V.S.MURTHY versus UNION OF INDIA AND ORS.

V.S.MURTHY versus UNION OF INDIA AND ORS.

Deputation (duty) allowance received by the appellant while on deputation to the Public Sector Undertaking is not to be included in emoluments for the purpose of pension computation, as such deputation constitutes foreign service and the allowance is not sourced from general revenue of the State but is personal to the incumbent during foreign service. Both Rule 2544-C (CSR 486-C) and relevant MRP provisions expressly provide for this exclusion.

Parties
Appellant: V.S. Murthy; Respondent: Union of India and Ors.
Jurisdiction
India
Judgment Date
07 May 1992
Procedural Posture
Civil Appeal / Appeal by Special Leave From Central Administrative Tribunal Judgment in OA No. 542 of 1987
Outcome
Appeal dismissed
Legal Topics
Deputation Allowance, Foreign Service, Pension Computation, Railways, Statutory Rules Interpretation

Case Brief

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Parties

V.S. Murthy

Appellant

Union of India and Ors.

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From Central Administrative Tribunal Judgment in OA No. 542 of 1987

  1. 1 Whether deputation (duty) allowance received by a railway servant on deputation to a Public Sector Undertaking should be included in 'emoluments' for the purpose of calculating pension on permanent absorption.

Ratio Decidendi

Deputation (duty) allowance received by the appellant while on deputation to the Public Sector Undertaking is not to be included in emoluments for the purpose of pension computation, as such deputation constitutes foreign service and the allowance is not sourced from general revenue of the State but is personal to the incumbent during foreign service. Both Rule 2544-C (CSR 486-C) and relevant MRP provisions expressly provide for this exclusion.

Court Disposition

Appeal dismissed

Orders

  • Impugned order of the Tribunal is upheld for reasons different from those given by the Tribunal.
  • Respondents are entitled to make appropriate adjustments in pensionary benefits in accordance with the judgment, ensuring adjustments are distributed over time to dilute rigour.