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Tripura High Court decides TRPC Pension Scheme Dispute

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TRPC Ltd. decided to introduce a Group Pension Scheme for the retirement benefits of its regular employees. The fund for the scheme was parked with LIC by TRPC Ltd. Since being a government organisation, to start the pension scheme, approval of the government is required. But TRPC Ltd. implemented the pensionary scheme without the approval of the government. The corporation was short of funds for covering the pension of existing employees. The corporation asked the government to fill the gap. But the government rejected the proposal of the corporation and denied funding to the pension scheme. Thereupon corporation decided to discontinue the pensionary scheme. It resulted in pensionary benefits to some employees only. And employees who were unhappy with the decision to discontinue the pensionary scheme filed a petition with the Court.

Petitioners argument

The Court opined that the Petitioners made no salient argument to back their case.

Respondents argument

The Counsel for the respondent mentioned that the employees who received pensionary benefits as per the scheme. On discontinuation of the pensionary scheme, those employees were not paid pension after that. Counsel represented that no case of mala fide discrimination has been established between the board of directors and the employees by the petitioners. 

The Counsel mentioned that the government said, “It will not finance the corporation’s pension scheme in any way and that corporation can either collect the requisite money or decide the alternative potential course of action.

Courts judgement

The Court mentioned that similar issues had appeared before the learned Single Judge of the Court. And in that, the Court refused to direct the corporation to reframe the pension scheme. The court observed that the government is not responsible for the continuation of the scheme of the corporation. Therefore, it was left with the Corporation to determine whether to proceed or wind up the program. And if the corporation is unable to implement the scheme, then the Court cannot direct the corporation to re-implement the pensionary scheme.

Court ordered that the petitions and pending applications were rejected. 

Click here to read Santhosh Chandra Chaudhari v. State of Tripura. is now on Telegram. Follow us for regular legal updates and judgment from courts. Follow us on Google News, Instagram, LinkedIn, Facebook & Twitter. You can subscribe to our Weekly Email Updates. You can also contribute stories like this and help us spread awareness for a better society. Submit Your Post Now

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