Tags Pension

Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 1123 of 2015, Judgment Date: Jul 01, 2015

20. The antiquated notion of pension being a bounty a  gratuitous
      payment depending upon the sweet will or grace  of  the  employer  not
      claimable as a right and,  therefore,  no  right  to  pension  can  be
      enforced through court has been swept under the carpet by the decision
      of the Constitution Bench in Deokinandan Prasad v. State  of  Bihar[3]
      wherein this Court authoritatively ruled that pension is a  right  and
      the payment  of  it  does  not  depend  upon  the  discretion  of  the
      Government but is governed by  the  rules  and  a  government  servant
      coming within those rules is entitled to claim pension. It was further
      held  that  the  grant  of  pension  does  not  depend  upon  anyone’s
      discretion. It is only for  the  purpose  of  quantifying  the  amount
      having regard to service and other  allied  matters  that  it  may  be
      necessary for the authority to pass an order to that  effect  but  the
      right to receive pension flows to the officer not because of any  such
      order but by virtue of the rules. This view was reaffirmed in State of
      Punjab v. Iqbal Singh[4].”

IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION

                        CIVIL APPEAL NO. 1123 OF 2015
                   [Arising out of SLP(C) NO. 321 OF 2015]


State of Rajasthan and Ors.                                 ... Appellants

                                Versus

Mahendra Nath Sharma                                        ...Respondent

                                    WITH

CIVIL APPEAL NO. 1124 OF 2015 (@ SLP(C) NO. 342 OF 2015)
CIVIL APPEAL NO. 1126 OF 2015 (@ SLP(C) NO. 461 OF 2015)
CIVIL APPEAL NO. 1127 OF 2015 (@ SLP(C) NO. 72 OF 2015)
CIVIL APPEAL NO.         OF 2015   (@ SLP(C) NO. 649 OF 2015)
CIVIL APPEAL NO.1129 OF 2015 (@ SLP(C) NO. 1008 OF 2015)
CIVIL APPEAL NO.1131 OF 2015 (@ SLP(C) NO. 1155 OF 2015)
CIVIL APPEAL NO.1132 OF 2015 (@ SLP(C) NO. 1159 OF 2015)
CIVIL APPEAL NO.1133 OF 2015 (@ SLP(C) NO. 1220OF 2015)
CIVIL APPEAL NO.1134 OF 2015 (@ SLP(C) NO. 1327 OF 2015)
CIVIL APPEAL NO.1135 OF 2015 (@ SLP(C) NO. 1411 OF 2015)



                               J U D G M E N T



Dipak Misra, J.
       The  respondents  were  working  on  different  posts  of  Lecturers,
Librarians and PTIs, who retired prior to 1.1.2006.  It is  not  in  dispute
that all of them were appointed in different years from  1950  to  1976  and
all of them retired between 1991 to 2004.  It is also not  in  dispute  that
all of them had been  granted  Lecturers  (Selection  Scale)  on  or  before
1.1.1986.  Thus, all of them had completed three years  of  service  in  the
said pay-scale prior to 1.1.2006. After the pay revision took place, on  the
basis of the recommendation of the  4th  Pay  Commission,  the  respondents/
similarly situated employees got the benefit of revision of  the  pay  scale
with effect from 1.1.1986 vide notification  dated  3.6.1988.   As  per  the
Rajasthan  Civil  Services  (Revised  Pay  Scales  for  Government   College
Teachers)  Rules,  1988,  (for  short,  “the  1988  Rules”),  the   schedule
indicates the existing pay scale and the revised UGC pay scale.  A chart  in
that regard would indicate as follows:
|“S.No.  |Name of posts           |Existing Pay    |Revised U.G.C.   |
|        |                        |Scale           |Pay Scale        |
|1       |2                       |3               |4                |
|1.      |Principal of Post       |Rs.1500-2500    |4300-50-5700-200-|
|        |Graduate College        |                |7300             |
|2.      |Principal of Degree     |Rs.1200-1900    |3700-125-4950-150|
|        |College/Vice Principal  |                |-5700            |
|        |of Post Graduate        |                |                 |
|        |College/ Degree College |                |                 |
|3.      |Lecturer (Ordinary      |700-1600        |2200-75-2800-100-|
|        |Scale)                  |                |4000             |
|4.      |Lecturer (Senior Scale) |-               |3000-100-3500-125|
|        |                        |                |-5000            |
|5.      |Lecturer (Selection     |-               |3700-125-4950-150|
|        |Scale)                  |                |-5700”           |

      In the present case, we are only concerned with serial no. 3 to 5.
2.    From the aforesaid schedule, it is quite clear that in the year  1986,
the post of Lecturer (Selection Scale) was introduced  for  the  purpose  of
revision of pay scale and the respondents since then had  been  drawing  the
pay scale of the post of Lecturer (Selection Scale).
3.    As the factual matrix would unfurl, the Government of  Rajasthan  vide
Rajasthan Civil Services (Revised Pay Scale for Government College  Teachers
including Librarians, PTIs) Rules,  1999,  (for  short,  “the  1999  Rules”)
revised the pay scales  of  Government  College  Teachers/Librarians  w.e.f.
1.1.1996.  The Schedule appended to the said  Rule  mentioned  the  post  of
Lecturer (Ordinary Scale), Lecturer (Senior Scale) and  Lecturer  (Selection
Scale) showing the existing revised pay scale as against the said  post,  as
a result of which the respondents who retired prior to the year 1996 or  for
that matter in the year 1999 were granted revised pension on  the  basis  of
the revised pay scale w.e.f.  1.1.1996  meant  for  the  grade  of  Lecturer
(Selection Scale).
4.     In  the  year  2008,   the   Government   of   Rajasthan   issued   a
circular/memorandum   dated   12.09.2008,   which   envisaged    that    the
pension/family pension of  all  the  pre  1.9.2006  State  pensioners/family
pensioners be revised w.e.f. 1.9.2006 as per the  provisions  made  therein.
Paragraph 3 of the said Circular/Memorandum provides the dictionary  clause,
which reads as under:
      “(a)  ‘Existing Pensioner’ or  ‘Existing  Family  Pensioner’  means  a
           pensioner who was drawing/entitled to pension/family  pension  as
           on 31.08.2006.


        b) ‘Existing Pension’ means the basic pension/consolidated  pension
           inclusive of commuted portion, if any, due on 31.08.2006.


        c)   ‘Existing   Family   Pension’   means   the    basic    family
           pension/consolidated family pension drawn on 31.08.2006.

        d) ‘Existing Dearness Relief’ means the dearness relief  @  24%  on
           original pension of family pension plus dearness pension.

        e) ‘Bank’ means the branch of the Bank from which the pensioner  is
           getting his pension Consolidation/Revision of Pension.”

5.    Paragraph 4 provides that the pension/family pension of existing  pre-
1.9.2006 pensioners/family pensioners will be consolidated  w.e.f.  1.9.2006
by adding together the following:-
      “(i)  The existing pension/family pension
        ii)   Dearness   Pension   @   50%   of   original    pension/family
            pension/consolidated pension/consolidated family  pension  under
            FD order  No.  F.6(3)  FO(Rule5)12004  dated  24.05.2004,  where
            applicable.


       iii)   Dearness   Relief   @   24%   of    original    pension/family
            pension/consolidated pension/consolidated  family  pension  plus
            Dearness Pension.

        iv) Fitment weightage @ 40% of the existing pension/family pension.

      Where the existing pension in (i) above includes the effect of  merger
      of 50% of dearness relief w.e.f. 01.07.2004, the existing pension  for
      the purpose of fitment weightage will be recalculated after  excluding
      the merged dearness relief of 50% from the pension.”


6.    It has also been stipulated therein that  the  amount  so  arrived  at
will be regarded as consolidated pension/family  pension  with  effect  from
1.9.2006.   The  relevant  part  of  Paragraph  5  of  the  said   circular/
memorandum reads as follows:
       “The consolidated pension (treated as final ‘Basic  Pension’)  as  on
      01.09.2006 of pre-01.09.2006 pensioner shall not be lower than 50%  of
      sum of the minimum pay of the post in the running pay band plus  grade
      pay introduced w.e.f. 01.09.2006 corresponding to the pre-revised  pay
      scale of the post from which pensioner had  retired,  subject  to  the
      condition  that  the  existing  provisions  in  the  rules   governing
      qualifying service for grant of  pension  and  minimum  pension  shall
      continue to be operative.”

7.    At this juncture, it is apt to  note  that  the  aforesaid  clause  is
central to the controversy calling for interpretation.  The  learned  Single
Judge of the High Court vide judgment and order dated 20th  September,  2011
considering many an aspect had granted relief  to  the  respondents  herein.
The said order was challenged in  Intra-Court  appeal  before  the  Division
Bench.  The Division Bench reproduced para 6.3.9 of the UGC  Regulations  as
relied by the State, which stipulates as follows:-
       “6.3.9  The incumbent teacher must be on the roll and active  service
      of the Universities/Colleges on  the  date  of  consideration  by  the
      Selection Committee for Selection/CAS Promotion.”


      On behalf of  the  respondents  therein,  reliance  was  placed  on  a
communication dated 31.3.2010 issued by the Pension  and  Pensioners  Family
Welfare  Department,  Government  of  Rajasthan,  Jaipur  as  well  as   the
communication of the  Government  of  India  (Ministry  of  Human  Resources
Development, Department of High Education) dated  15.12.2009  by  which  the
Central Government had decided to extend the benefits of  pay  band  of  Rs.
37400-67000 to those who had completed three years of service  in  the  pre-
revised pay scale of 12000-420-18300 and  the  order  dated  15.12.2009  was
made applicable to those pensioners who were drawing pension/family  pension
on  1.1.2006  under  the  Central  Civil  Services  (Pension)  Rules,  1972.
Another communication dated 1.7.2010 issued  by  the  Government  of  India,
Ministry of Human Resource  Development  to  the  Secretary,  UGC  was  also
placed reliance upon.  The Division Bench adverted  to  the  submissions  of
the learned Advocate General for the State which was mainly focussed on  the
aspect that certain documents and  guidelines  were  not  filed  before  the
learned Single Judge, as a consequence of which an  erroneous  decision  had
been rendered.  On the basis of the said  submissions,  the  Division  Bench
passed the following order:-
      “When Schedule is part of the Rules and extension of the pay scale  of
      37400-67000 depends upon  the  aforesaid  aspects,  the  question  was
      required to be examined by the Single Bench whether  in  view  of  the
      provisions made in the rules and the guidelines particularly contained
      in para 6.3.9, the respondents could have been extended  the  benefit.
      The decision issued by the Finance Department was also not placed  for
      consideration before the Single Bench.  Single  Bench  has  not  taken
      into consideration the guidelines which were required to be taken into
      consideration before reaching any decision.  Similarly, the  stand  of
      the State Government  is  that  newly  upgraded  pay  scale  has  been
      introduced for the first time on 1.1.2006, whether it would be applied
      to the persons who have already  retired  on  the  date  it  has  been
      created with the certain riders.  This aspect would also  be  required
      to be examined that Finance Department has not accepted  the  proposal
      for enhancement.  The financial liability is to be borne by the  State
      Government.  It is also to be taken into consideration whether the pay
      scale in  running  pay  band  37400-67000  and  grade  pay  9000/-  is
      admissible to Lecturers who have completed three  years  in  selection
      scale on or after 01.01.2006 only.  The dispensation is allowed  under
      CAS selection scale or ACP admissible to State Government Employees on
      completion of 9, 18 and 27 years service; it is  not  a  regular  line
      promotion  or  automatic.   In  various  other  States  also,  similar
      revision of  pension  has  not  been  allowed  due  to  the  financial
      condition.   All  these  aspects  are  required  to  be   taken   into
      consideration.  When documents, final order of  State  Government  and
      guidelines referred in Schedule were  not  placed  before  the  Single
      Bench, obviously, they could not have been taken  into  consideration.
      As guidelines were admittedly prevailing,  same  ought  to  have  been
      brought to the notice of the Single Bench of the purpose of  effective
      adjudication by the parties.


            Consequently, we have no hesitation in setting aside  the  order
      passed by the Single Bench  as  material  aspects/documents  were  not
      placed for consideration before  it.   The  decision  of  the  Central
      Government was applicable to its own employees governed by the Central
      Civil Services Rules, 1972.  It could not have  been  made  applicable
      ipso facto to the State Government employees.  The decision  taken  by
      the Finance Department was unfortunately not brought to the notice  of
      Single Bench which has now been submitted.  All these aspects are also
      required to be considered by the Single Judge.”


8.    Being of this view, the Division Bench set aside the order  passed  by
the learned Single Judge and remitted  the  matter  to  the  writ  Court  to
decide the matter afresh after considering the guidelines and various  other
aspects of the case.
9.    After the remit, the  learned  Single  Judge  adverted  to  the  rival
submissions,  considered  the  Regulations  of  2010,  paragraph  5  of  the
Memorandum dated 12.9.2008,  Notification  dated  12.10.2009,  Letter  dated
15.12.2009 issued by the Government of India, Ministry  of  HRD  wherein  it
was clarified that pay band of Rs.37400-67000 is to be given  to  all  those
who had already completed three years of service in  selection  grade  prior
to 1.1.2006 and, more specifically, the  pensioners  and  on  that  analysis
allowed the writ petitions.
10.   Being dissatisfied with the decision of the learned Single Judge,  the
State of Rajasthan  and  its  functionaries  preferred  Intra-Court  appeals
before the Division Bench.  The Division  Bench  noticed  that  the  learned
Single Judge has awarded the benefit as per existing guidelines  of  UGC  to
the respondents  who  had  retired  prior  to  1.1.2006.   That  apart,  the
Division Bench took note of certain other factors, namely, that  there  were
three pay-scales applicable to the respondents,  namely,  Rs.8000-275-13500,
Rs.12000-420-15300 and Rs.12000-420-18300; that  the  Sixth  Pay  Commission
had recommended to revise these pay scales to Rs.15600-39100  with  Academic
Grade Pay (hereinafter referred to As ‘AGP’) of Rs.  6,000/-  to  the  first
existing pay scale, Rs.7,000/- as AGP as Senior Scale,  to  second  existing
pay scale, and Rs.8,000/- as AGP as Selection Scale to the third pay  scale;
and that it had also recommended for bifurcation of pay scales of  Lecturers
(selection scale) into two, namely, Rs. 15600-39100 with  AGP  of  Rs.8000/-
for those lecturers (selection scale), who have not  completed  3  years  of
service in the existing pay scale as on 01.01.2006  and  the  pay  scale  of
Rs.37400-67000 with AGP of Rs.9000/- for all  those,  who  had  completed  3
years service in the existing  pay  scale  as  on  01.01.2006  and  onwards,
subject to the guidelines issued in this regard.
11.   After so stating, the Division Bench opined that the respondents  were
entitled as per paragraph 5 of the Memorandum dated 12.9.2008  for  fixation
of their pension at the minimum of 50% in the running pay  band  plus  grade
pay of the post introduced vide  notification  dated  12.10.2009.   It  took
note of the fact that the pension was  revised  as  per  notification  dated
12.10.2009 but out of the two pay bands of Lecturers (Selection Scale),  the
lower pay band  of  Rs.15,600-39,100/-  was  taken  into  consideration  for
fixation of pension on the ground that the  respondents  had  not  completed
three years of service in the selection scale  prior  to  their  retirement.
The Division Bench appreciated the reasoning of  the  learned  Single  Judge
that the consolidated pension as on 1.9.2006 should not be  lower  than  50%
of the minimum pay of the post in  the  running  pay  band  plus  grade  pay
introduced  w.e.f.  1.9.2006.   Elucidating  the  reasons  ascribed  by  the
learned Single Judge, the Division Bench stated that since  the  pay  scales
were revised with effect from 01.09.2006, it was  clear  that  such  revised
pay scales were to be taken note of in the revision  of  the  pension;  that
the pay scale was revised pursuant to  the  Notification  dated  12.10.2009,
with effect from 01.01.2006 instead of 01.09.2006; that it  was  clear  that
revision of pay scale would be at the minimum of 50% of the sum of  the  pay
in running pay band plus grade pay so introduced from the  year  2006;  that
the  University  Grants  Commission  Regulations   of   2010   notified   on
30.06.2010, with special reference to para nos. 1.3, 6.3,  6.3.9,  6.4.0  to
6.4.8, were applicable to the Teachers, who  were  in  active  service;  and
that these Regulations did not have any  retrospective  effect.   Thereafter
the appellate Bench observed that notwithstanding anything contained in  the
Regulations of 2010, if any  candidate  was  eligible  for  promotion  under
Career Advancement Scheme  (hereinafter  referred  to  as  ‘CAS’)  prior  to
31.12.2008, the promotion under CAS would be as per Regulations of 2000,  as
amended from time to time, read with Notification and guidelines  issued  by
the UGC from time to time.  It further observed that the  promotion  in  the
selection scale could not be nullified, even if it was given  prior  to  the
Notification of 2000 and if any Teacher/Librarian/PTI  was  given  Selection
Scale prior to the enforcement of  the  Regulations  of  2010,  it  was  not
necessary for him to be considered for again giving the Selection  Scale  in
accordance with the Scheme of the Regulations of 2010  as   the  Regulations
did not take away the Selection Scale awarded under the earlier  provisions.
The Division Bench clarified by  way  of  example  that  if  a  teacher  was
awarded Selection Scale in the year 2002  or  prior  to  it  under  the  old
Regulation and was continuing, then the benefit of Revised Pay Scale  Rules,
could not be denied to him.
12.   After  so  stating,  the  Division  Bench  referred  to  the  decision
rendered by the Punjab and Haryana High  Court  in  the  case  of  State  of
Haryana and Anr. v. Satyapal Yadav and  Anr.[1]   Thereafter,  the  Division
Bench referred to the written arguments submitted  by  the  Joint  Director,
Pension  and  Pensioners  Welfare  Department,  Government   of   Rajasthan,
considered the submissions of the respondents, referred to  paragraph  5  of
the memorandum dated 12.9.2008 and dealt with the submission that  reasoning
given in the memorandum did not entitle the respondents revision of  pension
in the corresponding pay scale of Rs.37400-67000 with AGP  of  Rs.9000,  and
declined to accept the same.  Eventually, the Division Bench ruled thus:-
      “It is admitted that all the respondents were serving as Lecturers  in
      the Selection Scale on the date of their retirement, which is prior to
      01.01.2006 when the recommendations of the Sixth Pay  Commission  were
      enforced.   It  is  also  admitted  that  all  the  respondents   were
      considered for grant of Selection Scale pay  in  accordance  with  the
      then  prevailing  UGC  guidelines,  under  which  they   were,   after
      completing  3  years  of  service  subjected  to  screening  including
      consideration of their refresher and orientation courses and  research
      material.  They were drawing their pay in Senior Scale prior to  their
      retirement and thus they were entitled for revision of their pay scale
      in accordance with the corresponding pay  scale  applicable  to  their
      post.  The Sixth Pay Commission recommended  for  two  pay  scales  of
      Lecturers (Selection Scale).  The first was applicable to  those,  who
      had not completed three years of service in the existing pay scale  as
      on 01.01.2006,  and  the  second  category  was  of  those,  who  have
      completed 3  years  of  service  in  the  existing  pay  scale  as  on
      01.01.2006 and onwards, subject  to  the  guidelines  issued  in  this
      regard.  The University Grants Commission Regulations  of  2010  could
      not be given retrospective effect and further  these  guidelines  were
      not applicable to those, who were  already  placed  in  the  Selection
      Scale.  The respondents, therefore, after the award of the pay  scales
      applicable of Lecturer (Selection Scale), could not be treated in  the
      lower pay scale as they had completed 3  years  of  service  prior  to
      01.01.2006.  They could not  be  artificially  placed  back  into  the
      Selection Scale which was applicable, to those who had not completed 3
      years service in the  existing  pay  in  the  Selection  Scale  as  on
      01.01.2006.”

13.   We have heard Mr. Ranjit Kumar, learned Solicitor  General  of  India,
on behalf of the appellants and Ms.  Shobha  and  Mr.  Ranbir  Singh  Yadav,
learned counsel for the respondents.
14.   Learned Solicitor General has submitted that the order of  High  Court
of Punjab and Haryana has no application in the  present  case  inasmuch  as
the State of Haryana had adopted/incorporated  the  recommendations  of  the
6th Pay  Commission  completely,  which  is  not  the  case  with  State  of
Rajasthan; and more importantly the order that  was  challenged  before  the
Punjab and Haryana High Court was that  of  Higher  Education  Commissioner,
dated 07.09.2010, which reversed the grant of benefit of extending  the  pay
band of Rs. 37400-67000 with AGP of Rs. 9000  to  those  Lecturers  who  had
retired  before  01.01.2006,  as  decided  by  the  High   Level   Committee
constituting of Chief Secretary, Finance Secretary and  Education  Secretary
of Govt. of Haryana vide order dated 27.08.2009.
15.   Learned Solicitor General further submitted that the  High  Court  has
failed to appreciate that in terms of Rule 165 of  Rajasthan  Civil  Service
(Pension) Rules, 1996 as well as Rule 3 of  Notification  dated  12.10.2009,
if any doubt arises as to the interpretation of the said Rules it  shall  be
referred to Finance Department and the  Finance  Department  has,  vide  its
letter dated 22.01.2010 and Memorandums  dated  18.06.2013  and  26.05.2014,
clarified  the  said  issue  and  the  said  clarifications  have  not  been
challenged.  It is further urged by him that  the  notifications  issued  by
the Ministry of Human Resource Development dated 31.12.2008  and  15.12.2009
relating to Revision of Pay and Revision of Pension are not binding  on  the
State of Rajasthan  as  they  are  specifically  for  lecturers  in  Central
Universities/Colleges, and moreover the State can decide its own policy  and
not to act in accordance of what the Central Government has decided.  It  is
further urged by him that there is a difference between Revision of Pay  and
Revision of Pension, and  the  notification  dated  12.10.2009  relating  to
revision of pay is only applicable to the  existing  employees  and  not  to
those who had retired prior to 01.01.2006.
16.   Learned counsel for the respondents, while rebutting  the  submissions
of the learned Solicitor General appearing for the appellants, would  submit
that the claim of the appellants that 2009 Rules notified on 12.10.2009  are
meant for employees who were on the roll as on 01.01.2006 is fallacious  and
contrary to the scope and object of the 2009 Rules and Paragraph  5  of  the
Memorandum dated 12.09.2008 inasmuch as the Division Bench as  well  as  the
Single Bench has recorded that the pension of respondents has  been  revised
pursuant to the  revision  of  pay  scale  as  per  the  Notification  dated
12.10.2009. The learned counsel  would  further  submit  that  there  is  no
justification in the submission  of  the  appellants  that  the  respondents
would be eligible for pension in terms of the pay band of Rs.  15,600-39,100
with AGP of Rs. 8000 and not Rs. 37,400-67,000 with AGP  of  Rs.  9000,  for
the respondents who have been granted the lecturer  (Selection  Scale)  have
already completed more than 3 years of  service  in  the  said  post.  While
refuting the submission of the appellants  that  the  order  of  Punjab  and
Haryana High Court is not  applicable  in  the  present  case,  the  learned
counsel for the respondents would submit that the rules are similar and  the
controversy raised before the Punjab and Haryana High Court and  this  court
are identical. In this regard, the counsel for the  respondents  has  relied
on Clause 6 of the Haryana Revised  Pension  Rules  which  is  identical  to
Paragraph 5 of the memorandum dated 12.09.2008.
17.   To appreciate the controversy  in  proper  perspective,  we  think  it
appropriate to compare in juxtaposition  Rule  6(1)  of  the  Haryana  Civil
Services (Revised Pension) Part-I Rules, 2009  and  paragraph  5(i)  of  the
Memorandum dated 12.9.2008 and accordingly they are reproduced hereunder:-

|Haryana Civil Services (Revised |Circular / Memorandum            |
|Pension) Part-I Rules, 2009     |                                 |
|Rule 6(1)                       |Paragraph 5 (i)                  |
|                                |The consolidated pension (treated|
|(1) The fixation of revised     |as final ‘basic pension’) as on  |
|entitlement of pension shall be |1.9.2006 of pre-01.9.2006        |
|subject to the provision that   |pensioner shall not be lower than|
|the revised entitlement of      |50% of sum of the minimum pay of |
|pension so worked out shall, in |the post in the running pay band |
|no case, be lower than fifty per|plus grade pay introduced w.e.f. |
|cent of the minimum of the pay  |1.9.2006 corresponding to the    |
|in the pay band + grade pay in  |pre-revised pay scale of the post|
|the corresponding revised scale |from which pensioner had retired.|
|in terms of Haryana Civil       |Subject to the condition that the|
|Services (Revised Pay) Rules,   |existing provisions in the rules |
|2008, or as the case may be,    |governing qualifying service for |
|Haryana Civil Services (Assured |grant of pension and minimum     |
|Career Progression) Rules, 2008,|pension shall continue to be     |
|to the pre-revised pay scale    |operative.                       |
|from which the pensioner had    |                                 |
|retired.                        |                                 |

18.   We are absolutely conscious that we had already  reproduced  paragraph
5(i) earlier but we have quoted it hereinabove to appreciate the impact  and
import of the same in juxtaposition of  the  Haryana  Rules.   There  is  no
shadow of doubt that the language employed in 2009 Rules of Haryana and  the
Circular/Memorandum dated 12.9.2008 are slightly different  but  the  import
and impact is the same.   It  is  appropriate  to  note  here  that  placing
reliance on the same, the State of Haryana, vide memorandum dated  10.7.2009
had denied the benefit of pension to the retired employees.  The High  Court
had quashed the same which has been affirmed by this Court.   Similarly,  in
the present case, the  benefit  is  deprived  vide  order  dated  22.1.2010.
There is no cavil over the fact that the respondents have been  fitted  into
a pay band and extended the benefit of pension under  the  revision  of  pay
from  2006  as  the  respondents  had  completed  three  years  of  service.
Paragraph 5  clearly  lays  the  postulate  that  the  consolidated  pension
(treated as final basic pension) as on 1.9.2006, all pre-1.9.2006  pensioner
shall not be lower than 50% of sum of the minimum pay of  the  post  in  the
running pay band plus grade pay introduced w.e.f. 1.9.2006 corresponding  to
the pre-revised pay scale of the post  from  which  pensioner  had  retired.
The only rider is the minimum qualifying service  and  all  the  respondents
have the experience of three years by 1.9.2006.  As the factual score  would
depict, the respondents  were  paid  pension  on  a  lower  band  after  the
revision of the pay scale  despite  the  fact  that  the  persons  who  were
already in service with the similar qualification  have  been  kept  in  the
higher pay band plus grade pay.
19.   Paragraph 5 requires to be scrutinised  and  on  such  a  scrutiny  it
becomes graphically clear that pension of  a  pre-1.9.2006  pensioner  shall
not be lower than 50% of sum of the minimum of post in the running pay  band
plus grade pay introduced w.e.f. 1.9.2006 corresponding to  the  pre-revised
scale of the post.  If the  pay  scale  is  taken  into  consideration,  the
corresponding pay revision would be Rs.37400-67000 with  Rs.9000  AGP.   The
only qualifier is three years service in that scale.  There is no  scintilla
of doubt that all the respondents meet that criteria.  It is  a  well  known
principle that pension is not a bounty.  The benefit is  conferred  upon  an
employee for his unblemished career.  In D.S. Nakara v. Union  of  India[2],
D.A. Desai, J. speaking for the Bench opined that:-
       “18. The approach of the respondents raises a vital and none too easy
      of answer, question as to why pension is paid. And why was it required
      to be liberalised? Is the employer, which expression will include even
      the State, bound to pay  pension?  Is  there  any  obligation  on  the
      employer to provide for the erstwhile employee even after the contract
      of employment has come to an end and the employee has ceased to render
      service?


      19. What is a pension? What are the  goals  of  pension?  What  public
      interest or purpose, if any, it seeks to serve? If  it  does  seek  to
      serve some public purpose, is it thwarted by such artificial  division
      of retirement pre and post a certain date?  We  need  seek  answer  to
      these and incidental questions so as to render  just  justice  between
      parties to this petition.


      [pic]20. The antiquated notion of pension being a bounty a  gratuitous
      payment depending upon the sweet will or grace  of  the  employer  not
      claimable as a right and,  therefore,  no  right  to  pension  can  be
      enforced through court has been swept under the carpet by the decision
      of the Constitution Bench in Deokinandan Prasad v. State  of  Bihar[3]
      wherein this Court authoritatively ruled that pension is a  right  and
      the payment  of  it  does  not  depend  upon  the  discretion  of  the
      Government but is governed by  the  rules  and  a  government  servant
      coming within those rules is entitled to claim pension. It was further
      held  that  the  grant  of  pension  does  not  depend  upon  anyone’s
      discretion. It is only for  the  purpose  of  quantifying  the  amount
      having regard to service and other  allied  matters  that  it  may  be
      necessary for the authority to pass an order to that  effect  but  the
      right to receive pension flows to the officer not because of any  such
      order but by virtue of the rules. This view was reaffirmed in State of
      Punjab v. Iqbal Singh[4].”


20.   We may hasten to add that though the said decision has been  explained
and diluted on certain other aspects,  but  the  paragraphs  which  we  have
reproduced as a concept holds the filed as it is a  fundamental  concept  in
service jurisprudence.  It will be appropriate and apposite on the  part  of
the employers to remember the same and ingeminate it time and again so  that
unnecessary litigation do not travel to the Court and the employers  show  a
definite and correct attitude towards employees.   We are compelled  to  say
so as we find that the intention of the State Government  from  paragraph  5
of the circular/memorandum has been litigated at various stages to deny  the
benefits to the respondents.  It is the duty  of  the  State  Government  to
avoid unwarranted litigations and not to encourage any  litigation  for  the
sake of litigation.  The respondents were entitled to  get  the  benefit  of
pension and the High Court has placed reliance on the  decision  of  another
High Court which has already been approved  by  this  Court.   True  it  is,
there is slight difference in the use of language  in  the  Haryana  Pension
Rules 2009 and the circular/ memorandum issued by the  State  of  Rajasthan,
but a critical analysis  would  show  that  the  final  consequence  is  not
affected.
21.   It is urged before us that it will put a  heavy  financial  burden  on
the State.  The said submission has been seriously resisted by  the  learned
counsel for the respondents by urging that hardly 200-250 retired  lecturers
in the selection scale are alive in praesenti and the State  cannot  take  a
plea of financial burden to deny the legitimate dues of the respondents.
22.   In view of the aforesaid analysis, we do not  perceive  any  merit  in
this batch of appeals and  accordingly,  the  same  stands  dismissed.   The
benefit shall be extended to the respondents within a span of  three  months
from today failing which the accrued sum  shall  carry  interest  @  9%  per
annum till realisation.  There shall be no order as to costs.


                                  ........................................J.
                                                               [DIPAK MISRA]





                                  ........................................J.
                                                       [ABHAY MANOHAR SAPRE]

NEW DELHI
JULY 1, 2015.
-----------------------
[1] LPA No. 1955 of 2012 decided on 14.1.2013.
[2]  (1983)  1 SCC 305
[3]  (1971) 2 SCC 330
[4]  (1976) 2 SCC 1