Remanded

P.V. Satyanarayana v. The Singareni Collieries Company Limited

Telangana HC14 Mar 2024WP/5409/2024

Case brief

AI extract

What is this about?

The High Court constituted a Single Judge Bench heard a writ petition by a retired executive disputing non-payment of pension benefits due to disciplinary proceedings. Distinguishing 'displeasure' from removal/dismissal, the court directed the Appellate Authority to dispose of the pending appeal within four weeks and directed payment of pensionary benefits as per the scheme, dismissing the prayer

What did the court decide?

Directed Respondent No.4 to dispose of the pending appeal within four weeks and pay pensionary benefits as per scheme.

P.V. Satyanarayana Vs The Singareni… — Pension and Retirement Benefits | Telangana HC (2024)

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(

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[³³⁰¹ ]

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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction)

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THURSDAY, THE FOURTEENTH DAY OF MARCH TWO THOUSAND AND TWENTY FOUR

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PRESENT

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THE HONOURABLE SRI JUSTICE PULLA^KARTHIK

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WRIT PETITION NO: 5,109 OF 2024

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Between:

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P.V. Satyanarayana, S/o. Penti^{Raghavaiah,Aged gboqt6.3. years'Oce.} Retd., GM (BD); E C.No.00'16580 The Singareni^{CollieriesCo. Ltd., Corporate} Area, R/o^{'1-1.No.15-11-394, VDO's Colony, Khanapuram Haveli (Urban)} KHAMMAM-507 002, Khammam Dist^(TS)

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...PETITIONER

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AND

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1 The Sinqareni Collieries Company Limited,^{Rep.byats Chairman and} tvlanagiri'g Director and (Discip{indry Authority),^{Kothagudem Collieries,} Kothagudem - 507 101, Bhadradri^{Kothagudem District (TS)}

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2 The Director (Personnel, Administration^{and Welfare),The Singareni} -- . - - Collieries Corirpany Limited,^{Kothagudem Collieries, Kothagudem - 507 101,} Bhadradri Kothagudem District^(TS).

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J The General Manager,^{(Personnel), Executive EstablishmentThe Singareni} Collieries Compan/ Limited, Kothagudem^{Collieries, Kothagudem-S07101} ' Bhadradri Kothagudem District^(TS).

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4 The Aooellate Authoriw and Committee of^{Directors,The Singareni Collieries} Compbhy Limited, Kothagudem^{Collieries, Kothagudem- 507 101} '^Bhadradri Kothagudem District^(TS).

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...RESPONDENTS

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Petition under Article 2fr of lhe^{Constitutionof lndiaprayingthat in the} circumstances stated in the affidavit^{filed therewith, the High Court maybe} pleased to issue a writ, order or direction^{more particularly one in the nature of} iryrit of Mandamus or any other^{appropriatewrit.a. declaringthe action of the} tlespondents In not^{paying my pensionary benefitsunderthe Scheme, 2007, as} being illegal, arbitrary, contrary^{to the sccl Executive Definedcontributory} penJion Scheme, 20OZ and as violation of the principles of natural^justice and also violative of Articles 14,¹⁶ and^{21 of Constitutionof lndia b. To set aside the} l)roceedings Ref. No CRP/PER/C/o1211ffi7^{dat'ed 29.06-2023 issued by the} Respondent No.1 and consequently^{to issue directionsto the Respondentsto} release my Pension under sccl^{EDCPS, 2007with interest with quarterlyrests} from the date from which the same is^{due to me lill the actual date of paymentc.}

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{

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also declare^{that the Petitioner is entrtled to exemplarycosts for having thrust} this unwarranted^{lis on him being a retired Executive of the Respondent} Company and direct^{paymentof the same immediatelyby the Company andto} .,n.ri" ,a"orntability^{oi the authorities concerned recover the same from the} i,ui.o"rf^{funds of the officers/authoritiesheld responsiblefor the same'}

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lA NO: 1 OF 2024

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Petition under Section^{151 cPc praying that in the circumstancesstated} ir the affidavit filed^{in support of the petition, the HighCourt may-be pleasedto} issue directions to^{the Respondent No.4 to consider my Grounds of Appeal dated} 28.07 2023 submitted^{to the Appellate Authority/ Committeeof Directors strictly} in accordance with the^{COaA Rutes,'1989 and SCCL ExecutiveDefined} contributory^{pension scheme (EDCps). 2007 and to pass appropriate ordersat} the earliest.

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A NO: 2 OF 2024

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Petition under section^{151 cPC praying that in the circumstancesstated} i.r the affidavit filed^{in support of the petition,the High court may be pleasedto} issue directions. to^{the respondentsto release 1/3rd amount of my accrued} i"".-i""^{t.,nJ and also further to purchase the balance2/3rd amountof my} accrued^{pensionfund towards annuity strictly} -in.^{accordancewith the Rules of} SCCLExecutiveDefinedContributoryPensionScheme(EDcPS)2007.

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()ounsel for the Petitioner: SRI KALLEPALLI^THIRUMALARAO

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Counsel for the Respondents:^{SRI P' SRI HARSHAREDDY} (sc FoR SINGARENICOLLIERIES^{CO LTD)}

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--he Court made the following: ORDER

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*';

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THE HON'BLE^{SRI JUSTICE PULLA KARTHIK}

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WRIT PETIT^{ION No. 54o9 of2024}

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ORDER:

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This Writ Petition^{is filed by the petitionerseeking}

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the following^relief:

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".-.to issue a^{writ order or direction moreparticularly one in} t}Ie nature^{of Writ of MaldEunus or any otJrer appropriatewrit} a. declaring^{the action of the ResPondentsin not paying} my^{pensionary benefitsunder the Scheme2OO7 as} being illegal,^{arbitrary, contrary to the SCCL Executive} Defined^{ContributoryPensionScheme20O7 and as} violation of^{the principlesof natural justice and also} violative of^{Articles 14, 16 and 21 of Constitutionof} India;

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b. To set^{aside theProceedingsRef'No'} CRP/PER/C/O12/^{t667 dated 29'06'2023issuedbv} the Respondent^{No.1 and consequentlytoissue} directions to^{the Respondentsto release my Pension} under SCCL^{EDCPS, 2OO7 with interest withquarterly} rests from the^{date fromwhich the sameis due to me} till the actual^{date of} Payment;

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c. also declare^{that the Petitioneris entitledto exemplary} costs for having thrust^{this unwarranted lis on him} being a retired^{Executiveof the Respondent Company} and direct^{paJrmentof the sarne immediatelyby the} Company and to^{ensureaccountability ofthe} authorities conceroed^recover -the^{same fromthe} personal funds of the^{olficers/authoritiesheld} responsible for the same and^pass..."

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Heard Sri Kaltepalli^{ThirumalaRao, learned} counsel appearing for the Petitioner^and Sri P. Sri Harsha Reddy, learned Standing Counsel

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appearing for the respondents.

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.ff*.:,

2 PK, J wP_5409_2024

l.earned counsel appearing for the petitioner submitted that the petitioner was appointed as a Mining Graduate Trainee on 15.10.19g5 in the respondent_ company. Subsequently, he earned promotions as Graduate Mining Engineer, Under Manager, Assistant Manager/Safety Officer, Colliery Manager/Additional Manager, SOM, Deputy General Manager (M_1 Grade), Deputy General Manager (E-7 Grade), Additiona-l General Manager (E-8 Grade) and General Manager (E_g Grade) and thereafter, he retired from the services on attaining the age of superannuation, on 3O.O4.2O22. It is further submitted that while the petitioner was in service, a charge memo was issued on 26.07.2O2L aleging that while he was working as SO to GM, SRp Area of the S&PC Department, from 3O.OS.2OI4 to 01.OS.2O19 committed certain irregularities. The petitioner submitted his explanation to the charge memo on IL.O8.2O2L. Thereafter, an Enquiry Officer was appointed and after conducting enquiry, he submitted a report holding the charges framed against the petitioner,

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PK, J wP 5409 2C24

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under Article 1(b) and 1(c), were not proved, but the charge under Article 1(a) was proved. Therefore, basing on the said enquiry report, the Disciplinary Authorit5r irnposed a punishment of 'displeasure'. Aggrieved by the same, the petitioner preferred an appeal on 28.07.2023 before respondent No.4. However, the same is pending consideration. It is further submitted that the Singareni Collieries Company Limited Executives Dehned Contribution Pension Scheme, 2OO7 (SCCL EDCPS, 2007) is applicable to an Executive who was in service from 01.01.2007, artd as the petitioner is an Executive slnce 1985, the said scheme is applicable to him. It is further submitted that the case of the petitioner does not fall under the definition of L.2 (bb) of'SCCL EDCPS 2OO7. Therefore, the petitioner is entitled for accrued pension fund and further, as per guideline No.4.9 of the said scheme, the petitioner is also entitled for other benehts of the scheme.

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PK, J wP-5409 2024

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Per contra, leamed Standing Counsel, on instructions, would submit that the contributions made by the employer to its employees are strictly regulated by .^{Scheme,subject} to fulfilment of eligibility criteria stipulated in the scheme, as it is a non_statutory benefit to the Executives, who have retired on superannuation from 01.01.2007 onwards only. He further submitted that the Executives, who exited the services due to resignations and dismissals, are not eligible for Employer Contributions and similarly, insofar as the executives who are facing disciplinary proceedings as on the date of their retirement are concerned, their eligibility for EDCPS contributions will be regulated under CD&A Rules of the company, DPE guidelines and cause of termination. Hence, the respondent_company has ample power to deduct or regulate the paJrment of Employer Contributions to Executives. Therefore, since the petitioner is facing disciplinary proceedings, he is not eligible for the benefits as prayed for in the writ petition.

PK, J wP,5409_2024

This Court has taken note of the rival submissions made by the respective parties.

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Admittedly, the petitioner was imposed with the punishment of 'displeasure', against which, the petitioner has preferred an appeal before respondent No.4 on 2a.O7.2O23. However, the said appeal 1S pending consideration before respondent No.4.

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For better appreciation of the case on hand, it is pertinent to refer to the Singareni Collieries Company Limited, Executives Defined Contribution pension Scheme 2OO7, and the relevant Rules are extracted hereunder:

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"1.2 Delinitions

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(bb) "Member" shall mean an Employee in the Executive cadre, who has been admitted as a member in the scheme in accordance with the provision of the scheme but shall not include an executive who having been admitted as a member, has subsequently ceased to be eligible for membership as hereinafter prescribed or who has ceased to be in employment of the Company by virtue of removal from service, dismissal, compulsory retirement (including deemed) under CDA Rules and resignation.

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PK, J wP_5409-2024

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2.2 EUgibility Criteria

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(g) Executives who have been removed or dismissed from service under CDA Rules would be eligible for pension rnterest thereon. l1::o .o:,,^{in the Memb.rt-"..*ii"f;.""1} li'"l,, "ro

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4.9 Accumutation of pension:

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The benelits under the schcme shall be payable only in J}re^{fgrm of the Annuity.However,} if the member or the lT_:1.,:yZ"ominee{s)^{as the case} -"v^{i.,-"I"a""i."",} maxrmum up to l /3,a of the Accumuiat.J Cimr" fo. which.Annuity is to be p"..t.".a,-ri"v-'# J..i'ii,l*o ,". a single payment and for remaining Zis.a ofl'[.'"rn"rr,, Annuity would be purchased.

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5.1 Fund constituted under an Irrevocable Trust:

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The fund shall be constituted under a trust established in India. This shail be an irrevocable Trust save with the consent of all rhe beneficiaries "rrd^{p.o;;;:" if ,.r"o-"} Tax Act, 1961. No money belonging to the Fund in the hands of the Trustees shall 6e -;;";;;;t by trle company have ^a^o:I-*,""der alv^any lien^{pretextwhatsoevernor sha_llthe} th. J;;;;;"::',#:1"';.:xT5:^{of anv descriprionon}

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4.2. Members to have no lnterest in the Meter

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Pollcy/Scheme of Insuran ce and Employer not have any

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iaterest in F.und,s Money (a) No member/beneficiary shalr have any interest in the master^ policy taken out uy tte rruJtees'r"rii". tt . rules of fund or in any investm."t ;;;;""* the Trustees in accordance with the Rules of tie maae Trustby but shall be entitled.to receive pension benefits in accordance with the rules.

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(b) No money belonging to t.,e fund sha, be receivable by the employer under gllsrlrnstance nor shall the

PK, J wP 54U) 2024

employer have any lien^{provided always that the} trustels shall administer^{the schemefor the benefit of} the members and their^{beneFrciaries in accordancewitl:} the provisions of these^rules.

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8.3 Restraint on^{Assignment or Encumbrance:}

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Subject to other conditions^{stipulatedin the scheme the} benilits under the^{schemeare strictly personal and} cannot be assigned,^{charged or alienatedin aly manner} whatsoever."

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A close reading^{of the Rule 1.2 (bb) clarifies that the} membership of^{thepersons who were removed/} dismissed/compulsorily^{retired/resigned, from seryice,} shall be ceased.^{But, in the case on hand, the petitioner} herein was imposed^{with thepunishmentof} 'displeasure'.^{Hence, the case of the petitioner does not} fall under the^{Rule 1.2 (bb) of the sccl. EDCPS 2007.} Therefore, he is^{entitled for the benef,rt of the pension} scheme.

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g. In view of the above, this Writ Petition is disposed of with a direction^{to respondent No.4 to disposeof the} appeal of the^{petitioner dated 28-07.2023'The} respondents are^{further directedto pay the petitioner's} pensionary benef,rts under the^{Singareni Collieries}

PK, J wP_5409 2024

Company Limited, Executives Defined Contribution

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Pension Scheme, 2OO7, as per his entitlement, within a

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period of four (O4) weeks from the date of receipt of a

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copy of this order and communicate a copy thereof to the

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petitioner. There shall be no order as to costs.

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Miscellaneous petitions pending, if any, shall stand

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closed.

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SD/-A.V.S. PRASAD ASSISTANT REGISTRAR //TRUE COPYII ci

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SECTION OFFICER

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To,

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1 The Chairman and Managing Director and (Disciplinary Authority), Kothagudem Cglqerlgs, The Singareni Coltieries Comp-any Limitbd,

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[.othagudem .-^{507'101,.Bhadradri Kothagudem District (TS).}

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2 The Director (Personnel, Administration a'nd Welfare), The Singareni Collieries.C. ompany.Limited, Kothagudem Collieries,^'Kothagud"em - SO7 101, Bhadradri Kothagudem District (TSJ.

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3 The General Manager, (Personnel), Executive Establishment The Sinqareni Collieries Cimpany Limited, Kothagudem Collieries, Kothagudem-SOi 1O1 , Bhadradri Kothagudem District (TSJ.

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4 The Appellate luJh.grily and Committee of Directors, The Singareni Coltieries Company Limited, Kothagudem Coltieries, Kothagudem - 507101, Bhadradri Kothagudem District (TS).

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5 One CC to SRI KALLEPAL-L_!.It{tEql4 LA RAo, Advocate tOpUCl 6 one cc to SRt^p sRt HARSHA REDDY (sc FoR stNGAR'ENt C-6llteRtes co LTD) [OPUC]

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1. Two CD Copies BN BS

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CC TODAY

HIGH COURT

DATED:1410312024

ORDER

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WP.No.5409 of 2024

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DISPOSING OF THE WRIT PETITION WITHOUT COSTS

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P.V. Satyanarayana v. The Singareni Collieries Company Limited

Case brief

What is this about?

What did the court decide?

P.V. Satyanarayana v. The Singareni Collieries Company Limited

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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