   be   sued.   the  employees of the government can get dearness allowance because of the  resolutions passed by the government and it is not automatically applicable  to   the   employees   of   autonomous   body   like   ranchi   nagar   nigam.    for  increase   in   dearness   allowance   for   employees   of   ranchi   nagar   nigam,  there ought  to be a resolution passed by ranchi nagar nigam, looking to  their financial position. such type of resolution thereafter used to be sent  to   the   government   and   thereafter   government   gives   approval   and   thus  increased rate of dearness allowance  will be applicable to the employees  of ranchi nagar nigam. this was the mechanism at the relevant time.              iii)         it has been held by the hon'ble supreme court in the case  of s.c.chandra and others vs. state of jharkhand and others reported  in  (2007)8 scc 279  at paragraph no. 13 of the judgment passed by the  hon'ble division bench that this court will be very slow in applying the                                                 ­4­ principle of equal pay for equal work.  the  employees of   ranchi    nagar nigam cannot be equated with the  employees of the state­government and  hence, there can be a difference in the   dearness allowance and at the  relevant   time   prevailing   rates  of   the  dearness  allowance   were   different  and   hence,   the   order  passed   by   the   secretary,   urban   development  department,   government   of   jharkhand   dated   27 th  march,   2004   is  absolutely   correct   as   such,   there   is   no   substance   in   this   letters   patent  appeal.                       iv) these   appellants   are   seeking   97   %   of   the   dearness  allowance for calculation of gratuity and 295 % of the dearness allowance  for the calculation of pension. this is on the basis of the rate of dearness  allowance as prevailing in the  state of jharkhand or in the erstwhile state  of   bihar,   for   the   employees   of   the   government.    in   fact   this   dearness  allowance   cannot   be   given   to   the   employees   of   ranchi   nagar   nigam  because   they   are   not   the   employees   of   the   government.     they   are   the  employees of the separate autonomous body namely ranchi nagar nigam.  finance commissioner, patna, bihar has rightly passed an order dated 16 th  february, 2000 and rightly these retired employees of the ranchi nagar  nigam   have   not   been   treated   as   employees   of   erstwhile   state   of   bihar.  thereafter,   writ   petition   was  preferred     by  few  of   the   retired   employee  bearing c.w.j.c. no. 820 of 1997(r) in which while passing the final order  the direction was given to state of jharkhand to decide the claim of these  petitioners and by that time the state of jharkhand has already bifurcated  with effect from 15th november, 2000 under the  bihar reorganization act,  2000.   again   the   state   government   has   decided   the   claim   of   these  appellants vide order dated 27th march, 2000 and the order was passed by  secretary, urban development department, government of jharkhand. no  error   has   been   committed   by   the   secretary,   urban   development  department, government of jharkhand while passing the order dated 27 th  march,   2000   because   employees   of   the   state­government   and   the  employees   of   ranchi   nagar   nigam   are   separate   one.   there   can   be   a  difference of the dearness allowance  payable to them at the relevant time.  this aspect of the matter has properly been appreciated by the secretary,  urban development department as well as by learned single judge while                                              ­5­  dismissing the writ petition no. 3906 of 2004, order dated 10.6.2008.  6. there   is  no  substance  in  this letters  patent  appeal  and hence  the  same is hereby dismissed.                                                                                                                        (d.n.patel, j.) nibha/           (ratnaker bhengra, j.)             
Judgment:

IN THE HIGH COURT OF JHARKHAND AT RANCHI L.P.A. No. 413 of 2008 Ranchi Nagar Nigam Pensioners Samaj, having its Office in the campus of Ranchi  Municipal   Corporation,   Ranchi,   PO   Ranchi,   PS   and   District   Ranchi,   through   its  Secretary, Santosh Kumar Bhagat, S/o Late Dr. Maheshwar Bhagat, R/o S.N.Ganguly  Road, Ps Kotwali, PO and District Ranchi                                 ….......    Appellant              Vs.      1.   The State of Jharkhand through Chief Secretary   2.   Secretary, Urban Development Department, Government of Jharkhand, Ranchi 3.   Ranchi Municipal Corporation, Ranchi 4.   Administrator,Ranchi Municipal Corporation, Ranchi                                                                                    …......     Respondents                                   ­­­­­­­­­­­                    CORAM: HON'BLE MR. JUSTICE D.N.PATEL : HON'BLE MR. JUSTICE RATNAKER BHENGRA ---------- For the appellant :Mr. A.K.Sahani,Adv. For the respondents : J.C. to S.C.1 ---------- 11/Dated:

20. th August, 2015 Per D.N. Patel, J.

1. This Letters Patent Appeal has been preferred against the judgment  and order dated 10.6.2008 passed by the learned Single Judge in W.P.(S)  No. 3906 of 2004 whereby the claim of this petitioner to get gratuity by  adding 97% of the Dearness Allowance and as well as pension by adding  295% of the Dearness Allowance and Medical Allowance at par with the  Government servant which has been rejected by the Finance Commissioner,  Patna, Bihar vide order dated 16th February, 2000 and similarly it was also  rejected   by   the   order   passed   by   the   Secretary,   Urban   Development  Department, Government of Jharkhand.  2. Counsel   appearing   on   behalf   of   appellant   submits   that   in   view   of  Annexure 2 whatever may be the calculation of the pension and gratuity  given to the government employee is applicable to the employee of Ranchi  Nagar   Nigam   because   members   of   this   appellant     retired   from   Ranchi  Nagar Nigam. This aspect of the matter has not been properly appreciated  by the learned Single Judge. Counsel for the appellant further submitted  that the retired employees of Ranchi Nagar Nigam  are in fact employees of  State government and therefore, gratuity and pension should be calculated  on the basis of Dearness Allowance, released by the State of Jharkhand.  There   cannot   be   two   separate   calculations   i.e.   one   for   government  employees and another for Ranchi Nagar Nigam employees. These aspects  of the matter have not been properly appreciated by the learned Single                                                ­2­ Judge  nor by the Secretary, Urban Development Department, Government  of Jharkhand  while passing the order dated 27th March, 2004 which was  under challenge in the writ petition.  3. Counsel  appearing  for  respondent   nos. 3 and 4  submitted  that   no  error   has   been   committed   by   the   Secretary,   Urban   Development  Department while passing the order dated 27th March, 2004. (Annexure 5  to   the   memo   of   this   L.P.A.).   It   is   further   submitted   by   counsel   for  respondent nos. 3 and 4 that the employees of Ranchi Nagar Nigam , at the  relevant time were not the employees of State of Jharkhand and therefore  Dearness Allowance increased by the State Government is not applicable to  the   employees   of   Ranchi   Nagar   Nigam.   Ranchi   Nagar   Nigam   is   an  autonomous body which can sue and which can be sued. This aspect of the  matter has been properly appreciated while passing the impugned order  dated   27.3.2004   by   the   Secretary,   Urban   Development   Department,  Government   of   Jharkhand   as   well   as   by   learned   Single   Judge   while  dismissing the writ petition preferred by this appellant. Pension has to be  paid by Ranchi Nagar Nigam at the relevant time from their own fund. No  financial   assessment   was   given   by   the   government   for   payment   of   the  pension   at   the   relevant   time   and   therefore,   what   Dearness   Allowance  should   be   given   i.e.   left   at   the   discretion   of   Ranchi  Nagar   Nigam.   It   is  further submitted that the calculation made by respondents for payment of  gratuity   as   well   as  pension  right   from  the   order  passed  by   the  Finance  Commissioner,   Patna,Bihar   vide   order   dated   16.2.2000   as   well   as   order  passed   by   the   respondent   no.   2   i.e.   Secretary,   Urban   Development  Department,   Government   of   Jharkhand   dated   27.3.2004   are   absolutely  true, correct and in consonance with the facts of law as the employees of  Ranchi Nagar Nigam are not the employees of the government and hence,  this Letters Patent Appeal may not be entertained by this Court.  4. Counsel   appearing   for   rest   of   the   respondents   have   accepted   the  arguments   canvassed   by   respondent   nos.   3   and   4   and   it   is   vehemently  submitted   by   counsel   for  the   State   of  Jharkhand  that  the  employees  of  Ranchi   Nagar   Nigam   now   Ranchi   Municipal   Corporation   are   not   the  employees of State of Jharkhand at all and therefore, directly thereafter  Dearness Allowance paid by the State of Jharkhand are never applicable to                                               ­3­ the employees of Ranchi Nagar Nigam unless a resolution passed by the  Ranchi   Nagar   Nigam   for   increasing   the   Dearness   Allowance     and   it   is  proved by the Government of Jharkhand. There is nothing like automatic  application of increase of Dearness Allowance for the employees of Ranchi  Nagar Nigam. There ought to be resolution by Ranchi Nagar Nigam for this  purpose and ought to be an approval given by the government. Counsel for  the respondent­State has also relied upon the decision rendered by Hon'ble  Supreme Court in a case reported in (2007)8 SCC 279.    5. Having   heard   counsel   for   both   sides   and   looking   to   the   facts   and  circumstances of the case we see no reason to entertain this Letters Patent  Appeal mainly for the following reasons: i) The demand of the appellant members is to get Dearness  Allowance   at   par   with   the   State   Government   employees.   In   fact   these  employees have already been retired and the Dearness Allowance will be  useful in calculation of the gratuity and pension. ii) Therefore, the question arises whether the employees of  Ranchi Nagar Nigam who have retired are the employees of government of  Jharkhand or not. No error has been committed by learned Single Judge in  not   treating   these   employees   as   employees   of   the   government.   Ranchi  Nagar   Nigam   is   an   autonomous   body,   it   sue   and   can   be   sued.   The  employees of the government can get Dearness Allowance because of the  resolutions passed by the government and it is not automatically applicable  to   the   employees   of   autonomous   body   like   Ranchi   Nagar   Nigam.    For  increase   in   Dearness   Allowance   for   employees   of   Ranchi   Nagar   Nigam,  there ought  to be a resolution passed by Ranchi Nagar Nigam, looking to  their financial position. Such type of resolution thereafter used to be sent  to   the   government   and   thereafter   government   gives   approval   and   thus  increased rate of Dearness Allowance  will be applicable to the employees  of Ranchi Nagar Nigam. This was the mechanism at the relevant time.              iii)         It has been held by the Hon'ble Supreme Court in the case  of S.C.Chandra and others Vs. State of Jharkhand and others reported  in  (2007)8 SCC 279  at Paragraph no. 13 of the judgment passed by the  Hon'ble Division Bench that this Court will be very slow in applying the                                                 ­4­ principle of equal pay for equal work.  The  employees of   Ranchi    Nagar Nigam cannot be equated with the  employees of the state­government and  hence, there can be a difference in the   Dearness Allowance and at the  relevant   time   prevailing   rates  of   the  Dearness  Allowance   were   different  and   hence,   the   order  passed   by   the   Secretary,   Urban   Development  Department,   Government   of   Jharkhand   dated   27 th  March,   2004   is  absolutely   correct   as   such,   there   is   no   substance   in   this   Letters   Patent  Appeal.                       iv) These   appellants   are   seeking   97   %   of   the   Dearness  Allowance for calculation of gratuity and 295 % of the Dearness Allowance  for the calculation of pension. This is on the basis of the rate of Dearness  Allowance as prevailing in the  State of Jharkhand or in the erstwhile State  of   Bihar,   for   the   employees   of   the   government.    In   fact   this   Dearness  Allowance   cannot   be   given   to   the   employees   of   Ranchi   Nagar   Nigam  because   they   are   not   the   employees   of   the   government.     They   are   the  employees of the separate autonomous body namely Ranchi Nagar Nigam.  Finance Commissioner, Patna, Bihar has rightly passed an order dated 16 th  February, 2000 and rightly these retired employees of the Ranchi Nagar  Nigam   have   not   been   treated   as   employees   of   erstwhile   State   of   Bihar.  Thereafter,   writ   petition   was  preferred     by  few  of   the   retired   employee  bearing C.W.J.C. No. 820 of 1997(R) in which while passing the final order  the direction was given to State of Jharkhand to decide the claim of these  petitioners and by that time the State of Jharkhand has already bifurcated  with effect from 15th November, 2000 under the  Bihar Reorganization Act,  2000.   Again   the   State   Government   has   decided   the   claim   of   these  appellants vide order dated 27th March, 2000 and the order was passed by  Secretary, Urban Development Department, Government of Jharkhand. No  error   has   been   committed   by   the   Secretary,   Urban   Development  Department, Government of Jharkhand while passing the order dated 27 th  March,   2000   because   employees   of   the   state­government   and   the  employees   of   Ranchi   Nagar   Nigam   are   separate   one.   There   can   be   a  difference of the Dearness Allowance  payable to them at the relevant time.  This aspect of the matter has properly been appreciated by the Secretary,  Urban Development Department as well as by learned Single Judge while                                              ­5­  dismissing the writ petition no. 3906 of 2004, order dated 10.6.2008.  6. There   is  no  substance  in  this Letters  Patent  Appeal  and hence  the  same is hereby dismissed.                                                                                                                        (D.N.Patel, J.) Nibha/           (Ratnaker Bhengra, J.)