Holding

The Tribunal’s direction to treat the respondent as retired on 1 June 1972 and to grant pension under Rule 48(A) is erroneous and is set aside.

Summary

V.G. Desai, a former telephone operator, sought retirement on medical grounds and the release of his General Provident Fund (GPF). The Central Administrative Tribunal (CAT) ordered payment of GPF, leave salary and interest from 20 April 1972 but denied pension, later directing that he be treated as retired on 1 June 1972 and granted pension under Rule 48(A) of the Central Civil Services (Pension) Rules, 1972. The appellants challenged this later CAT order, arguing that the retirement date was inconsistent with the Tribunal's earlier 30 November 1987 judgment and that Rule 48(A) was not in force on 1 June 1972. The Supreme Court, exercising its power under Article 136, held that the Tribunal’s later direction was erroneous, as it conflicted with its earlier finding and the statutory provision was not applicable at the deemed retirement date. Consequently, the Court set aside the CAT’s 1992 judgment, dismissed the respondent’s application for pension, and allowed the appeal.

Issues considered

Whether the CAT's direction to deem the respondent retired on 1 June 1972 is consistent with its earlier judgment of 30 November 1987.
Whether pension is payable under the Central Civil Services (Pension) Rules, 1972, when the respondent is treated as retired on 1 June 1972, given that Rule 48(A) was not in force at that time.
Whether the Supreme Court may interfere under Article 136 in an individual service dispute where the Tribunal allegedly extended pension benefits not available in law.

Legislation cited

Central Civil Services (Pension) Rules, 1972s. Rule 48(A)
Constitution of Indias. Article 136

Subjects

Article 136Special Leave PetitionCentral Administrative TribunalPensionRule 48(A)Service LawRetirementGeneral Provident FundReviewLimitationJudicial Review

Judgment

I
A THE GENERAL MANAGER, TELEPHONES,
ABMEDABAD AND ORS.
v. ~ .
V.G. DESAI AND ANR.

B FEBRUARY 1, 1996

[S.C. AGRAWAL AND G.T. NANA VAT!, JJ.]

Constitution of India-Article 136--Appeal by special leave:-
Scope:-Jurisdiction to interfere with orders of Central Administrative
•
c Tribunal-Court does not inteifere on individual disputes-When pensionary ...
benefits granted to an employee which were not available to him in law-Mat-
ter calls for inteiference of this Court under Art. 136.

Service Law-Central Civil Service (Pension) Rules,_ 1972-Rule 48(A)
D inserted by notification dated 28.11.1979 w.e.f 26.8.1977-Whether under1972
Rules pension is payable under Rule 48-A even if employee is treated as
having retired on 1.6.1972-Held, No. "
Respondent No. 1 appointed as Telephone Operator in the
'"
Telephone department of the Government of India was promoted as In-
E spector. He was transferred but he did not join at the place of posting and
remained on leave. He sought further extension of leave and also retire-
ment on medical grounds with immediate.effect. Since a vigilance case was
pending against him, the request of resignation was not accepted. In the
departmental proceedings taken against him the punishment of censure '
F was imposed. The respondent sent another letter requesting that his
retirement could be settled and his G.P.F. be released. Since no action was
taken, he filed a writ petition in the High Court which was transferred to
the Central Administrative Tribunal. Allowing the application, the
Tribunal by its order dated 30.11.1987 directed the authorities to decide
the qnestion of releasing GPF leave salary and other dues of the petitioner
G within a period of two months that an interest of 9% should be payable on
such dues from 20.4.1972 and payment of does should be effected within
three months. The respondent was paid the dues including the amount
(
lying in his GPF account alongwith interest @9%. The claim of the respon-
dent for pension was, however, not accepted on the ground that he was not
H entitled to pensionary benefits as per the rules. The respondent filed
1132
GEN. MANAGER, TELEPHONES v. V.G. DESAI 1133

another application seeking the relief that a declaration might be given A

- '
that he was entitled to pensionary benefits on and from 20.3.1972 or from
the date of application made for voluntary retirement on 25.9.1971. In the
alternative he sought a declaration that he was entitled to pensionary
benefits on voluntary retirement as per the Central Civil Service (Pension)
Rules, 1972 or, in the alternative, for a declaration that he was entitled to
B
pensionary benefits of retirement by supernnuation. The Tribunal rejected
the Claim while holding that the respondent could not be granted invalid
pension under CSR 441 because no documentary evidence was produced
• by him to show that he was incapacitated from rendering public service
and the medical certificate produced by him did not declare him unfit for
ever and directed the appellants to fix the pension of the respondent under C
Rule 48-A of the 1972 Rules as if he had retired on 1.6.1972 on the basis
of his qualifying service that might be calculated upto that date. The
appellants submitted a Review application on the ground that Rule 48-A
was not in operation on 1.6.1972 but had been inserted by notification
dated 28.11.1978 w.e.f. 26.8.1977. The review application was dismissed as D
,,< barred by limitation as well as on the ground that the judgment did not
suffer from any error apparent on the face of the record. These appeals
'.-
had been filed against the judgments of the Tribunal.
,
The question raised for determination were : (i) whether the direc-
tion to treat the respondent as having retired from service from 1.6.1972 E
was in consonance with the earlier judgment of the Tribunal dated
30.11.1987; and (ii) whether under the 1972 Rules pension is payable even
, if the respondent is treated as having retired on 1.6.1972. The respondent
submitted that since the offer of the respondent for voluntary retirement
was not accepted by the competent authority he should be treated to have F
' continued in service till he attained the age of superannuation in 1987 and
he was entitled to pension and that as in the present case involving an
individual employee since substantial justice had been done by the
Tribunal by directing payment of pension it was not a case which called
for interference by this Court under Article 136 of the Constitution.
G
Allowing that appeal, this Court

' HELD 1.1. The power of this Court under Article 136 of the Con-
stitution be exercised sparingly and the Court does not ordinarily interfere
with the orders of the Tribunal on individual disputes. But since Che H
(
/
1134 SUPREME COURT REPORTS [1996] 1 S.C.R.

A possibility of the impugned judgment being used as a precedent in future,
could not be ignored, the impugned judgment could not be allowed to stand
• •
and the matter called for interference of this Court under Art 136 of the
Constitution. Under the impugned judgment the Tribunal had extended
pensionary benefits to the respondent which were not available to him in
law. (1141-F-H)
B
1.2. Having regard to the conduct of the respondent as well as the
appellants, the Tribunal in its order dated 30.11.87, while giving the
direction regarding releasing GPF, leave salary and either dues to the •
respondent and for payment of interest @9% on such dues from April 20
C 1972 had proceeded on the basis that the respondent should be deemed to
have retired on 20.4.1972. The direction that interest should be paid on
GPF with effect from April 20, 1972 could be justified only on the ground
that GPF was payable on April 20, 1972 which meant that the deemed date
of retirement of the respondent was April 20, 1972. The view expressed by
D the Tribunal in the later judgment dated August 27, 1992 that in its earlier
judgment dated November 30, 1987 it had not held-that the respondent
should be deemed to have retired on April 20, 1972 could not, therefore,
be upheld. In the judgment dated August 27, 1992 the Tribunal had
directed that the respondent should be treated to have retired on June 1,
1972. The said direction could not be reconciled with the direction given .-
E by the Tribunal in its earlier judgment dated November 30, 1987. The
Tribunal had not given any cogent reason for arriving at this date, i.e. June
1, 1972. Merely because the 1972 Rules came into force on June 1, 1972
could not be basis of altering the date of retirement of the respondent from
April 20, 1972 to June 1, 1972. (1139-F-H; 1140-A-B)
F
1.3. Rule 48(A) was inserted in the Central Civil Services (Pension)
Rules, 1972 by notification dated November 28, 1978 with effect from
August 26, 1977. Even if the respondent was treated to have retired on Jone
1, 1972, as directed by the Tribunal in its judgment dated August 26-, 1992,
he cannot claim pension on the basis of Rule 48-A because the said
G provision was not in force on June 1, 1972 and came into force much later
on August 26, 1977. (1140-D-E)

1.4. The only possible construction that could be placed on the direc-
tion that was given by the Tribunal in its judgment dated November 30, 1987
H could he that the respondent was treated to have retired with effect from
GEN. MA:'-JAGER TELEPHONES,·. V.G. DESAI IS.C. AGR'\WAL. .LI 1135

April 20, 1972. The appellants as well as the respondents also proceeded on A
, '\ this interpretation of the said judgment and the dues payable to the respon-
dent were paid to him on that basis and GPF amount was also released with
interest @9% From April 20, 1972. The respondent having obtained the said
benefit under the judgment dated November 30, 1987 could not now be
permitted to say that he could not be treated as having retired on April 20,
B
1972 and that he continued in service till he attained the age of superannua-
tion as per rules in August, 1987. [1141-B-C]

Council of Scientific and lndusllial Research & Anr. v. KG.S. Bhatt &
Anr., [1989] 4 SCC 635, relied on.

C!VlL APPELLATE JURISDICTION: Civil Appeal Nos. 2570-71
c
of 1996.

From the Judgment and Order dated 3.12.93/27.8.92 of the Central
Administrative Tribunal, Ahmedabad in R.A.No. 43/93/0.A.No. 313 of
1989. ])

Ashok Mathur for the Appellant in C.A.No. 2570/96.

Raju Ramachandran, Sukumar Pattjoshi and Rajeev Kumar Singh for
the Appellant in C.A.No. 2571/96.
E
Narayan B. Shetye, B.N. Patel and S.C. Patel for the Respondent in
CA.No. 2570/96.

The Judgment of the Court was delivered by

S.C. AGRAWAL, J.: Special leave granted. F
V.G. Desai, respondent No. 1, was appointed as Telephone Operator
in the Telephone Department of the Government of India on August 30,
1948. He was promoted as Inspector with effect from November 12, 1959
in the said department. By order dated February 28, 1970, he was trans-
ferred from the office of Divisional Engineer Telegraphs Baroda to the G
) office of Divisional Engineer Telegraphs Rajkot at Kandla .. He
did not join
at the place of posting and remained on leave. Ultimately he submitted an
application dated September 25, 1971 whereby he sought further extension
of leave for 60 days and also sought retirement on medical grounds. By
application dated October 19, 1971, he requested the Divisional Engineer, H
I
1136 SUPREME COURT REPORTS [1996] 1 S.C.R.

A Telegraphs, to accept his resignation with immediate effect. Since a
vigilance case was pending against him since September 25, 1971, the said
request of resignation was not accepted. In the departmental proceedings
which were taken against him the punishment of censure was imposed on
him on March 20, 1972. On August l, 1980, he sent another letter request-
ing that his retirement case be settled and his GPF be released. Since no
B
action was taken on the said letter, he filed a Writ Petition in the Gujarat
High Court. After the constitution of Central Administrative Tribunal
(hereinafter referred to as 'the Tribunal), the said writ petition was trans-
ferred to the Tribunal and it was registered as TA No. 109 of 1986. The
said application was disposed of by the Tribunal by judgment dated
C November 30, 1987. The Tribunal was of the view that after the award of
the punishment of censure on March 20, 1972, there was no reason why
the authorities could not have decided on the letter for retirement on
medical grounds submitted by the respondent. According to the Tribunal,
if the question of withholding any part of pension or retirement benefits or
D GPF on account of the punishment imposed upon him,arise, this should
also have been decided immediately after 1972. In view of the delay an the
part of the authorities in dealing with that request of the respondent to
release his pensionary benefits, arrears of pay, GPF etc. the Tribunal gave
the following direction :

E "We, therefore, direct that the respondents decide the question of
releasing GPF leave salary and other dues of the petitioner within
a period of two months and further direct that an interest of 9%
should be payable on such dues to the petitioner from 20.4.1972
one month after the date of the order of punishment of censure
i.e., 30.3.1972. payment of the dues of the petitioner with interest
F should be effected within three months of the date of this order."

The respondent filed an application (MN392/88). which was dis-
posed of by order dated February 20, 1989 with the following observations:

"The judgment in TNl09/86 clearly states that the dues as indi-
G cated in it are required to be paid and further clarification is not
possible in this review application."

The respondent was paid the dues in accordance with the directions
contained in the judgment dated November 30, 1987 including the amount
H lying in his GPF account alongwith interest@ 9% from April 20, 1972. The
GEN. MANAGER. TELEPHONES,·. V.G. DESAI [S.C.AGRAWAL.J.] 1137

claim of the respondent for pension was, however, not accepted by the A
Divisional Engineer Telegraphs by his order dated February 26, 1988 on
the ground that he was not entitled to pensionary benefits as per the rules.

Thereafter the respondent filed another application (OA No. 313 of
1989) which has given rise to these appeals. In that application the respon-
dent sought the relief that a declaration may be given that he is entitled to
B
pensionary benefits on and from March 20, 1972 or from the date of
.., application made by him requesting for retirement on medical grounds, i.e.,
September 25, 1971. In the alternative he sought a declaration that he is
entitled to pensionary benefits on voluntary retirement as per the new
pension rules, namely, Central Civil Services (Pension) Rule, 1972 (for c
short '1972 Rules') or, in the alternative, for a declaration that he has
retired on superannuation on August 27, 1987 and that he is entitled to
pensionary benefits of retirement by superannuation.

The said application of the respondent was opposed by the appel- D
!ants on the ground that as per the decision of the Tribunal dated Novem-
ber 30, 1987 in TA No. 109 of 1986 the respondent had already been paid
arrears of pay alonb'With interest as per the directions of the Tribunal and
no cause survives. It was submitted that as per the judgment of the
Tribunal, the respondent is deemed to have retired with effect from April E
20, 1972 and, at that time, entire period of his qualifying service was 23
years 6 months and 20 days and since he had not completed 30 years of

• '· qualifying service, he could not get pension under the old rules. It was
submitted that the 1972 Rules had come into force from June 1, 1972 and
the respondent could not get pension under the said rules. It was also
submitted that the respondent also could not be granted invalid pension F
because the medical certificate submitted by him did not declare him unfit
for ever but for a specific period only.

By judgment dated August 27, 1992, the Tribunal has held that in the
earlier judgment dated November 30, 1987 in TA No. 109 of 1986 the G
Tribunal had not accepted the clahn of the respondent that he is deemed
to have retired on medical grounds and that the said claim has also not
been established by him in this petition. The Tribunal has, therefore,
rejected his claim that he was entitled to pensionary benefits on and from
March 20, 1972 or from the date of his application, i.e., September 25, 1971, H
J

J
1138 SUPREME COURT REPORTS [1996] 1 S.C.R.

A requesting to retire him on medical grounds. The Tribunal has also held
that the respondent could not be granted invalid pension under CSR 441
because no documentary evidence was produced by him to show that he
was incapacitated from rendering public service due to bodily or mental
infirmity and the medical certificate produced by him did not declare him
B unfit for ever but it decbred him unfit for a specific period only. The
Tribunal has, however, referred to the 1972 Rules, more particularly Rule
48-A, and has observed that on March 20, 1972, the respondent had
completed 20 years qualifying service and he could claim pension on the
basis of the said Rule. It was submitted on behalf of the appellants before
C the Tribunal that 1972 Rules had come into effect from June 1, 1972 and
the respondent could not avail the benefit of the said Rules. T)l.e Tribunal
has observed that the 1972 Rules were published vide notification dated
March 1, 1972 and at the time of hearing of TA No. 109 of 1986 neither
party had brought to the notice of the Tribunal that the 1972 Rule had
been notified in the Gazette on March 1, 1972 and if the same had been
D brought to the notice of the Tribunal it might have perhaps considered the
respondent for voluntary retirement finally at that stage considering the
said notification. The Tribunal further observed that if the appellants had
rejected the request of the respondent for retirement on medical grounds
immediately after the order dated March 20, 1972 imposing punishment of
E censure the respondent could have taken the advantage of the 1972 Rules
as per Rule 48-A and he could have given notice of not less than three
months in writing to the appellants to retire him from service as he had
completed 20 years qualifying service. The Tribunal directed the appellants
to fix the pension of the respondent under Rule 48-A of the 1972 Rules as
F if he had retired on June 1, 1972 on the basis of his qualifying service that
may be calculated upto that date.

The appellants submitted a Review application (R.A. No. 43 of 1993)
for the review of the said judgment of the Tribunal on the ground that Rule
48-A was not in operation on June 1, 1972 but had been inserted by
G notification dated November 28, 1978 with effect from August 26, 1977.
The said review application was, however, dismissed by the Tribunal by its
order dated December 3, 1993 as barred by limitation. The Tribunal has
also dealt with the said review application on merits and has held that the
judgment dated August 27, 1992 did not suffer from any error apparent on
H the face of the record.
GEN. MANAGER, TELEPHONESv. V.G. DESAI [S.C.AGRAWAL,J.) 1139

The appellants have filed these appeals against judgment dated A
• August 27, 1992 in OA No. 313 of '1939 as well as judgment dated
December 3, 1993 in R.A. No. 43 of 1993.

The impugned direction given by the Tribunal regarding payment of
pension to the respondent by treating him as having retired with effect from
June 1, 1972 involves two questions : (1) whether the direction to treat the
B
respondent as having retired from service from June 1, 1972 is in con-
sonance with the earlier judgment dated November 30, 1987; and (ii)
whether under the 1972 Rules pension is payable even if the respondent is
treated as having retired on June 1, 1972.
c
In the earlier judgment dated November 30, 1987, the Tribunal has
observed:

"The punishment of censure awarded after the inquiry following
the C.B.I. report came about on 20.3.1972. There is no reason why D
the respondents authorities could not have decided on the letter
for retirement on medical grounds thereafter, even if there was
any genuine reason for withholding consideration of his letter
before that date. The respondent authorities, therefore, have also
in a sense acquiesced in the position brought about the applicant
treating himself as if he had retired. If the question of withholding E
any part of pension or retirement benefits or G.P.F. on account of
the punishment imposed upon him arises, this should also have
been decided immediately after 1972."

This would show that having regard to the conduct of the respondent
F
as well as the appellants, the Tribunal, while deciding TA No. 109 of 1986,
had proceeded on the basis that the respondent should be deemed to have
retired on April 20, 1972 and gave the direction regarding releasing GPF,
leave salary and other dues to the respondent and for payment of interest
@ 9% on such dues from April 20, 1972. The direction that interest should
be paid on GPF with effect from April 20, 1972, could be justified only on G
the ground that GPF was payable on April 20, 1972 which meant that the
deemed date of retirement of the respondent was April 20, 1972. The view
expressed by the Tribunal in the later judgment dated August 27, 1992 in
OA No. 313 of 1989 that in its earlier judgment dated November 30, 1987
it had not held that the respondent should be deemed to have retired on H
1140 SUPREME COURT REPORTS [1996] l S.C.R.

A April 20, 1972 could not, therefore, be upheld. In the later judgment dated
August 27, 1992, the Tribunal had directed that the respondent should be
treated to have retired on June 1, 1972. The said direction could not be
reconciled with the direction given by the Tribunal in its earlier judgment
dated November 30, 1987. The Tribunal has not given any cogent reason
B for arriving at this date, i.e., June 1, 1972. Merely because the 1972 Rules
came into force on June 1, 1972 could not be the basis for altering the date
of retirement of the respondent from April 20, 1972 to June 1, 1972.

There is another serious infirmity in the direction given by the
Tribunal in its later judgment dated August 27, 1992 regarding payment of
C pension to the respondent on the basis that he should be treated to have
retired on June 1, 1972. The said direction appears to have been given by
the Tribunal on the basis that the respondent was entitled to invoke Rule
48-A of the 1972 Rules and since the said rules came into force on June
1, 1972, he was entitled to claim pension on the basis of the reduced period
D of 20 years of qualifying service. As indicated earlier Rule 48(A) was
inserted in the Central Civil Services (Pension) Rules 1972 by notification
dated November 28, 1978 with effect from August 26, 1977. Even if the
respondent is treated to have retired on June 1, 1972, as directed by the
Tribunal in its judgment dated August 27, 1992, he cannot claim pension
E on the basis of Rule 48-A because the said provision was not in force on
June 1, 1972 and came into force much later on August 26, 1977. This error
in the approach of the Tribunal was pointed out in the review application
filed by the appellants. The Tribunal, however, dijl not consider it neces-
sary to correct this apparent error in the judgment on the ground that the
review application was barred by limitation as well as on the ground that
F
the judgment dated August 27, 1992 did not suffer from an error apparent
on the face of the record.

Shri Narayan B. Shetye, the learned senior counsel appearing for the
respondent, has laid stress on the observations in the earlier judgment
G dated November 30, 1987 in TA No. 109 of 1986 that the respondent could
not claim that he must be deemed to have retired merely because letter
dated May 29, 1971 had not been replied to and until the competent
authority decided and communicated the reply to the respondent's request
for retirement on medical grounds it cannot be deemed that the respondent
H is retired merely because his letter had not been replied to. It is submitted
GEN. MANAGER, TELEPHONESv. V.G.DESAl[S.C.AGRAWAL.J.J 1141

that since the offer of the respondent for voluntary retirement was not A
accepted by the competent authority he should be treated to have con-
tinued in service till he attained the age of superannuation in 1987 and he
is en.titled to pension. We are unable to agree. As indicated earlier, the
only possible construction that could be placed on the direction that was
given by the Tribunal in its judgment dated November 30, 1987 could be B
that the respondent was treated to have retired with effect from April 20,
1972. The appellants as well as the respondents also proceeded on this
interpretation of the said judgment and the dues payable to the respondent
were paid to him on that basis and GPF amount was also released with
interest @ 9% from April 20, 1972. The respondent having obtained the C
said benefit under the judgment dated November 30, 1987 could not now
be permitted to say that he could not be treated as having retired on April
20, 1972 and that he continued in service till he attained the age of
superannuation as per rules in August, 1987.

.I Shri Shetye has urged that the present case involves an individual D
employee and since substantial justice has been done by the Tribunal by
directing payment of pension it is not a case which calls for .interference
by this Court under Article 136 of the Constitution. Reliance has been
placed on the decision of this Court in Council of Scientific and Industrial
Research & A111: v. K G.S. Bhatt & Anr., 1989 (4) SCC 635, wherein this E
Court has emphasised that in exercise of its jurisdiction under Article 136
of the Constitution this Court will not interfere with the orders of the
Tribunal unless there is manifest injustice or substantial question ~f public
importance. It is no doubt true that the power of this Court under Article
136 of the Constitution is to be exercised sparingly and the Court does not F
ordinarily interfere with the orders of the Tribunal on individual disputes.
But since the possibility of the impugned judgment being used as a prece-
dent in future, cannot be ignored we feel that the impugned judgment of
the Tribunal dated April 27, 1992 cannot be allowed to stand and the
matter calls for interference of this Court under Article 136 of the Con- G
stitution. We are not inclined to agree with the submission of Shri Shetye
that since substantial justice has been rendered this Court should not
interfere with the impugned judgment of the Tribunal. In our opinion
under the impugned judgment the Tribunal has extended pensionary
benefits to the respondent which were not available to him in law. H
1142 SUPREME COURT REPORTS (1996] 1 S.C.R.

A The appeal filed against judgment dated August 27, 1992 in OA
.<
No. 313 of 1989 is, therefore, allowed, the said judgment of the Tribunal
is set aside and OA No. 313 of 1989 filed by the respondent is dismissed.
Since the judgment dated August 27, 1992 in 0.A.No. 313 of 1989 has
been set aside the Review Application No. 43 of 1993 filed by the appel-
B !ants for the review of the judgment dated August 27, 1992 does not
survive and the appeal filed against the order dated December 3, 1993 on
the review application is dismissed as infructuous. There will be no order
as to costs.

R.A. Appeal allowed.