The Tamilnadu State Transport and Transport Corporations Retired Employees Association Vs. the Commissioner and Secretary to Govt. Transport Dept. Madras and anr. - Court Judgment

Excerpt:
- order1. this writ petition is for a writ of certiorari-fled mandamus to quash the order dated february 22, 1989 in letter no. 66269/tpt.i/86-8 and to pay health allowance to the erstwhile employees of the tamil nadu state transport corporation pensioners from april 1, 1989 onwards, to issue medical identification card and to pay health allowance to them from july 1, 1982 onwards. 2. the case of the petitioners is as follows : the petitioners' association is a registered one under the societies registration act. they were employees of the state transport department. after formation of the transport corporations from may 1, 1975 they were absorbed in various corporations. the absorption was based on the option to be exercised by them on or before may 1, 1975. the persons who opted to be absorbed would be entitled to pension, gratuity and other benefits available to the government servants. 2 the members of the association retired from service of the corporations after their absorption. with reference to pension, the government issued g.o.ms. no. 1028, transport department, dated september 23, 1985. as per this 2 g.o., the retired erstwhile transport department employees were given medical expenses at the rate of 10% of annual pension subject to a maximum of rs. 2001 per annum. further they were provided with a medical identification card for availing the privileges of treatment in government hospitals like non-gazetted officers. the government issued g.o.ms. no. 861 finance (pc) department dated september 11, 1986 granting a sum of rs. 151 per month as medical allowance to the petitioners who were entitled for reimbursement. pursuant to this g.o.ms. no. 861 dated september 11, 1986 the members of the petitioners-association were given the benefits. however, from december, 31, 1989 the medical allowance of rs. 15/- was stopped pursuant to a letter of the transport department dated february 22, 1989. hence the petitioners-association has filed this writ petition. 3. in the counter filed by the first respondent the reason for stopping the medical allowance is set out. the reason is that the erstwhile state government transport employees who were absorbed into the corporations ceased to be government servants. therefore, the medical allowances of rs. 15/- granted to government servants cannot be granted to these persons. since these persons were also being given the benefit a necessity arose for issuing clarification. therefore, the government issued the clarification in the letter impugned in the writ petition. 4. the only question that is to be considered in this writ petition is as to whether the erstwhile government transport department employees absorbed into the services of the various corporations are entitled to the medical allowance to be paid along with the pension. 5. in g.o.ms. no. 1028 transport department dated september 23, 1985 the government issued directions with reference to the terminal benefits of the erstwhile government employees absorbed in the transport corporations. as per the said g.o., an optee would be entitled to pension, gratuity earned by him in the government service prior to such absorption as per the madras liberalised pension rules, 1960. they were permitted to draw their pension from the date of their permanent absorption in the transport corporations. the arrears of monthly pension from the date of the permanent absorption till date are the lump sum amount based on the commutation value of the pension according to their option should be paid immediately in respect of retired/legal heirs of the deceased employees. under the said g.o. the liability of the government to pay pension to them ceased. 6. subsequently in g.o.ms. no. 861 finance dated september 11, 1986 the government directed that the medical allowance of rs. 20015 paid to the government servants must be stopped and instead a sum of rs. 15/- p.m. should be paid along with the pension. after the issuance of the said g.o., the erstwhile transport department employees absorbed in the various transport corporations were also paid the allowance of rs. 15/- along with the monthly pension. this benefit also was continued to the members of the petitioners-association. 7. the petitioner have asserted that its members were paid lump sum of rs. 200/- towards the medical-reimbursement'. subsequently as per g.o.ms. no. 861 instead of the sum of rs. 200/- they were paid the sum of rs. 1 5/- p.m. along with the pension. in para 2 of the counter-affidavit those facts have been admitted. after granting the benefits for some time in the year 1989 only the benefit has been stopped. it is true that the members of the petitioners-association ceased to be government servants, but, right or wrong they have been given the medical reimbursement and subsequently the medical allowance till 1989. after having given the benefit, withdrawing the same without any notice to them is against the principles of natural justice. 8. a list of the members of the association is enclosed to the writ petition. there are only 317 members. among those members also many of them may not be alive now. in such circumstances, the benefit granted to the retired employees need not be taken away on the ground that they ceased to be government servants. even though the reason given in the impugned letter is acceptable to some extent, but, considering the stage and age of the members of the association i feel that in equity the benefit need not be withdrawn from them. on the two grounds mentioned above i feel the writ petition has to be allowed. accordingly, the writ petition is allowed, but, without costs. consequently, w.m.p. nos. 6878 of 1991 and 7427 of 1992 are dismissed.

Judgment:
ORDER

1. This writ petition is for a writ of certiorari-fled mandamus to quash the order dated February 22, 1989 in letter No. 66269/Tpt.I/86-8 and to pay health allowance to the erstwhile employees of the Tamil Nadu State Transport Corporation pensioners from April 1, 1989 onwards, to issue medical identification card and to pay health allowance to them from July 1, 1982 onwards.

2. The case of the Petitioners is as follows : The petitioners' association is a registered one under the Societies Registration Act. They were employees of the State Transport Department. After formation of the Transport Corporations from May 1, 1975 they were absorbed in various corporations. The absorption was based on the option to be exercised by them on or before May 1, 1975. The persons who opted to be absorbed would be entitled to pension, gratuity and other benefits available to the Government servants. 2 The members of the association retired from service of the Corporations after their absorption. With reference to pension, the Government issued G.O.Ms. No. 1028, Transport Department, dated September 23, 1985. As per this 2 G.O., the retired erstwhile Transport Department employees were given medical expenses at the rate of 10% of annual pension subject to a maximum of Rs. 2001 per annum. Further they were provided with a medical identification card for availing the privileges of treatment in Government hospitals like Non-Gazetted Officers. The Government issued G.O.Ms. No. 861 Finance (PC) Department dated September 11, 1986 granting a sum of Rs. 151 per month as medical allowance to the petitioners who were entitled for reimbursement. Pursuant to this G.O.Ms. No. 861 dated September 11, 1986 the members of the petitioners-association were given the benefits. However, from December, 31, 1989 the medical allowance of Rs. 15/- was stopped pursuant to a letter of the Transport Department dated February 22, 1989. Hence the petitioners-association has filed this writ petition.

3. In the counter filed by the first respondent the reason for stopping the medical allowance is set out. The reason is that the erstwhile State Government Transport Employees who were absorbed into the Corporations ceased to be Government servants. Therefore, the medical allowances of Rs. 15/- granted to Government servants cannot be granted to these persons. Since these persons were also being given the benefit a necessity arose for issuing clarification. Therefore, the Government issued the clarification in the letter impugned in the writ petition.

4. The only question that is to be considered in this writ petition is as to whether the erstwhile Government Transport Department employees absorbed into the services of the various corporations are entitled to the medical allowance to be paid along with the pension.

5. In G.O.Ms. No. 1028 Transport Department dated September 23, 1985 the Government issued directions with reference to the terminal benefits of the erstwhile Government employees absorbed in the Transport Corporations. As per the said G.O., an optee would be entitled to pension, gratuity earned by him in the Government service prior to such absorption as per the Madras Liberalised Pension Rules, 1960. They were permitted to draw their pension from the date of their permanent absorption in the Transport Corporations. The arrears of monthly pension from the date of the permanent absorption till date are the lump sum amount based on the commutation value of the pension according to their option should be paid immediately in respect of retired/legal heirs of the deceased employees. Under the said G.O. the liability of the Government to pay pension to them ceased.

6. Subsequently in G.O.Ms. No. 861 Finance dated September 11, 1986 the Government directed that the medical allowance of Rs. 20015 paid to the Government servants must be stopped and instead a sum of Rs. 15/- p.m. should be paid along with the pension. After the issuance of the said G.O., the erstwhile Transport Department employees absorbed in the various Transport Corporations were also paid the allowance of Rs. 15/- along with the monthly pension. This benefit also was continued to the members of the petitioners-association.

7. The petitioner have asserted that its members were paid lump sum of Rs. 200/- towards the medical-reimbursement'. Subsequently as per G.O.Ms. No. 861 instead of the sum of Rs. 200/- they were paid the sum of Rs. 1 5/- p.m. along with the pension. In para 2 of the counter-affidavit those facts have been admitted. After granting the benefits for some time in the year 1989 only the benefit has been stopped. It is true that the members of the petitioners-association ceased to be Government servants, but, right or wrong they have been given the medical reimbursement and subsequently the medical allowance till 1989. After having given the benefit, withdrawing the same without any notice to them is against the principles of natural justice.

8. A list of the members of the association is enclosed to the writ petition. There are only 317 members. Among those members also many of them may not be alive now. In such circumstances, the benefit granted to the retired employees need not be taken away on the ground that they ceased to be Government servants. Even though the reason given in the impugned letter is acceptable to some extent, but, considering the stage and age of the members of the association I feel that in equity the benefit need not be withdrawn from them. On the two grounds mentioned above I feel the writ petition has to be allowed. Accordingly, the writ petition is allowed, but, without costs. Consequently, W.M.P. Nos. 6878 of 1991 and 7427 of 1992 are dismissed.