"COMMON CAUSE" A REGISTERED SOCIETY AND OTHERS versus UNION OF INDIA

Citation: [1987] 1 S.C.R. 497 · Decided: 09-12-1986 · Supreme Court of India · Bench: P.N. BHAGWATI · Disposal: Appeal(s) allowed

Cited by 1 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

"COMMON CAUSE" A REGISTERED SOCIETY AND OTHERS 
A 
v. 
~·· 
UNION OFINDIA 
DECEMBER 9, 1986 
[P.N. BHAGWATI CJ AND RANGANATH MISRA, JJ.] 
B 
?: 
Central Civil Services (Commutation of Pension) Rules, 1981-
Commuted value of pension-Deduction from monthly pension-
Restoration of-After completion of 15. years from date of retirement-Both 
for Civilian employees and Armed Forces personnel-Benefit effective from 
~ )-April J, 1985. 
C 
The Central Civil Services (Commutation of Pension) Rules, 1981 are 
·~--; 
the rules applicable to civilian employees under the Government of India .. In 
, 
regard to Defence personnel a similar set of regulations is in force. In the case 
of civilians the total amount of pension which can be commuted is upto one-
third, while in the case of Defence personnel, commutation is admissible upto D 
43% in the case of officers and upto 45% in respect of other ranks. 
/ 
In petitions under Article 32, the petitioners have asked for striking 
down certain provisions of the said Rules as they permit the Union to recover 
more than what is paid to the pensioners upon commutation and for a 
direction that an appropriate scheme rationalising the provisions relating to E 
commutation be brought into force because there has been a substantial 
improvement in the life expectancy of the people, and since commutation 
portion out of the pension is ordinarily recovered within about 12 years, there 
is no justification for fixing the period at 15 years. 
The respondent-Union of India challenged the maintainability of the F 
petitions as· also the claim of the petitioners. On the suggestion of the Court, 
r the Union of India examined the matter and agreed to restore the commuted 
;16.. 
portion of the pension in regard to civilian employees at the age of 70 years or 
after 15 years, whichever is later, effective from April 1, 1986. So far as 
Defence employe"" were concerned, it was contended that retirement in their 
case was at an early age and merely .with la(llle of a period of 15 years fuU G 
· pension could not be restored because theyieceive in consideration of the 
exigencies of the service a higher rate of pension as compared to civilian 
employees and the benefit contained in the Government order cannot be 
~ 
extended to all classes of Defence personnel. 
AlloWing the petitions, 
497 
H 
498 
SUPREME COlRT REPORTS 
[1987) I S.C.R. 
HELD: 1. When a pensioner commutes any part of his pension upto the 
A 
authorised limit, his. pension is reduced for the remaining part of his life by 
deducting the commuted portion from the monthly pension. [501 BJ 
B 
c 
D 
2. C.ommutation brings about certain advantages. The commuting 
pensioner gets a lump sum amount which ordinarily he would have received in 
course of a spread over period subject to his continuing to live. Two 
~ 
advantages are certainly forthcoming out of commutation-( I) availability of 
a lump sum amount, and (2) the risk lact':!r. Many State Governments have 
already formulated schemes accepting the 15 years rule. This Court would not 
be justified in disturbing the 15 years formula so far as civilian pensioners are \ 
concerned. [501 C-DJ 
> 
3. On the expiry of 15 years from the date of retirement, restoration of 
,.--
commuted value of pension would take place and it would be just and 
equitable that the benefit of commuted portion of the pensi<>n should- he 
effective from 1.4.1985 so far as civilian <mployees are concerned. [500 E, 501 GJ 
4. The decision of the respondcmt-Government does not cover all 
classes of Defence personnel, having Jieen confined to personnel of Armed 
Forces in whose case the retirement age varies in accordance with the colour. 
service prescribed for the rank (attaining the age of 37 /38 years or more). 
Previously the retiring age for the lower ranks such as sepoys, used to be after 
15 years' service but now it has been enhanced to 20 years' service. A sepoy 
E 
retiring after 20 years' service is entitled to 5 years of weightage, for his pension 
entitlement. Similarly a Naik retiring a:fter 22 years' of service and a Havildar 
after 24 years' service are also given credit of five years. While a civilian 
employee ordinarily retires after a full term of service eptitling him to full 
pension, it does not happen in the Ca!ie of the lower ranks in the Defence 
F 
G 
s.ervices and with the extra-advantage by the addition of years of credit, the 
benefit in terms of money works out in the range of about . 75

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