New Delhi, Apr 30 (UNI) Providing a major financial relief to the tune of Rs 2038.34 crore to the cash-starved Bihar government, the Supreme Court has ruled that the state has the right to fix the cut-off date for implementing revised pay and pension scales.

While allowing the appeal of the state of Bihar against the impugned Patna High Court judgment striking down The Bihar State Government Employees Revision of Pension, Family Pension and Death-cum-Retirement Gratuity (Validation and Enforcement) Act,2001, the Supreme Court has declared that if a state government is facing financial crunch it can delay the implementation of revised pay scales as well as pension scales.

The verdict was delivered by a division bench comprising Mr Justice B N Srikrishna and Mr Justice Lokeshwar Singh Panta.

The respondent, Bihar Pensioners Samaj had challenged the decision of the state government to grant financial benefits of revised pension rates with effect from March 1,1989 despite the fact that the notification's effective date was January 1 1986.

The state government also declared that no arrears for the period from January 1,1986 to February 28,1989 would be paid. No revision was made in Death-cum-Retirement Gratuity in respect of government employees who retired, or expired on or after January 1,1986 up to February 28,1989.

Some revision made in respectof dearness allowances was also applicable with effect from July 1,1989.

The apex court setting aside the impugned high court judgment held that the Validation Act was not violative of Article 14 of the Constituion and declared that the Act was constitutional.

UNI AKS/SC HT1038