2008 Supreme(SC) 1345

2008(6) Supreme 582
Supreme Court of india
Altamas Kabir and Markandey Katju, JJ.
Union of India and another — Appellant
versus
SPS Vains (Retd.) and others — Respondents
Civil Appeal No. 5566 of 2008
@ Special Leave Petition (Civil) No. 12357 of 2006
Decided on : 09-09-08

Important Point
Date of retirement of an employee cannot form a valid criterion for classification, for if that is the criterion those who retired by the end of the month will form a class by themselves.

Headnote:Special Army Instructions 2/S/1998 – Clause 12(c) – Grant of benefit of provisions of the revised pay scale, to officers of the rank of Major General, who had retired prior to 1st January, 1996, when revision of pay scales took effect, notwithstanding the fact that in terms of the policy only those who retired after the said cut-off date would be entitled to such benefit – Validity – Writ petition by writ petitioners, holding rank of Major General or Air Vice Marshal, that while the writ petitioners and others similarly placed officers who had retired prior to 1.1.1996 were given the same pension as that of a Brigadier, those officers of similar rank who had retired after 1.1.1996 were given pension according to clause 12(c) of Special Army Instructions 2/S/1998, as a result whereof they were getting much higher pension and family pension than writ petitioners, despite being of the same rank – Plea of petitioners that such differentiation between officers holding the same rank on the date of retirement was wholly erroneous and violative of provisions of Article 14 of Constitution – Said writ petition was allowed by High Court – Appeal – Submissions advanced on behalf of the Union of India held unacceptable in view of decision in D.S. Nakara’s case – The object sought to be achieved was not to create a class within a class, but to ensure that the benefits of pension were made available to all persons of the same class equally – To hold otherwise would cause violence to provisions of Article 14 of Constitution – It could not also have been intention of authorities to equate pension payable to officers of two different ranks by resorting to step up principle envisaged in the Fundamental Rules in a manner where the other officers belonging to the same cadre would be receiving a higher pension – Appeal dismissed modifying order of High Court by directing that the pay of all pensioners in the rank of Major General and its equivalent rank in the two other Wings of the Defence Services be notionally fixed at the rate given to similar officers of the same rank after the revision of pay scales with effect from 1.1.1996, and, thereafter, to compute their pensionary benefits on such basis with prospective effect from the date of filing of the writ petition and to pay them the difference within three months from date with interest at 10% per annum. (Paras 26 to 32)

       Facts of the Case :

       Issue in consideration in present appeal was whether the High Court had in the exercise of its jurisdiction correctly directed that officers of the rank of Major General, who had retired prior to 1st January, 1996, when revision of pay scales took effect, be given the benefit of the provisions of the revised pay scale, notwithstanding the fact that in terms of the policy only those who retired after the said cut-off date would be entitled to such benefit.

       Findings of the Court :

       Submissions advanced on behalf of the Union of India held unacceptable in view of decision in D.S. Nakara’s case. The object sought to be achieved was not to create a class within a class, but to ensure that the benefits of pension were made available to all persons of the same class equally. To hold otherwise would cause violence to provisions of Article 14 of Constitution. It could not also have been intention of authorities to equate pension payable to officers of two different ranks by resorting to step up principle envisaged in the Fundamental Rules in a manner where the other officers belonging to the same cadre would be receiving a higher pension. Appeal was dismissed modifying order of High Court by directing that the pay of all pensioners in the rank of Major General and its equivalent rank in the two other Wings of the Defence Services be notionally fixed at the rate given to similar officers of the same rank after the revision of pay scales with effect from 1.1.1996, and, thereafter, to compute their pensionary benefits on such basis with prospective effect from the date of filing of the writ petition and to pay them the difference within three months from date with interest at 10% per annum.

       Result : Appeal dismissed.