SMT. POONAMAL ·ETC. ETC. v. UNION OF INDIA AND ORS.

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Supreme Court of India
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[1985] 3 S.C.R. 1042

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[1985] 3 S.C.R. 1042

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Headnote — Supreme Court Reports (editorial summary, not part of the judgment)

Held

1. Since the family pension scheme has become non-contribu- tory effective from September 22, 1977, any attempt at denying its benefit to widows and dependents of Goverllment servants who bad not taken advantage of the 1964 liberalisation scheme by making or agreeing to make necessary con- tribution would be denial of equality to persons similarly situated and hence violative of Art. 14. If widows and dependents of deceased Government ser- vants since after September 22, 1977 would be entitled to benefits of family pension scheme without the obligation ·or ·making contribution, those widows who were denied the benefits on the ground tbat the Government servants having not agreed to make the contribution, could not be differently treated because that would be introducing an invidious classification among those who would be entitled to similar treatment. [IOOi B-D]

Reporter's headnote (continued) and case details

io42 A' SMT. POONAMAL ·ETC. ETC.

UNION OF INDIA AND ORS.

April 30, 1985

[D.A. DESAI AND RANGANATH MISRA, JJ.J Ci11il Service :

Family P1nsion-Contributories to scheme entitled to family pension- " Scheme liberalised-Pre-condition of contribution done away with-Benefit not ex- tended to non-contributories-Whether violates Art. 14 of the Constitution.

Since January 1, 1964, there were in fo.rce two parallel family pension D schemes in operation, namely, (a) a pre-liberalisation scheme which continued to be in force for those who retired prior to 1.1.1964 or those who did not contri- bute _out of the death-cum-retirement gratuity, rollgbly styled· as non-contri· butory scheme. The other was the contributory scheme. Both these schemes are incorporated in Rule 5 t and 55 respectively of the Ci~il Servkes Pension Rules 1972. On September 22, 1977 the Government of India done away wi1h the pre-condition of contribution of two months' emoluments :E out of death-cum-retirement gratuity. But, the widows of the Government servants who had ·not agreed to make the contribution in accordance with the 1964 sche1ne were denied the benefit of pension scheme and this disability conti- nued even after the changes introduced in 1977 when the scheme ceased to be contributory. Such widows moved Supreme Court and Bombay l-ijgh Court in writ petitions. The High Court reject~d the writ petition.·

Dispos~ng of the petitions and the appeal to this Court,

POONAMAL v. UNION (Desai, J.) ' '.. 1043

2. Where the Government servant . rendered service, to compensate A which a family, pension scheme is devi<ied th-.: widow· and the dependent minors would equatly be entitled to family pension as .a 1natter o·r right. If fact the Court looks Upon pension not merely as a: statutory right but as the fulfilment of a constitutional Promise inasm.uch as. it. ,partakes the character of public assistance in caseS of unemployn1ent old-age .. disablement or sim lar other cases of undeserved ·want. Relevant rules mereiy inakc effective the constitutional mandate. That is how pe.nsion has b~en tOoked upon in D.S. Nakara's case, B [1983) 2 S.C.R. 165. [1045; G-H 1046 Al

CIVIL ORIGINAL JURisDic'riON Writ Petitions' Nos. 5870.93/81. 'under Article 32 of the constitution"of India WITH. Civil Appeal NO. 2226/ 85 c From the' Judgment and Order dated 14. 2'. 1984 of the Bombay High Court ' in Writ . Petition . No. 4215 of 1983 'yogesbwar Prasad, .H. Salve, P. H. Parekh, Mrs., Rani Chhabra, Ms . . Data Krishnamurthy, Ms. A. Subhashini, A. S. D . Pundir; J. S. B11i, S. Ba/afcrishnan,"Pramod Sarup· and R. S. Sodhi, for the petitioners. V. B. Joshi for the Appellant.

Judgment

The following Judgment of the Court was delivered by DESAI, J. Promise of socio.economic justice depicted in rosy language in Arts. 38, 39 and 41 is being translated into a real E action-oriented programme by the stand taken by the Union of , . India and the Ministry of Finance in this group of petitions and application for special leave which deserves approbation and com- ..., mendation. Amongst the neglected sections of the society women form a. bulk. In that bigger class widows are possibly ·the worst \ F ) sufferers both socially and economically. To them, a helping hand is extended, f6r providing succour sorely needed, by the two state- .

. ments made in the Court by Mr. B. Dutta, learned counsel appea- ring for the Union of India and the Ministry of Finance. Through- out the course cif hearing, Mr. B. Dutta adopted a positive, cons- tructive and helpful attitude; and he J is equally entitled to our appreciation. G As a sequel to the decision of the Constitution Bench of this Court in D..s. Nakata and Others v. Union of India(1) a number of petitions came to be filed by persons claiming to be entitled to 'ihe so- cially berieficient approach of the Court. One such group comprised (I) [1983] 2 SCR 16~ H

1044 SUPREME COURT RBPOR.TS (1985] 3 S.C.R

widows ·or erstwhile Government servants who are not in receipt of family pension •

.Family pension came to be conceptualised in the year 1950. When a Government servant die io harness or soon after retirement, io the traditional Indian family on the death of the only earning member, the widow or the minor children were not only rendered orphans but faced more often destitution and starvation. Tradi- · J tionally speaking the widow was hardly in a position to obtain gainful employment. She suffered the most in as much as she was deprived of the companionship of the husband and also became economically orphaned .. As a measure of socio-economic justice >----- c family pension scheme was devise to help the widows tie over the crisis .and till the minor children attain majority to extend them some succour. This appeared to be the underlyiag motivation in devising the family pension scheme, It was liberalised from time to time. The liberalisation was however subject lathe condition that the Government Servant bad in his life time agreed that he shall make D' .a ·contribution of an amount equal to two months' emoluments or Rs. 5,000 whichever is less out of the death-cum-retirement gratuity. Those Government servants wh) did not accept this condition were denied the benefit of family pension scheme. ·

Focussing on the liberalisation that was introduced in 1964 E it transpires that toe widow and ihe minor children of those Govern- ment servants who died prior to 1964 were not eligible for the benefit of liberaHsed scheme. The other class which was left out of the liberalisation. scheme was those Government servants who specifically opted out of the family pension scheme, 1964. The resultant situation was that since January 1,1964 there were·in force F two parallel schemes in operation namely a) a p1 e-liberalisation scheme which continued to be in force those who retired prior to l.1.1964 or those who did not contribute out of the death-cum- retirement gratuity, roughly styled as non-contributory scheme. The other was the contributory scheme. Both these schemes are incorpo- rated in Rule 54 and 55 respectively of the Civil Services Pension G Rules 1972. ·

The Union of India in its onward march for ushering in socio- economic justice in the form of social security further took a bold and imaganative step on September 22, 1977 by which the pre- condition of two months' emolument out of death-cum-retirement H, gratuity was done away with. Reco11nising the need for such a

POONAMAL v. UNION (Desai, J.) 1045

Footnotes

1 Singh(') and D.S. Vakara & Ors. v. Union of India. Where the Government Servant rendered service, to compensate which a family pension scheme is devised, the widow and the dependent c minors would equally be entitled·to family pension as a matter of right. In fact we look upon pension not merely as a statutory right but as the fulfilment of a constitu.tional promise in as much as it partakes the character of public assistanceincases of unemployment, (l) [19711 Supp. SCR 634 H (2) [1976]
3 SCR 360

't046 SUPREME COUllT REPORTS [ 1985] 3 S.C.R. old-age, disablement or similar other cases of underserved want. A Relevant rules merely make effective the constitutional mandate. That is bow pension has been looked upon in D.S. Nakara's judg- ment. At the bearing of group of matters we pointed out that since the family pension scheme bas become non-contributory effective from September 22, 1977 any attempt at denying its bene~ · fit to widows and dependents of Government servants who had not B taken of the 1964 . liberalisation scheme by making or agreeing to make necessary contribution would be denial of equality to persons J' similarly situated and hen.ce violative of Art. 14. If widows and dependents of deceased Government servants since after September 22, 1977 would be entitled to benefits of family pension without the c obligation of making contribution, those widows who were denied the benefits on .the ground that the Government servants having not agreed to make the contribution, could not b~ differently treated because that would ·be introducing an invidious classification : among th.ose who would be entitled to similar treatment. When this glaring dissimilar treatment emerged in the course of bearing in the Court, Mr. B. Dutta learned counsel appearing for the Union of India requested for a short adjournment to take further instruc- tions.

On the next bearing Mr. B. Dutta made a statement on behalf of Union of India, the relevant portion of which may be extracted :

"Government have examined the matter. As the Family Pension Scheme, 196~ was made non-contributory from 22.9.1977, Government would agree to extend the benefit of the Family Pension Scheme 1964 to all the living widows. Payment to such .widows may be made from ...r 22.9.1977 or the date of death of the pensioner, whichever is later, till the date of death of the widow. .The benefit will also be available in c.ases where the death of th\' pen- sioner occurs hereafter. Administrative procedures are being evolved to faciliate identification of widows of G Government pensioners and to Iay down the guidelines for the determination of family pensions. The benefit of fa~ily pensi;n mentioned above will not apply to the widows of Government servants who would not have been covered by the ·scheme even if the scheme had been given ll retrospective effect."

POONAMAL v. UNION (Desai, J.) 1047

While examining the statement it transpired .that certain A clarifications were necessary. 'Common Cause' a Society which is a petitioner in on~ petition pointed out certain aspects of the statement which needed clarification. The Court directed the the 'Common Cause' society to send a letter to the Ministry of Finance indicating the points on which clarifications were required by lr them. The issues raised by the Society may be summed up as under: B

"(i)" whether the orders will apply to the widow/minor son/ umarried daughter as defined in the relev.aiH provisions of family pension scheme; c (ii) whether the scllcs of pension as prescribed with effect from 1:1.1973 will be made uniformly.applicable to all the eligible persons in the family pension . scheme; and

(iii) whether the benefits of family pension scheme will be made available to all pensioners irrespective of the fact whether they had or had not contributed two months' emolouments i_n terms of the original family pension scheme, which contribution was subsequently deleted with effect from 22 9. 1977."

Today when the matter was taken up for final hearing another statement was submitted by Mr. B. Dutta on behalf of the Union of Ind.ia. The Government of India: submitted its clarifications cln the afore-mentioned three points which reads as under : • F ' "(i) Governments are prepared to grant to the dependents \ i.e. minor sons, etc. of the pensioners governed under pre- 1964 scheme the same pensionary benefits as are admissible to the dependents under current pension , rules. ·

G (ii) It is clarified that Government aTe agreeable to apply the increased pension rates introduced from J.1.1973 to all the eligible persons, including dependents. This will, however. be subject to the condition that the total amount admissible (excluding dearness relief) under the liberalised provision now being agreed to, will not be more than what is admissible to a person covered 8

p. 1048

A under the current Rules.

(iii) Government have already agreed to the grant of ar- rears of family pension with effect from 22.9. 77-the date on which contribution. of two montbs' emolu- B ments by pensioners was dispensed with. p, rsons who ... are now to be granted the benefits of family pension will not be required to contribute two months emolu- ments. Similarly, no demand for refund of contri- bution already made by pensioners will be enter- tained." c The clarifications offered are clear, unambiguous and wholly )-· satisfactory. Learned counsel appearing for the petitioners stated that nothing more is required to be done and requested us to incor- porate the clarifications submitted to the Court. D Accordingly these petitions and appeals are disposed of in terms as:herein above indicated. We order accordingly.

The appeal against the decision of the Division Bench of the Bombay High Court is also allowed in the same terms. This is . a happy ending to this extremely humane problem. E

M.L.A. Appeal allowed F

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