Thursday, November 3, 2011

LIC to revise pension in four weeks : Rajasthan HC

Rajasthan High Court today (i.e. 02/11/11)granted four weeks time to LIC to comply with its earlier order directing the company to implement a November 2001 board decision to revise pension and dearness allowance of its retired employees.
Hearing a contempt petition, the single bench of Justice Mahesh Chandra Sharma directed the LIC to revise the pension and DA payable to its retired employees corresponding to the successive revisions of pay scales that took place in 1986, 1993, 1997, 2002 and 2007.

Counsel for LIC Ajay Tyagi prayed before the court to grant four weeks time to comply the order. The court, however, directed A K Das Gupta, Managing Director LIC and D Vijaylaxmi, Executive Director (personal) to remain present before it on December 1 in case the order is not complied with. The order came on a contempt petition filed by petitioner Krishan Murari Lal Asthan. The board resolution was passed to meet the demand of parity in pension raised by the All India Retired Insurance Employee's Association. Retired employees of LIC across the country are drawing pension based on the last pay at the time of their retirement. The "inaction" of the the LIC in implementing the board decision was challenged by Krishan Murari Lal Asthan, General Secretary of Retired Insurance Employees' Association of LIC. The LIC board did not implement the resolution on the ground that the Finance Ministry has not given its approval. Disposing of the writ petition filed by Asthana, single judge bench of Justice Munishwar Nath Bhandari in its order dated January 12, 2010 had asked LIC to take immediate steps to implement the resolution of LIC board and held, "In the present matter, there was no reason to seek approval of the central government". The SLP filed by the LIC was also dismissed by the Supreme Court and subsequently the division bench has also dismissed a review petition filed by LIC but still the order of High Court was not complied with.
Source : PTI


  1. LIC and Bank Unions are front liners in Financial Sector who over a period of time became weak for historical reasons. Slowly their bargaining power has weakened. Public Sector Managements have come to a stage where even court orders are not complied with. Recent, another example, failure in getting enhanced Gratuity implemented from 1/1/2006 for Banks and LIC.

  2. I congratulate the retirees of LIC for their sustained legal battle for a just cause. The order of the HC is quite speaking by itself. Let this be an eye opener to the "political-bureaucratic nexus" in the Government who vehemently oppose at the behest of the vested interests in finance and Banking circles - a powerful lobby. We can expect a logical conclusion soon for the rejoice of the retirees of LIC.

  3. If all top executives who are responsible for this contempt are put behind bars atleast for 5 years, such executives in other public secotr undertakings will learn a lesson

  4. It is just a matter of time, before the logical conclusion is applied and extended to retired bank employees as well on pension updation. Let us hope for better times ahead!