STATE OF RAJASTHAN AND ANR. versus PREM RAJ

Citation: [1997] 2 S.C.R. 60 · Decided: 14-02-1997 · Supreme Court of India · Bench: S.C. AGRAWAL · Disposal: Appeal(s) allowed

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

Judgment (excerpt)

A 
B 
c 
STATE OF RAJASTHAN AND ANR. 
v. 
PREM RAJ 
FEBRUARY 14, 1997 
[S.C. AGRAWAL AND G.B. PATTANAIK, JJ.) 
Service law : 
Rajasthan Service Rules, 1951: Rules 250-A, 250-C, 255-A and 256-B . 
. 
Pe11Sio1t-Liberalisation of-Cut-off date-Validity of-Notifications is-
sued in 1970 and 1974 liberalising pension scheme challenged on ground of 
discrimination 011 basis of cut-off dates prescribed therein-High Court struck 
down said Notification without, considering effect of Notification dated 
2.9.1985 which extended benefit of liberalised pension to pre-31.3.1979 
D retirees-Held : the said retirees were entitled to benefit of Notifii;ation dated 
2.9.1985-Hence, it was not necessary for High Court to strike down the 
Notifications issued in 1970 and 1974. 
Pe11Sio1t-Liberalisatio11 of-Extension of liberalisation benefit to 
E retirees prior to liberalisation-Law laid down in D.S. Nakara's case, [1983] 
2 SCR 165-Held : Case law reviewed and contention that the decision in 
Nakara's case had been given a complete go-by, rejected. 
The respondents-pensioners were pre-1979 retirees having superan-
nuated on 14.1.1969 and before December 1968 respectively. On Superan-
F nuation, their pension had been computed in accordance with Rule 256 of 
the Rajasthan Service Rules, 1951. The appellant-State issued two 
Notifications in the years 1970 and 1974, which liberalised the pension 
scheme and prescribed cut-off dates therein. By Notification dated 
21.1.1980, the State Government provided a revised formula for calculation 
of pension on slab basis in respect of Government Servants who retired 
G on or after 31.3.1979. By another Notification dated 2.9.1985, the State 
Government extended the benefit of the revised pension formula to pre-
31.3.1979 pensioners. The respondents filed a writ petition before the High 
Court challenging the 1970 and 1974 Notifications without challenging the 
Notification dated 2.9.1985 on the ground that they discrimi~ated the 
H respondents-pensioners on the basis of cut-off dates. The High Court, 
60 
STAIB v. PREM RAJ 
61 
following the decision of this Court in Nakara's case, struck down the 1970 A 
and 1974 Notifications without striking down the Notification dated 
2.9.1985 by which the revised pension formula was extended to pre-1979 
retirees. Being aggrieved by the High Court's judgment the appellant 
preferred the present appeal. 
On behalf of the appellant it was contended that it was permissible B 
for the State Government to provide different modes of computation of 
pension in respect of Government Servants retiring on different dates and 
it could not be challenged on the ground of discrimination so long as the 
cut-off date provided had a reasonable nexus with the change in the mode 
of the computation, that the principles laid down by this Court in Nakara's C 
case was no longer being followed in recent cases and, therefore, the High 
Court was in error in allowing the writ petition following the decision of 
this Court in Nakara's case, and that without challenging the Notification 
dated 2.9.1985 the respondents were not entitled to the relief granted by 
the High Court. 
D 
On behalf of the respondents it was contended that the decision of 
this Court in Nakara's case had not been over-ruled and what ·had been 
indicated in the subsequent cases was that if the Government provided a 
new scheme and made the said scheme applicable from a particular date 
then the retirees prior to that date would not be entitled to the benefit E 
under the new scheme, and that if a pension scheme which was in vogue 
was liberalised from time to time then all pensioners would be entitled to 
the benefit of such liberalised rules and that was what had been granted 
by the High Court in the present case. 
Allowing the appeal, this Court 
F 
HELD : 1. The State Government had liberalised the pension scheme 
and introduced the revised pension formnla for calculation of pension in 
respect of Government servants retiring on or after 313.1979. By Notifica-
tion dated 2.9.1985 the benefit of the revised pension formnla was extended 
to all the pre,313.1979 retirees provided they were in receipt of pension G 
under the Rajasthan Service Rules, 1951. The principle of Nakara's case 
was made applicable and the aforesaid Notification was issued on that 
basis and there is no infirmity iri the said Notification. The High Court 
without noticing the aforesaid Notification and without considering the 
effec

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