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CDJ 2026 TSHC 252 print Preview print print
Court : High Court for the State of Telangana
Case No : Writ Petition No. 45859 of 2022
Judges: THE HONOURABLE MRS. JUSTICE T. MADHAVI DEVI
Parties : S. Sekhar Goud & Others Versus T.S. Co-op Oilseeds Grower Federation Ltd., rep. by its Chairman, Hyderabad & Another
Appearing Advocates : For the Petitioner: Srinivasa Rao Madiraju, Advocate. For the Respondents: M. Pratheek Reddy, Advocate.
Date of Judgment : 28-04-2026
Head Note :-
Subject
Judgment :-

1. In this Writ Petition, the petitioners are seeking a Writ of Mandamus declaring,

               (a) the action of the respondents in not paying monetary benefits to the petitioners in pursuance of proceedings dt.08.07.2022 and in not fixing the pension of the petitioners in the revised pay scales of 2020 and in not paying arrears to them, as illegal, arbitrary and discriminatory and in violation of Articles 14, 16 and 21 of the Constitution of India;

               (b) that petitioners are entitled for fixation of their pension/pay in the revised pay scales of 2020 and are entitled for release of arrears thereafter;

               (b)(b) that the proceedings issued in Lr.No.HRD/Legal/Rtd.Emp/ 637/2022-23/3181, dt.24.01.2023 of the 2nd respondent are illegal and arbitrary and therefore liable to be set aside;

               (c) and to pass such other order or orders.

2. Brief facts leading to the filing of this Writ Petition are that the petitioners are 11 in number and are all retired employees of respondent No.1. They retired from service in various cadres from 2019 to 2021. While the petitioners were in service, the Government of Telangana constituted a Committee on 01.07.2018 for revision of pay scales of its employees and the Committee submitted its report on 31.03.2020 recommending the revision of the pay scales of the employees. Accordingly, G.O.Ms.No.51, Finance (HRM.IV) Department, 11.06.2021 was issued implementing the recommendations of the Pay Revision Commission (PRC 2020). In the said G.O., it was mentioned that the Revised Pay Scales 2020 (RPS 2020) shall be deemed to have come into force on and from 01.07.2018 and monetary benefits shall be allowed from 01.04.2020 and that the arrears for the period from 01.04.2020 to 31.03.2021 shall be paid at the time of superannuation of the Government employee or to the legal heirs of the employee in case of demise of the employee.

3. All the organizations working under the State Government including respondent No.1 have taken a decision to follow the recommendations of PRC 2020. Accordingly, G.O.Rt.No.464 dt.23.09.2021 for implementation of RPS 2020 to the employees working in TS Oil Fed was issued and in accordance with the said G.O., the petitioners were also entitled for fixation of their pay in the revised pay scales 2020 and also the revised pensionary benefits payable to them in terms of G.O.Ms.No.51 dt.11.06.2021. Accordingly, the TS Oil Fed has created a fund called ‘Employees Superannuation Fund’ in coordination with LIC of India and in terms of the Scheme of the said fund, “an employee who renders the minimum qualifying service of 20 years is eligible for pension or who retired on superannuation as per the State Government rules is also eligible. Pension should be paid at 20% of the basic pay which is drawn on the date of retirement and irrespective of cadre.” According to the petitioners, they are entitled to the benefits under the said G.Os., and in view thereof, the Managing Director of respondent No.1 addressed a letter to the Divisional Manager, LIC of India on 04.02.2022 requesting them to take necessary action to calculate the prevailing annuity rate for payment of pension fund to LIC on account of Telangana State Cooperative Oilseeds Growers’ Federation Limited Employees Superannuation Fund at the earliest. Along with the said letter, the Managing Director enclosed two lists, one pertaining to 29 employees working in TS Oil Fed and the second relating to 11 retired employees. While addressing the letter to LIC, communicating the revised basic pay of the pensioners as per RPS 2020, respondent No.2 requested to calculate the prevailing annuity rate on revised pay so that the difference of annuity amount will be paid to the LIC towards superannuation fund. In reply, the Branch Manager (P&GS), LIC of India has sent a report on 28.03.2021 to respondent No.2 giving the details of the amount payable to the petitioners and other existing staff and also mentioned the amount available with the Trust/LIC and the amount payable by respondent No.1 to the credit of LIC. Pursuant to the same, respondent No.2 issued proceedings dt.01.11.2021, 02.11.2021 and 18.05.2022 revising the pay scales and fixing the pay in revised pay scales 2020 with effect from 01.07.2018 in respect of the first 3 petitioners and also released the monetary benefits towards salary arrears as per RPS 2020 only. However, at the bottom of the proceedings dt.08.07.2022, it is stated that the individual’s pay fixation is calculated notionally from 01.07.2018 and the concerned is not eligible for any monetary benefit as he has retired from service on 31.08.2019. Aggrieved by the action of the respondents in denying the monetary benefits payable to the petitioners in terms of G.O.Ms.No.51 dt.11.06.2021, the petitioners filed the present Writ Petition.

4. Learned Senior Counsel appearing for the petitioners reiterated the above submissions and submitted that G.O.Ms.No.51 dt.11.06.2021 is applicable to the petitioners herein and they should be granted benefits accordingly.

5. The respondents have filed their respective counter affidavits in the Writ Petition as well as in I.A.No.1 of 2023 and have admitted that the petitioners have worked with respondent No.1 organisation and that they are also entitled to the revision of pay scales as per PRC 2020. It is stated that in view of the recommendations of the Pay Revision Commission, respondent No.1 resolved to revise the pay scales of 11 retired employees and to pay them arrears from 01.07.2018. Accordingly, their pay scales were revised and proceedings were issued. It is also stated that such of those employees who are found to be eligible have been released revised pensionary benefits.

6. In reply, the learned Senior Counsel for the petitioners submitted that the respondents are trying to mislead this Court by submitting that the respondents have paid/released the monetary benefits and arrears payable to the petitioners. According to the petitioners, vide proceedings dt.08.07.2022, the petitioners were not issued with any revised pensionary benefits though it is stated that their pay has been fixed in the revised pay scales of 2020. It is further submitted that the respondents are trying to mislead this Court by saying that superannuation scheme is a contractual agreement between TS Oil Fed and LIC under which a onetime contribution is already made by TS Oil Fed by considering, amongst other things, the average salary and retirement age of the employees. According to him, the scheme which is placed at pages 24 to 31 of the writ papers does not say anything about the contribution from respondent No.1 to LIC being onetime contribution and therefore, the contentions are liable to be rejected. It is submitted that the petitioners were paid the benefits pursuant to their retirement under the Employees Superannuation Fund Scheme, but after their retirement, the RPS 2020 came into force and therefore, they are entitled to the arrears from 01.07.2018 and the revision of pensionary benefits thereafter. It is submitted that the respondents have no power or right to deny the revised pensionary benefits to the petitioners. It is stated that after adoption of G.O.Ms.No.51 dt.11.06.2021, respondent No.2 has paid the monetary benefits to the existing staff working in TS Oil Fed and the petitioners who have retired by the date of issuance of G.O.Ms.No.51 dt.11.06.2021 have not been paid the arrears, and therefore, it is discriminatory.

7. Learned Senior Counsel for the petitioners has also filed a memo dt.25.09.2025 enclosing therewith the documents containing the details of the retired employees who were paid from the superannuation welfare fund. It is noticed that 26 employees have been paid the emoluments.

8. Learned counsel for the respondents, on the other hand, relied upon the averments made in the counter affidavit filed on behalf of the respondents and placed reliance upon the following decisions.

               (1) State of Maharashtra and others Vs. Bhagwan and others (MANU/SC/0025/2022)

               (2) Sasadhar Chakravarty and others Vs. Union of India and others (MANU/SC/0092/1997)

               (3) Punjab State Co-operative Milk Producers Federation Ltd., and others Vs. Balbir Kumar Walia and others (MANU/SC/0413/2021 : AIR 2021 SC 3316)

9. Having regard to the rival contentions and the material on record, this Court finds that the only issue for adjudication is whether the revised pay scales under PRC 2020 are applicable to the petitioners with effect from 01.07.2018 and whether the pensionary benefits are also to be revised with effect from their date of retirement. It is noticed in the Minutes of 12th Board of Directors meeting of respondent No.1 held on 20.02.2019 that the Group Superannuation Scheme for the employees of TS Oil Fed was discussed in detail and it was agreed that the superannuation scheme would be applicable to the regular employees from the month of February, 2019 and the Chairman and Managing Director shall be authorised to finalise and settle the pension policy. As per Rule 6 of the Rules of the Telangana State Cooperative Oilseeds Growers’ Federation Limited Employees Superannuation Scheme (for short, ‘the Rules’), a pension fund shall be maintained and Rule 7 thereof prescribes the conditions for conferring benefits on normal retirement date. Clause (i) of Rule 7 provides that an employee who renders the minimum qualifying service of 20 years is eligible for pension as per the Government rules and that the pension should be paid @ 20% of the basic pay which is drawn on the date of retirement and irrespective of the cadre. The petitioners have retired from service between 2019 and 2020, the PRC 2020 has been approved with effect from 01.07.2018 and therefore, the revised pay scales are applicable to the petitioners as well. G.O.Ms.No.51 dt.11.06.2021 has been issued revising the pay scales and it prescribed that RPS 2020 shall be deemed to have come into force on and from 01.07.2018. Therefore, though the petitioners have retired prior to issuance of the G.O.Ms.No.51 dt.11.06.2021, the scales would be applicable to the petitioners. Further, vide letter dt.04.02.2022 issued by the respondents, the names of the petitioners are also mentioned as eligible for pay revision and the premium to be paid to the LIC for the pension to be paid to the petitioners as per the revised pay scales is Rs.2.5 crores as per the report of the actuarial investigation as on 01.03.2022. G.O.Ms.No.51 dt.11.06.2021 further mentions that the monetary benefit shall be allowed from 01.04.2020 only. Therefore, the pay would have to be fixed in the revised pay scales notionally with effect from 01.07.2018, but the monetary benefit shall be allowed from 01.04.2020 onwards and the arrears for the period from 01.04.2020 to 31.03.2021 shall be paid at the time of superannuation of the Government employee during the financial year 2021-22 and the salary in the revised pay scales 2020 will be paid from the month of June, 2021 payable in July, 2021. As per the statement of fixation of pay under the Telangana Revised Scales of Pay Rules, 2020 dt.08.07.2022 of an employee, 01.07.2018 is mentioned as the date for RPS 2020, but it is mentioned that the individual is not eligible for any monetary benefit as he has retired from service on 31.08.2019. This Court is of the opinion that the petitioners are eligible for revision of their pensions in the revised pay scales of 2020.

10. The judgments relied upon by the learned counsel for the respondents are distinguishable on facts. In the case of State of Maharashtra and others Vs. Bhagwan and others (1 supra), the Hon’ble Supreme Court has only held that the Court should refrain from interfering with the policy decision, which might have a cascading effect and having financial implications and whether to grant certain benefits to the employees or not should be left to the expert body and undertakings and the Court cannot interfere lightly. There is no quarrel with the principle laid down by the Hon’ble Supreme Court and in this case, it is the decision of the Government to extend RPS 2020 to all the employees of respondent No.1 with effect from 01.07.2018 on which date all the petitioners were admittedly in service.

11. In the case of Sasadhar Chakravarty and others Vs. Union of India and others (2 supra), the Hon’ble Supreme Court was considering the contentions the petitioners therein that any improvements made in the existing pension scheme after the retirement of the employees should also be made available to such retired employees who are the existing pensioners of the Fund. The Hon’ble Supreme Court has observed that any subsequent improvement in the Pension Fund Scheme will benefit only those whose moneys form part of the Pension Fund.

12. The judgment in the case of Punjab State Co-operative Milk Producers Federation Ltd., and others Vs. Balbir Kumar Walia and others (3 supra) is also on the principle of interference by the High Courts in policy decisions particularly when financial implications are involved.

13. This Court is of the opinion that the policy has already been laid down by the State Government by appointing a Pay Revision Commission and also accepting the recommendations of the Pay Revision Commission. The respondent Federation being a Government Undertaking having accepted to extend the RPS 2020 to its employees, has to extend the benefits to all its employees who were in service on the date on which RPS 2020 is sought to be implemented from, i.e., in this case, the date of implementation of RPS 2020 is 01.07.2018 and all the 11 petitioners were in service as on that date. Therefore, it is not open to the respondents to discriminate the petitioners and deny monetary benefits to them in respect of their pensionary benefits. Their pay scale has to be revised notionally with effect from 01.07.2018 and the monetary benefits will have to be paid from 01.04.2020. The pensionary benefits of the petitioners shall be revised accordingly and the arrears shall be paid to the petitioners. The entire exercise shall be completed within a period of three months from the date of receipt of a copy of this order.

14. The Writ Petition is accordingly allowed. No order as to costs.

15. Pending miscellaneous petitions, if any, in this Writ Petition shall stand closed.

 
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