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2025 Supreme(Online)(Mad) 76384

IN THE HIGH COURT OF JUDICATURE AT MADRAS
K.KUMARESH BABU, J
S.M.Mohideen Sahib – Appellant
Versus
Principal Secretary to Government, Finance (PC-2) Department – Respondent
W.P.(MD) Nos.32007, 9361, 9074, 9269 & 9757 of 2025|Contempt Petition(MD) No.2542 of 2025



Advocates:
For the Appellants/Petitioners: Issac Mohanlal, C.Karthik, L.ChandraKumar, A.Thirumoorthy, K.Venkatramani, V.M.Jagadeesh Pandian, Chellapandian, A.K.Baskarapandiyan
For the Respondents: J.Raveendran, S.Saji Bino, N.Satheesh Kumar, Sneha

Pension is a constitutional property right under Article 300A and is not a bounty. Once vested, pensionary benefits cannot be withdrawn or reduced through executive orders based merely on financial grounds or policy shifts, as such actions violate the constitutional principles of equality and socio-economic justice.

Headnote:(A) Constitution of India - Articles 14, 16, 300A - Tamil Nadu Pension Rules, 1948 - Rule 56 - Pensionary benefits - Revised pension granted to retired employees constitutes a vested property right under Article 300A - Right to receive pension is not a bounty or ex-gratia payment but a measure of socio-economic justice. (Paras 27, 35)

(B) Pension - Parity in pension - State cannot arbitrarily withdraw or reduce pension benefits, particularly when such benefits were conferred based on policy decisions to address disparity among similarly placed retirees.

(C) Administrative Law - Executive instructions/orders - Cannot be used to deprive pensioners of vested rights protected under constitutional provisions without statutory authority. (Para 35)

Facts of the case:
A group of retired government employees challenged a government order canceling their revised pension. The government had previously granted revised pension benefits to bridge the disparity between retirees who superannuated before the introduction of a specific career progression scheme and those who benefited from it. The government sought to revoke this on grounds of financial burden and the prospective nature of the scheme.

Findings of Court:
The court held that once pensionary benefits are granted, they crystallize into a vested right. Financial constraints cannot justify the deprivation of these rights. The government's attempt to cancel the pension on the basis of administrative convenience after policy-based implementation violates the principles of equality and constitutional protection of property.

Issues: Whether the government is empowered to retrospectively cancel or prospectively withdraw pension benefits that have been conferred upon retired employees based on parity.

Ratio Decidendi: Pension is a form of property right under Article 300A. A benefit once conferred, creating a vested right, cannot be snatched away through executive instructions citing financial constraints or changed policy perspectives, as this would violate the mandate of socio-economic justice and the equality clause under Articles 14 and 16.

Result: Writ petitions allowed; impugned orders set aside.

Table of Content
1. pension parity and retrospective application of dacp scheme. (Para 1 , 2 , 3 , 4 , 5)
2. withdrawal of established pensionary benefits and constitutional limits. (Para 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15)
3. protection of pension as property and vested right. (Para 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27)

COMMON ORDER

1.These writ petitions have been filed to quash the Government Order in G.O.(Ms).No.30 Finance PC-2 Department which cancelled the revised pension and consequential order of the administrative authority and further to restore and continue to pay the revised pension/family pension in pursuance to the G.O.(Ms) No.236 Finance (Pay Cell) Department.

2) Heard the learned Senior Counsels/ Counsels for their respective parties.

3) Learned Senior Counsels/ Counsels appearing on behalf of the petitioners would submit that the petitioners are all pensioners/ family pensioners, they/ their predecessors having worked as Doctors under the Government of Tamil Nadu. The Tamil Nadu Government Doctors Association, noting that there were no adequate promotional opportunities leading to stagnation in various levels had approached the Government to provide with dynamic Assured Career Progression Scheme. The Government had formed a Committee and on the basis of the recommendations of the Committee, in its Report dated 30.08.2009, Government orders were issued in G.O(Ms).No.354, Health and Family Welfare Department dated 23.10.2009 providing various promotional opportunities through a Dynamic Assured Career Progression Scheme. The said Government order was revisited by a further Government order in G.O.(Ms).No.245 dated 30.10.2013 entitling time bound promotion on completion of 8/ 15/ 17/ 20 years. By a Government letter dated 16.05.2014 it was clarified that the Government order in G.O.(Ms).No.245 would take effect from the date of issue of the said Government order. However, by a Government order in G.O.(Ms).No.301 dated 06.10.2025 a retrospective effect of the time bound promotions were given from 23.10.2009 namely the date of issue of G.O.(Ms).No.354.

4) Representations were made by the Doctors who had retired to grant them parity at least in the pension on the scale of pay that is adopted based upon the time bound promotions. Considering the representations, the Government had issued G.O.(Ms).No.236 Finance (Pay Cell) Department, dated 12.07.2018 revising the pension/ family pension of Professors/ Medical Officers who had retired prior to the issue of G.O(Ms).No.354 dated 23.10.2019. However, the pensionary benefits were granted only with prospective effect considering the financial commitments of the Government. The family pension of the Professors/ Medical Officers stood revised with reference to the higher pay scale granted to the Professors/ Medical Officers who are elevated as Chief Surgeon pursuant to the time bound promotions given by the Government under G.O.(Ms).No.354.

5) Learned Senior Counsels would further submit that while that being so, the first respondent had issued a show cause notice in the year 2020 proposing to cancel the Government order in G.O.(Ms).No.236 with prospective effect. The said show cause notices came to be challenged before this Court and this Court in a batch of Writ Petitions in W.P.Nos.7905 of 2022 and etc., batch in its order dated 12.12.2023 had quashed paragraphs 4 to 6 of the impugned notice, but, however, left it to the Government to pass appropriate orders. Thereafter, the impugned order had been passed reiterating the reasons shown in the show cause notice. They would submit that the impugned order had been made on various factual infirmities. That apart, they would submit that the impugned order also reflects that the future developments and the other welfare schemes would also have to be taken care as a reason to cancel the revised pension granted to the pensioners.

6) They would in one voice submit that the grant of pensionary benefits itself is n

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