N.N. GODFRED & ORS. versus UNION OF INDIA & ORS.

Citation: [2018] 9 S.C.R. 281 · Decided: 11-07-2018 · Supreme Court of India · Bench: S. ABDUL NAZEER · Disposal: Appeal(s) allowed

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Judgment (excerpt)

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N.N. GODFRED & ORS.
v.
UNION OF INDIA & ORS.
(Civil Appeal No. 10035 of 2010)
JULY 11, 2018
[S. ABDUL NAZEER AND INDU MALHOTRA, JJ.]
Service Law – Naval Service – Service Pension if includes
Submarine Pay – Appellants enrolled in the Indian Navy as Sailors
and subsequently joined its Submarine Arm – Appellants aggrieved
with the refusal of the respondents to take Submarine Pay into
account while calculating pension payable to them – Armed Forces
Tribunal (AFT) held that submarine pay/allowance cannot be counted
for the purpose of determining pension – On appeal, held: Concept
of Submarine Pay was introduced by Union of India vide Letter
dated May 31, 1967 – It was granted to Officers and Sailors who
were qualified to serve in submarines, and were deputed to go to
sea from time to time – In terms thereof, Submarine Pay was to be
treated as “pay for all purposes” which would include computation
of Service Pension – Further, case of the appellants was governed
by the Navy Instruction dated August 17, 1974, which were in force
when appellants retired on January 1, 1983, for computing the
pensionary benefits and it did not exclude Submarine Pay from the
computation of “pay” for the purpose of calculating Service Pension
– It also mentioned Submarine Pay and Submarine Allowance
separately – Thus, Submarine Pay and Submarine Allowance are
not used interchangeably, as erroneously done in the impugned Order
– Submarine Pay was includible in “pay”, for the purposes of
computing the Service Pension of the appellants– Order passed by
AFT set aside– Armed Forces Tribunal Act, 2007 – Navy(Pension)
Regulations,1964 – Regulations 86 and 84.
Allowing the appeal, the Court
HELD: 1.1 Section I of Chapter III of the Navy (Pension)
Regulations, 1964 provides the framework for grant of pensionary
benefits to Sailors in the Indian Navy. Sailors who have served
for a period of fifteen years i.e. the minimum qualifying service
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SUPREME COURT REPORTS
[2018] 9 S.C.R.
for pension, or more, are eligible for grant of Service Pension.
Service Pension is fixed on the basis of the rank and group held
by a person as per Regulation 84 of the 1964 Regulations.
Regulation 86 of the 1964 Regulations provides the rates of
Service Pension.[Paras 5-5.2] [286-E-F; 287-A]
1.2 The concept of Submarine Pay was introduced by the
Union of India vide Letter dated May 31, 1967. It was granted to
Officers and Sailors who were qualified to serve in submarines,
and were deputed to go to sea from time to time. Submarine Pay
was to be treated as “pay for all purposes”, as per the instructions
issued by the Ministry of Defence to the Chief of Naval Staff vide
Letter No. dated May 31, 1967. The pay scale and allowances of
Officers and Sailors were revised with effect from January 1, 1973
pursuant to the Navy Instruction No.2/S/74 dated August 17, 1974.
Navy Instruction dated August 17, 1974 was issued to give effect
to the recommendations of the Third Pay Commission, and
remained in force till January 1, 1986. [Paras 5.4 and 5.5]
[288-A-D]
1.3  Clause 4(a) of Navy Instruction No. 2/S/74 defined the
term “basic pay” to denote the pay “actually drawn” in the scale
prescribed for the rank and group. Clause 2 provided that the
revised rates of pay applicable to Sailors were specified in
Appendix A. The heads of Submarine Pay and Submarine
Allowance were separately listed in Appendix B at S. Nos. 14
and 15, respectively. The terms Submarine Pay and Submarine
Allowance are not used interchangeably, as has been erroneously
done in the impugned Order. As per Navy Instruction No. 2/S/
74, a Chief Petty Officer was entitled to Submarine Pay at the
rate of Rs. 300/- per month, which was distinct from Submarine
Allowance. Pursuant to the recommendations of the Fourth Pay
Commission the rates of pay and allowances of Officers and Sailors
were revised by Special Navy Instruction No.1/S/86 (with effect
from January 1, 1986). Further revisions took place pursuant to
the recommendations of the Fifth and Sixth Pay Commissions.
The definition of “basic pay” was changed to exclude Submarine
Pay. The reliance on these instructions by the Respondents is
misplaced, as the case of the appellants was governed by the
instruction issued pursuant to the Third Pay Commission for
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computing the pensionary benefits i.e. Navy Instruction No. 2/S/
74 dated August 17, 1974 and Letter No.PA/4102/NHO/504.S/
D(PAY/ SERVICE

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