Dishonesty (or fraud) and malice in exercising statutory powers

SHRI.S.LAKSHMIKANTHAN THE THEN INCHARGE DIRECTOR OF EIC, UNDER THE DICTION OF COMMERCE MINISTRY EXCERSIED HIS POWER FRAUDULENTLY TO IMPLEMENT THE 1994-ILLEGAL VRS FOR SOME PETTY BENEFITS-HENCE IT IS UNCONSTITUTIONAL,EXCESSIVE OR ARBITRARY

Wednesday, December 17, 2008

KOCHI CASE HEARING POSTED FOR FIRST WEEK OF JAN.2009

Wednesday, December 03, 2008

KOCHI CASE POSTPONED TO 15.30Hrs 17th.DEC.2008

343. WP(C) 34008/2005(W)          SMT.SUMATHY DANDAPANI (SR.)/

& CM.Appl. 7750/2006 SRI.JOHN VARGHESE, ASSISTANT SG

& CM.Appl. 2963/2007

In some cases EIC is arguing that 1994-VRS scheme is a contract. But they fraudulently obtained our options by suppressing vital informations


Indian Contract Act

We enter into contracts so many times in a day that ‘contract’ has become an indispensable part of our life. When you purchase milk or newspaper in the morning or go to movie in the evening, you are entering into a contract. Indian Contract Act really codifies the way we enter into a contract, execute a contract, implement provisions of a contract and effects of breach of a contract. Basically, a person is free to contract on any terms he chooses. The Contract Act consists of limiting factors subject to which contract may be entered into, executed and breach enforced. It only provides a framework of rules and regulations which govern formation and performance of contract. The rights and duties of parties and terms of agreement are decided by the contracting parties themselves. The court of law acts to enforce agreement, in case of non-performance.

Section 1 of Contract Act provides that any usage or custom or trade or any incident of contract is not affected as long as it is not inconsistent with provisions of the Act. In other words, provision of Contract Act will prevail over any usage or custom or trade. However, any usage, custom or trade will be valid as long as it is not inconsistent with provisions of Contract Act. The Act extends to the whole of India except the State of Jammu and Kashmir; and came into effect on 1-9-1872.

It must be noted that contract need not be in writing, unless there is specific provision in law that the contract should be in writing. [e.g. * contract for sale of immovable property must be in writing, stamped and registered. * Contracts which need registration should be in writing * Bill of Exchange or Promissory Note must be in writing. * Trust should be created in writing * Promise to pay a time barred loan should be in writing, as per Limitation Act * Contract made without consideration on account of natural love and affection should be in writing ]. A verbal contract is equally enforceable, if it can be proved.. A contract can be enforced or compensation/damages for breach of contract can be obtained through Civil Court

Essential Ingredients of a contract - As per Contract Act, an agreement enforceable by law is a contract. [section 2(h)]. Hence, we have to understand first what is ‘agreement’.

Every promise and every set of promises, forming the consideration for each other, is an agreement. [section 2(e)]. - - A person makes a proposal (offer). When it is accepted by other, it becomes a promise. However, promise cannot be one sided. Only a mutual promise forming consideration for each other is ‘agreement’. - - For example, A agrees to pay Rs 100 to B and B agrees to give him a book which is priced at Rs 100. This is set of promises which form consideration for each other. However, if A agrees to pay Rs 100 to B, but B does not promise anything, it is not ‘set of promises forming consideration for each other’ and hence not an agreement.

It should be noted that the term ‘agreement’ as defined in Contract Act requires mutual consideration. - - Thus, if A invites B to dinner and B agrees to come, it is not an ‘agreement’ as defined in Contract Act.

Meaning of ‘Proposal’ - When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal. [section 2(a)].- - Thus, a ‘proposal’ can be to do a positive act or abstinence from act (i.e. negative act). [English Act uses the word ‘offer’, while Indian Contract Act uses the word ‘proposal’. Generally, both words are used inter-changeably. This is not technically correct, as the word ‘offer’ is not used in Contract Act].

Meaning of ‘Promise’ - When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A pro­posal, when accepted, becomes a promise. [section 2(b)]. - - Thus, when a proposal (offer) is accepted, it becomes a ‘promise’. As is clear from the definition, only person to whom proposal is made can signify his assent. Other person cannot accept a proposal.

Promisor and promisee - The person making the proposal is called the “promisor”, and the person accepting the proposal is called the “promisee”. [section 2(c)].

Reciprocal promises - Promises which form the consideration or part of the consideration for each other are called reciprocal promises. [section 2(f)].

Consideration for promise – The definition of ‘agreement’ itself states that the mutual promises should form consideration of each other. Thus, ‘consideration’ is essential for an agreement. A promise without consideration is not ‘agreement’ and hence naturally, it is not a ‘contract’.

Definition of ‘consideration’ - When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consid­eration for the promise. [section 2(d)].

Steps involved in contract - The steps involved in the contract are – * proposal and its communication * acceptance of proposal and its communication * Agreement by mutual promises * Contract * Performance of Contract. - - All agreements are not contract. Only those agreements which are enforceable by law are ‘contracts’. Following are essential requirements of a valid contract.

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Offer and its acceptance

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Free consent of both parties

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Mutual and lawful consideration for agreement

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It should be enforceable by law. Hence, intention should be to create legal relationship. Agreements of social or domestic nature are not contracts

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Parties should be competent to contract

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Object should be lawful

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Certainty and possibility of performance

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Contract should not have been declared as void under Contract Act or any other law

Communication, acceptance and revocation of proposals - Communication of proposal/ revocation/acceptance are vital to decide validity of a contract. A ‘communication’ is complete only when other party receives it.

Acceptance must be absolute - In order to convert a proposal into a promise, the acceptance must - (1) be absolute and unqualified; (2) be expressed in some usual and reasonable manner, unless the proposal prescribed the manner in which it is to be accepted. If the proposal prescribes a manner in which it is to be accepted, and the acceptance is not made in such a manner, the proposer may, within a reasonable time after the acceptance is communicated to him, insist that his proposal shall be accepted in the prescribed manner, and not otherwise; but if he fails to do so, he accepts the acceptance. [section 7].

Acceptance of offer is complete only when it is absolute and unconditional. Conditional acceptance or qualified acceptance is no acceptance.

Promises, express or implied - Insofar as the proposal or acceptance of any promise is made in words, the promise is said to be express. Insofar as such proposal or acceptance is made otherwise than in words, the prom­ise is said to be implied. [section 9]. - - For example, if a person enters a bus, there is implied promise that he will pay the bus fair.

Voidable Contract - An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract. [section 2(i)]. - - (a) When consent is obtained by coercion, undue influence, misrepresentation or fraud is voidable at the option of aggrieved party i.e. party whose consent was obtained by coercion/fraud etc. However, other party cannot avoid the contract. (b) When a contract contains reciprocal promises and one party to contract prevents the other from performing his promise, the contract becomes voidable at the option of the party to prevented. (section 53). Obvious principle is that a person cannot take advantage of his own wrong (c) When time is essence of contract and party fails to perform in time, it is voidable at the option of other party (section 55). A person who himself delayed the contract cannot avoid the contract on account of (his own) delay.

Void contract - A contract which ceases to be enforceable by law be­comes void when it ceases to be enforceable. [section 2(j)]. - - Thus, initially a contract cannot be void, i.e. a contract cannot be void ab initio. The simple reason is that in such a case, it is not a contract at all to begin with. Hence, only a valid contract can become void contract due to some subsequent events. e.g. the person dies or property is destroyed or Government imposes a ban etc. - - A void agreement is void ab initio. It never becomes a contract. It is nullity and cannot create any legal rights.

What agreements are contracts - All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful considera­tion and with a lawful object, and are not hereby expressly declared to be void. Nothing herein contained shall effect any law in force in India and not hereby expressly repealed, by which any contract is required to be made in writing or in the presence of witnesses, or any law relating to the registration of documents. [section 10].

Who are competent to contract - Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject. [section 11].

Free consent – Consent of both parties must be free. Consent obtained through coercion, undue influence, fraud, misrepresentation or mistake is not a ‘free consent’. - - Two or more persons are said to consent when they agree upon the same thing in the same sense. [section 13]. - - Consent is said to be free when it is not caused by - (1) coercion, as defined in section 15, or (2) undue influence, as defined in section 16, or (3) fraud, as defined in section 17, or (4) misrepresentation, as defined in section 18, or (5) mistake, subject to the provisions of sections 20, 21 and 22. - - Consent is said to be so caused when it would not have been given but for the existence of such coercion, undue influence, fraud, misrepresentation or mistake. [section 14].

Void agreements - An agreement not enforceable by law is said to be void. [section 2(g)]. - - Note that it is not ‘void contract’, as an agreement which is not enforceable by law does not become ‘contract’ at all. Following are void agreements - * Both parties under mistake of fact (section 20) * Unlawful object or consideration (section 24) * Agreement without consideration (section 25) * Agreement in restraint of marriage (section 26) * Agreement in restraint of trade (section 27) * Agreement in restraint of legal proceedings (section 28) * Uncertain agreement (section 29) * Wagering agreement (section 29) * Agreement to do an impossible Act (section 56). - - These are discussed below.

Obligation of person who has received advantage under void agree­ment or contract that becomes void - When an agreement is discovered to be void, or when a con­tract becomes void, any person who has received any advantage under such agreement or contract is bound to restore it, or to make compensation for it, to the person from whom he received it.

Contingent contract - A “contingent contract” is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen. Illustration - A contracts to pay B Rs. 10,000 if B’s house is burnt. This is a contingent contract. [section 31].

Contracts which must be performed - The parties to a contract must either perform, or offer to perform, their respective promises, unless such performance is dispensed with or excused under the provisions of this Act, or of any other law. Promises bind the representatives of the promisors in case of the death of such promisors before performance, unless a contrary intention appears from the contract. - - Illustrations - (a) A promises to deliver goods to B on a certain day on payment of Rs. 1,000. A dies before that day. A’s representatives are bound to deliver the goods to B, and B is bound to pay Rs. 1,000 to A’s representatives. (b) A promises to paint a picture for B by a certain day, at a certain price. A dies before the day. The contract cannot be enforced either by A’s representative or by B [section 37]. The performance can be ‘actual performance’ or ‘attempted performance’, i.e. ‘offer to perform’.

Performance of reciprocal promises - Promises which form the consideration or part of the consideration for each other are called reciprocal promises. [section 2(f)]. A mutual promise can be of following types – (a) Mutual and independent – Where each party must perform his promise independently and irrespective of whether the other party has performed or willing to perform e.g. Seller agrees to deliver on 5th and Buyer agrees to pay on 15th. (b) Conditional and dependent – Performance of promise by one party depends on prior performance of promise by other party. e.g. Buyer agrees to pay for goods 15 days after delivery. Hence, unless seller delivers goods, buyer’s liability does not arise. (c) Mutual and concurrent – Where the promises of both parties must be performed simultaneously. e.g. buyer agrees to pay immediately on delivery of goods i.e. cash payment.

Contracts which need not be performed - Normally, a contract is expected to be performed. The performance my be actual or by way of tender, i.e. attempted performance. However, in certain situations as stated below, the contract need not be performed. * Novation, rescission and alteration of contract * Promisee may dispense with or remit performance of promise * Effect of neglect of promisee to afford promisor reasonable facilities for performance * Merger of superior rights with inferior right under contract. This is usually termed as ‘discharge of contract’.

Quasi Contracts - ‘Quasi’ means ‘almost’ or ‘apparently but not really’ or ‘as if it were’. This term is used when one subject resembles another in certain characteristics but there are intrinsic differences between the two. ‘Quasi contract’ is not a ‘contract’. It is an obligation which law created in absence of any agreement. It is based on equity. There are certain relations resembling those created by contract. These are termed as ‘quasi contracts’. These are – (a) Supply of necessaries (section 68) (b) Payment of lawful dues by interested person (section 69) (c) Person enjoying benefit of a gratuitous act (section 70) (d) Finder of goods (section 71) (d) Goods or anything delivered by mistake or coercion (section 72).

Consequences of Breach of Contract - Compensation is payable for breach of contract. Penalty is also payable if provided in contract. Breach of contract may be actual or anticipatory.

Summary of principles of compensation and damages - Following points are important - * Compensation for loss or damage is payable. Since the word used is ‘compensation’, punitive damages cannot be awarded. * These should be in usual course or known to parties i.e. both parties must be aware * No compensation for remote and indirect loss or damage * Same principle applies to quasi contract also.

General damages – General damages are those which result from ‘direct and proximate’ consequences from breach of contract. Normally, what can be awarded is compensation for loss or damage which can be directly or proximately attributed to the breach of contract. One way of assessing damages is the difference between the contract price and the market price on date of breach of contract, plus reasonable expenses incurred by him on account of the breach plus cost of suit in court of law.

Consequential loss or special damage – Special damages or consequential damages arise due to existence of special circumstances. Such damages can be awarded only in cases where the special circumstances were foreseeable by the party committing the breach or were specifically known to the party. Consequential losses like loss of profit due to breach, which may occur indirectly due to breach cannot be normally awarded unless there are special circumstances which parties were aware. Loss of profit can be awarded only in cases where seller could have foreseen those losses and arose directly as result of breach.

Promisee should take steps to mitigate the loss or damage – Explanation to section 73 specifically provides that in estimating loss or damage, the means available for remedying the inconvenience caused by breach of contract shall be taken into account. Thus, promisee should take all reasonable steps to mitigate the losses e.g. if promisor does not supply goods, he should make efforts to procure from alternate sources may be even at higher price, to reduce his losses arising out of breach of contract.

Vindictive or exemplary damages – Vindictive or exemplary damages cannot be awarded under Contract Act. However, these may be awarded by Court under tort under special circumstances e.g. * Dishonour of cheque by Bank when there was balance in account, as it causes loss of reputation of credit worthiness of person issuing cheque * Breach of contract to marry, as it hurts both feelings and reputation.

Quantum Meruit – ‘Quantum meruit’ means ‘as much as earned’. A contract may come to end by * breach of contract * contract becoming void or * Voidable contract avoided by party. In such case, if a party has executed part of contract, he is entitled to get a proportionate amount i.e. ‘as much as earned by him’. This is not by way of ‘damages’ or ‘compensation for loss’. - - The principle is that even when contract comes to a premature end, the party should get amount proportional to the work done/services provided/goods supplied by one party. One party should not get enriched at the cost of other.

Contract of indemnity - A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person, is called a ‘contract of indem­nity’. - - Illustration - A contracts to indemnify B against the consequences of any proceedings which C may take against B in respect of a certain sum of 200 rupees. This is a contract of indemnity. [section 124].

Contract of guarantee - A “contract of guarantee” is a contract to perform the promise, or discharge the liability, of a third person in case of his default. The person who gives the guarantee is called the “surety”; the person in respect of whose default the guarantee is given is called the “principal debtor”, and the person to whom the guarantee is given is called the “creditor”. A guarantee may be either oral or written. [section 126]. - - [Person giving guarantee is also called as ‘guarantor’. However, Contract Act uses the word ‘surety’ which is same as ‘guarantor’]. - - Three parties are involved in contract of guarantee. Contract between any two of them is not a ‘contract of guarantee’. It may be contract of indemnity. Primary liability is of the principal debtor. Liability of surety is secondary and arises when Principal Debtor fails to fulfill his commitments. However, this is so when surety gives guarantee at the request of principal debtor. If the surety gives guarantee on his own, then it will be contract of indemnity. In such case, surety has all primary liabilities.

Consideration for guarantee - Anything done, or any promise made, for the benefit of the principal debtor, may be sufficient consideration to the surety for giving the guarantee. - - Illustrations - (a) B requests A to sell and deliver to him goods on cred­it. A agrees to do so, provided C will guarantee the payment of the price of the goods. C promises to guarantee the payment in consideration of A’s promise to deliver the goods. This is sufficient consideration for C’s promise. (b) A selms and delivers goods to B. C afterwards requests A to gorbear to sue B for the debt for a year, and promises that if xe does so,`C will pay for them in default of payment by B. A agrees to forbear as requested. This is a sufficient considera­tion for C’s promise. (c) A sells and delivers goods to B. C afterwards, without consideration, agrees to pay for them in default of B. The agree­ment is void. [section 127].

Bailment - Bailment is another type of special contract. Since it is a ‘contract’, naturally all basic requirements of contract are applicable. - - Bailment means act of delivering goods for a specified purpose on trust. The goods are to be returned after the purpose is over. In bailment, possession of goods is transferred, but property i.e. ownership is not transferred. A “bailment” is the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them. The person delivering the goods is called the “bailor”. The person to whom they are delivered is called the “bailee”. - - Explanation : If a person already in possession of the goods of another, contracts to hold them as a bailee, he thereby becomes the bailee, and owner becomes the bailor, of such goods, although they may not have been delivered by way of bailment. [section 148]. [Thus, initial possession of goods may be for other purpose, and subsequently, it may be converted into a contract of bailment, e.g. seller of goods will become bailee if goods continue in his possession after sale is complete].

Bailment can be only of ‘goods’. As per section 2(7) of Sale of Goods Act, ‘goods’ means every kind of movable property other than money and actionable claim. - - Thus, keeping money in bank account is not ‘bailment’. Asking a person to look after your house or farm during your absence is not ‘bailment’, as house or farm is not a movable property.

Bailment of pledges - Pledge is special kind of bailment, where delivery of goods is for purpose of security for payment of a debt or performance of a promise. Pledge is bailment for security. Common example is keeping gold with bank/money lender to obtain loan. Since pledge is bailment, all provisions applicable to bailment apply to pledge also. In addition, some specific provisions apply to pledge. The bailment of goods as security for payment of a debt or performance of a promise is called “pledge”. The bailor is in this case called the “pawnor”. The bailee is called the “pawnee”. [section 172].

Contract of Agency - Agency is a special type of contract. The concept of agency was developed as one man cannot possibly do every transaction himself. Hence, he should have opportunity or facility to transact business through others like an agent. The principles of contract of agency are – (a) Excepting matters of a personal nature, what a person can do himself, he can also do it through agent (e.g. a person cannot marry through an agent, as it is a matter of personal nature) (b) A person acting through an agent is acting himself, i.e. act of agent is act of Principal. - - Since agency is a contract, all usual requirements of a valid contract are applicable to agency contract also, except to the extent excluded in the Act. One important distinction is that as per section 185, no consideration is necessary to create an agency.

Agent and principal defined - An “agent” is a person employed to do any act for another or to represent another in dealings with third persons. The person for whom such act is done, or who is so represented, is called the “principal” [section 182].

Who may employ agent - Any person who is of the age of majority according to the law to which he is subject, and who is of sound mind, may employ an agent. [section 183]. - - Thus, any person competent to contract can appoint an agent.

Who may be an agent - As between the principal and third persons any person may become an agent, but no person who is not of the age of majority and of sound mind can become an agent, so as to be responsible to his principal according to the provisions in that behalf herein contained. [section 184]. - - The significance is that a Principal can appoint a minor or person of unsound mind as agent. In such case, the Principal will be responsible to third parties. However, the agent, who is a minor or of unsound mind, cannot be responsible to Principal. Thus, Principal will be liable to third parties for acts done by Agent, but agent will not be responsible to Principal for his (i.e. Agent’s) acts.

Consideration not necessary - No consideration is necessary to create an agency. [section 185]. Thus, payment of agency commission is not essential to hold appointment of Agent as valid.

Authority of agent – An agent can act on behalf of Principal and can bind the Principal.

Agent’s duty to Principal - An agent has following duties towards principal. * Conducting principal’s business as per his directions * Carry out work with normal skill and diligence * Render proper accounts [section 213]. * Agent’s duty to communicate with principal [section 214] * Not to deal on his own account, in business of agency [section 215]. * Agent’s duty to pay sums received for principal [section 218] * Agent’s duty on termination of agency by principal’s death or insanity - [section 209].

Remuneration to Agent - Consideration is not necessary for creation of agency. However, if there is an agreement, an agent is entitled to get remuneration as per contract.

Rights of Principal - * Recover damages from agent if he disregards directions of Principal * Obtain accounts from Agent * Recover moneys collected by Agent on behalf of Principal * Obtain details of secret profit made by agent and recover it from him * Forfeit remuneration of Agent if he misconducts the business.

Duties of Principal - * Pay remuneration to agent as agreed * Indemnify agent for lawful acts done by him as agent * Indemnify Agent for all acts done by him in good faith * Indemnify agent if he suffers loss due to neglect or lack of skill of Principal.

Termination of Agency - An agency is terminated by the principal revoking his au­thority; or by the agent renouncing the business of the agency; or by the business of the agency being completed; or by either the principal or agent dying or becoming of unsound mind; or by the principal being adjudicated an insolvent under the provisions of any Act for the time being in force for the relief of insol­vent debtors. [section 201]. - - In following cases, an agency cannot be revoked – * Agency coupled with interest (section 202) * Agent has already exercised his authority (section 203) * Agent has incurred personal liability.

Back Up Next

Monday, December 01, 2008

THIS IS MEANT FOR THOSE WHO OPTED GPF FROM CPF PRIOR TO 1994-VRS

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To.The Director(QC) ,EIC & Secretary Ministry of Commerce.

Sir, Sub: Issue Of Pension Payment Order.

Ref: No. EIC:D(QC):VRS:121:94/ Dt.29th.June1994.

I am a VRS-1994 optee who has switched over to GPF (pension scheme) as per the circular cited above which is governed by CCSPR-1972. No where in the VRS Circular (executive fiat) it was stated that the One time VRS-1994 is offered instead of pension scheme. Moreover I have not surrendered my accrued rights for pension which has been guaranteed by the Pension Act-1871.

So I request you to issue Pension payment order (PPO) for resumption of full pension on completion of fifteen years.

Kindly acknowledge the receipt.

Thanking You,

Wednesday, November 26, 2008

From: : M.Venkatesan,(Retd.A.D) November26, 2008

16, Raja apartments, 15/5A-B.K.N Street, Ref-96
Westmambalam,
CHENNAI-600 033


To, The Dirctor,

Export Inspection Council of India (Corporate Office)
(Department of Commerce)Fax: 011 - 23748024
(Ministry of Commerce & Industry, Government of India)
IIIrd Floor - NDYMCA Cultural Centre Building,

1, Jaisingh Road,New Delhi – 110 001

Sir,

Sub: Judgment of Madras High Court on Pending retirement benefits.

Ref: My WP.16155 of 1997.

You are requested to comply with the Madras High Court directive at the earliest. A copy of the judgment dated 16th.Sep. 2008 is enclosed. In case if DR is not admissible please quote the relevant rule number.

EIA has fraudulently obtained my voluntary retirement in violation of the constitutional provisions, deliberately suppressing the facts contained in the original VRS circular issued by the Commerce Ministry. As I have not surrendered my pension rights accrued under CCSPR-1972, I appeal again for sanctioning of normal retirement benefits under rule 48A in lieu of the illegal benefits received by me or to issue Pension Payment Order as per the SVRS offer of 2002.

Kindly acknowledge the receipt.

Thanking you,

Sincerely Yours,

VENKATESAN.M

Chennai-600033.

Cc to: EIA,Chennai.

Wednesday, November 12, 2008

THANKS TO RTI ACT-2005 WHICH EXPOSED THE FRAUD COMMITTED BY EXPORT INSPECTION AGENCY & COMMERCE MINISTRY. COMMERCE MINISTRY'S ILLEGAL VRS CIRCULAR OF 1994 WAS FURTHER EDITED DELIBERATELY TO CHEAT OVER 700 EMPLOYEES. GOVT. DEPARTMENTS LIKE DARPG/PG/CIC TRY TO AVOID THEIR RESPONSIBILITIES BY FORWARDING REPLIES RECEIVED WITHOUT ANY TANGIBLE RESULTS.
WITH NO OTHER OPTIONS WE ARE FORCED TO KNOCK AT THE DOORS OF JUDICIARY & MEDIA FOR JUSTICE.

From: : M.Venkatesan, November12, 2008
16, Raja apartments, 15/5A-B.K.N Street, Ref-95
Westmambalam,
CHENNAI-600 033
email ID : venkym1@gmail.com

To. The Secretary,

Ministry of Personnel, Public Grievances and Pension

North Block, New Delhi - 110 001, Fax : 011-23092432, 23093142,

Sir,

The Export Inspection Agency under Commerce Ministry has fraudulently obtained my Voluntary Retirement through a manipulated Executive Fiat dated 21st.May 1994, in violation of all Constitutional provisions & Pension act. As I have not surrendered my Rights accrued under Central Civil Service Pension Rules, Please direct the Commerce Ministry to issue Pension Payment Order as per Rule 48A of CCSPR-1972.

Thanking You.

Sincerely Your’s,

Venkatesan.M

C.C to: The Secretary, Department of Pension and Pensioners' Welfare,

Lok Nayak Bhavan, Fax : 011-24624821

Emails to: Shri Rahul Sarin, Secretary (personnel) secy_mop@nic.in

Shri M..P. Singh, Director, spbhatia@dpt-pension.delhi.nic.in

Dr. Syamal Kumar Sarkar, Joint Secretary (AT&A), jsata@nic.in

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To. All 1994-VRS optees covered by GPF.

Please send similar appeal with your name/date by post/telegrams & if interested to join our movement pl. leave your phone numbers with any one of the following coordinators or SMS to mobiles

1. Shri.N.Parthasarathy, Chennai-044 24748417 Mob.9282156227

2. Shri.O.Ragunath, Kochi-0484 2774695 Mob. 09895054411

3. shri. Dipak Bhattacharyya,Kolkatta -033 24104120 Mob. 09830642589

To. All Export Inspection Agency Employees Associations

Tuesday, September 30, 2008

Retirement Benefits

Absorption in PSU & Pension

No.4/59/97-P&PW(D)
Government of India
Ministry of Personnel, Public Grievances & Pensions
(Department of Pension & Pensioners’ Welfare)
Third Floor, Lok Nayak Bhavan, New Delhi,

dated the 14th July, 1998

OFFICE MEMORANDUM

Restoration of one-third commuted portion of pension after 15 years from the date of commutation or 1.4.85, whichever is later in respect of Government servants who had drawn lumpsum payment on absorption in Public Sector Undertaking/Autonomous Body – Implementation of Supreme Court Judgement dated 15.12.1995 in Writ Petition (C) No.11855/85 as well as Supreme Court order dated 1.5.1998 in Contempt Petition No. 530/97 in Writ Petition (C) No.11855/85.

The undersigned is directed to say that Government servants who had drawn lumpsum payment on absorption in a PSU/Autonomous Body have become entitled to restoration of 1/3rd commuted portion of pension as per the provisions of this Department’s O.M.No.34/2/86-P&PW dated 5th March, 1987, after 15 years from the date of commutation or 1.4.1985, whichever is later, based on the Supreme Court judgement dated 15.12.1995 in Writ Petition (C) No.11855/85. Orders in Implementation of the judgement had been issued by this Department vide O.M.No.4/3/86-P&PW(D) dated 30.9.1996. After issue of this OM, a number of clarifications had been sought by various Ministries/Departments/Pensioners’ Association etc. on revision of the restored amount of 1/3rd commuted portion of pension, dearness relief/interim relief on the restored amount, payment of minimum pension etc. All these issues were examined and classificatory instructions had been issued by this Department vide O.M.No.4/3/86-P&PW(D) dated 13.1.1998.

2. With reference to the Contempt Petition No.530/97 in Writ Petition (C) No.11855/85, the Supreme Court in its order dated 1.5.1998 has inter-alia ruled that the Respondents are liable to restore not only the pension as ordered by this Court in the said judgement but also all the attendant benefits as given to Central Government Pensioners.

3. The modalities of implementation of the Supreme Court order dated 1.5.1998 have been under active consideration of the government. The President is now pleased to decide that the beneficiaries of the Supreme Court judgement dated 15.12.1995 shall be entitled to the benefit of revision of the restored amount of 1/3rd commuted portion of pension at par with other Central Government pensioners. Accordingly, in supersession of the instructions contained in this Department’s O.M.No.4/3/86-P&PW(D) dated 13.1.1998 it has been decided that the cases of absorbed employees for revision of the restored amount of 1/3rd commuted portion of pension etc. shall be regulated as under:-

  1. Revision of the restored amount of 1/3rd commuted portion of pension as per the Liberalised Pension Formula of 1979/Fourth-Fifth Central Pay Commission’s recommendations where permanent absorption in the PSU/autonomous body had taken placed prior to 31.3.1979.


(a) In such cases, the basic pension that was sanctioned at the time of absorption should be first notionally revised as per the Liberalised Pension Formula of 1979. For this purpose, the Ready Reckoner prescribed under Department of Expenditure O.M.No.F.1(3)-EV/83 dated 22.10.1983 should be made use of. After the basic pension has been notionally revised, 1/3rd portion of such pension should be worked out and restored after 15 years from the date of commutation or 1.4.1985, whichever is later. Administrative Ministries/Departments may please refer to Table-I of Annexure-I of the enclosed specimen for guidance.

(b) The basic pension after having been notionally revised as in (a) above should be further notionally rationalised as per the decision of the Government on the recommendations made by the Fourth Central Pay Commission. For this purpose, the Table prescribed under this Departments O.M.No.2/1/87-PIC-I dated 16.04.1987 should be made use of. After the revised notional basic pension has been calculated, 1/3rd portion of such pension should be worked out and shall be payable in lieu of the amount arrived at (a) above w.e.f. 1.1.86 or 15 years from the date of commutation, whichever is later. Administrative Ministries/Departments may please refer to Table-II of Annexure-I of the enclosed specimen for guidance.

(c) The basic pension after having been notionally revised and consolidated as in (a) and (b) above should be further notionally revised as per the decision of the Government on the recommendations made by the Fifth Central Pay Commission. For this purpose, the Table prescribed under this Department’ O.M. No.45/86/97-P&PW(A)-Part.II dated 27th October, 1997 should be made use of. After the notional basic pension has been so calculated, 1/3rd portion of such pension should be worked out and shall be payable in lieu of the amount arrived at (b) above w.e.f. 1.1.996 or 15 years from the date of commutation, whichever is later. Administrative Ministries/Departments may please refer to Table-III of Annexure-I of the enclosed specimen for guidance.

  1. Revision of the restored amount of 1/3rd commuted portion of pension as per the recommendations made by the Fourth & Fifth Central Pay Commissions where permanent absorption in a PSU/Autonomous Body has taken place on or after 1.4.1979 but prior to 1.1.1986.

(a) The basic pension that was sanctioned at the time of absorption should be first notionally revised as per the decision of the Government on the recommendations made by the Fourth Central Pay Commission based on the Table prescribed under this Department’s O.M.No.2/1/87-PIC-I dated 16th April, 1987. Thereafter 1/3rd portion of such pension should be worked out and restored after 15 years from the date of commutation or 1.1.1986, whichever is later. Administrative Ministries/Departments may refer to Table-II of Annexure-I of the enclosed specimen for guidance.

(b) The basic pension after having been notionally revised as in (a) above should be further notionally revised w.e.f. 1.1.1996 as per the decision of the government on the recommendations made by the Fifth Central Pay Commission. For this purpose the Table prescribed under this Department’s O.M.No.45/86/97-P&PW(A)-Part-II dated 27th October, 1997 should be made use of. Thereafter 1/3rd portion of such pension should be worked out and shall be payable in lieu of the amount arrived at (a) above w.e.f. 1.1.1996 or 15 years from the date of commutation, whichever is later. Administrative Ministries/Departments may please refer to Table-III of Annexure-I of the enclosed specimen for guidance.

  1. Revision of the restored amount of 1/3rd commuted portion of pension as per the recommendations made by the Fifth Central Pay Commission where permanent absorption in a PSU/autonomous body has taken place on or after 1.1.1986 but prior to 31.3.1995.

The basic pension that was sanctioned at the time of absorption should be notionally revised as per the decision of the Government on the recommendations made by the Fifth Central Pay Commission based on the Table prescribed under this Department’s O.M. No. 45/86/97-P&PW (A)-Part-II dated 27th October, 1997. Thereafter 1/3rd portion of such pension should be worked out and restored after 15 years from the date of commutation or 1.1.1996, whichever is later. Administrative Ministries/Departments may refer to Table-III of Annexure-I of the enclosed specimen for guidance.

  1. Revision of the restored amount of 1/3rd commuted portion of pension of pre-1986 absorbed employees as per the provisions contained in Department of Pension & Pensioners Welfare O.M.No.45/86/97-P &PW(A)-Part-III dated 10th February, 1998.

(a) After completion of the exercise suggested in (I) and (II) above, the basic pension of pre-1986 absorbed employees should be further notionally revised as per the orders contained in the O.M. dated 10.2.1998 and its 1/3rd component worked out and shall be payable in lieu of the amount arrived at (I) and (II) above w.e.f. 1.1.1996 or 15 years from the date of commutation, whichever is later.

b) Revision of pension in terms of paragraph I(c) and II(b) shall be necessary in cases where implementation of the O.M. dated 10.2.1998 is likely to take sometime so that immediate relief could be provided to absorbed employees. In such cases pension sanctioning authorities should take immediate action to revise the restored amount of 1/3rd commuted portion of pension as provided in para 3(I) and (II) above and release the arrears, if any, as well as revised amount of 1/3rd commuted portion of pension to the absorbed employees immediately. Thereafter action should be taken to implement the directions contained in the O.M. dated 10.2.1998 without any further delay.

4. Dearness Relief on the restored amount of 1/3rd commuted portion of pension shall be admissible at the same rate at which it has been made admissible to other Central Government pensioners from time to time. The rates at which D.R. has been released by the Government to its pensioners during the period form 1.4.1985 to 1.1.1998 has been indicated in Annexure-II.

5. Payment of D.R. on the restored amount is subject to the condition that the absorbed employee was not re-employed/employed under the Central Government or a State Government or a Corporation/Company/Body/Bank under them in India or abroad, including permanent absorption in such Corporation/Company/Body/Bank at the time of restoration.

6. It has been further decided that the absorbed employees shall be entitled to the payment of arrears on account of Interim Relief-I and II from 1.4.1995 at the same rate at which I.R. has been made admissible to Central Government Pensioners viz.

I.R.-I – Rs.50/- per month w.e.f. 1.4.1995.
I.R.-II- 10% of the restored amount of 1/3rd commuted portion of pension or Rs.50/- which ever is more, w.e.f. 1.4.1995.

7. Arrears on account of I.R. shall be payable provided the absorbed employee has become entitled to restoration of 1/3rd commuted portion of pension as on 1.4.1995. Where the 1/3rd commuted portion of pension become due for restoration during the period from 1.4.1995 to 31.12.1995, arrears on account of I.R. shall be admissible for the relevant period only. Payment of arrears of I.R. is subject to the further condition that the absorbed employee was not re-employed/employed under the Central or State Government or a Corporation/Company/Body/Bank under them in India or abroad, including permanent absorption in such Corporation/Company/Body/Bank. I.R. be shown as a separate element and no Dearness Relief on this element will be admissible.

8. The benefit of revision of the restored amount of 1/3rd commuted portion of pension shall be admissible from the date the commuted portion of pension is restored.

9. In so for as extension of family pension benefits under the CCS(Pension) Rules, 1972 is concerned, it is clarified that wherever a Central Government absorbee in a PSU/autonomous body (in individual cases of absorption) had retired from the service of the PSU/autonomous body prior to issue of this Department’s O.M.No.1/18/86-P&PW(D) dated 22nd January, 1990 such cases are required to be examined in accordance with the instructions contained in the Department of Expenditure O.M.No. 4(10)-EV (B)/77 dated 10th July, 1978 and this Department’s O.M.No.1/3/85-Pension Unit dated 20.9.1985. In other words, the question of extending family pension benefits under the Central Government rules will arise only if the absorbed employee was not compulsorily governed by the family pension scheme of the PSU framed under the EPF and Miscellaneous Provisions Act, 1952 or was not eligible to become a member of the family pension scheme of the PSU because of his drawing more pay than prescribed under the rules etc. It is for the administrative Ministry etc. to examine each case and authorise family pension in the PPO provided the request is covered by the instructions contained in the Office Memorandum dated 10th July, 1978 and 20th September, 1985.

10. Where the death of an absorbee has taken place after 15 years from the date of commutation of pension or 1.4.1985, whichever is later, and he had become entitled to the benefit of restoration of the commuted portion of pension, the family member(s)/legal heir(s) will be eligible to claim the arrears becoming due in accordance with the provisions contained in this order.

11. The pension sanctioning authorities are requested to ensure that at the time of preparing PPOs in these cases for authorisation of payment, they should clearly superscribe the PPOs as ‘PSU/autonomous body absorbees’ and also suitably indicate the originally-sanctioned 1/3rd commuted value of pension. This will enable all concerned, whenever any revision/merger takes place in future, to identify these cases and ensure that they do not get merged with regular pensioners.

12. The pension sanctioning authority viz., the Ministry/Department/Office where the absorbed employee was employed prior to absorption, will have to work out the arrears payable on account of revision of the restored amount of 1/3rd commuted portion of pension. DR/IR on such pension and issue necessary sanction through the normal channel viz. CPAO for its payment by the Banks/PDAs etc. It will also be the responsibility of the pension sanctioning authority to ensure that arrears, if any, already paid to the absorbed employee based on O.M.NO.4/3/86-P&PW(D) dated 30.9.96 and 13.1.1998 are recovered/adjusted while making payment under these orders. The pension sanctioning authority will have to issue suitable directions through the CPAO etc. to the concerned Bank/PDA for the payment of dearness relief on the restored amount of 1/3rd commuted value of pension at the rate prescribed by the government from time to time. The D.R. table prescribed by this Department from time to time will not be applicable in the case of absorbed employees whose restored amount of 1/3rd commuted portion of pension under these orders happens to be less than the minimum amount of pension indicated in the Dearness Relief table.

13. The provisions contained in para 5 of the Department of Expenditure O.M.No.F.1(3)-EV/83 dated 22.10.1983, para 10(a) of this Department’s O.M.No.2/1/87-PIC-I dated 16.4.1987, para 7(a) of this Department’s O.M.No. 45/86/97-P&PW(A)-Part-II dated 27.10.1997 and para 19(a) of the O.M.No.45/86/97-P&PW(A)-Part-III dated 10th February, 1998 shall be deemed to have been modified to the extent indicated in these orders.

14. This issues with the concurrence of the Ministry of Finance (Department of Expenditure) vide their U.O. No.C-45/EV/98 dated 3.7.1998.

15. Hindi version of this O.M. will follow.


(SUJIT DATTA)
Director (PW)


To
All Ministries/Departments of the Government of India

Copy to:

Office of the Comptroller & Auditor General of India, 10, Bahadur Shah Zafar Marg, New Delhi (with 200 spare copies) for onward transmission to all A.Gs.

SPECIMEN

ANNEXURE-I
TABLE-I

Revision of basic pension as per Liberalised Pension Formula of 1979 for the purpose of working out revised restored amount of 1/3rd commuted portion of pension.


Basic pension sanctioned to a Government servant on absorption in a PSU/autonomous body prior to 31.03.1979.

Basic pension as indicated in Column (1) that would have been admissible as on 01.04.79 as per Department of Expenditure O.M. dated 22.10.1983 in case lumpsum amount had not been drawn

(Existing pension as on 1.4.1979)

Revised amount of basic pension that would have been admissible w.e.f. 1.4.1979 as per the Liberalised Pension Formula of 1979 and as per the Ready Reckoner prescribed under Department of Expenditure O.M.No.F.1(3)-EV/83 dated 22.10.1983 in those cases where absorption had taken place during the following period.

One-third commuted portion of revised basic pension indicated in column 3 to be restored after 15 years from the date of commutation or 1.4.1985, whichever is later

01.03.76 & 30.03.79

(a)

01.01.73 & 29.02.76

(b)

16.06.67 **& 31.12.72

(c)

(a)

(b)

(c)

1.

2.

3.

4.

25*

41

50

52

52

16

17

17

30*

41

50

52

52

16

17

17

40*

41

50

52

52

16

17

17

60

60

73

75

77

24

25

25

100

100

122

124

126

40

41

42

102

102

124

126

131

41

42

43

118

113

144

147

150

48

49

50

160

160

194

200

201

64

66

67

250

250

304

314

317

101

104

105

360

360

437

457

455

145

152

151

*Wherever basic pension sanctioned on absorption happened to be Rs.40/- or less it should be stepped up to Rs.41/- w.e.f. 1.4.79 as per Department of Expenditure O.M. dated 22.10.83.

** The concept of payment of lumpsum amount on absorption in a PSU/Autonomous Body came into existence w.e.f. 16.6.67. Therefore, pre-June, 67 period has not been indicated.

SPECIMEN

Table-II

Revision of basic pension w.e.f. 1.1.86 as per the recommendations made by the Fourth Central Pay Commission for the purpose of working out revised restored amount of 1/3rd commuted portion of pension

Basic pension as on 31.12.85 that would have been admissible as per Liberalised Pension Formula of 1979 (Table.I) provided the absorbed employee had not opted for lumpsum payment on absorption. (Existing pension on 31.12.85)

Further consolidation of basic pension indicated in column 5 w.e.f. 1.1.86 as per the Fourth Central Pay Commission Recommendations contained in Department of Pension & P.W. O.M.No.2/1/87-PIC-I dated 16.4.87 in respect of pensioners covered by:

1/3rd commuted portion of revised basic pension indicated in column 6 to be restored after 15 years from the date of commutation or 1.1.86, whichever is later.

Para 4.1(A)

(a)

Para 4.1(B)

(b)

Para 4.1(C)

(c)

Para 4.1(D)

(d)

(a)

(b)

(c)

(d)

5

6

7

(Rs.131 or below)

375

375

375

375

125

125

125

125

132

376

375

375

375

125

125

125

125

133

378

375

375

375

126

125

125

125

150

417

375

375

375

139

125

125

125

200

530

465

435

375

176

155

145

125

250

655

571

532

375

218

190

177

125

300

786

686

636

375

262

228

212

125

350

917

800

742

394

305

266

247

131

500

1309

1142

1060

563

436

380

353

187


SPECIMEN

Revision of basic pension w.e.f. 1.1.96 as per the recommendations made by the Fifth Central Pay Commission for the purpose of working out revised restored amount of 1/3rd commuted portion of pension.

Table-III


Basic pension as on 31.12.95 that would have been admissible as per the recommendations made by the Fourth Central Pay Commission (as indicated in column 6 of Table-II) provided the absorbed employee had not opted for lumpsum payment on absorption.

Further consolidation of basic pension indicated in column 8 w.e.f. 1.1.96 as per the recommendations made by the Fifth Central Pay Commission contained in the Department of Pension & P.W. O.M.No.45/86/97-P&PW(A)-Part-II dated 27.10.97.

1/3rdcommuted portion of revised basic pension indicated in column 9 to be restored after 15 years from the date of commutation or 1.1.96, whichever is later.

8.

9.

10.

375

1275

425

376

1275

425

378

1275

425

417

1302

434

435

1353

451

465

1440

480

530

1630

543

532

1637

545

571

1754

584

636

1947

649

655

2003

667

686

2096

698

742

2263

754

786

2394

798

800

2434

811

917

2784

928

1060

3209

1069

1142

3455

1151

1309

3952

1317



ANNEXURE-II

The rates at which DR was payable during the period from 1.4.85 to 1.1.86 on pension

01.04.85

117.5%

01.05.85

120%

01.08.85

122.5%

01.11.85

125%

01.01.86

127.5%


The rates at which DR was payable during the period from 1.7.86 to 1.1.96 on pension upto Rs.1750/-


01.07.86

4%

01.01.87

8%

01.07.87

13%

01.01.88

18%

01.07.88

23%

01.01.89

29%

01.07.89

34%

01.01.90

38%

01.07.90

43%

01.01.91

51%

01.07.91

60%

01.01.92

71%

01.07.92

83%

01.01.93

92%

01.07.93

97%

01.01.94

104%

01.07.94

114%

01.01.95

125%

01.07.95

136%

01.01.96

148%


The rates at which DR is payable on pension w.e.f. 1.7.96 onwards


01.07.96

4%

01.01.97

8%

01.07.97

13%

01.01.98

16%


Department of Personnel and Training
Department of Administrative Reforms & Public Grievances.


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