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Supreme Court of India

SITA RAM BANSAL AND ORS. ETC. ETC.versusSTATE OF PUNJAB AND ORS. ETC. ETC.

Citation
1996 INSC 1395
Decided
27 November 1996
Disposal
Dismissed

Holding

The cut‑off date of 1 April 1990 is a rational classification and does not violate Article 14; the pension scheme cannot be made retroactive to retirees before that date.

Summary

The petitioners, non‑provincialised employees of municipal committees, challenged a government pension scheme that was introduced on 1 April 1990 for All India Gazetted and Punjab Civil Services officers and later extended to non‑provincialised staff on 28 July 1994. They argued that the cut‑off date excluded retirees who had left service before 1 April 1990 and that this arbitrary classification violated Article 14 of the Constitution. The Punjab & Haryana High Court dismissed their writ petitions, and the petitioners appealed to the Supreme Court. The Court held that the scheme was first implemented on the stated date, making the cut‑off a rational classification; those who retired earlier formed a separate class and were not entitled to the new benefits. Consequently, the cut‑off did not constitute invidious discrimination and did not infringe Article 14. The special leave petitions were dismissed.

Issues considered

  • Whether the cut‑off date of 1 April 1990 for the pension scheme is arbitrary and violative of Article 14 of the Constitution.
  • Whether the pension scheme can be extended retrospectively to employees who retired before the cut‑off date.

Legislation cited

Subjects

Article 14EqualityPension schemeCut‑off dateNon‑provincialised employeesRetroactive benefitConstitutional law

Judgment

                               •
                 SITA RAM BANSAL AND ORS. ETC. ETC.                               A
                                 v.
                 STATE OF PUNJAB AND ORS. ETC. ETC.

                              NOVEMBER 27, 1996

                [K. RAMASWAMY AND G.T. NANAVAT!, JJ.]                             B

          Constitution of India, 1950: A1tic/e 14.

            Equality-PresC1iptioll of cut off dat&-Validity of-Pension scheme
    introduced w.e.f Ap1il 1, 199~Scheme applicable to All India Gazetted C
    Officers and Punjab Civil Se1vices Office1' working in the Municipalities i.e.
    provincial servic&-Subsequently another Govemment order issued extending
    the benefits of pension scheme to members of non-provincialised ser-
    vicr;-Petitioners who are non-provincialised employees filed a writ seeking
    benefits of pension schemr;-Contention that presc1iption of cut-off-date was
    arbitrary-Dismissal of w1it petition by High Court-Appeal-Held, The date D
    of April 1, 1990 bears rationality, namely, the scheme for the first time was
    introduced on that datr;-Al/ those employees who retired prior to that date
    were treated as a class and those employees either in se1Vice or retiring on
    and after that date have been treated as a separate class and the scheme was
    extendetf-Thus there is no illegality in introducing the cut-off date; nor does E
    it violate A riicle 14.

          Union of Indiav.Sltn' Deoki Nandan Agarwa~ [1992] l SCC 323; Shri
    R.L. Marwah v. Union of India, [1987] 3 SCR 928 and Sh1i M.C. Dhingra
    v. Union of India & Ors., JT (1996) 2 SC 463, held inapplicable.
                                                                                  F
          CIVIL APPELLATE JURISDICTION: Special Leave Petition (C)
    Nos. 22517-20 of 1996.

         From the Judgment and Order dated 10.5.96 of the Punjab &
•   Haryana High Court in C.W.P. No. 14764, 15213/94, 3806-07 of 1995.
                                                                                  G
          M.C. Dhingra for the Petitioners.

         The following Order of the Court was delivered :

         These speci!d leave petitions have been filed against the judgment of
    the Division Bench of the 1'11njab & Haryana High Court, made on May          H
                                        249
    250                   SUPREME COURT REPORTS [1996] SUPP. 9 S.C.R.
                                                   •
A 10, 1996 in C.W.P. No. 14764/94 and batch.

         The petitioners are non-provincialised employees working in the
  notified municipal Committees. The Government in notification No. JA-I-
  DCFA-DLG-91/3958, dated January 25, 1991 have introduced the pension
B scheme applicable to All India Gazetted Officers and Punjab Civil Services
  Officers working in the municipalities with effect from April 1, 1990.
  Subsequently, the matter was considered and the benefit of the pension
  scheme was extended to the employees who are members of non-provin-
  cialised service of the Municipal Committees by notification dated July 28,
  1994. The question arose : whether those persons who retired before April
C 1, 1990 are also entitled to be brought within the pension scheme? Admit-
  ~dly, they are governed by the Contributory Provident Fund Scheme and
  on retirement, they had withdrawn the contributory Provident Fund in
  terms of the scheme that was in vogue earlier. The petitioners had filed the
  writ petitions in the High Court contending that prescription of a cut-off
D date. i.e. April 1, 1990, was arbitrary, and denying them the benefit of the
  pensionary scheme is .violative of Article 14 -of the Constitution. The High
  Court following its earlier decision rendered in Sham Das Sharma v. State
  of Punjab dismissed the writ petitions.

          Shri Dhingra, learned counsel for .the petitioners, contended that in
E view of the judgments of this Court in Union of India v. Shri Deoki Nandan
  Agarwal (1992] 1 SCC 323; Shri R.L. Marwah v. Union of India (1987] 3
  SCR 928 and Shri M.C. Dhingra v. Union of India & Ors. JT (1996) 2 SC
  463; the cut off date is arbitrary; the pensionary benefits should be ex-
  tended to the retirees prior to the cut of date; otherwise, it violates Article
p 14 of the Constitution. We find no force in the contention. It is true that
  the pension is not a bounty but a right earned by the persons while in
  service. But, unfortunately, the pensionary scheme was not in vogue prior
  to the retirement of the petitioners .. The pension scheme came to be
  introduced for the first time with effect from April 1, 1990 and it was
G applied to persons serving the municipalities drawn from All India Service
  or the Provincial Service. Subsequently, that was extended to other .
  employees in the non-provincial service. The later G.O. also applied to
  those who retired between April 1, 1990 and July 28, 1994, the date on
  which the scheme was extended to the non-provincialised employees. In
  other words, all of them have been treated as a class and no invidious
H discrimination has been meted out to them. Thus, the date of April 1, 1990
                        S.R. BANSAL v. STAIB                         251
bears rationality, namely, the scheme for the first time was introduced on A
 that date. All those employees who retired prior to that date were treated
 as a class and those employees either in service or retiring on and after
that date have been treated as a separate class and the scheme was
extended to it. Thus, we fmd that there is no illegality in introducing the
cut- off date; nor does it violate Article 14. The ratio in the above B
judgments has no application to the facts in this case.

     The special leave petitions are accordingly dismissed

T.N.A.                                               Petitions dismissed.


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