Case: Suchet Singh Yadav &amp; Others Vs. Union of India &amp; Others

the objects sought to be achieved. We have set out the objects underlying the payment of pension. If the State considered it necessary to liberalise the pension scheme, we find no rational principle behind it for granting these benefits only to those who retired subsequent to that date simultaneously denying the same to those who retired prior to that date. If the liberalisation was considered necessary for augmenting social security in old age to government servants then those who, retired earlier cannot be worst off than those who retire later. Therefore, this division which classified pensioners into two classes is not based on any rational principle and if the rational principle is the one of dividing pensioners with a view to giving something more to persons otherwise equally placed, it would be discriminatory. To illustrate, take two persons, one retired just a day prior and another a day just succeeding the specified date. Both were in the same pay bracket, the average emolument was the same and both had put in equal number of years of service. How does a fortuitous circumstance of retiring a day earlier or a day later will permit totally unequal treatment in the matter of pension? One retiring a day earlier will have to be subject to ceiling of Rs. 8100 p.a. and average emolument to be worked out on 36 months salary while the other will have a ceiling of Rs. 12,000 p.a. and average emolument will be computed on the basis of last 10 months average. The artificial division stares into face and is unrelated to any principle and whatever principle, if there be any, has absolutely no nexus to the objects sought to be achieved by liberalising the pension scheme. In fact this arbitrary division has not only no nexus to the liberalised pension scheme but it is counter-productive and runs counter to the whole gamut of pension scheme. The equal treatment guaranteed in Article 14 is wholly violated inasmuch as the pension rules being statutory in character, since the specified date, the rules accord differential and discriminatory treatment to equals in the matter of commutation of pension. A 48 hours difference in matter of retirement would have a traumatic effect. Division is thus both arbitrary and unprincipled. Therefore, the classification does not stand the test of Article 14."32. In a judgment of this Court in Col. B.J. Akkara (Retd.) v. Government of India and Others., (2006) 11 SCC 709 the circular dated 07.06.1999 was considered and it was observed that circular puts those who retired on or after 01.01.1986 and Pre-1986 retirees on a par. Paragraph 11 is to the following effect:-"11. We may first refer to the intent and purport of the circular dated 7-6-1999. The circular dated 7-6-1999 neither prescribes the requirements/qualifications for entitlement to pension nor the method of determination of pension. It only effectuates the Presidents decision that the pension (which has already been determined in accordance with the applicable rules/orders) irrespective of the date of retirement, shall not be less than 50% of the minimum pay in the revised scales of pay introduced with effect from 1-1-1996. Pension is determined as per relevant rules/orders, by calculating the average of reckonable emoluments (basic pay, rank pay and NPA) drawn during the last 10 months of service and then taking 50% thereof as the retiring pension applicable to retirees with 33 years of qualifying service, with proportionate reduction for retirees with lesser period of qualifying service. The basis for calculating the pension in respect of those who retired prior to 1-1-1996, and those who retired on or after 1-1-1996 happens to be the same. The retiring pension is 50% of the average reckonable emoluments for retirees with 33 years of qualifying service, with proportionate reduction for those with lesser years of qualifying service. The Presidents decision given effect by the circular dated 7-6-1999 only extends to all pre-1996 retirees, who did not have the benefit of fixation of pension with reference to the revised pay scales which came into effect on 1-1-1996, the benefit of the said revised pay scales, albeit in a limited manner. In so doing, it also puts those who retired on or after 1-1-1986 and pre-1986 retirees on a par and on a common platform, removing the disparity, if any, in their pensions."33. Learned counsel for the appellant has also referred to judgments of this Court in K.C. Bajaj & ors. v. Union of India & Ors., 2014(2) S.C.T. 57 : (2014) 3 SCC 777 ; V. Kasturi v. Managing Director, State Bank of India, 1998(4) S.C.T. 662 : (1998) 8 SCC 30 ; Union of India & Anr. v. SPS Vains (Retd.) & Ors., 2008(4) S.C.T. 453 : (2008) 12 SCALE 360. 34. There cannot be any dispute to propositions laid down in above mentioned cases of this Court where this Court has laid down that the State cannot arbitrarily pick and choose from amongst similarly situated persons, a cut off date for extension of benefits especially pensionery benefits, there has to be a classification founded on some rational principle when similarly situated class is differentiated for grant of any benefit. As noted above, present is not a case where there is any discrimination in pensionery benefits of pre 01.01.1996 and post 01.01.1996 retirees. The applicants, base their claims on the order of the Government of India dated 21.11.1997 and we have already held that those who were not in service on 01.01.1996 could not claim any benefit of the order dated 21.11.1997. Thus, present is not a case of any kind of discrimination and differentiation in pensionery benefits of pre and post 01.01.1996 retirees. We have already noticed above that order dated 21.11.1997 was issued in reference to pay and allowances of Armed Forces Officers, which pre-supposes that these officers were in the establishment on 01.01.1996. We thus are of the view that applicants were clearly not entitled for grant of benefit of higher pay scale under the order dated 21.11.1997. Th

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]This Court clearly had mentioned in its order dated 06.02.2015 that order of the Armed Forces Tribunal shall be limited to the facts of the said case, since according to the Union of India, full facts were not brought to the notice of the Tribunal. Further, this Court clarified that it will be open to the Union of India to bring the full facts to the notice of the Armed Forces Tribunal in appropriate cases. The order of this Court dated 06.02.2015 thus cannot be read as laying down any ratio in favour of the applicants, which can be relied by them in the present case. In the case of Sqn. Ldr. Suchet Singh Yadav and others, all materials were brought on the record including filing of counter affidavit by the Union of India. As noted above, the Armed Forces Tribunal in case of Lt. Cdr. Gurmukh Singh and V.K. Mehta has rejected their claim accepting the case of the Union of India.We thus are of the opinion that order of the Armed Forces Tribunal in Maj. K.G. Thomas case is confined to that case alone and cannot be read as any precedent, as clarified by this Court itself in its order dated 06.02.2015. Thus, reliance by the learned counsel for the applicants on the case of Maj. K.G. Thomas (supra) and order of this Court dated 06.02.2015 is misplaced.As noted above, present is not a case where any discrimination has been made by Union of India in payment of pension to those, who retired prior to 01.01.1996 and those, who retired after 01.01.1996.There cannot be any dispute to propositions laid down in above mentioned cases of this Court where this Court has laid down that the State cannot arbitrarily pick and choose from amongst similarly situated persons, a cut off date for extension of benefits especially pensionery benefits, there has to be a classification founded on some rational principle when similarly situated class is differentiated for grant of any benefit. As noted above, present is not a case where there is any discrimination in pensionery benefits of pre 01.01.1996 and post 01.01.1996 retirees. The applicants, base their claims on the order of the Government of India dated 21.11.1997 and we have already held that those who were not in service on 01.01.1996 could not claim any benefit of the order dated 21.11.1997. Thus, present is not a case of any kind of discrimination and differentiation in pensionery benefits of pre and post 01.01.1996 retirees. We have already noticed above that order dated 21.11.1997 was issued in reference to pay and allowances of Armed Forces Officers, whichthat these officers were in the establishment on 01.01.1996. We thus are of the view that applicants were clearly not entitled for grant of benefit of higher pay scale under the order dated 21.11.1997.