The conditions of service of High Court Judges who retired prior to 1-10-1974 are regulated by the All India Services (Death-cum-Retirement Benefits) Rules, 1958 (the 1958 Rules) applicable to the members of the Indian Administrative Service.

Headnote:
HIGH COURT JUDGES (CONDITIONS OF SERVICE) ACT, 1954 - ACT 28 OF 1954 - HIGH COURT JUDGES RULES, 1956 - RULE 2 - ALL INDIA SERVICES (DEATH-CUM-RETIREMENT BENEFITS) RULES, 1958 - RULES 16, 17, 19(1) - HIGH COURT JUDGES (CONDITIONS OF SERVICE) AMENDMENT ACT, 1976 - ACT 65 OF 1976 - SECTION 17-A - WRIT PETITION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA - DELAY IN FILING - LACHES - INORDINATE DELAY - DISCRETION OF THE HIGH COURT - PAYMENT OF DEATH-CUM-RETIREMENT GRATUITY (D.C.R.G.) TO HIGH COURT JUDGES WHO RETIRED PRIOR TO 1-10-1974 - CONDITIONS OF SERVICE OF HIGH COURT JUDGES - RULES APPLICABLE - INTEREST ON D.C.R.G. - STATUTORY INTEREST - PENAL INTEREST - AWARD OF INTEREST - PRINCIPLES.
Fact of the Case:

The petitioner, a former High Court Judge, retired on 30-11-1969. He claimed that he was entitled to Death-cum-Retirement-Gratuity (D.C.R.G.) as per the relevant rules applicable to him at the time of his retirement. However, he had not been paid the same till date. The petitioner filed a writ petition under Article 226 of the Constitution of India seeking a direction to the respondents to compute and determine the D.C.R.G. payable to him and to pay the same with interest at the rate of 12% P.A. from the date of his retirement till realization.
Finding of the Court:

The Court held that the petitioner was entitled to D.C.R.G. in accordance with the provisions of Rule 19(1) read with Rule 16 of the All India Services (Death-cum-Retirement Benefits) Rules, 1958 (the 1958 Rules) applicable to the members of the Indian Administrative Service. The Court further held that the petitioner was entitled to statutory interest at the rate of 5% P.A. as provided in Rule 19-A of the 1958 Rules from the date 3 months after the date of his retirement as provided therein and penal interest @ 12% interest instead of 5% P.A. is awarded to him upon the amount of his D.C.R.G. from the date 3 years prior to the date of the instant writ petition till realization.
Issues: 1. Whether the petitioner was entitled to D.C.R.G. as per the relevant rules applicable to him at the time of his retirement? 2. Whether the petitioner was entitled to interest on the D.C.R.G. payable to him? 3. If so, at what rate and from which date?
Ratio Decidendi: 1. The Court held that the petitioner was entitled to D.C.R.G. in accordance with the provisions of Rule 19(1) read with Rule 16 of the 1958 Rules applicable to the members of the Indian Administrative Service. The Court relied on Rule 2 of the High Court Judges Rules, 1956 (the 1956 Rules) which provides that where no express provision is made in the High Court Judges (Conditions of Service) Act, 1954 (the Act) to regulate any particular condition of service of a High Court Judge, then such condition of service is regulated by the rules for the time being applicable to a member of the Indian Administrative Service holding the rank of Secretary to the Government of the State in which the principal seat of the High Court is situated. 2. The Court held that the petitioner was entitled to statutory interest at the rate of 5% P.A. as provided in Rule 19-A of the 1958 Rules from the date 3 months after the date of his retirement as provided therein and penal interest @ 12% interest instead of 5% P.A. is awarded to him upon the amount of his D.C.R.G. from the date 3 years prior to the date of the instant writ petition till realization. The Court relied on the judgment of the Allahabad High Court in M.C. Desai v. Union of India, A.I.R. 1988 All. 283, in which it was held that the Judges of the High Court who retired prior to 1-10-1974 are entitled to D.C.R.G. in accordance with the provisions of the 1958 Rules applicable to the members of the All India Services.
Final Decision: The Court allowed the writ petition and directed the respondents to compute and determine the D.C.R.G. payable to the petitioner in accordance with the relevant Rules applicable to the members of the Administrative Service i.e. All India Services (Death-cum-Retirement Benefits) Rules, 1958 referred to in the judgment as the 1958 Rules and pay the same to the petitioner with statutory interest of 5% P.A. as provided in Rule 19-A of the said 1958 Rules till the date 3 years prior to the date of the filing of the instant writ petition in this Court by the petitioner. However, from the said date onwards it shall pay interest @ 12% P.A. upon the amount of D.C.R.G. payable to the petitioner till realization. The amount of D.C.R.G. with interest awarded as above shall be paid to the petitioner within six months from the date of this order. If the Judgment of the Allahabad High Court in M.C. Desai v. Union of India, A.I.R. 1988 All. 283, as regards the payment of interest is affirmed by the Supreme Court, the petitioner shall be paid interest @ 12% P.A. from the date of retirement till realization upon the amount of D.C.R.G. payable to him instead of the interest at the said rate from the date three years prior to the date of the filing of the petition in this Court as directed by us above. The payment of the balance of interest thus calculated shall be made within six months from the date of judgment of the Supreme Court in the above Allahabad case.

JUDGMENT - DHABE H.W., J.:—The petitioner claims that a writ in the nature of mandamus should be issued directing the respondents to compute and determine the Death-cum-Retirement-Gratuity (for short “D.C.R.G.”) payable to the petitioner as per the relevant rules applicable to him in that regard at the time of his retirement on 30-11-1969 and commands that the respondents should be directed to pay the said amount of D.C.R.G. forthwith with interest at the rate of 12% P.A. from date of his retirement till realization.

2. The facts are that the petitioner was appointed as a Judge of this Court on 6-10-1960 and was confirmed as puisne Judge on 6-10-1962. He retired as a Judge of this Court on 30-11-1969 after attaining the age of 62 years. The grievance of the petitioner is that he is not paid D.C.R.G. up-till-now although he is entitled to the same as per the relevant rules in that regard.

3. The conditions of service of the Judges of the High Court are regulated by the High Court Judges (Conditions of Service) Act, 1954 (for short “the Act”). In exercise of the powers conferred upon it under section 24 of the Act, the Central Government has framed rules as per its notification dated 24-1-1956 to carry out the purposes of the Act known as the High Court Judges Rules, 1956 (for short "the 1956 Rules"). Rule 2 of the said 1956 Rules as it existed at the time of retirement of the petitioner is reproduced below:

“2. Conditions of service in certain cases.---The conditions of service of a Judge of High Court for which no express provision has been made in the High Court Judges (Conditions of Service) Act, 1954, shall be, and shall from the commencement of the Constitution be deemed to have been, determined by the rules for the time being applicable to a member of the Indian Administrative Service holding the rank of Secretary to the Government of the States in which the principal seat of the High Court is situated:

Provided that, in respect of facilities for medical treatment and accommodation in hospitals, the provisions of the All India Services (Medical Attendance) Rules, 1954 in their application to a Judge, shall be deemed to have taken effect from the 25th January, 1959."

3-A. It is clear from the above Rule 2 of 1956 Rules that where no express provision is made in the Act to regulate any particular condition of service of a High Court Judge, then such condition of service is regulated by the rules for the time being applicable in that regard to a member of the Indian Administrative Service holding rank of Secretary to the Government of the State in which the principal seat of the High Court is situated. Perusal of the provisions of the Act as they were in force at the time of retirement of the petitioner on 30-11-1969 would show that there was no provision therein at that time to regulate the condition of service of the High Court Judge regarding payment to him of the benefit of the D.C.R.G. However, the said benefit was conferred upon the member of the Administrative Service by the All India Services (Death-cum-Retirement Benefits) Rules, 1958 (for short “the 1958 Rules”) framed by the Central Government in the exercise of power conferred upon it under section 3(1) of the All India Services Act, 1951. The submission on behalf of the petitioner, therefore, is that since on the date of the retirement of the there was no express provision conferring the benefit of D.C.R.G. upon him under the Act or any Rule framed thereunder he was entitled to the said benefit in accordance with the provisions of Rule 19(1) read with Rule 16 of the 1958 Rules.

4. To appreciate the above submission made on behalf of the petitioner, it is necessary to see the provisions of the Act as amended from time to time which are relevant for the purpose of the instant writ petition. In the original Act there was no provision for grant of extra-ordinary pension and gratuities except as provided in section 17 of the Act in relation to a Judge who might suf

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Judicial Analysis