Holding

The Supreme Court set aside the High Court judgment for failing to decide the above issues and remitted the case for fresh determination, including interest if the delay is attributable to the Government.

Summary

R.K. Agrawal filed a writ petition seeking pension for the period 26 July 1979 to 22 July 1982 and interest on delayed payment. The Rajasthan High Court granted the pension but denied interest, and did not rule on Agrawal's claim for a pro‑rata pension under Rule 158 of the Rajasthan Service Rules, nor on the relevance of Rules 13, 17 and 18. The State of Rajasthan appealed, contending that the period was not qualifying service and that the High Court erred in applying two earlier Supreme Court decisions. The Supreme Court held that the High Court had left several material issues undecided, including the computation of qualifying service, applicability of Rule 158, and entitlement to interest for a 20‑year delay attributable to the government. Consequently, the Court set aside the High Court judgment and remitted the matter for fresh consideration, directing the High Court to decide the pending issues and award interest if appropriate.

Issues considered

Whether the period 26 July 1979 to 22 July 1982 constitutes qualifying service for pension under the Rajasthan Service Rules.
Whether Rule 158 of the Rajasthan Service Rules authorises a pro‑rata pension in the present case.
Whether Rules 13, 17 and 18 of the Rajasthan Service Rules are relevant to the computation of pensionable service.
Whether interest is payable on the delayed pension payment when the delay is attributable to the Government.
Whether the precedents Welfare Association of Absorbed Central Government Employees v. Arvind Verma and P.V. Sundara Rajan v. Union of India are applicable.

Subjects

pensionqualifying servicepro‑rata pensioninterest on delayed paymentRajasthan Service Rulesgovernment liabilitydelay in pension grant

Judgment

R.K. AGRAWAL. A
v.
STATE OF RAJASTHAN AND ANR.

OCTOBER 31, 2006

[DR. AR. LAKSHMANAN AND TARUN CHATIERJEE, JJ.] B

Service law:

Pension-Qualifying service-Computation of-Delay in grant of
pension-Claim for interest-Held, since High Court has not considered the C
relevance of certain provisions of the Rules, relied upon by the parties, the
impugned judgment is set aside and matter remitted to it for consideration
afresh.

Respondent No. 1, in Civil Appeal No. 8127 of2004 filed a writ petition D
before the High Court for a direction to the State of Rajasthan to pay him
pension for the period 26.7.1979 to 22.7.1982. The writ petition was allowed,
but his prayer for interest on delayed amount of pension was not acceded to.
Aggrieved, the State Government filed Civil Appeal No. 8128 of2004 and the
pensioner filed Civil Appeal No. 8127 of2004.
E
It was contended before this Court that the pensioner in his writ petition
before the High Court raised a plea for grant of pro-rota pension admissible
to him in terms of Rule 158 of the Rajasthan Service Rules, but the High
Court has not rendered any finding thereon. Similarly, the High Court also
not considered the relevance of Rules 13, 17 and 18 of the Rajasthan Service
Rules, which plea was specifically raised by the State Government. It was F
contended that the pensioner could not claim pension for the period 26.7.1979
to 22.7.1982 nor the said period could be counted for qualifying service.

Disposing of the appeal, the Court

HELD: Since several important issues have not been decided by the High G
Court, the judgment impugned in thest: two appeals is set aside and the matter
is remitted to the High Court for disposal of the same afresh. The High Court
has also not considered the delay of 20 years in giving the pension and pro-
rata benefits. If the delay is attributable to the Government, the pensioner is
207 H
208 SUPREME COURT REPORTS (2006] SUPP. 8 S.C.R.

A always entitled for the interest. The High Court would consider this point
also with reference to the pleadings raised by the parties on this count.
[211-B-C) (
Welfare Association of Absorbed Central Government Employees in
Public Enterprises & Anr. v. Arvind Verma & Ors., AIR (1998) SC 2863; and
B P. V. Sundara Rajan & Anr. v. Union of India, JT (2000) 5 SC 175, held
inapplicable.

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 8128 of2004.

From the Judgment and Order dated 30-10-2002 of the High Court of
C Judicature for Rajasthan at Jaipur Bench, Jaipur in S.B. Civil Writ Petition No.
540/1999.

N. Prabhakar, Rajesh Srivastava, Ansar Ahmad Chaudhary and Manish
Kumar Chaudhary for the appearing Parties.

D· The Judgment of the Court was delivered by

DR. AR. LAKSHMANAN, J. The State ofRajasthan is the appellant in
Civil Appeal No. 8127/2004. The said appeal was filed by the State ofRajasthan
'questioning the validity of the judgment and order dated 30.10.2002 passed
by the High Court of Judicature for Rajasthan at Jaipur Bench, Jaipur, in D.B.
E Civil Writ Petition No. 540/1999, whereby the writ petition filed by the contesting
respondent (R.K. A_grawal) had been allowed and directions had been issued
to the State to pay to the respondent pension for the period commencing 26th
July, 1979 to 22nd July, 1982. According to the State, the "'espondent was not
serving the State Government during that period and, therefore, he is not
F entitled for pension for the said period.

The Civil Appeal No. 8128 of2004 was filed by the first respondent in
C.A. No. 8127/2004 questioning the correctness of the judgment of the High
Court insofar as the non-grant of interest to the contesting respondent.
According to the first respondent Mr. R.K. Agrawal, the High Court has failed
G to appreciaL that the delay caused by the appellants are more than 20 years
in the payment of pension and/or pro-rata benefits to the first respondent was
without any fault of the first respondent and as such the first respondent was
entitled to interest and damages thereon. The first respondent has claim~
18% interest per annum for the non payment.

H This apart, the first respondent herein and the appellant in CA No. 8128/
R.K. AGRA WAL v. STATE OF RAJASTHAN [ LAKSHMANAN, J.] 209
2004, in his writ petition before the High Court, has specifically raised in A
paragraph 7 for the grant of pro-rata pension admissible to him in terms of

.. Rule 158 of the Rajasthan Service Rules and in support of said contention,
decision Nos. 5 & 6 thereunder was relied on for the period rendered by him
under the Government of Rajasthan. Our attention was also invited to the
relevant part of the governing Decision No. 5 and the extract of Decision No. B
6 for the sake of enabling this Court to correctly appreciate the import and
purport thereof. For the sake of convenience, we reproduce relevant portion
of the Govt. Order No. F.1(48) F.D. (Rules)/68 dated 10.4. 1969, Para 4, Sub Para
(iii) A:

"(iii) The Provisions contained in Clauses (i) and (ii) above shall C
not apply to a Government Servant transferred to Public
Enterprises under the control of the Govt. of India. He shall,
however, on his permanent absorption, be entitled to:-

A. Pension

(a) Pension and/or Gratuity as admissible under the Rajasthan Service D
Rules for service rendered by him under the Government at the
end of period of five years of his absorption, provided that if the
Govt. Servant concerned, attains the age of superannuation, within
these five years, he shall be entitled to receive the benefit~, from
the date of superannuation. He shall not be entitled to family
pension under the Chapter XIII, XIIIA and XIV of the Rajasthan E
Service Rules.

(b) In lieu of monthly pension admissible under (a) above the Govt.
Servant concerned may opt to receive a lump sum amount worked
out with reference to the commutation table obtaining on the date
from which the pension will be admissible and payable. The F
option will be exercised from six months of absorption.

(c) Any further liberalisation of pension rules decided by the Govt.
after the pennanent absorption of the Govt. Servant under the
Public Enterprise would not be extended to him.
G
(d) In cases where the Govt. Servant at the time of absorption has
less than I 0 years qualifying service he will only be eligible to
proportionable retirement Gratuity based on length of service."

Extract of Decision No. 6 was also relied on, which is also reproduced
herein. Extract of Decision No. 6: H
210 SUPREME COURT REPORTS [2006] SUPP. 8 S.C.R.

A "As per the order of the FD No. F.1(48) FD (Rules) 68/dated
14.4.70 duly amended, the Pension and Gratuity admissible under
clause (iii) of Decision No. 5 reproduced above shall be payable
to the concerned employee who has been transferred to and
absorbed in a Public Enterprise under the Govt. of India after the
expiry of two years from such absorption."
B
According to the first respondent, who is also present in the Court, an
argument was advanced before the High Court in terms of Rule 158 of the
Rajasthan Service Rules and that the High Court has not rendered any finding
on the said contention. Likewise, the High Court has also not considered the
C relevance of Rules 13, 17 and 18 of the Rajasthan Service Rules, which was
specifically raised by the learned counsel appearing for the State of Rajasthan
before the High Court. It was submitted th_at the first respondent herein could
not claim the pension for the period iii question; namely 26th July, 1979 to
22nd July, 1982 nor this period could be counted for qualifying service
because the retaining of the lien is only for the vurpose that the incumbent
D could revert back to the service of Rajasthan Government, had he not been
confirmed in the services of International Airport Authority, but that does not
entitle him to count this period as qualifying service subsequent to any date
beyond 26th July, 1979.

The High Court has also considered tWo decisions of this Court, one
E in the case of Welfare Association ofAbsorbed Central Government Employees
in Public Enterprises & Anr. v. Arvind Verma & Ors., reported in AIR (1998)
SC 2862 and Anr in the matter of P. V. Sundara Rajan & Anr., reported in JT
(2000) 5 SC 175. We have carefully perused the above two judgments. In our
opinion, both the judgments are not applicable to the faets and circumstances
p of this case and are distinguishable on facts and law and wrongly applied by
the High Court to the case on hand.

In this Civil Appeal, the State of Rajasthan has also raised several other
legal issues in support of their appeal. According to the learned counsel for
the State of Rajasthan, the service of a Government Servant shall not qualify
G unless he is appointed and his duties and pay are regulated by the Government,
or under conditions determined by the Government. He has further argued
that for the purpose of sub-rule (I) of Rule 13, the expression "service" means
service under the Government and. .paid by that Government
~ . from ti\e
Consolidated Fund out does not include service in a non-pensionable
establishment, work-charged establishment and service· in a post paid from
H
R.K.AGRAWALv. STATEOFRAJASTHAN[LAKSHMANAN,J.] 211
contingencies, unless such service is treated as qualifying service by that A
-Government. Though this argument was also raised before the High Court,
no specific finding has been rendered by the High Court on this contention
also.

We are of the opinion that since several important issues have not been
decided by the High Court, we have no other option except to set aside the B
said judgment of the High Court, impugned in this two appeals, and remit the
matter to the High Court for disposal of the same afresh. As rightly pointed
out by the appellant in Civil Appeal No. 8128/2004, the High Court has not
... considered the delay of 20 years in giving the pension and pro-rata benefits .
If the delay is attributable to the Government, the appellant is always entitled C
for the interest. We request the High Court to consider this point also with
reference to the pleadings raised by the parties to this action. Since the matter
is pending before one forum or the other for more than two decades, we
request the High Court to dispose of the writ petition by a Division Bench
within three months from today. Both parties are at liberty to file additional
documents before the High Court. D,
Both the appeals are disposed of accordingly. No costs.

R.P. Appeals disposed of.