Point of Law: Hon'ble Supreme Court held beyond shadow of any doubt that financial implication is a relevant criterion for State Government to determine as to what benefits can be granted pursuant to recommendations of Pay Revision Commission.

JUDGMENT :

C. Jayachandran, J.

The issue involved in this Original Petition is an offshoot of the 8th Pay Revision recommendations -accepted vide Annexure-A1 G.O. dated 17.3.2006 – which still remains unresolved. The petitioners are Government servants, who retired from service on or after 1.7.2004 and before 31.3.2005. Annexure-A2 G.O. dated 18.4.2006, issued in implementation of Annexure-A1 G.O., jeopardised the petitioners, inasmuch as their revised pension was lesser than those who retired prior to 1.7.2004 and after 31.3.2005. The petitioners approached the State Administrative Tribunal twice. The second Original Application, O.A.(Ekm)No.547/2019, was dismissed as per Ext.P4 Order dated 29.3.2022, which is under challenge in the instant Original Petition. If Ext.P2 constitutes a class within a class, with the further impact of discriminating the specie class (like the petitioners herein who retired from service on or after 1.7.2004 and before 31.3.2005) from the genus class (pensioners generally), whether Ext.P2 invites the wrath of violation of the fundamental right under Article 14 of the Constitution, is the question which surfaces for consideration in this Original Petition.

2. The facts:-

The recommendations of the 8th Pay Revision Commission were accepted in toto, without any modification, vide clause 3 of Annexure-A1 order dated 17.3.2006, as per which, the then existing scales of pay were revised with effect from 1.7.2004. Clause 13 of Annexure-A1 provides for continuance of the present system of computation of pension at 50% of 10 months average emoluments and Clause 15 stipulates that the revised basic pension/family pension shall comprise of (i) existing pension/family pension (ii) fitment benefit of 6% and (iii) 59% of D.R. The crucial direction insofar as the instant facts are concerned is contained in Clause 28, which specifically stipulated that those retiring after 1.7.2004 will have their pension revised based on their revised pay scales. Clause 28 is extracted here below:-

“28. Those retiring after 1-7-2004 will have their pension revised, based on their revised pay scales. They will be entitled to corresponding increase in commuted value of pension, DCRG and terminal surrender of earned leave. These as well as the arrears of pension from 1-7-2004 will be paid in cash after adjustment of interim relief received. ”

3. Clause 30 of Annexure-A1 reserved the right to issue separate detailed instructions regarding the schedule for reckoning the revised pension for various years of qualifying service, norms for fixation authority to revise pension, etc. in consultation with the Accountant General.

4. By placing purported reliance upon Clause 30 of Annexure-A1, Annexure-A2 order was issued by the Government, which, however has gone to the extent of superseding, Annexure-A1 G.O. dated 17.3.2006, the power/authority for which course of action is neither traceable to Clause 30, nor explained before us on any legal premise. The relevant Clause in Annexure-A2 is Clause 2.3, which directed to reckon the pre-revised scale, together with notional D.A. at 59% to compute 10 months emoluments, for the purpose of pension for those employees who retired from service on or after 1.7.2004. Clause 2.3 is extracted here below:-

“2.3. For computing the ten months emoluments for the purpose of average emoluments for pension, in respect of employees who retired from service on or after 1-7-2004 and who, during part of the said period of 10 months, drew pay in the pre-revised scale, their pay in the pre-revised scale may be enhanced notionally by adding DA at 59%.”

5. The consequence of this direction, according to the petitioners, is that the Government servants, like the petitioners, who retired from service between 1.7.2004 and 31.3.2005 and who have the same length of service, with the same scale of pay in the pre-revised scale, h