1. Government servant's claim for pensionary benefits based on qualifying service following voluntary resignation and subsequent amendment to pension rules. (Para 3 )
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1997 Supreme(SC) 171
1997(2) Supreme 456
SUPREME COURT OF INDIA
K. Ramaswamy and G.T. Nanavati, JJ.
Government of Tamil Nadu & Anr. -Appellants
versus
K. Jayaraman -Respondent
Civil Appeal No. 699 of 1997
(Arising out of SLP (C) No. 20502 of 1996)
Decided on 3-2-1997
Counsel for the Parties :
For the Appellants : V. Krishnamurthy, Advocate.
For the Respondent : Mrs. K. Sarada Devi, Advocate.
Important Points
The Supreme Court held that amendments to service rules regarding qualifying service for pensionary benefits cannot be given retrospective effect to benefit an employee who retired prior to the amendment's effective date.
Subject
Employment Law - Pension
Act Referred
SERVICE LAW: .
Headnote
SERVICE LAW-Voluntary resignation-G.O.Ms. No. 1537 which came to be effective from November 1972 prescribed 25 years of qualifying service-It cannot be given retrospective effect-Respondent retired in March, 1970-View of Tribunal that he is entitled to pension on completing 25 years of qualifying service-Illegal-He had tendered two years of temporary service-There is a short fall of three years for computing pension-Government is accordingly directed to consider his case. (Para 3)
Legal Category Hierarchy
-
administrative law
-
service law
-
pension and retirement benefits
- qualifying service (Para 3)
-
pension and retirement benefits
-
service law
Table of Contents
2. Whether an amendment to pension rules allowing retirement after twenty-five years of qualifying service can be applied retrospectively to a servant who retired prior to the amendment. (Para 3 )
3. The application of a subsequent Government Order to a retirement that occurred before the order's effective date is illegal. (Para 3 )
4. Amendments to service rules regarding qualifying service for pensionary benefits cannot be given retrospective effect. (Para 3 )
5. Appeal disposed of; Government directed to consider eligibility for pensionary benefits or relaxation of rules within four months. (Para 3 , 4 )
6. Can a Government Order amending the qualifying service period for pension be applied retrospectively?
No, a Government Order that reduces the qualifying service period for pension cannot be given retrospective effect to benefit a servant who retired before the order came into force. (Para 3 )
ORDER
Leave granted.
We have heard learned counsel for the parties.
2. When the respondent failed to be represented pursuant to the notice issued by this Court, we requested the Supreme Court Legal Services Committee to assign the counsel. Accordingly, Smt. K. Sarda Devi has been assigned the case.
3. This appeal by special leave arises from the order of the Administrative Tribunal, Madras, made on April 22, 1996 in O.A. No. 159/90. The admitted facts are that the respondent was initially appointed in a contingent establishment on November 20, 1942 and was later appointed on regular basis as an Attendant on February 18, 1945. He tendered voluntary resignation by letter dated June 6, 1970 which was accepted by the Government w.e.f. March 19, 1970. As per the pre-existing rules, the Government servant was required to put in 30 years of qualifying service for pensionary benefits. Rules came to be amended by G.O.Ms. No. 1537 which came to be effective from November 13, 1972. It was stated therein that the Government may, by giving him notice of not less than three months in writing or three months pay and allowances in lieu of such notice, after he has attained the age of fifty years or after he has completed twenty five years of qualifying service retire any Government servant. Any Government servant who has attained the age of 50 years or who has completed 25 years of qualifying service may also likewise retire from service by giving notice of not less than three months in writing to the appropriate authority. This rule has come into force, as stated earlier, w.e.f. March 1, 1972. The respondent has voluntarily retired on March 20, 1970 and since then, he has already joined another institution. The view of the Tribunal that he is entitled to pension on completing 25 years of qualifying service applying the aforesaid G.O., is clearly illegal. It cannot be given retrospective effect. However, since the respondent had rendered two years of temporary service and there is a short-fall of three years for computing the pension, Government is at liberty and is accordingly directed to consider his case whether he is eligible in accordance with appropriate procedure to pensionary benefits or relaxation may be given and pass appropriate orders within a period of four months from the date of receipt of the order.
4. The appeal is accordingly disposed of. No costs.
Appeal accordingly disposed of.
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