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Supreme Court of India

DAKSHINI HARYANA BIJLI VITRAN NIGAM & OTHERSversusBACHAN SINGH

Citation
2009 INSC 976
Decided
30 July 2009
Disposal
Dismissed

Holding

The Supreme Court upheld the High Court’s decision, finding that the denial of pension benefits was arbitrary, discriminatory and violative of Article 14, and dismissed the appeals.

Summary

Bachan Singh joined the Haryana State Electricity Board as a work‑charge employee in 1963 and was regularised as Head Mistry in 1981. The Board issued circulars in 1993 and 1994 asking work‑charge employees to elect, in writing, whether to count their prior service towards pension or remain in the EPF scheme, with a three‑month deadline. Singh claimed he never received or acknowledged the circulars, later exercised the option, and sought pension benefits for the entire period of service, but the Board calculated his pension only from 1981, denying the earlier service. The Punjab & Haryana High Court held that the Board failed to produce any record of Singh’s acknowledgment, inferred he had no knowledge of the options, and that denying his pension was unreasonable and violative of Article 14. The Supreme Court affirmed the High Court’s view, holding that the denial was arbitrary, discriminatory, and contrary to the constitutional guarantee of equality, and dismissed the appeals.

Issues considered

  • Whether the denial of pensionary benefits to a work‑charge employee who was later regularised violates Article 14 of the Constitution.
  • Whether the circulars issued by the employer requiring a written option were valid and enforceable in the absence of proof of the employee’s knowledge or acknowledgment.
  • Whether the employer’s failure to produce a record of the employee’s written option justifies denial of pension benefits.
  • Whether the High Court’s order granting the employee the right to exercise the option was a reasonable exercise of judicial discretion.

Subjects

Article 14Equality before lawPensionary benefitsWork‑charge employeeService lawArbitrarinessCircularsEmployee provident fundRegularisation

Judgment

                         l2009111 S.C.R. 710
                                                                         ,.-
                                                                    y ,._
A       DAKSHINI HARYANA BIJLI VITRAN NIGAM & OTHERS
                                   v.
                             BACHAN SINGH
                     (Civil Appeal No. 4903 of 2009)
                             JULY 30, 2009
B
         [DALVEER BHANDARI AND DR. MUKUNDAKAM
                      SHARMA, JJ.]

       Service law: Retirement benefits - Circulars issued          "
c asking employees to give option for retiral benefits -
  Respondent-employee did not exercise option - Benefits
  denied - W~it petition - High Court held that employer failed
  to produce record showing that the circulars were actually
  noted in writing by employee, which led to inference that he
D had no knoyvledge about the options called by employer -
                                                                               -
  Interference with - Held: High Court's order was rational, just   I(         -    I

  and fair and calls for no interference.
                 I


      ConstitutiOn of (ndia, 1950: Article 14 - All persons
  similarly placed to be treated alike, both in privileges
E
  conferred and liabilities imposed - Equal Jaws to be applied                     ..-
                                                                                   -~
  to all in the same situation without any discrimination -
  Service law.

          Respondent joined the services of appellant as a
    F work charge employees on 16.5.1963. He was regularized
      as Head Mistry w.e.f 14.10.1981. He was a member of
                                                                     ~             -    i-
      Employees Provident Fund Scheme. He superannuated
      on 28.2.2001. The appellant computed respondent's
      pensionary benefits by taking into account only the
    G services rendered by him on regular basis and he was
      denied benefits of the services rendered by him w.e.f.
      16.5.1963 to 13.10.1981 on work-charge basis.                 ~



           The appellant had issued instructions dated 6.8.1993
    H                               710
                     DAKSHINI HARYANA BIJLI VITRAN NIGAM & ORS. v. 711
                                   BACHAN SINGH

                     whereby work charge employees were given three A
                     months time to submit an option as to whether they
                     intended to count the period of work charged service
                     rendered towards pensionary benefits or intended to
                     continue to be a member of EPF and in case of opting ,
                     for pensionary benefits, employee was required to refund B
                     the entire amount of employee's contribution towards
                     their EPF for crediting to GPF Account. The appellants
                     issued another circular dated 9.8.1994 allowing the said
          "          emplpyees who could not exercise their option in
                     response to the circular dated 6.8.19-93 to opt for c
                     pensionary benefits. After the retirement of respondent,
                     appellant calculated his pension and retiral benefits w.e.f
..
•
                      14.10.1981 and not from 16.5.1963. According to
                      appellants, the respondent did no exercise his option in
                      response to the circulars. Aggrieved respondent filed writ 0
                      petition before High Court, which was allowed. Hence
                     present appeals.

                         Dismissing the appeals, the Court

                          HELD: 1. The principle underlying the guarantee of        E
                     Article 14 of the Constitution is that all persons similarly
                     placed ~hall be treated alike, both in privileges conferred
                     and liabilities imposed. Equal laws would have to be
          ...        applied to all in the same situation without any
                     discrimination. [Para 20) [723-E-F]                            F

                         2. It would be totally unreasonable and irrational to
                     deny the respondent the pensionary benefits under the
                     scheme particularly when the appellants failed to produce
                     any record showing that the instructions dated 6.8.1993
                     and 9.8.1994 were actually got noted in writing by the         G
                     respondent. In the absence of any such material it can
    ..;         "'   well be inferred that the respondent had no knowledge
                     about the options called by the appellants. The view
                     taken by the Division Bench of the High Court in the
                                                                                    H
     712        SUPREME COURT REPORTS             [2009] 11 S.C.R.


                                                                         \(
A impugned judgment is indeed a rational, just and fair view
  and no interference is called for. [Paras 26 and 27) [725-
  G-H; 726-A-B]

      Subrata Sen & Others v. Union of India & Others 2001(8)
  SCC 71; E.P. Royappa v. State of Tamil Nadu &Anr. (1974)
B
  4 SCC 3; Mrs. Maneka Gandhi v. Union of India & Anr. (1978)
  1 SCC 248; D.S. Nakara & Ors. v. Union of India (1983) 1
  SCC 305; Ajay Hasia & Others v. Khalid Mujib Sehravardi
  & Others (1981) 1 sec 722, relied on.
c          Kesar Chand v. State of Punjab AIR 1988 (Punjab) 265
    (FB), referred to.

                         Case Law Reference :

         AIR 1988 (Punjab) 265 (FB) referred to          Para 15
D
         2001 (8) sec 11            relied on            Para 18
                                                                         w
         (1974) 4 sec 3             relied on            Para 19

        (1978) 1 sec 248            relied on            Para 22
E       (1983) 1 sec 305            relied on            Para 23
        (1981) 1 sec 122            relied on            Para 24



F
        CIVIL APPELLATE JURISDICTION : Civil Appeal No.
    4903 of 2009.                                                        I
        From the Judgment & Order dated 28.07.2005 of the High
    Court of Punjab & Haryana at Chandigarh in Civil Writ Petition
    No. 3729 of 2004.

G                              WITH

    Civil Appeal Nos. 4904-4913 of 2009 arising out of SLP (C)
                                                                     ~
    Nos. 5787, 7284, 8267, 8986, 10462, 12856, 12354, 17243,
    16411, 16580 of 2006, Civil Appeal Nos.4914-4937 of 2009
    arising out of SLP (c) Nos. 1241, 1786, 3882, 3194, 3680,
H
                DAKSHINI HARYANA BIJLI VITRAN NIGAM & ORS. v. 713
                              BACHAN SINGH
     ~    )/   3710,4879,4075,6863, 7003,9388,8236, 7502, 7572, 7606,           A
               7614, 8235, 12454, 12253, 19184, 18120, 19301, 7930 &
               2483 of 2007, Civil Appeal Nos. 4938'4941 of 2009 arising
               out of SLP (c) Nos. 14935, 17910, 27760 & 20584 of 2008
               AND CIVIL APPEAL Nos. 4942-4944 of 2009 (Arising out of
               SLP (c) Nos. 3766, 3889 & 6240 of 2009.                          B

                   Neeraj Kumar Jain, Sandeep Chaturvedi, Sanjay Singh,
               Ugra Shankar Prasad, Abha R. Sharma, for the Appellants.
         ,,;
                     Manjit Singh, B.S. More, AAG, B.S. Malik, Pranab Kumar
                Mullick, S.K. Patri, Shish Pal Laler, Balbir Singh Gupta, Manoj c
                Swarup, Akshat Goel, Jyoti Srivastava, Hetu Arore, Arvind
                Minocha, R.K. Rathore, Chander Shekhar Ashri, Jasbir Singh
                Malik, Daya Krishan Sharma, Gagan Gupta, Kamal Mohan .
               Gupta, Gaurav Twatia, B.S. Jain, Ajay Veer Singh Jain, Nitin
               Jain, Dr. Vipin Gupta, K. Sarada Devi, R.K. Kapoor, Sanjana D
               J. Bali, Shweta Kapoor, Harish Chandra Pant, Mansi Dhiman,
 ·- .          Gunjan Sinha, Anis Ahmed Khan, Shashi Bhushan, Vivekta
               Singh, B.K. Satija, S.K. Sabharwal, Binay Kumar Jha,
               Rameshwar Prased Goyal, T.V. George, Amit Singh, Kusum
               Singh, R.C. Kaushik, V. Balaji, Pravesh Thakur, Narendra E
               Kumar, S.S. Dahiya, Santosh Krish"8n, Debasis Misra, Dr.
               Ramesh K. Haritash, Dr. Kailash Chand, Divya Godra, Madhu
               Moolchandani, Himanshu Upadhyay, Nitin Kumar, Arunabh
               Chandhary, Ruby Singh Ahuja, Rajesh Srivastava, Raghvendra
               Pratap Singh, Suresh Kumari, Arvind Nayar, Kavita Wadia, for F
               the Respondents.

                   The Judgment of the Court was delivered by

                   DALVEER BHANDARI, J. 1. Leave granted in all the
               special leave petitions.                                         G

                   2. These appeals are directed against the judgments and
 ...     .     orders of the High Court of Punjab and Haryana at Chandigarh .
                 --3, Basic controversy involved in all these appeals is of
                                                                                H


--
    714        SUPREME COURT REPORTS              [2009] 11 S.C.R.

                                                                          ,..
A similar nature. Therefore, we deem it appropriate to
  recapitulate the facts incorporated in Civil Appeal No.4903 of
  2009 arising out of SLP (Civil) No.23708 of 2005 filed against
  the impugned judgment delivered by the High Court of Punjab
  & Haryana in Civil Writ Petition No.3729 of 2004 on dated
B 28.7.2005.

       4. The respondents herein has joined the services of the
  appellant as Laboratory Attendant in work-charge capacity on
  16.5.1963 and continued to perform his duties on work-charge
C basis on different posts until he was regularized as Head Mistry
                                                                      •
  w.e.f. 14.10.1981. The respondent was a member of the
  Employees Provident Fund Scheme (for short 'EPF Scheme').
  During the peniod he remained a work-charge employee, the
  respondent had attained the age of superannuation and retired
  from the service on 28.2.2001. The appellants computed
D respondent's pensionary benefits by taking into account only
  the services rendered by him on regular basia and he was
  denied benefits of the services rendered by him w.e.f.
  16.5.1963 to 13.10.1981 on work-charge basis.

E        5. The appellants had issued instructions dated 6.8.1993
    for the grant of benefit of work-charge service towards
    pensionary benefits. The said letter of 6.8.1993 is reproduced
    as under:-

          "From:
F
          The Additional Secretary, Haryana State Electricity Board
          (HSEB), Panchkula

          Memo No. Ch.9/Pen/G-G-43(93) Dated 6.8.93
G
           Sub: Amendment in the Punjab CSR Vol.II-Adoption of
                State Govt. Notification

                The Haryana State Electricity Board in its meeting
          held on 23.6.1993 has approved the adoption of Haryana
H

                                                                                -
                        DAKSHINI HARYANA BIJLI VITRAN NIGAM & ORS. v: 715
                           BACHAN SINGH [DALVEER BHANDARI, J.]

-
I



         'JI               Govt. Notification No:1/2 (55)-88-2 FR-II dated 4.2.92           A
                           (copy enclosed for ready reference) with regard to the
                           counting of service rendered by the workers in the work
                           charged capacity towards pensionary benefit scheme.

                           2. However, most of the Board's workcharged employees
                                                                                            B
                           are members of Employees Provident Fund (EPF). As
                           such, the pensionary benefit would be subject to the
                           following conditions:-
          ,,;
                            (i)     On regularization from workcharged to regular
                                    employee, the employee has to submit an option          c
                                    within a period of 3 months from the date of
                                    regularization or from the date of issue of this
                                    circular, whichever is later as to whether he/she
                                    intends to count the period of workcharged service
                                    rendered by him/her towards pensionary benefits or      D

    - ,
                                    intends to continue to be a member of E.PF. The
                                    option is required to be furnished in writing to his
                                    drawing & Disbursing Officer who will authenticate
                                    and record its entry in the service book of the
                                    employee and also paste the same in the service         E
                                    book so as to form a permanent record for future
                                    reference. The Drawing & Disbursing Officer will
                                    also inform about his/her option to the appointing
                                    authority immediately.
                                                                                            F
                ~           (ii)    The option once exercised will be final and not to
                                    be allowed to be changed in any circumstances. In
                                    case option is not given within the stipulated period
                                    of three months, it will be presumed that he/she
                                    intends to continue to be a member of EPF.
                                                                                            G
                            (iii)   In case, he/she opts for pensionary benefits, he/she
                    .               has to refund the entire amount of employee's
                                    contribution along with interest thereon, towards
    -'
                                    their EPF in lumpsum for crediting to the Board's
         1                          account, Employee's contribution alongwith interest     H
    716       SUPREME COURT REPORTS                 [2009) 11 S.C.R.


A               is to be deposited with the Board for crediting to                ..
                his/her GPF account.

         3. Similarly, the above benefit will also be available to the
         pensioners/recipients of family pension of the Board on the
         same terms and conditions with the exception that they will
B
         have to deposit the amount contributed by the Board as
         Employee's contribution towards EPF alongwith interest
        thereon, in lumpsum. The pensioners/recipients of family
        pension will have to give an Affidavit to the fact that he/
        she will not claim any interest on the arrear of pensionary              "'
c       benefits which become payable due to adoption of the
        State Govt. circular. The pensioners/recipient of family
        pension will submit their option within 3 months from the
        date of issue of this circular, for availing pensionary
        benefits, to the Head of the office last attended. The option
        once exercised will be final. In case, option is not given
        within the stipulated period of 3 months, it will be presumed
                                                                             ~
        that he/she intends to continue to be a member of EPF.

        4. These instructions may please be got noted from all
E       the employees and acknowledge and receipt of the letter.

            Sd/-Under Secretary (PW) For Additional Secretary,
                                           HSEB, Panchkula"

       6. The work-charge employees were given three months
F time to submit an option to the appellants. The appellants             t
  issued another circular dated 9.8.1994 allowing the said
  employees who could not exercise their option in response to
  the circular dated 6.8.1993 to opt for pensionary benefits.
  Circular dated 9.8.1994 reads as under:-
G
              HARYANA STATE ELECTRICITY BOARD

       "From:                                                            ~             ...
       The Additional Secretary, Haryana State Electricity Board
H      (HSEB), Panchkula
       DAKSHINI HARYANA BIJLI VITRAN NIGAM & ORS. v. 717
          BACHAN SINGH [DALVEER BHANDARI, J.]
          Memo No. Ch.30/Pen/G-43(93) Dated 9.8.94                           A
             Sub: Amendment in the Punjab CSR Vol.II regarding
                  counting of workcharged service towards
                  pensionary benefits - Clarification thereof.

               The Haryana State Electricity Board in its meeting            8
         held on 23.6.1993 had approved the adoption of Haryana
         Govt. Notification No.1/2(55)-86-2 FR-II dated 4.2.92 and
         the same was circulated vide Board's Memo No. Ch.2/
         Pen/G-43(93) dated 6.8.1993.
                                                                             c
         2. After issue of above Board's circular following issues/
         queries were raised by the different field officers/officials
         effected/Workers Unions. The issues/queries were
         considered by the Executive meeting held on 27.7.94 and
         necessary clarifications have been approved as under:-
                                                                         0
         6

     (a) The time limit of three     That a period of three months
    of three months ·fixed by        from the date of issue pf the
    the Board for submitting         clarification may be allowed
    the option expired on            to exercise option for              E
    5.11.93. There is a              availing the pensionary
    demand for the extension         benefits to those who could
    of time time limit for           not avail this opportunity
    exercising the option.           earlier.
                                                                         F
     (b) There is an ambiguity       That the workcharged
    as to whether such               employees who were in
    employees who after              service of the Board as
    regularization of their         regular employee on 9.1.74
    services continued to be        (i.e. the deemed date of             G
    the member of EPF               adoption of circular) or got
    scheme are covered under        regularization thereafter,
                                    could exercise their option
'                                   for availing the pensionary
f                                   benefits by counting of their        H
        718       SUPREME COURT REPORTS                   [2009] 11 S.C.R.

    A   the circurar or not.
                                            work-charged service even if
                                            they continued to be the
                                            member of EPF after issue of
                                            the Board's instructions dt.
                                            6.8.93, if they exercise the
    B                                       option to join the pension
                                            scheme.

        (c) A point has been raised         That the interest in such like
        that what will be rate of           cases would of option for
    c   interest payable by the be          pensionary benefits to the
        payable from the date               date of actual refund of the
        employees/ pensioners/              employer's/employeee's
        family pensioners to refund         contribution alongwith the
        the amount of EPF and the           interest thereon to the Board.
    D   period for which the interest       The rate of interst would be the
        is to be charged.                   same which is applicable for
                                            GPF subscription.

        (d) A question has been             That the Board has adopted
        raised as to whether the            the Haryana Government
    E   total workcharged service           Notification dated 4.2.92
        is to be reckoned towards           w.e.f. 9.1. 74 as provided
        pensionary benefits in              therein. Therefore, the total
        terms of para 'g' of the            workcharged service of all
        Haryana       Government            those employees would be
    F   notification dt.4.2.92 from         countable towards pensionary
        9.1.74.                             benefits who were in service
                                            of the Board as regular
                                            employee on 9.1.74 or got
                                            regularization thereafter.
    G
        (e) There is demand from            That employer's/ employee's
        the Workers Union that the          contribution alongwith interest
        recovery of EPF amount              thereon may be refunded to
        alongwith the interest              the Board in suitable
    H   should be made in                   instalments at the employee's
                                        I




I
DAKSHINI HARYANA BIJLI VITRAN NIGAM & ORS. v. 719
   BACHAN SINGH [DALVEER BHANDARI, J.]

                                 within his remaming period of      A
instalments instead of
lumpsum on the pattern of        service, subject to maximum
option BBMB.                     of 24 monthly instalments. In
                                 case of those, who have
                                 already       retired      the
                                 employee's contribution            B
                                 alongwith interest thereon will
                                 be refunded to the Board in
                                 lumpsum.

                                                                    c
    3. These instructions may please be got noted from all the
employees and acknowledge the receipt of the letter.

    Sd/-Additional Secretary Haryana State Electricity Board
Panchkula"                                                          o
    7. The only condition for opting the pensionary benefits
was that the concerned employee would refund the amount of
employer's share received by him/her under the EPF Scheme
along with interest accrued thereon.
                                                                    E
     8. It was pleaded by the respondent that he had no
knowledge about the aforesaid instructions issued by the
appellants nor were the same got noted from him and as such,
he could not exercise his option for grant of pensionary benefits
within the prescribed time-limit.                                   F
     9. The respondent submitted that immediately after
acquiring the knowledge of the circular he exercised his option
for being governed under the pension scheme on 20.12.1994.
The respondent submitted that he was ready to deposit the
requisite amount received by him under the EPF Scheme. The G
appellants did not give any response and after the retirement
of the respondent calculated his pension and other retiral
benefits with effect from the date of his regularization i.e. ·
14.10.1981. The respondent issued reminders dated 2:9.2002
                                                                H
     720        SUPREME COURT REPORTS               [2009] 11 S.C.R.

                                                                         .. ---
A and 16.4.2003, but did not receive any response from the
  appellants. Ultimately, the respondent issued a legal notice to
  the appellants on 10.11.2003 calling upon the appellants to
  consider his pension case in the light of the instructions issued
  in the circulars of the appellants dated 6.8.1993 and 9.8.1994.
B Since no response was received by the respondent, therefore,
  he was compelled to file a writ petition before the Punjab and
  Haryana High Court.                                                          ~

       10. The appellants' main plank of argument was that the           "'
  said circulars were issued twice inviting options from the
c desirous employees for being governed under the pension
  scheme. Ever.i the said circulars were also put on the Notice
  Board and copies thereof were endorsed to the Secretary,
  Workers' Union, but the· respondent failed to exercise his option
  within the time prescribed and, therefore, his case for counting
D work-charge services towards pensionary benefits has rightly
  not been considered by the appellants.
                                                                         ~
                                                                              .'
       11. It was submitted by the respondent before the High
  Court that he was always desirous and willing to opt for the
E pension scheme by counting the work-charge service 10 and
  he was prepared to refund the amount of employer's share with
  interest under the EPF Scheme. The respondent further
  submitted that immediately after he learnt about the circulars,
  he exercised his option for pension scheme and in fact he has
F
  been consistently requesting the appellants to consider his case      •
  for grant of pension but the grievance of the respondent has
  not been redressed. The respondent was compelled to                          :-
  approach the Punjab & Haryana High Court.

        12. The Division Bench of the Punjab and Haryana High
G Court, after hearing the learned counsel for the parties at length,
  came to the definite conclusion that the appellants had failed
  to produce any record showing that the instructions dated
  6.8.1993 and 9.8.1994 were actually got noted in writing from
                                                                        -+
                                                                              -
  the respondent. The High Court further observed that in the
H absence of any such material, it can well be inferred that the
                       DAKSHINI HARYANA BIJU VITRAN NIGAM & ORS. v. 721
                          BACHAN SINGH [DALVEER BHANDARI, J.]
-.I
        .,,
                       respondent had no knowledge about the options called by the          A
                       appellants vide circulars dated 6.8.1993 and 9.8.1994. The
                       High Court also observed that it would be unreasonable to ~eny
                       pensionary benefits to the.respondent despite the said circulars
                       issued by the appellants'. The High Court allowed the writ
                       petition filed by the respondent and directed the appellants to      B
                       permit the respondent to exercise his option in accordance with
                       the circulars dated 6.8.1993 and 9.8.1994 within a period of
         j
                       one month from the date of receipt of a certified copy of the
                       order and thereafter give him the consequential benefits subject
                       to his fulfilling the conditions of eligibility for being governed   c
                       under the pension scheme. The appellants aggrieved by the
                       said judgment of the Punjab and Haryana High Court have
                       approached this court.

                             13. The appellants submitted that the respondent did not
                                                                                            D
-             )
                       comply with tb.e instructions dated 6.8.1993 and 9.8.1994 within
                       the prescribed period and as such was not entitled for benefits
                       in terms of these circulars.

                             14. The High Court in its impughed judgment had
                       .., ___

                       "Categorically observed that the appellants had failed to produce    E
                       ahy record showing that the instructions dated 6.8.1993 and
                       9.8.1994 were actually got noted in writing from the respondent.
                       The appellants had also failed to produce such material from
                       which it can be inferred that the respondent had any knowledge
                  ..   about the options called by the appellants vide instructions         F
                       dated 6.8.1993 and 9.8.1994. The High Court also observed
                       that in this view of the matter it would be unreasonable to deny
                       pensionary benefits to the respondent and the similarly placed
                       respondents.

                            15. It may be pertinent to mention that the Full Bench of       G
                       the Punjab and Haryana High Court in Kesar Chand v. State
 ....              ~
                       of Punjab AIR 1988 (Punjab) 265 (FB) after examining the
                       entire case observed that once the services of work-charged
                       employee are regularized, he will be deemed to be entitled to
                                                                                            H
    722              SUPREME COURT REPORTS           [2009] 11 S.C.R.


A   the benefit under rule 3.17 (ii) of the Punjab Civil Service Rules
    Vol.2. Rule 3.17 (ii) reads as under:-

          "/f any employee was holding substantively a permanent
          post on th.e date of his retirement, his· temporary or
          officiating service under the State Government, followed
B
          without interruption by confirmation in the same or
          another post, shall count in full as qualifying services
          except in respect of :-

          (i) periods of temporary or officiating service in non-
c         pensionable establishment;

          (ii) perkids of services in work-charged establishment; and

          (... )                        "
           Ill ... ; ........ ,. . . . . .

D        16. The court in the said judgment held that the period of
    service spent by an employee on work charge basis prior to              "'
    his regularization, should be taken in1o consideration for
    determining his qualifying service. This part is coritained in para
    19 of the judgment and reads thus:-
E
        "19 ... lt looks to be illogical that the period of service spent
        by an employee in a work-charged establishment before
        his regularisation has not been taken into consideration for
        determining his qualifying service. The classification which
        is sought to be made among Government servants who
F
        eligible for pension and those who started work-charged
        employees and their services regularised subsequently,
        and the others is based on any intelligible criteria and,
        before, is not sustainable at law. After the services of a.
        work-charged employee have been regularised, he is a
G       public servant like other servant. To deprive him of the
        pension is not only unjust and inequitable is hit by the vice
        of arbitrariness, and for se reasons the provisions of sub-
        rule (ii) of Rule 3.17 of the Rules have to be struck down
        being violative of Article 14 of the Constitution."
H
 -·
                     DAKSHINI HARYANA BIJLI VITRAN NIGAM & ORS. v. 723
                        BACHAN SINGH [DALVEER BHANDARI, J.]
       ,   ... ..        17. Full Bench judgment of the Punjab & Haryana High                A
                     Court in Kesar Chand's case (supra) was carried before this
                     court by way of filing a special leave petition. This court
                     dismissed the said special leave petition.

                           18. This court has taken the view that pension is reward
                                                                                             B
                     for long service rendered by the employee and not a bounty.
                     The Supreme Court in the case of Subrata Sen & Others v.
                     Union of India & Others reported as 2001 (8) SCC 71 held
                     that:-
               JI

                         ·"14 .... As observed in Nakara's case, pension is neither a        c
                          bounty, not a matter of grace depending upon the sweet
   '
  ~'                      will of the employer, nor an ex gratia payment. It is a
                          payment for the past services rendered, It is a social
                          welfare measure rendering socio-economic to those who
                          in the day-day of their life ceaselessly toiled for the            D
                          employer on an assurance that in their old age they would
               )          not be left in lurch ... "

                         19, The appellants had issued circulars dated 6.8.1993
                     and 9,8.1994 for giving pensionary benefits to the respondent
                                                                                             E
                     and similarly placed employees .
       .
.,
"=!>                      20. This court time and again had ob.served that the
                     principle underlying the guarantee of Article 14 of the
  "                  Constitution is that all persons similarly placed shall be treated
                     alike, both in privileges conferred and liabilities imposed. Equal      F
               ~

                     laws would have to be applied to all in the same situation without
                     any discrimination.

                         21, In E. P. Royappa v. State of Tamil Na du & Anr. ( 1974)
                     4 sec 3, this court observed as under:-                                 G
                         "From a positivistic point of view. equality is antithetic to
                ..       arbitrariness. In fact equality and arbitrariness are sworn
                         enemies; one belongs to the rule of law in a republic while
                         the other, to the whim and caprice of an absolute monarch,
                         Where an act is arbitrary it is implicit in it that it is unequal   H
    724         SUPREME COURT REPORTS                  [2009] 11 S.C.R.


A         both according to political logic and Constitutional law and         • r'
          is therefore violative of Article 14, and if it affects any
          matter relating to public employment, it is also violative of
          Article 16. Articles 14 and 16 strike at arbitrariness in
          State action and ensure fairness and equality of treatment."
B
        22. In Mrs. Maneka Gandhi v. Union of India & Anr (1978)
    1 sec 248, this court observed as under:-

          "Equality is a dynamic concept with many aspects and                 ,.
          dimensions and it cannot be imprisoned within traditional
c         arid doctrinaire limits .......... Article 14 strikes at
          arbitrariness in State action and ensures fairness and                        •'
                                                                                        i
          equality of treatment. The principle of reasonableness,                       '
          which legally as well as philosophically, is an essential
          element of equality or non-arbitrariness pervades Article
D         14 like a brooding omnipresence."

         23. In D.S. Nakara & Ors. v. Union of India (1983) 1 SCC              ~

    305, this court observed as under:-

          'The thrust of Article 14 is that the citizen is entitled to
E         equality before law and equal protection of laws. In the very
          nature of things the society being composed of unequals
          a welfare state will have to strive by both executive and


F
          legislative action to help the less fortunate in the society
          to ameliorate their condition so that the social and
          economic inequality in the society may be bridged. This
          would necessitate a legislation applicable to a group of
          citizens otherwise unequal and amelioration of whose lot
                                                                              "I        '
          is the object of state affirmative action. In the absence of
          doctrine of classification such legislation is likely to flounder
G         on the bed rock of equality enshrined in Article 14. The
          court realistically appraising the social stratification and
          economic inequality and keeping in view the guidelines on           ...
          which the State action must move as constitutionally laid                 '
          down in part IV of the Constitution, evolved the doctrine of
H         classification. The doctrine was evolved to sustain a
                     DAKSHINI HARYANA BIJLI VITRAN NIGAM & ORS. v. 725
                        BACHAN SINGH [DALVEER BHANDARI, J.]
          'JI             legislation or State action designed to help weaker A
                        · ~ections of the society or some such segments of the
                         .society in need of succor. Legislative and executive action
                          may accordingly be sustained if it satisfies the twin tests
                          of reasonable classification and the rational principle
                          correlated to the object sought to be achieved. The State; B
                          therefore, would have to affirmatively satisfy the Court that·
                          the twin tests have been satisfied. It can only be satisfied
                          if the State establishes not only the rational principle on
                          which classification is founded but correlate if to the objects
                          sought to be achieved."                                            c

-
                         24. In Ajay Hasia & Others .v. Khalid Mujib Sehravardi
                     & Others (1981) 1 SCC 722 this court observed as under:-

                          "That is must, therefore, now be taken to be well settled
                          that what Article 14 strikes at is arbitrariness because any       D
                          action that is arbitrary must necessarily involve negation
            )
                          of equality. The court made it explicit that where an act is
                          arbitrary it is implicit in it that it is unequal both according
                          to political logic and constitutional law, and is, therefore,


-.
,.
'·
                          violative of Article 14."

                          25. In Ramana Dayaram Shetty v. International Airport
                     Authority of India & Ors. (1979) 3 SCC 489 again this court
                     observed that a discriminatory action of the Government is liable
                                                                                             E




                     to be struck down, unless it can be shown by the Government
                                                                                             F
                "    that the departure was not arbitrary, but was based on some
                     valid principle which in itself was not irrational, unreasonable
                     or discriminatory.

                           26. In view of the law as has been articulated in a large
                     number of cases where this court has observed that any                  G
                     discriminatory action on the part of the Government would be
     ,,         ..   liable to be struck down. Hence, in this case, it would be totally
                     unreasonable and irrational to deny the respondent the
                     pensionary benefits under the scheme particularly when the
                     appellants have failed to produce any record showing that the           H
    726        SUPREME COURT REPORTS                [2009] 11 S.C.R.


A instructions dated 6.8.1993 and 9.8.1994 were actually got
  noted in writing by the respondent. In the absence of any such
  material it can well be inferred that the respondent had no
  knowledge about the options called by the appellants.

         27. In our considered opinion, the view taken by the
8
    Division Bench of the High Court in the impugned judgment is
    indeed a rational, just and fair view and no interference is called
    for.

       28. These appeals are devoid of any merit and are
C accordingly dismissed leaving the patties to bear their own
  costs.

    D.G.                                        Appeals dismissed.        -


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