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Govt. Of T.N And Another v. K. Jayaraman .

Supreme Court Of India
Feb 3, 1997
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Smart Summary (Beta)

Factual and Procedural Background

The appeal by special leave arose from an order of the Administrative Tribunal, Madras dated 22-04-1996 in OA No. 159 of 1990. The respondent was initially appointed in a contingent establishment on 20-11-1942 and later appointed on a regular basis as an Attendant on 18-02-1945. By letter dated 06-06-1970, he tendered resignation asserting a right to take voluntary retirement after completing 25 years of service; the Government accepted it with effect from 19-03-1970.

Under the pre-existing rules, pensionary benefits required 30 years of qualifying service. The rules were later amended by GOMs No. 1537, effective from 13-11-1972, introducing a framework permitting retirement after attaining 50 years of age or completing 25 years of qualifying service upon requisite notice. The Tribunal held the respondent entitled to pension by applying the amended rule, notwithstanding his retirement being effective from 19-03-1970.

The Supreme Court heard counsel for the parties. As the respondent initially failed to be represented despite notice, the Supreme Court Legal Services Committee assigned counsel (Smt K. Sarada Devi) to the respondent.

Legal Issues Presented

  1. Whether the amended rule in GOMs No. 1537 (effective from 13-11-1972) could be applied retrospectively to grant pensionary benefits to the respondent who retired with effect from 19-03-1970.
  2. Whether, despite a shortfall in qualifying service, the Government should consider the respondent’s eligibility for pensionary benefits and/or relaxation in accordance with appropriate procedure.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court noted that, under the pre-existing rules applicable at the time the respondent’s resignation/voluntary retirement took effect (19-03-1970), a government servant was required to complete 30 years of qualifying service to obtain pensionary benefits. The amendment introduced by GOMs No. 1537 came into force only from 13-11-1972 and provided that a government servant could retire after completing 25 years of qualifying service (subject to notice requirements).

Since the respondent had already voluntarily retired with effect from 19-03-1970 and had since joined another institution, the Court held that the Tribunal’s view—granting pension by applying the amended GOMs—was “clearly illegal” because the amendment could not be given retrospective effect.

However, the Court also observed that the respondent had rendered two years of temporary service and that there was a shortfall of three years for computing pension. On that basis, the Court directed that the Government was at liberty to consider whether the respondent was eligible for pensionary benefits in accordance with the appropriate procedure, including whether relaxation could be granted, and to pass appropriate orders within four months of receiving the Court’s order.

Holding and Implications

DISPOSED OF: The appeal was disposed of, with no order as to costs. The Court held that the Tribunal’s grant of pension by retrospectively applying GOMs No. 1537 (effective from 13-11-1972) to a retirement effective from 19-03-1970 was illegal.

The direct consequence is that the respondent was not entitled to pension on the basis of the 25-year rule introduced after his retirement. Nonetheless, the Government was directed to consider, through appropriate procedure, whether the respondent could receive pensionary benefits or relaxation despite the shortfall, and to decide within four months. The opinion does not indicate that any new precedent was set beyond this case-specific determination.

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Order

1. Leave granted.

2. We have heard learned counsel for the parties.

3. When the respondent failed to be represented pursuant to the notice issued by this Court, we requested the Supreme Court Legal Services Committee to assign the counsel. Accordingly, Smt K. Sarada Devi has been assigned the case.

4. This appeal by special leave arises from the order of the Administrative Tribunal, Madras, made on 22-4-1996 in OA No. 159 of 1990. The admitted facts are that the respondent was initially appointed in a contingent establishment on 20-11-1942 and was later appointed on regular basis as an Attendant on 18-2-1945. He tendered resignation by letter dated 6-6-1970 claiming that he had right to take voluntary retirement as he had put in 25 years of service. The same was accepted by the Government w.e.f 19-3-1970. As per the pre-existing rules, the government servant was required to put in 30 years of qualifying service for pensionary benefits. The Rules came to be amended by GOMs No. 1537 which came to be effective from 13-11-1972. It was stated therein that the Government may, by giving him notice of not less than three months in writing or three months' pay and allowances in lieu of such notice, after he has attained the age of fifty years or after he has completed twenty-five years of qualifying service retire any government servant. Any government servant who has attained the age of 50 years or who has completed 25 years of qualifying service may also likewise retire from service by giving notice of not less than three months in writing to the appropriate authority. This rule has come into force, as stated earlier, w.e.f 13-11-1972. The respondent voluntarily retired w.e.f 19-3-1970 and since then, he has already joined another institution. The view of the Tribunal that he is entitled to pension on completing 25 years of qualifying service applying the aforesaid GO, is clearly illegal. It cannot be given retrospective effect. However, since the respondent had rendered two years of temporary service and there is a shortfall of three years for computing the pension, the Government is at liberty and is accordingly directed to consider his case whether he is eligible in accordance with appropriate procedure to pensionary benefits or relaxation may be given and pass appropriate orders within a period of four months from the date of receipt of the order.

5. The appeal is accordingly disposed of. No costs.