Legal provisions involved: Fundamental Rule 56(a); Assam Electricity Board and Successor Companies Revised Pay Rules, 2017.

Judgement by: Supreme Court of India

Judge/Bench: Justice Ahsanuddin Amanullah and Justice K. Vinod Chandran

Facts

A group of retired employees from the Assam Power Generation Corporation turned 60 during March 2016. According to Fundamental Rule 56(a), their retirement was to take effect only on the last day of that month. When the 2017 Pay Rules introduced revised salaries, their request for these benefits was denied, saying they were not “in service” on 31 March 2016.

Key legal provisions

Fundamental Rule 56(a); Assam Electricity Board and Successor Companies Revised Pay Rules, 2017.

Issues raised

Whether these employees should be treated as still working on 31 March 2016, which would make them eligible for the revised pay?

Arguments of the case

The employees said that the rule clearly keeps them in service until the month ends, so they fall within the required date. The authorities argued that once they turned 60, they were no longer in service, even if the rule mentioned the last day of the month.

Judgement

The Supreme Court held that retirement actually happens only on the last day of the month, not on the birthday. Since the employees were legally in service on 31 March 2016, they were entitled to the 2017 revised pay. The court restored the Single Judge’s view and ordered that all arrears and pension amounts be paid within six months.

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