Case: State Of Madhya Pradesh And Another Vs. Col. Lal Rampal Singh

2. The respondent held various offices in the Government of Rawa. By an order made on April 3, 1948 and published in an extraordinary issue of the Rewa Raj Gazette the Ruler stated that "Col. Lal Rampal Singh entered State service on 21st November 1922 and he is now anxious to retire.I find that he has put in a service of more than 25 years up to date, and, as such, he is allowed to retire on a full pension of Rs. 350 per month of his last grade, as a special case with effect from the date of this order, and the so-called breaks in his service, if there be any, are hereby condoned."

Court's reasoning:
It seems to us quite clear from the terms of the order that the Ruler purported to act under the Rewa State Rules. This appears from the reference in the order to "full pension", condemnation of the "breaks in his service" and "special case". This also appears from the fact that the order granted the respondent certain advance which could only have been done to justify the full pension of Rs. 350 per month under the Rules. Obviously, under the rules the respondent would have been entitled to a smaller pension in view of the breaks and if the increments had not been granted. The Ruler was not, therefore, acting in the exercise of his sovereign power and in disregard of the Rules; on the contrary, he was purporting to act in terms of the Rules. That being so, it has to be held that the Order of April 3, 1948 is not a law but an executive order passed in terms of the Rules. It is open to the succeeding Government to set aside that order by another executive order. What appropriate order can be passed by the Government of India is not a question that arises at the present moment. The respondents rights under the Rewa State Rules, accepting it as a law binding on the Indian Union, are not in the least affected. He is, however, not entitled to any rights except those which the Rules justify. The first contention of the respondent, therefore, that the order of April 3, 1948 is a law which can only be altered by another law duly passed by the Union or other competent legislature mustseems to us that this contention is ill-founded. What the Ruler did by his order of April 3, 1948 does not appear to have been to make a grant but to have passed an order purporting to act under the Rules. If that order was not justified by the Rules, it was illegal and is liable to be set aside by another order duly made under them. Pension is furthermore normally always a matter of grace when there is no law governing. It is implicit in the grant of a pension that it may be subsequently reviewed. Therefore, the grant of the pension-assuming that to be the correct view to take - must always have been subject to alteration. The succeeding State was hence competent to review the order even if it had paid the pension for sometime in terms of it.