N. PRADEEP KUMAR ADVOCATE Supreme Court of India Cell Phone Nos. : (1) 9310572530 (2) 9278983944 E-Mail : [email protected]

Residence & Office A-104, Swetha Apartment, Ground Floor, Flat No. 13, Shalimar Garden Extn.-II, Sahibabad, Ghaziabad (U.P.)

Page 1 of 4 Any Pension Scheme “Must Provide” that the Pensioner would be able to live “At a Standard Equivalent to the Pre-Retirement Level” – That is Shalimar Garden 22.05.2010 the “Directive” of Hon’ble the Supreme Court of India to “Employers/ Ex-Employers” in India.

Hon’ble the Supreme Court of India in its Landmark Judgment in D.S. Nakara and others V. Union of India,” which is the Present law of the Land on all Pension related Matters”, examined in depth Various Pension Schemes and the Objects and Goals of any Pension Scheme and also “Subjected Article 14 of the Constitution of India to intense and close examination”, and “after Intensive and Extensive Examination of Article 14 of the Constitution Of India”, by Referring to Various Judgments of Hon’ble the Supreme Court of India rendered in the past, Laid down the Principles ,as to ,” How much the Quantum / Quantity Pension should be” and as to what factors should taken into account, “ before fixing the Pension amount”. I may add, at this stage, that this Judgment of the Hon’ble the Supreme Court of India in DS Nakara and others V. Union of India, is by a 5 Judge Constitution Bench of Hon’ble the Supreme Court of India, headed by the then Chief Justice, Hon’ble Mr. Justice Y.V. Chandrachud and the Judgment was drafted and delivered by Hon’ble Mr. Justice D.A. Desai, a Most Prolific Judge of Hon’ble the Supreme Court of India. In fact, in its Content, Reach and Research, it “is Unparalleled” in the entire post – Independent History of India. Analyzing the Principles involved in interpreting article 14 of the Constitution of India and delving deep into the Goals and Objectives of any Pension Scheme and the Nature of the Pension Scheme and “the objects underlying the Pension Schemes”, “with extensive references to Academics, legal experts, Encyclopaedia Britannica and American Jurisprudence”, that Profoundly Scholarly Judge / Former Judge of Hon’ble the Supreme Court of

N. PRADEEP KUMAR ADVOCATE Supreme Court of India Cell Phone Nos. : (1) 9310572530 (2) 9278983944 E-Mail : [email protected]

Residence & Office A-104, Swetha Apartment, Ground Floor, Flat No. 13, Shalimar Garden Extn.-II, Sahibabad, Ghaziabad (U.P.)

Page 2 of 4 India, Hon’ble Mr. Justice D.A. Desai, who Penned the Landmark Judgment in D.S. Nakara and others V. Union of India, observed that : “A Pension Scheme “Consistent with Available Resources”, “Must Provide” that the Pensioner would be able to live : (1)

“Free from Want”, “With Decency”, “Independence” and “Self Respect” : and

(2)

At a Standard “Equivalent to the Pre-Retirement Level”. Also, His Lordship, Hon’ble Mr. Justice Mr. D.A. Desai says as under

in this Context : (1)

It is Imperative to Note, that “as Self-Sufficiency Declines”, the Need for “His Dependence” on “Institutional Care Grows”.

(2)

Many are Literally Surviving “Now, than in the Past”. In this Context, I would like to add that “The “Direction” of Hon’ble the

Supreme Court of India” to “Employers” / “Ex-Employers” in India “to Provide that the Pension Quantum (Amount)” is Such that : (1)

The Pensioner would be able to live “at a Standard Equivalent to the Pre-retirement Level”; and

(2)

“Free from Want”, “With Decency”,”Independence” and “Self Respect” is qualified by a few Opening Words, Namely, “Consistent with

Available Resources”. Now, if We look at the “Profit Figures” of “All the Public Sector Banks”,,which are “Bulging” and “Swelling” (Running into “Hundreds of

N. PRADEEP KUMAR ADVOCATE Supreme Court of India Cell Phone Nos. : (1) 9310572530 (2) 9278983944 E-Mail : [email protected]

Residence & Office A-104, Swetha Apartment, Ground Floor, Flat No. 13, Shalimar Garden Extn.-II, Sahibabad, Ghaziabad (U.P.)

Page 3 of 4 Crores of Rupees”, and “Thousands of Crores of Rupees”) “at every Successive Financial Year” is it “Difficult” or “Impossible” for the Public Sector Banks to Follow the “Directive of Hon’ble the Supreme Court of India”, “to Pay Pension to their Pensioners”, “Such an Amount (as Pension) that enables them to Live : (1)

At a Standard “Equivalent to their Pre-Retirement Level” : and

(2)

“Free from Want”, “With Decency”, “Independence” and “SelfRespect?” When that is the Case, “and that is the Truth of the Matter”, why

should the Public Sector Banks “Flout” the “Directive” of Hon’ble the Supreme Court of India, “with Impunity and without Compunction” to “Employers” / “Ex-Employers” in India, to Provide in their Pension Schemes, for Payment of “Such Sums as Pensions, to their Pensioners”, that would enable them to live at a Standard Equivalent to their Pre-retirement Level”, “Free from want”, “with Decency”, “Independence”, and “Self-respect ?” Any way, I am Reproducing the “Exact Text” of the Relevant Portion of the Landmark Judgment of Hon’ble the Supreme Court of India in the above Case, which is to be found at Para 26 of that Judgment, in the words of his Lordship, Hon’ble Mr. Justice D.A. Desai himself, who drafted the Judgment of Hon’ble the Supreme Court of India. That Landmark Judgment was delivered on 17.12.1982. Now, on to the text of Para 26 of the Judgement in Nakara. CONTENT AT PARA 26 OF THE JUDGEMENT

Let us therefore examine what are the Goals that pension scheme seeks to sub-serve ? A Pension Scheme “Consistent with

N. PRADEEP KUMAR ADVOCATE Supreme Court of India Cell Phone Nos. : (1) 9310572530 (2) 9278983944 E-Mail : [email protected]

Residence & Office A-104, Swetha Apartment, Ground Floor, Flat No. 13, Shalimar Garden Extn.-II, Sahibabad, Ghaziabad (U.P.)

Page 4 of 4

Available Resources” Must Provide that the Pensioner would be able to live : (i) free from want, with decency, independence and selfrespect, and (ii) at a Standard Equivalent to the pre-retirement level. This approach may merit the criticism that if a developing country like India cannot provide an employee while rendering service a living wage, how can one be assured of it in Retirement ? This can be aptly Illustrated by a small Illustration. A man with a broken arm asked his Doctor whether he will be able to play the Piano after the cast is removed. When assured that he will, the Patient replied, ‘that is funny, I could not before’. It appears that Determining the Minimum Amount Required for living Decently is difficult, selecting the Percentage Representing the Proper ratio between earning and the Retirement Income is harder. But it is Imperative to Note that as Self-sufficiency Declines the need for his attendance on institutional care grows. Many are Literally Surviving now than in the past. We owe it to them and Ourselves that they live, not merely exist. The Philosophy Prevailing in a given society at various stages of its Development Profoundly influences its Social Objectives. These Objectives are in turn a determinant of a Social Policy. The Law is one of the Chief Instruments whereby the Social Policies are Implemented and Pension is paid according to Rules which can be said to Provide Social Security law by which it is meant those Legal Mechanisms Primarily concerned to ensure the Provision for the individual of a Cash Income Adequate, when taken along with the Benefits in kind Provided by other Social Services (such as free medical aid) to ensure for him a Culturally Acceptable Minimum Standard of living when the Normal Means of doing so failed. (See Social Security Law by Prof. Harry Calvert, p. 1).