1. Retirement benefits dispute — Calculation of cash equivalent of leave salary — Includibility of allowances — Compensation for failure to provide staff car under High Court Judges (Conditions of Service) Act, 1954. (Para 1 , 2 )
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1994 Supreme(SC) 43
SUPREME COURT OF INDIA
A. M. AHMADI AND K. RAMASWAMY, JJ.
Union of India, Appellant
Versus
Justice S. S. Sandhawalia (Retd.) and others, Respondents.
Civil Appeal Nos. 3059 With 3060 of 1991, D/-11-1-1994.
WITH
Justice S. S. Sandhawalia (Retd.), Appellant
Versus
Union of India and others, Respondents.
Important Points
The Court held that cash equivalent of leave salary for retired High Court Judges includes only pay and dearness allowance, excluding other allowances. It also ruled that judges are entitled to compensation if the government fails to provide a staff car as mandated by Section 22B of the 1954 Act.
Subject
SERVICE CONDITIONS - RETIREMENT BENEFITS
Act Referred
ALL INDIA SERVICES LEAVE RULES: R.20(b)
CIVIL PROCEDURE CODE: S.35, S.34
CONSTITUTION OF INDIA: Art.221(2)
HIGH COURT JUDGES CONDITIONS OF SERVICE ACT: S.22(a), S.9, S.22(b), S.22(c)
HIGH COURT JUDGES RULES: R.2
CIVIL PROCEDURE CODE: S.35, S.34
CONSTITUTION OF INDIA: Art.221(2)
HIGH COURT JUDGES CONDITIONS OF SERVICE ACT: S.22(a), S.9, S.22(b), S.22(c)
HIGH COURT JUDGES RULES: R.2
Headnote
Constitution of India - Article 222(2) - High Court Judges (Conditions of Service) Act, 1954 – Section 22A, 22B and 22C - All India Services (Leave) Rules, 1955 - Rule 2 and 20B - Retired as Chief Justice of High Court - Retiral benefits - Amount of gratuity - High Court notices that during pendency of Writ Petition in High Court, authorities had substantially satisfied his grievances - Authorities however, contend that leave encashment is governed by Rule 20B of All-India Services (Leave) Rules, 1955, hereafter alluded to as 1955 Rules, read with Rule 2 of High Court Judges Rules 1956, hereafter referred to as 1956 Rules, and as such except dearness allowance no other allowance is includible in computing said benefit of leave salary – Court may, therefore, reproduce said provisions at this stage to correctly appreciate stand of authorities - Member of Service who attained age of superannuation before and was on extension of service on or after that date shall be entitled to the cash equivalent of leave salary, on his retirement from service, in respect of earned leave that was refused to him in public interest and was carried forward to period of extension plus earned leave due to him during period of extension reduced by amount of earned leave availed of during such period – Held, Court must clarify that we should not be understood to be approving the action of the State of Bihar as well as State of West Bengal in not providing staff cars to Judges of their High Courts and making monthly payments in lieu thereof as that has the effect of destroying uniformity in the matter of service conditions of High Court Judges - Provision was made by introduction of Ss. 22A and 22B to bring about uniformity in service conditions of High Court Judges all over country and no State Government could be permitted to act in violation thereof - In fact Government of India was duty bound to ensure compliance with said provisions - Court reject Governments plea for grant of interest from the date of withdrawal till refund. There will be no order as to costs throughout as this is a litigation of a representative character – Court may, however, clarify that since we have approved the High Courts order in regard to payment of compensation for failure to supply staff car in terms of S. 22B, original petitioner will be entitled to retain amount received under that head - Appeal will stand disposed of accordingly.
Legal Category Hierarchy
Advocates:
Arvind Minocha, B.B.Singh, C.V.SUBBA RAO, H.S.MUNJRAL, O.K.BANSAL, T.C.SHARMA
Arvind Minocha, B.B.Singh, C.V.SUBBA RAO, H.S.MUNJRAL, O.K.BANSAL, T.C.SHARMA
Table of Contents
2. Petitioner claims all allowances should be included in leave salary; Union contends only dearness allowance is includible per Rule 20B of All-India Services (Leave) Rules, 1955. (Para 2 , 7 )
3. Rule 20B of 1955 Rules applies mutatis mutandis; allowances for official duties during tenure cannot be converted to cash for post-retirement leave salary unless specifically provided. (Para 6 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 )
4. Cash equivalent of leave salary for High Court Judges is governed by Rule 20B of 1955 Rules, excluding HRA, CCA, and official-use allowances. (Para 8 , 10 , 11 , 12 , 14 , 16 )
5. Appeal of Union allowed; allowances excluded from leave salary; compensation for failure to provide staff car and interest on delayed gratuity upheld. (Para 3 , 17 , 19 )
6. Does Rule 20B of the All-India Services (Leave) Rules, 1955 apply to High Court Judges?
Yes, by virtue of Rule 2 of the High Court Judges Rules, 1956, the benefit of cash equivalent of leave salary is extended to High Court Judges as a condition of service, as the concept of earned leave is embedded in the 1954 Act. (Para 6 , 8 , 10 )
7. Which allowances are includible or excludable when calculating the cash equivalent of leave salary for a retired High Court Judge?
Dearness allowance is includible. However, city compensatory allowance and house rent allowance are specifically excluded under Rule 20B(3). Other official allowances, such as sumptuary or conveyance allowances, are also excludable as they are intended for use during tenure and not post-retirement. (Para 10 , 11 , 12 , 13 , 14 , 16 )
8. Is a Judge entitled to compensation if the Government fails to provide a staff car under Section 22B of the 1954 Act?
Yes, the failure to provide a staff car is a breach of express statutory service conditions. The Judge is entitled to compensation, which may be determined based on payments made by other states in similar circumstances. (Para 17 )
9. Is a retired official entitled to interest on delayed payment of death-cum-retirement gratuity?
Yes, once it is established that an amount legally due to a party was not paid, the party responsible for withholding the payment must pay interest at a rate considered reasonable by the Court. (Para 3 )
Judgment
AHMADI, J. :- These are two cross appeals arising out of the judgment rendered by a Division Bench of the High Court of Punjab and Haryana on 12th January, 1990 in Civil Writ Petition No. 4838 of 1988 (reported in AIR 1990 Punj & Har 198) lodged by Shri Justice S. S. Sandhawalia, retired Chief Justice of the said High Court and later of the High Court of Patna (Bihar). For the sake of convenience we will hereafter refer to him as the original petitioner. The facts giving rise to these two appeals, the first by the Union Government and the second by the original petitioner, briefly stated, are as under:
The original petitioner retired as the Chief Justice of the High Court of Patna on 27th July, 1987. His retiral benefits were released to him but his grievance survived in respect of the following :
(i) the full amount of gratuity due to him was not released;
(ii) while computing the cash equivalent of leave due to him at the date of his retirement, the cash equivalent of the various allowances drawn by him just before his retirement had not been included;
(iii) he was not paid the amount payable to him under S. 22B of the High Court Judges (Conditions of Service) Act, 1954; and
(iv) his claim for reimbursement of medical charges had not been cleared.
The High Court notices that during the pendency of the Writ Petition in the High Court, the authorities had substantially satisfied his grievances at (i) and (iv) except for some marginal matters which the High Court had dealt with towards the end of its judgment. The grievances stated at (ii) and (iii) above were, however, contested by the authorities as inadmissible. The precise ease put forth by the original petitioner in regard to his grievance set out at (ii) and (iii) above was that in computing the cash equiva1ent of leave due to him at the date of his retirement the authorities were bound to include the (i) sumptuary allowance of Rs. 500 per month (ii) compensatory allowance of Rs. 900 per month admissible under Art. 222(2) of the Constitution of India, (iii) the City compensatory Allowance of Rs. 75 per month and (iv) the cash equivalent of the perquisites admissible under Ss. 22A and 22B of the High Court Judges (Conditions of Service) Act, 1954, hereinafter called the 1954 Act. It may be advantageous to reproduce the relevant sections at this stage:
"22A(l). Every Judge shall be entitled without payment of rent to the use of an official residence in accordance with such rules as may, from time to time, be made in this behalf.
22A(2). Where a Judge does not avail himself of the use of an official residence, he may be paid every month an allowance of two thousand five hundred rupees.
22B. Every Judge shall be entitled to a staff car and one hundred and fifty litres of petrol per month/every month or the actual consumption of petrol whichever is less;
22C. The Chief Justice and each of the other Judges of every High Court shall be entitled to a sumptuary allowance of five hundred rupees per month and three hundred rupees per month respectively."
The authorities, however, contend that leave encashment is governed by Rule 20B of the All-India Services (Leave) Rules, 1955, hereafter alluded to as the 1955 Rules, read with Rule 2 of the High Court Judges Rules. 1956, hereafter referred to as the 1956 Rules, and as such except dearness allowance no other allowance is includible in computing the said benefit of leave salary. We may, therefore, reproduce the said provisions at this stage to correctly appreciate the stand of the authorities. Rule 20B of the 1955 Rules reads thus :
"20B. Payment of cash equivalent of leave salary to a member of the service retiring from service on attaining the age of superannuation- 20B(1). The Government shall suo motu sanction to a member of the Service who retires from the service under sub-rule (1) of Rule 16 of the All India Services (Death-cum-Retirement Benefits Rules, 1958), the cash equivalent of leave salary at his credit on the date of his
