V.M. GADRE versus M.G. DIWAN

V.M. GADRE versus M.G. DIWAN

The Supreme Court accepted Scheme 'C' worked out by LIC as a one-time final measure for revision of pension, holding that revision was permissible as a humanitarian relief but not the substitution of a totally new pension plan under Articles 32 and 142.

Parties
Petitioner: V.M. Gadre; Respondent: M.G. Diwan
Jurisdiction
India
Judgment Date
15 March 1996
Procedural Posture
Writ Petition (civil) / Final Judgment
Outcome
Petition partly allowed
Legal Topics
Pension Revision, Nationalisation of Insurance Company, Jurisdiction Under Article 32 and 142
Labour and Employment Pensions Constitutional Law Pension Revision Nationalisation of Insurance Company Jurisdiction Under Article 32 and 142

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Parties

V.M. Gadre

Petitioner

M.G. Diwan

Respondent

Procedural Posture

Writ Petition (civil) / Final Judgment

Legal Issues

  1. 1 Whether the pension for erstwhile employees of Oriental Government Security Life Assurance Company should be revised in view of increased cost of living
  2. 2 Whether the Supreme Court can substitute a new pension plan under Article 32 read with 142

Ratio Decidendi

The Supreme Court accepted Scheme 'C' worked out by LIC as a one-time final measure for revision of pension, holding that revision was permissible as a humanitarian relief but not the substitution of a totally new pension plan under Articles 32 and 142.

Court Disposition

Petition partly allowed

Orders

  • Scheme 'C' for pension revision is accepted in full and final settlement; minimum pension revised to Rs. 575 with annual increments as per Scheme 'C' table from August 1994
  • Difference in pension paid and payable under Scheme 'C' to be worked out within two months and paid to pensioner or legal representatives