Holding

The exclusion of premature retirees who join PSUs from the service‑weightage for pension under the 30‑Oct‑1987 circular is a valid classification with a rational nexus to the policy objective and does not violate Article 14.

Summary

The case concerned Air Force officers who voluntarily retired under a scheme to join the public sector undertaking Vayudoot Ltd. The Government issued a circular on 30 Oct 1987 granting a service‑weightage for pension calculation, but a note excluded officers who retired prematurely for permanent absorption in PSUs from receiving that weightage. The respondents claimed that this exclusion violated Article 14 of the Constitution and sought the weightage to be granted. The Bombay High Court held the exclusion illegal and directed the government to add the weightage. On appeal, the Supreme Court examined whether the classification was reasonable and had a rational nexus to the policy of compensating early retirement in the armed forces. It held that officers who moved to PSUs received distinct benefits and the exclusion of weightage was a valid policy distinction, not discriminatory. Consequently, the Court set aside the High Court order and dismissed the writ petition.

Issues considered

The exclusion of officers who retired prematurely for permanent absorption in PSUs from the service‑weightage for pension under the 30‑Oct‑1987 circular violates Article 14.
The classification of premature retirees into those joining PSUs and those retiring for personal reasons is arbitrary or lacks a rational nexus.

Legislation cited

Constitution of Indias. Article 14

Subjects

Article 14EqualityPensionService weightagePremature retirementPublic sector undertakingAir ForceClassificationDiscriminationConstitutional law

Judgment

A UNION OF INDIA
v.
A.S. GANGOLI AND ORS.

APRIL 26, 2007

B [TARUN CHA TTERJEEAND R.V. RA VEENDRAN, JJ.]

Pension: Air Force Officers-Circular dated 19.2.1987 permitting
J •
prorata pensionary benefits to officers of defence services on immediate
c absorption in Public Sector Undertaking-Circular dated 30.10.1987
modifying regulations concerning pensionary benefits-As per Note (I) to
clause 5 of the said circular, there was no weightage to the quaiifying service
for determining pension in case of officers who retire prematurely for
permanent absorption in PSU's-High Court declared Note (1) to clause 5
as illegal-Correctness of-Held: Persons who retired prematurely for
D
immediate purpose ofjoining PSU's, clearly formed a distinct and separate
class-Jn view of the special benefits extended to them, if Note (1) to clause
5 excluded them from the benefit of weightage which was given to other
.
retirees, it is not discrimination-High Court completely overlooked these
aspects and its decision cannot therefore be sustained •
E
The Government of India, by Circulars dated 17.3.1986 and 19.2.1987
of the Defence Ministry, read with O.M. dated 6.3.1985 of Finance Ministry
permitted pro-rata pensionary benefits to officers of defence services on their
immediate absorption in Central Public Enterprises.
F
A scheme was notified by IAF on J.4.1986 inviting the officers in the
., '

age group of 40 to 47 years to retire voluntarily and join Mis. Vayudoot Ltd.
- a public sector undertaking. Several IAF officers including Respondents 1
to 10 applied for premature retirement from IAF under the said scheme. The
respondents accordingly joined Vayudoot Ltd. By order dated 13. 7.1987, the
G Ministry of Defence sanctioned pensionary benefits to respondents in terms
of Ministry's Circular dated 19.2.1987. ,.._
'
The Government of India issued a Circular dated 30.I 0.1987 in regard
J
H 706
U.0.1. v. A.S. GANGOLI 707
~

to the implementation of the Government decisions on the recommendations A
of the Fourth Central Pay Commission relating to pensionary benefits for
Armed Forces Officers/personnel retiring or dying in harness on or afte
1.1.1986. The said circular modified the rules and regulations concerning
pensionary benefits of Commissioned Officers and personnel below officer
rank. Clause 5 of the said circular defined 'qualifying service' as the actual
qualifying service rendered by the officer plus a specified weightage, for B
purposes of pension (the weightage being 9 years in the case of Pilot Offlcers
4 and Flight Lieutenants, 8 years for Squadron Leaders, 7 years for Wing
• Commanders and Group Captains, 5 years for Air Commodores, and 3 years
for Air Vice Marshals and Air Marshals).

As per Notes (1) and (3) to clause 5 of the Circular dated 30.10.1987,
c
there would be no weightage for officers and personnel below officer rank
who retire prematurely for permanent absorption in PSUs and autonomous
bodies. In view of Note (1) to clause 5, the pension and retirement gratuity of
the respondents were settled by treating the actual service rendered by them,
as the 'qualifying service', without addition of any weightage . D
. The respondents were aggrieved by the non-addition of weightage of their
qualifying service, for the purposes of pension and gratuity. According to them,
when the scheme was introduced, they were assured that there would be no
loss of pensionary benefits. They contended that Note (1) of clause 5 of the
Circulated dated 30.10.1987 which denied them the benefit of weightage E
amounted to a 'denial' of pensionary benefits and was also discriminatory.
They, therefore, filed writ petition in the High Court for quashing Note (1) to
clause 5 of the circular dated 30.10.1987 as being violative of Article 14.
They also sought a direction to the appellant to extend them the weightage of
, ..., seven years for computing their pension and weightage of five years for F
computing their retirement gratuity, re-calculate their pensionary benefits,
and pay the arrears.

The High Court declared Note (1) appended to clause 5 of the
Government Circular dated 30.10.1987 as illegal and inoperative and issued
a consequential direction to the appellant to grant a weightage of 7 years for G
computing pension and weightage of 5 years for computing the retirement
gratuity of the respondents and pay them the difference. Hence the present
appeal

Allowing the appeal, the Court
H
708 SUPREME COURT REPORTS (2007) 5 S.C.R.

A HELD: I. The case on hand relates to denial ofservice weightage to a
specific class of retirees. So long as the exclusion is for reasons which are
valid and reasonable and there is no discrimination, the respondents can have
no grievance. (Para 18) (719-C]

2. The purpose of adding varying periods ofweightage to the qualifying
B service of defence service officers is to compensate for, or offset the
disadvantage of early age of superannuation in defence service. The weightage
of 7 years for a Group Captain is because he normally retires from Air Force j.
Service at a comparatively early age of 52 years. If a Group Captain is .
permitted to prematurely retire so that he can be permanently absorbed
immediately in a public sector undertaking where the retiring age is 58 or
c 60, the need to provide weightage disappears. Further, special provisions were
made for such retirees under the circulars dated 17.3.1986 and 19.2.1987.
They directed that premature retirement, to take up employment under PSUs,
with the permission of the Government, will not entail forfeiture of service or
retirement benefits. In such cases, the officer is deemed to have retired from
D the date of premature retirement and eligible to receive the retirement
benefits, enumerated in those circulars. Therefore, the decision not to extend
the benefit of weightage to those who retired prematurely for immediate ...
permanent absorption in a PSU or autonomous body is a matter of policy of
the Government supported by logical reasons. So long as such policy is not
manifestly arbitrary and does not violate any constitutional or statutory
E provision, it is not open to challenge. [Para 11) (714-A, B, C, DJ

3. The officers who took premature retirement for the purpose of
immediate employment in PSUs/autonomous bodies received several specific
benefits, including assured immediate re-employment and extended service.
F The persons who retire in the usual course and those who prematurely retiry f '
for personal reasons, were not entitled to those special benefits. Therefore,
the persons who retired prematurely for immediate purpose of joining PSUs.,
clearly formed a distinct and separate class. In view of the special benefits
extended to them, if note (1) to Regulation 5 excluded them from the benefit
of weightage which was given to the other retirees, it is not discrimination.
G The High Court completely overlooked these aspects and its decision cannot
therefore be sustained. [Para 13) (715-C, D, EJ
,.. •

4. The Respondents contended that they had no choice but to prematurely
retire, as they were 'directed' to take premature retirement in public interest
and therefore, they have to be treated on par with other retirees. This is
H
U.O.l. v. A.S.GANGOLI (RV.RAVEENDRAN,J.] 709
4
factually incorrect. The Appellant did not direct the Respondents to take A
· premature retirement. It framed a scheme which enabled certain catego1 :es
of officers to take premature retirement voluntarily, so that they can join
Vayudoot ltd., a public sector undertaking. The Scheme, as also the order
dated 6.5.1987, clearly show that the respondents applied for premature
retirement voluntarily for the purpose of joining Vayudoot and the Government
granted approval for their premature retirement in public interest so that B
they could be absorbed in Vayudoot. This is not a case of compulsory retirement
in public interest nor a case of directing the employees to retire prematurely
• ~ in public interest. The expression "in public interest" is used in the order
dated 30.5.1987 with reference to the acceptance of the request for voluntary
retirement. The permission to take up commercial employment linked to the
acceptance of the request for premature retirement, unshackled the
c
Respondents from the rigours of the Air Force Pension Regulation No. 18. It
is, therefore, clear that but the prior permission, the voluntary premature
retirement would have entailed the denial of pensionary benefit in the manner
and to the extent mentioned in clause (c) of Regulation 18.
[Para 141 [715-F, G, H; 716-A, F, GI D
•· Union of India v. Lt. Col. P.S. Bhargava, (19971 2 SCC 28, distinguished.

Col. B. J. Akkara (Retd.) v. Government of India, [2006] 11 SCC 709;
State of Maharashtra v. Digambar, (19951 4 SCC 683 and Lt. Col. B. R.
Malhotra v. Union of India, 71 (1998) Delhi Law Times 498, referred to.
E
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2737 of2002.

From the Final Judgment and Order dated 14.03.2001 of the High Court
of Judicature at Bombay in Writ Petition No. 2973 of 1989.

# )' Vikas Singh, A.S.G., Kiran Bhardwaj, Shailender Sharma, R.C. Kathia, F
D.S. Mabra, B.V. Bairam Das and Anil Katiyar for the Appellant.

Shekhar Naphde, Chinmony Khaladkar, S.K. Nandy and R.P. Wadwani
for the Respondents.

K.K. Rohatgi, Shanshank Shekhar, Praveen Jain, S.K. Dhingra and V.N. G
Raghupathy for the Intervenors.

The Judgment of the Court was delivered by
R.V. RA VEENDRAN, J. I. This appeal by special leave is directed
against the judgment dated 14.3.2001 passed by the Bombay High Court in
W.P. No.2973of1989. H
710 SUPREME COURT REPORTS (2007] 5 S.C.R.

A 2. Respondents l to I0 were commissioned into fndian Air Force (IAF
for short) during 1963 to 1967. By the year 1987, they had put in more.than
20 years of service and had reached the rank of either Group Captain or Wing
Commander.

3. The Government of India, by Circulars dated 17.3.1986 and 19.2.1987
B of the Defence Ministry, read with O.M. dated 6.3.1985 of Finance Ministry
permitted pro-rata pensionary benefits to officers of defence services on their
immediate absorption in Central Public Enterprises. As there was a surplus of
~ ,.
officers in the middle seniority level, !AF came up with schemes from time to
time enabling officers to take premature retirement voluntarily and join public
c sector undertakings ('PSUs' for short) and autonomous bodies, without losing
the pensionary benefit relating to the !AF service. One such scheme notified
on 1.4.1986 invited the officers in the age group of 40 to 47 years to retire
voluntarily and join Mis. Vayudoot Ltd.- a public sector undertaking. Several
!AF officers including Respondents 1 to 10 applied for premature retirement
from !AF under the said scheme in order to join Vayudoot Ltd. By order dated
D 6.5.1987, the Air Headquarters accepted the proposal for permanent absorption
of respondents in Vayudoot Ltd. and also conveyed the Government's approval
for premature retirement of the respondents from the Indian Air Force in ..
public interest with effect from 18.5.1987. The respondents accordingly left
IAF and joined Vayudoot Ltd. By order dated 13.7.1987, the Ministry of
Defence sanctioned pensionary benefits to respondents in terms of Ministry's
E
Circular dated 19.2.1987.

4. The Government of India issued a Circular dated 30.10.1987 in regard
to the implementation of the Government decisions on the recommendations
of the Fourth Central Pay Commission relating to pensionary benefits for
F Armed Forces Officers/personnel retiring or dying in harness on or after f •
l .1.1986. The said circular modified the rules and regulations concerning
pensionary benefits of Commissioned Officers and personnel below officer
rank, to the extent indicated therein. Clause 5 of the said circular defined
"qualifying service" reckonable for pension and Death-cum-Retirement gratuity
as follows :
G
(i) the actual qualifying service rendered by the officer plus a )> 'I
specified weightage, for purposes of pension (the we!ghtage
being 9 years in the case of Pilot Officers and Flight Lieutenants,
8 years for Squadron Leaders, 7 years for Wing Commanders and
Group Captains, 5 years for Air Commodores, and 3 years for Air
H
U.0.1. v. A.S. GAN GO LI [R.V. RAVEENDRAN, J.] 711
Vice Marshals and Air Marshals). A
(iI) the actual qualifying service rendered by the officer plus a
weightage of 5 years for purposes of Death-cum-Retirement
Gratuity.

The grant of above weightage was subject to the condition that total qualifying B
service including weightage shall not exceed 33 years. Notes (I) and (3) to
clause 5 of the circular dated 30.10.1987 relevant for our purpose are extracted
below:

"(I) There will be no weightage for officers and personnel below
officer rank who retire prematurely for permanent absorption in PS Us C
and autonomous bodies.

(3) The above weightage shall not be reckoned for determining the
minimum qualifying service specified for admissibility of Retiring/
service Pension i.e. 20 years for service officers (15 years for late D
entrants), 15 years for personnel below officer rank and 20 years for
NCs(E)."

In view of Note (I) to clause 5, the pension and retirement gratuity of the
respondents were settled by treating the actual service rendered by them, as E
the 'qualifying service', without addition of any weightage.

5. The respondents were aggrieved by the non-addition of weightage
to their qualifying service, for purposes of pension and gratuity. According
to them, when the scheme was introduced, they were assured that there
would be no loss of pensionary benefits. They contended that Note (1) to F
clause 5 of the Circular dated 30.10.1987 which denied them the benefit of
weightage amounted to a 'denial' of pensionary benefits and was also
discriminatory. They, therefore, filed W.P. No.2973 of 1989 in the Bombay High
Court for quashing Note (I) to clause 5 of the circular dated 30.10.1987 as
being violative of Article 14. They also sought a direction to the appellant
to extend them the weightage of seven years for computing their pension and G
weightage of five years for computing their retirement gratuity, re-calculate
their pensionary benefits, and pay the arrears.

6. The writ petition was resisted by the appellant. It contended that the
respondents did not suffer any loss of pensionary benefits, as pen5ion and
H
712 SUPREME COURT REPORTS [2007] 5 S.C.R.

A retirement gratuity were calculated with reference to the actual qualifying
service rendered by the respondents as per Rules. It was further contended
that the Government's decision (in pursuance of the Fourth Pay Commission
recommendations) to provide weightage in calculating the qualifying service
to the retirees and exclusion of the class of retirees described in Note (I) to
Clause 5, from such benefit was a matter of policy, arrived at after taking note
B of relevant factors. It was submitted that exclusion under Note (I) was not
discriminatory as those officers who retired prematurely for being pennanently
absorbed in PSUs/autonomous bodies constituted a 'well-defined class' who
had been provided several benefits, distinct and different from regular retirees.
It was submitted that the classification was based on an intelligible differentia,
C which had a rational nexus with the object sought to be achieved.

7. The writ petition was allowed by judgment dated 14.3.2001. The High
Court declared Note (I) appended to clause 5 of the Government Circular
dated 30.10.1987 as illegal and inoperative and issued a consequential direction
to the appellant to grant a weightage of 7 years for computing pension and
D weightage of 5 years for computing the retirement gratuity of the respondents
and pay them the difference. The decision of the High Court was based on
the following reasoning :

(i) There was no rationale for carving out a separate category in
respect of the group of officers and personnel who retired prematurely
E for being pennanently absorbed in PSUs and autonomous bodies and
denying them weightage. The classification of retirees - one class
consisting of officers/personnel who were pennitted to retire
prematurely for personal reasons, and another class consisting of
officers/personnel who were pennitted to retire prematurely for joining
F PSUs/autonomous bodies - was neither justifiable nor reasonable. The
mere fact that different periods of qualifying service were prescribed
for the two sets of retirees, was not sufficient to treat them differently.

(ii) When officers and personnel who sought premature retirement for
personal reasons, were treated as nonnal retirees and extended the
G benefit of weightage, there was no reason why the officers and
personnel whose premature retirement was accepted in public interest
(for immediately joining PSUs), should be denied the benefit of
weightage.

The said judgment is challenged by Union of India. The appellant contends
H that the High Court failed to take note of the relevant factors while considering
U.O.l. v. A.S. GANGOLI [R.V. RAVEENDRAN, J.) 713
whether there was a reasonable classification and whether there was hostile A
discrimination.

8. On the contentions urged, the question that arises for our
consideration is whether denial of benefit ofweightage (for pensionary benefits)
to officers and personnel, who retired prematurely for permanent absorption
in PSUs/autonomous bodies, is violative of Article 14. B
9. According to the Respondents, the object of providing a weightage
(that is addition of a certain number of years to the qualifying service) for
purpose of pension and gratuity of defence personnel was to compensate
them for the comparatively younger superannuation age, and for the hazardous C
and risky nature of defence service. It is stated that the Squadron Leaders
retire at the age of 48 years, Wing Commanders at the age of 50 years and
Group Captains at the age of 52 years as against the normal retirement age
of 58/60 years. As the age of retirement increased as one rose in hierarchy
of defence service, the weightage correspondingly decreased. As noticed
above, the weightage for pension was 9 years for Pilot Officers, 7 years for D
Group Captains, 5 years for Air Commodores and 3 years for Air Marshals.
The respondents contend that having regard to the object underlying service
weightage, any classification, among retiring defence personnel, with the
intention of excluding a particular section of them from the benefit of service
weightage, was violative of Article 14. E
10. The appellant does not seriously dispute that the weightage given
under clause 5 of the circular dated 30.10.1987 has some nexus with the early
age of retirement in the defence services. But the Appellant submits that the
very logic behind Respondents' contention would defeat their claim. It is
~· ) pointed out that if the reason for grant of weightage is the early age of F
retirement resulting in a lesser service period, then the benefit of weightage
should rightly be denied when alternative civilian service is made available
thereby removing the disadvantage of shorter defence service. It is contended
that note (I) to clause 5 excludes the benefit of weightage only to those who
prematurely retire from defence service, for the immediate purpose of permanent G
absorption in a PSU/autonomous body, where the age of retirement is much
higher. It is, therefore, contended that the classification has a valid and direct
nexus with the object sought to be achieved.

11. There is considerable force in the submission of the appellant.
H
714 SUPREME COURT REPORTS [2007] 5 S.C.R.

A Varying periods of weightage are added to the qualifying service of defence
service officers to compensate for, or offset the disadvantage of early age of
superannuation in defence service. The weightage of 7 years for a Group
Captain is because he normally retires from Air Force Service at a comparatively
early age of 52 years. If a Group Captain is permitted to prematurely retire so
that he can be permanently absorbed immediately in a public sector undertaking
B where the retiring age is 58 or 60, the need to provide weightage disappears.
Further, special provisions were made for such retirees tinder the circulars
dated 17.3.1986 and 19.2.1987. They directed that premature retirement, to take
up employment under PSUs, with the permission of the Government, will not
entail forfeiture of service or retirement benefits. In such cases, the officer is
C deemed to have retired from the date of premature retirement and eligible to
receive the retirement benefits, enumerated in those circulars. Therefore, the
decision not to extend the benefit ofweightage to those who retired prematurely
for immediate permanent absorption in a PSU or autonomous body is a matter
of policy of the government supported by logical reasons. So long as such
policy is not manifestly arbitrary and does not violate any constitutional or
D statutory provision, it is not open to challenge.

12. We will now refer to the several benefits that were available to those
who retired prematurely for joining public sector undertakings which were not
available to other retirees. We have listed them in the following comparative
E table:

Premature retirees for joining PSUs/ Premature retirees for personal
autonomous bodies reasons and persons retiring on
attaining the age of
superannuation.
F I. The minimum qualifying service 1. The minimum qualifying service
for pension: IO years (vide Circular for pension : 20 years (vide
dated 19.2.1987) Regulation 25 of Air Force Pension
Regulations).

2. The retirees entitled to 100% 2. The commutation permissible
G
commutation of pension (vide the only in respect of a portion of
Vayudoot scheme and circular dated pension not exceeding 43% (vide
192.1987). Air Force Instructions 4/S, para
13).

H
U.O.l. v. A.S. GAN GO LI [R.V. RA VEENDRAN,J.] 715

3. The retirees entitled to immediate A
3. The retiree (of the rank of Group
employment without any 'lock-in' Captain and above) could not
period. (Vide Vayudoot scheme and accept commercial employment for
order dated 6.5.1987). a period of 2 years from the date
of retirement (unless the retiree
obtains the special permission of B
the President) - vide Regulation
18 of Air force Pension
Regulations.

4. The retiree will have additional 4. The retiree's service comes to
service till age of superannuation an end with effect from the date of c
under PSU/ autonomous body. retirement/premature retirement.

13. It is thus seen that the officers who took premature retirement for
the purpose of immediate employment in PSUs/autonomous bodies received D
several specific benefits, including assured immediate re-employment and
extended service. The persons who retire in the usual course and those who
prematurely retire for personal reasons, were not entitled to those special
benefits. Therefore, the persons who retired prematurely for immediate purpose
of joining PSUs., clearly formed a distinct and separate class. In view of the E
special benefits extended to them, if note ( 1) to Regulation 5 excluded them
from the benefit of weightage which was given to the other retirees, it is not
discrimination. The High Court completely overlooked these aspects and its
decision cannot therefore be sustained.

14. The Respondents contended that they had nci choice but to F
prematurely retire, as they were 'directed' to take premature retirement in
public interest and therefore, they have to be treated on par with other
retirees. This is factually incorrect. The Appellant did not direct the
Respondents to take premature retirement. It framed a scheme which enabled
certain categories of officers to take premature retirement voluntarily, so that G
they can join Vayudoot Ltd., a public sector undertaking. The scheme, as also
the order dated 6.5.1987, clearly show that the respondents applied for
premature retirement voluntarily for the purpose of joining Vayudoot and the
Government granted approval for their premature retirement in public interest
so that they could be absorbed in Vayudoot. This is not a case of compulsory
retirement in public interest nor a case of directing the employees to retire H
716 SUPREME COURT REPORTS (2007] 5 S.C.R.

A prematurely in pub! ic interest. The expression "in public interest'' is used in
the order dated 30.5.1987 with reference to the acceptance of the request for
voluntary retirement. The permission to take up commercial employment linked
to the acceptance of the request for premature retirement, unshackled the
Respondents from the rigours of the Air Force Pension Regulation No. 18
which is extracted below:
B
"18. (a) An officer who is granted any pension, gratuity or other
benefit in respect of his air force service or who is likely to receive
f
any pension, gratuity or other benefit under these Regulations shall
obtain the permission of the President before accepting an employment
under a Government outside India at any time after his air force
c service has ceased. An officer of the rank of Group Captain or above
whether held in substantive capacity or otherwise, who is granted a
pension, gratuity, or other benefit in respect of his air force service
or who is likely to receive any pension, gratuity or other benefit under
these Regulations, shall also obtain such permission prior to
D acceptance of any commercial employment before the expiry of two
years from the date his air force service ceases.
_..
(b) An officer permitted by the President, before his air force service
ceases, to take up a particular employment under a Government outside
India, or commercial employment, shall not, however, be required to
E obtain subsequent permission for his continuance in that employment.
(c) No service or disability pension or other recurring benefits shall
be payable to any officer who accepts an employment in contravention
of the provisions of this regulation, in respect of any period for which
he is so employment or for such a longer period as the President may
F direct. Gratuity where due, but not already paid, shall also be liable l
'
to be forfeited in part or in full as the President may, at his discretion,
decide.
It is, therefore, clear that but for the prior permission, the voluntary premature
retirement would have entailed the denial of pensionary benefit in the manner
G and to the extent mentioned in clause (c) of Regulation 18.

15. Another contention urged by the respondents is that there was an " i

assurance by the appellant that there would be no loss of benefits in the
matter of pension and gratuity if they took premature retirement and that
assurance was breached by denying the benefit of weightage. But the
H respondents have not been denied the benefit of pension or gratuity. Their
U.0.1. v. A.S. GANGOLI [R.V. RAVEENDRAN, J.] 717
pension and retirement gratuity have been calculated with reference to their A
actual qualifying service and they have been given those benefits. What has
been denied to them is not pension benefits, but the benefit of weightage
which was given to retirees under clause 5 of the Circular dated 30.10.1987.
The benefit of weightage is denied only to those who retired prematurely for
the immediate purpose of joining PSUs/autonomous bodies. We have already B
referred to the reasons for such denial. First, they will have the benefit of
joining immediately and continuing in service in a public sector undertaking
or autonomous body, without losing their pensionary benefits. The other
retirees including those retiring prematurely on personal grounds did not
have the benefit or such immediate assured alternative employment, with
pensionary benefits for the defence service intact. Secondly, they got the C
benefit of 100% commutation and a lesser minimum period of qualifying
service which the other retirees did not get.

16. It was next contended that certain retirees (Wing Commander H.M.
Majumdar and Others) who took premature retirement on personal grounds,
were subsequently permitted to take up commercial employment even before D
the expiry of two years, and as a result, they got the benefit of service
weightage as also the benefits of a commercial employment. It is, therefore,
contended that there is no justification for denying the respondents the
benefit of weightage. But, it should be noted that the cases referred to are
of officers who took premature retirement on personal grounds and not for E
the purpose of joining the service of any PSU. Consequently, note (I) to
clause 5 of Circular dated 30.10.1987 did not apply to them and therefore, they
were given the benefit of service weightage. They were all of the rank of Wing
Commander and were not subject to the two years bar on commercial
employment imposed under Air Force Pension Regulation No. 18. The fact
,. • that after retiring on personal grounds, they searched and secured employment F
in some PSU/autonomous bodies is a fortuitous circumstance. Many who
retired on personal grounds, have not secured any employment elsewhere, let
alone with PSUs. Therefore, the cases of those who retired on personal
grounds (but subsequently secured employment), cannot be compared with
respondents who prematurely retired for the immediate assured employment G
in a PSU/autonomous body.

17. It was contended that one Lt. Col. B. R. Malhotra was permitted to
retire prematurely for the immediate purpose of being absorbed in a PSU
(Bharat Electronics Ltd - 'BEL' for short); that he was also denied the benefit
of weightage, and approached the Delhi High Court in CWP No. 184 of 1997 H
718 SUPREME COURT REPORTS [2007] 5 S.C.R.

A and the High Court granted the benefit of weightage by its judgment dated "
12.11.1997 [reported in Lt. Col. B. R. Malhotra v. Union of India, 71 (1998)
Delhi Law Times 498]; that the appellant did not challenge the said decision,
but gave effect to it; and that having done so, the Appellant is required to
give such relief to Respondents also in view of the doctrine of constructive
res judicata. An identical contention claiming relief based on a direction in the
B case of another retiree, was negatived by this Court in Col. B. J. Akkara
(Retd) v. Government of India, [2006] 11 SCC 709, following the earlier
decision in State ofMaharashtra v. Digambar, [1995] 4 SCC 683. This Court
f
held:

"A particular judgment of the High Court may not be challenged by
c the State where the financial repercussions are negligible or where the
appeal is barred by limitation. It may also not be challenged due to
negligence or oversight of the dealing officers or on account of wrong
lega' advice, or on account of the non-comprehension of the
seriousness or magnitude of the issue involved. However, when similar
D matters subsequently crop up and the magnitude of the financial
implications is realized, the State is not prevented or barred from
challenging the subsequent decisions or resisting subsequent writ
petitions, even though judgment in a case involving similar issue was
allowed to reach finality in the case of others. Of course, the position
would be viewed differently, if petitioners plead and prove that the
E State had adopted a 'pick and choose' method only to exclude
petitioners on account of malafides or ulterior motives."

That apart, the facts of the case of Lt. Col. B. R. Malhotra were different. He
was working on deputation with BEL. He retired from the Anny on 12.5.1985.
F He got absorbed in BEL and was given post facto sanction by the President 1 •
on 10.7.1985. Certain 'weightage element' was sought to be deducted from the
standard rate of pension on the grou11d that he had been pennanently absorbed
in a PSU. The High Court found that there was in fact no weightage element
in his case and there was also no rule or regulation applicable to him, which
enabled Union of India to deduct any 'weightage element'. The said decision
G is, therefore, of no reievance.
18. Respondents placed reliance on the decision of this Court in Union /
ofIndia v. Lt. Col. P.S. Bhargava, [1997] 2 SCC 28 wherein while considering
Regulation 16 of Anny Regulations (which is.in pari materia with Regulation
16 of the Air Force Pension Regulations), this Court held that once an Anny
H
U.O.I. v. A.S. GANGOLI [R.V. RAVEENDRAN. J.] 719
Officer has to his credit the minimum period of qualifying service, he earns A
a right to get pension and such right can be taken away only if his service
is not satisfactory (vide Regulation 3) or where he is cashired or dismissed
or removed from service (under Regulation 16). This Court further held that
cases of voluntary resignations of officers, who have to their credit the
minimum period of qualifying service, did not faH under the categories who
can be denied pension and, therefore, such officers, who voluntarily resign, B
cannot automatically be deprived of their terminal benefits. The said decision
deals with the right to pension and is of no assistance to the respondents,
• as we are not concerned with any denial of pension or pensionary benefits .
The case on hand relates to denial of service wcightage to a specific class
of retirees. So long as the exclusion is for reasons which are valid and C
reasonable and there is no discrimination, the respondents can have no
grievance.

19. We, therefore, allow this appeal, set aside the order of the High
Court and consequently, the writ petition of the respondents stands dismissed.
D
D.G. Appeal allowed.