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STATE OF PUNJAB versus GIAN CHAND & ORS.

Citation: [2012] 11 S.C.R. 1100 · Decided: 13-12-2012 · Supreme Court of India · Bench: SWATANTER KUMAR · Disposal: Case Partly allowed

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Judgment (excerpt)

A 
B 
[2012) 11 S.C.R. 1100 
STATE OF PUNJAB 
v. 
GIAN CHAND & ORS. 
(Civil Appeal No. 9007 of 2012 etc.) 
DECEMBER 13, 2012 
[SWATANTER KUMAR AND MADAN B. LOKUR, JJ.] 
Service Law - Pension - Commutation - Table for 
calculation of commutation substituted by a Circular -
C Affecting the employees of Punjab State Electricity Board 
retiring between 31-7-2003 and 31-10-2006 - Writ petition by 
the employees retiring between the above period contending 
that the Circular was to their disadvantage - High Court 
allowing the petitions - On appeal, new plea raised by State 
D that Circular was issued due to financial crunch and that under 
the Rules, the respondents-employees had option to withdraw 
the request of commutation - Held: New pleas are not 
permissible to be raised for the first time before Supreme 
Court - But the new questions raised are substantial legal 
E questions and are having far reaching consequences and 
hence require discussion and determination by the Court -
The impugned judgment also lacks proper reasoning -
Therefore, matter remitted to High Court for fresh decision in 
accordance with law - Cost of Rs. 50, 0001- to be paid to 
F respondent Nos. 1 to 26 in equal proportion - Punjab Civil 
Services Rules Vol. II - r. 11.5(1), Note 2 - Practice and 
Procedure - New Plea - Permissibility. 
Practice and Procedure - New Plea - Raised before 
Supreme Court - Permissibility - Held: Not permissible -
G Determination of new plea may deprive either of the parties 
of a right to appeal to Supreme Court - Such deprivation can 
be construed as prejudicial to the rights and interest of the 
parties. 
H 
' ' 
1100 
STATE OF PUNJAB v. GIAN CHAND & ORS. 
1101 
Punjab State Electricity Board had adopted the A 
P.ules pertaining to pension contained in the Punjab Civil 
Services Rules, Vol. II for its employees. Table of 
commutation of pension was provided in terms of Rule 
11.5(2) of the Civil Services Rules. Appellant-State issued 
a Circular dated 29.7.2003, whereby the existing table was 
B 
replaced with a new table for calculation of commutation 
of pension and was applicable to all the cases of 
retirement arising on or after 31. 7 .2003. However, by a 
further Circular dated 31.10.2006, the previous circular 
was superseded, revising the existing table of c 
commutation of pensions. 
The employees-respondents who retired between 
31.7.2003 and 30.10.2006 filed writ petition, challenging 
the Circular dated 29.7.2003 contending that the table of 
calculation of commutation of pensions, provided by that D 
Circular was to their disadvantage. They pleaded that it 
was in violation of Article 14 of the Constitution. High 
Court allowed the petition. 
In appeal to this court, appellant-State inter-alia 
E 
contended that the State issued the Circular dated 
29.7.2003, as the State was suffering from serious 
financial crunch and that the respondents had choice to 
withdraw the request of commutation under Note 2 to 
Rule 11.5 (1). 
F 
The respondents contended that all the pleas raised 
before this court by the appellant was raised for the fist 
time and taking new grounds for the first time before 
Supreme Court could not be permitted. 
Partly allowing C.A. Nos. 9007, 9010, 9011, 1912, 
9013, 9014, 9015, 9016 and 9019 of 2012 and remitting 
them to High Court and directing to detach the C.A.Nos. 
9008-9009/2012, 9017/2012 and 9018/2012 from the other 
appeals, the Court 
G 
H 
1102 
SUPREME COURT REPORTS 
[2012] 11 S.C.R. 
A 
HELD: 1.1. From the record, it is clear that the 
substantial pleas are being sought to be raised before 
this Court for the first time. From the orders passed by 
this Court, it is clear that white granting liberty to the State 
to file additional affidavit, no objection was raised by the 
B respondents. Now, once the additional facts and 
grounds had been brought on record to which the said 
respondents have already filed a rejoinder, they cannot 
be permitted to raise the objection in regard to the new 
grounds being examined by the Court. There are 
c certainly lapses on the part of the State, but the questions 
raised before this Court are not only substantial legal 
questions but are also likely to have far reaching 
consequences. It is argued that the Circular dated 29th 
July, 2003 has been issued by the State of Punjab and 
0 the same having been quashed, there is every likelihood 
that all the employees of the State of Punjab, including 
various corporations, would raise simil

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