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1974 Supreme(SC) 256

SUPREME COURT OF INDIA
A.N. RAY, C.J.I., M.H. BEG, A. ALAGIRISWAMI, P.K. GOSWAMI AND R.S. SARKARIA, JJ.
V. B. Raju, Petitioner Versus
State of Gujarat, Respondent.
Union of India and others, Appellants
Versus
J. D. Kapadia and another, Respondents.
V. B. Raju, Appellant
Versus
State of Gujarat and others, Respondents.
I. M. Lal etc., Petitioners
Versus
Union of India, Respondent.
I. M. Lal and Krishan Prasad, Petitioners
Versus
Union of India, etc., Respondents.
Civil Appeal No. 147 of 1971; Writ Petn. No.12 of 1971; Civil Appeal No.268 of 1972; Writ Petn. No.17 of 1972; Writ Petns. Nos. 471-474 of 1972; Civil Appeals nos. 2467 and 2468 of 1972,
D/- 22-8-1974.
Civil Appeal No.147 of 1971:
Writ Petition No.12 of 1971:
Civil Appeal No. 268 of 1972:
Writ Petition No.17 of 1972:
Writ Petns. Nos. 471-474 of 1972:
Civil Appeal No. 2467 and 2468 of 1972:

Advocates:
B.SEN, E.C.AGARWAL, G.S.CHATTERJEE, I.M.LAL, J.P.GOYAL, O.P.RANA, R.M.MEHTA, R.P.KAPUR, S.K.Bisaria, S.V.CHAUDHARY, V.C.PRASHAR

Headnote:

Service Officers Act, 1972 - Section 7 and 8Constitution Of India, 1950 - Article 309, 14, 16, 312A - Constitution Act, 1972 - Indian Civil Service - Amended by Former Secretary - Entitled to an Annuity - Only question which falls for determination in these petitions and appeals is whether Regulation 561 and 983 of Civil Service Regulations could be amended by former Secretary of State, Service Officers Act, 1972 - 1972 Act is to provide for variation or revocation of conditions of service of former Secretary of State Service Officers in respect of certain matters and for matters connected therewith or incidental thereto - 1972 Act has changed Regulations 561 and 983 of Civil Service Regulations – Held, After 1956 amendment of Regulation 561 Indian members of Indian Civil Service who retired or sought retirement were entitled to an annuity which is payable in India in rupees only - Members of former Indian Civil Service and of Indian Administrative Service are under 1972 Act entitled to an annuity which is equivalent to £1000 converted into rupees at rate of 1sh-6d to a rupee - There has been no change - All that has happened as a result of 1972 Act is to lay down that annuitants are not entitled to claim payment of pension in sterling or outside India or by converting £1000 at rate of exchange exceeding rate of exchange of Rupees thirteen and one third to pound sterling - Annuitants reside in India - Indian currency is legal tender - There is no constitutional vice in fixing rate of exchange and mode of payment by legislation - Petitioners and appellants have neither right nor merit in alleged claims - Petitions allowed - Appeals dismissed -

Judgement

RAY, C. J. :- The only question which falls for determination in these petitions and appeals is whether Regulation 561 and 983 of the Civil Service Regulations could be amended by the former Secretary of State, Service Officers (Conditions of Service) Act, 1972.

2. The 1972 Act is to provide for the variation or revocation of the conditions of service of former Secretary of State Service Officers in respect of certain matters and for matters connected therewith or incidental thereto. The 1972 Act has changed Regulations 561 and 983 of the Civil Service Regulations.

3. Regulation 561 provided that officers who had joined the Indian Civil Service prior to 1921 were entitled to annuity of £1000. Officers who joined the Indian Civil Service after 1921 were entitled to annuity of Rs.10,666-10-8. The annuity was subject to a minimum of £1000.

4. Regulation 983 provided that officers who joined service prior to 1921 could be paid annuities in sterling money in London or in India in rupees at Rs.10-2/3 for pound sterling in certain cases of annuitants and at Rupees 10-65 for pound sterling in the case of some other annuitants. Any annuitant who resided in India could exercise the option of receiving it at the rate of exchange fixed for the British and the Indian Exchequers. Officers who joined service after 1921 were entitled to payment of annuity at the option of the recipient either in rupees converted into sterling at the rate of exchange declared to exist on the date on which payment fell due or at the fixed minimum sterling. If payment was taken in India it would be either in rupees or at the fixed sterling minimum converted into rupees at the rate of exchange declared to exist on the date on which payment fell due. Annuitants of certain classes were given the option to receive annuity converted into rupees at the rate of 1sh-6d to a rupee so long as they resided in India.

5. On 15 August, 1947 under Regulation 561 of the Civil Service Regulations a member of the Indian Civil Service on retirement was entitled to an annuity of Rs.10,666-10-8 subject to a minimum of £1000. If a member of the Indian Civil Service chose to draw his pension at the "Home Treasury", that is London, he could draw his sterling minimum of £1000. It may be stated here that the Secretary or state in a despatch dated 25 February, 1928 laid down the rate of exchange for the purpose of pension and overseas pay etc. at 1sh-6d to a rupee, and this rate of exchange continued up to the date of transfer, viz., 15 August, 1947.

6. Regulation 561 was amended by the President under the provisions of Article 309. The amendment came into force on 12 June, 1956. As a result of the amendment Indian members of the Indian Civil Service who retired or sought retirement were entitled under Regulation 561 to an annuity of Rs.13,333.33 payable in Indian in rupees only. The annuity of Rs.13,333.33 was equivalent to £1000 converted into rupees at the rate of 1sh-6d to a rupee.

7. The amendment Regulation 561 converted the payment of annuity of £1000 at the rate of 1sh-6d to a rupee, that is to say, at the rate which was fixed by the Secretary of State in 1928 and which continued up to 15 August, 1947.

8. The amendment in 1956 delinked the pension to a currency which no longer continued to be legal tender in Indian Treasuries. This was necessary because of the changed conditions flowing from the transfer of power.

9. The amendment of Regulation 561 does not infringe the provisions of Article 14 and 16 of the Constitution. The amendment makes no distinction in the matter of payment of pension to the members of the Indian Civil Service retiring after 12 June, 1956 irrespective of the fact that they are citizens of India or are of non-Indian domicile if they down their pension in India.

10. On or from 12 June, 1956 all members of the Indian Civil Service having their residence in India on retirement are entitled to their authority only in India and in rupees alone.

11. Under Regulatio










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