Allahabad HC Clears Way For Higher Pension Benefits To HAL Retirees Under EPS-1995

Lucknow, May 14: In a significant relief to retired employees of Hindustan Aeronautics Limited (HAL), the Allahabad High Court’s Lucknow bench has quashed orders issued by the Regional Provident Fund Commissioner (RPFC) rejecting higher pension claims, paving the way for nearly 400 pensioners in Lucknow to receive enhanced pension benefits.

The court passed the order while hearing petitions filed by retired HAL employees, including writ petitions led by Atul Kapoor and Sunil Kumar Mehrotra.

The judgments delivered are being viewed as a major legal breakthrough for pensioners seeking benefits under the Employees’ Pension Scheme (EPS), 1995.

Court hears petitions by retired HAL employees

The dispute centred on the rejection of joint option forms submitted by pensioners for higher pension based on actual salary. The Employees’ Provident Fund Organisation (EPFO) had argued that pensionable salary should be capped at Rs 6,500 in accordance with HAL trust rules.

The petitioners contended that both employees and the employer had already contributed provident fund amounts on actual salaries and therefore pension calculations should also be based on full salary rather than the capped amount.

EPS-1995 overrides internal trust rules: Court

Justice Prakash Singh, while allowing the petitions, observed that EPS-1995 is a beneficial statutory scheme that overrides internal trust regulations.

The court held that beneficial amendments applicable to employees cannot be denied merely because trust rules were not formally amended. It further ruled that cut-off dates cannot extinguish a statutory right to higher pension.

Supreme Court rulings cited in judgment

The judgment also relied on principles laid down earlier by the Supreme Court in the R.C. Gupta and Sunil Kumar B. cases concerning higher pension entitlement.

Atul Kapoor, former president of HAL Employees Association, Lucknow, described the ruling as a milestone for pensioners across the country.

Pensioners call verdict a major breakthrough

“The judiciary has made it clear that statutory rights cannot be overridden by internal administrative rules,” Kapoor said. “This judgment has strengthened the movement for higher pension and given hope to thousands of retired employees.”

According to the pensioners’ committee, the ruling is expected to benefit around 400 higher pension claimants associated with HAL Lucknow and could also influence similar cases pending in other parts of the country.

Questions raised over non-compliance

The committee also alleged that while an appeal was filed in one of the cases before a division bench, no appeals or recovery notices were issued in nearly 175 similar matters, indicating possible non-compliance with judicial directions.

Advocates Pradeep Kumar Singh Vats and Anshuman Singh Rathore represented the pensioners before the court.

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The National Confederation of Pensioners Association (NCPA), which has been supporting higher pension claims nationally, welcomed the ruling and said similar favourable judgments from several high courts have strengthened the legal position of pensioners seeking enhanced benefits.