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2016 Supreme(SC) 877

SUPREME COURT OF INDIA
T.S. Thakur, CJI., A.M. Khanwilkar, D.Y. Chandrachud, JJ.
T.S. Das and Ors. – Appellants
Versus
Union of India and Anr. – Respondents
Civil Appeal No. 2147 of 2011 with Civil Appeal No.8566 of 2014
Decided On : 27-10-2016

Advocates Appeared:
For the Appearing Parties :- Rameshwar Prasad Goyal, Shreekant N. Terdal, Prashant Bhushan, Mrs. Anil Katiyar, Nishe Rajen Shonker, Gajendra Khichi, Atul Kumar, S.K. Verma, Bijup P. Raman, Niranjan Chakraborty, Advocates.

IMPORTANT POINT
When a challenge to view of the Tribunal was dismissed in SLP, the contrary view subsequently taken by Tribunal may be treated as impliedly overruled.
Fleet Reserve service abolished by Policy decision of Government. Sailors cannot be deemed to have continued in Fleet Reserve service on completion of their active service. Not entitled to Reservist pension.
Sailors discharged due to abolition of Fleet Reserve service may be entitled to Special pension.
Expression ‘if required’ in Regulation 269(1) does not bestow unequal bargaining power on the Government.

Headnote:(a) Administration of justice – Judicial propriety – SLP against Tribunal’s earlier view regarding reservist pension dismissed by Supreme Court – Tribunal taking a contrary view in impugned judgment – May be treated as impliedly overruled. (Para 14)

       (b) Navy (Pension) Regulations, 1964 – Regulation 92(1), 269 – Reservist pension – Eligibility – 10 years service each in Naval and Reserve Service – Appellants discharged after 10 years of Naval service – Not inducted in Fleet Reserve service – Service conditions changed abolishing Fleet service and instead enhancing 15 years active service for earning service pension – Appellants not opting to continue – Appellants discharged after 10 years of Naval service – No provision even remotely suggesting automatic transfer of sailor to Fleet Reserve Service – Not entitled to pension unless drafted to Fleet Reserve service by competent authority. (Para 17, 18)

       (c) Navy (Pension) Regulations, 1964 – Regulation 92 – Mere completion of 10 years service as sailor and not being drafted to Fleet Reserve service or continuing as sailor for less than 15 years – Not eligible for pension – There can be no claim to join the Fleet Reserve as a matter of right – Condition of eligibility of a sailor to be taken on Fleet Reserve service on completion of 10 years of active service, cannot be interpreted to mean as the Sailor acquiring a legal right to join the Fleet Reserve Service or continuing de jure on Fleet Reserve Service for a further 10 years so as to become entitled to Reservist pension – Policy dated 3rd July, 1976 not affecting appellants’ active service of 10 years – Principle of equitable promissory estoppel and legitimate expectation not attracted. (Para 20, 21)

       (d) Navy (Pension) Regulations, 1964 – Regulation 269(1) – Contention that expression ‘if required’ bestows unequal bargaining power on the Government – Validity of Regulation 269(1) not challenged before Tribunal nor Supreme Court – No relief claimed thereagainst either – To place the Sailors to the Fleet Reserve Service is prerogative of Government – At the same time option given to sailors to opt for discharge in terms of Section 16 of Navy Act, 1957 – Expression ‘if required’ cannot be termed as bestowing unequal bargaining power on the Government. (Para 21)

       AIR 1983 SC 130; AIR 2008 SC 336; (2006) 13 SCC 542; (1986) 3 SCC 156; (2006) 13 SCC 542; (1986) 3 SCC 156; (2009) 14 SCC 793; (2007) 10 SCC 627; (1998) 2 SCC 208; (2006) 2 SCC 482; AIR 1967 SC 1889 – Referred

       (e) Navy (Pension) Regulations, 1964 – Regulation 95 – Special pension – Power to grant – Discretionary – Applicants discharged from their duties in pursuance of the Government policy of reducing the strength of establishment – Option to continue on the Fleet Reserve Service could not be offered to applicants – Held entitled to special pension. (Para 24, 25)

       (f) Navy (Pension) Regulations, 1964 – Regulation 95 – Special pension – Sailors appointed prior to 1973 – Given liberty to make representation to competent authority who will examine whether the discharge was unilateral and whether the sailor is entitled to special pension. (Para 25)

       Facts of the case:

       This case concerns ‘special pension’ and ‘reservist pension’ in the Armed Forces.

       Finding of the Court:

       None of the applicants before the Tribunal are entitled for Reservist Pension in terms of Regulation 92 of the Naval (Pension) Regulations, 1964

       Result: Appeals disposed of.

JUDGMENT

A.M. Khanwilkar, J.

These appeals emanate from the divergent relief claimed by the original applicants before the Armed Forces Tribunal (Appellants in Civil Appeal No. 2147 of 2011 and Respondents in Civil Appeal No. 8566 of 2014), which, however, involve overlapping points for consideration. Hence, we deem it apposite to dispose of both these appeals analogously, by this common judgment.

2. Civil Appeal No. 2147 of 2011 arises from an order passed by the Armed Forces Tribunal, Principal Bench, New Delhi, in Original Application No. 182 of 2009 dated 4th February, 2010. The Tribunal has rejected the claim of the applicants therein for grant of a "Special Pension". In Civil Appeal No. 8566 of 2014 the decision of the Armed Forces Tribunal, Regional Bench, Chennai, in O.A. No.83 of 2013 dated 22nd April, 2013, is challenged by the Union of India. In that case, the Tribunal acceded to the claim of the applicants therein for grant of a "Reservist Pension".

3. Admittedly, the applicants before the Tribunal in both cases were appointed as Sailors in the Indian Navy before 1973. The appointment letter noted that the concerned applicant was engaged as a Sailor for 10 years active service and 10 years on Fleet Reserve Services thereafter, if required. The applicants were continued for a brief period beyond the initial term of 10 years in active service/engagement and discharged without drafting them to Fleet Reserve Services. Thus, each applicant was discharged by the Indian Navy after July, 1976, on completion of their active service and was paid gratuity. As the Tribunal granted relief to similarly placed persons by directing the Authorities to grant Reservist Pension/Special Pension, even these applicants moved the Tribunal for a similar relief.

4. The 38 applicants in O.A.No.182/2009 (appellants in C.A.No.2147/2011) had initially approached the High Court of Delhi by way of a Civil Writ Petition No.4805/2008, to issue direction to the competent Authority to grant special pension to them under Regulation 95 of the Navy (Pension) Regulations, 1964 (hereinafter referred to as "Pension" Regulations). The High Court vide order dated July 8, 2008 directed the competent Authority to examine the claim of the said applicants for grant of a special pension. The competent Authority after examining the matter rejected the claim of the said applicants vide a speaking order dated 30th September 2008. The competent Authority held that the said applicants were discharged from service after completion of their initial engagement and were not drafted to the Fleet Reserve, as they were not required. That fact was mentioned in the discharge slips issued to them. The competent Authority also held that Regulation 95 of the Pension Regulations was inapplicable to the said applicants as they were not discharged as a measure of reducing the strength of the establishment of the Indian Navy or of any re-organization. Instead, they were discharged after completion of engagement period in terms of Section 16 of the Navy Act, 1957. The applicants then approached the Armed Forces Tribunal, Principal Bench, New Delhi by way of O.A. No. 182/2009 which, however, was dismissed on 4th February 2010. The Tribunal held that the applicants were discharged from service after completion of 10 years period of engagement. They had no right to be drafted on the Fleet Reserve. Reliance placed by the applicants on Regulation 269 of the Navy Ceremonial, Conditions of Service and Miscellaneous Regulations, 1963 (hereinafter referred to as the "Conditions of Service Regulations"), was negatived by the Tribunal on the finding that the said provision is only an enabling provision and vests discretion in the Authority to draft the concerned Sailor on Fleet Reserve. The Tribunal held that Regulation 95 was not applicable to the case of the applicants who were discharged from service after completion of 10 years of engagement. Accordingly, the original application filed by the sai





















































































































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