In a recent ruling, the Madras High Court has made a significant observation regarding the retroactive re-fixation of salary and consequential pensionary benefits post retirement. The court deemed it contrary to the law.
This declaration came about during the deliberation of a writ petition lodged by a retired lab assistant from Madurai Kamaraj University, who had superannuated in 1988.
The University, on 5 March ,2023, issued an order reducing the petitioner’s pension, citing an erroneous scale of pay fixation. This action followed an objection from the Local Fund Audit Department regarding the initial pay fixation of the petitioner.
Subsequently, in December 2023, the University decreased the pension amount and issued the contentious order without prior notice to the petitioner. In response, the petitioner sought recourse from the high court. Justice RN Manjula, presiding over the case, highlighted that a similar issue addressed by the high court in the past.
Quoting a previous judgment, the court emphasised that governmental directives cannot be overridden by statutory provisions governing employee service conditions. Moreover, it asserted that once an individual retires through superannuation, the employer-employee relationship ceases to exist, stripping the university of authority to retroactively alter the pension and benefits.
Drawing on precedent, the court ruled that the jurisdiction of the Local Fund Audit is limited to financial compliance, not the assessment of university promotions. Furthermore, it reiterated that only the Syndicate possesses the authority to appoint university staff and determine their remuneration.
Consequently, the court annulled the impugned order and instructed the University to reimburse the withheld amount along with interest to the petitioner within twelve weeks.