STATE OF WEST BENGAL AND ANR. versus WEST BENGAL GOVT. PENSIONERS ASSOCIATIONS AND ORS.

Citation: [2002] 1 S.C.R. 1 · Decided: 07-01-2002 · Supreme Court of India · Bench: G.B. PATTANAIK · Disposal: Appeal(s) allowed
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Judgment (excerpt)

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STATE OF WEST BENGAL AND ANR. 
A 
v. 
WEST BENGAL GOVT. PENSIONERS ASSOCIATIONS AND ORS. 
JANUARY 7, 2002 
[G.B. PATTANAIK AND RUMA PAL, JJ.] 
B 
Service Law: 
West Bengal Services (Revision of Pay and Allowances) Rules, 1990: C 
West Bengal Services (Revision of Pay and Allowances) Rules, 1998: West 
Bengal Services (Death-cum-Retirement) Rules, 1971: 
Pension-State of West Bengal-Oovernment Employees-Revision of 
pay scales-Pension calculated on the revised scales of pay-Benefit a/-
Prescription of cul off date for-Validity of-Validity of prescription of cut off D 
date depends upon relevancy of consideration underlying choice of such 
date. 
The pay scales of Government employees of the State of West Bengal 
were revised w.e.f. 1st January, 1986 under the West Bengal Services 
(Revision of Pay & Allowances) Rules, 1990. Employees who were in service E 
on 1.1.86, even though they had retired before the Rules were published, were 
covered by it. Their pay was to be revised notionally and a memorandum was 
issued on 25th April, 1990 giving them pensionary benefits calculated on the 
basis of such notionally revised scales of pay. The claim of the respondent-
association for calculation of pension payable to pre-1.1.86 retirees on the F 
basis of the revised pay scales was rejected by Secretary of the Finance 
Department. The Finance Secretary held that the State Government had 
adopted the same formula for computation of pension of all the pensioners 
irrespective of the date of retirement, namely, 50% of last pay dl"awn by the 
incumbent before retirement. Since those who had retired prior to the date of 
revision of pay scales could not avail themselves of the revised pay scale, the G 
Fourth Central Pay Comniission evolved a formula to give the pre-1986 retirees 
Dearness Allowance on the basis of 608 point Consumer Price Index (CPI). 
The revised pay scales were on the basis of 608 point CPI being merged with 
on-revised pay. The State Government had issued notification no. 7532-F dated 
6th April, 1988 by which it had suitably removed the disparity and H 
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SUPREME COURT REPORTS 
[2002] l S.C.R. 
A discrimination among all classes of pensioners irrespective of their date of 
retirement. 
The application filed by the respondent-Association for quashing the 
Finance Secretary's order and directions to the State Government to give equal 
pension and pensionary benefits to all pensioners irrespective of their date of 
B retirement was rejected by the West Bengal Administrative Tribunal. 
Thereafter, the Respondent-Associ~tion filed a writ petition before the High 
Court which held that in view of the decision in *D.S. Nakara 's case, the 
Members of the Association were entitled to the pensionary benefits as were 
paid to post-1986 retirees. The question in this appeal is whether the decision 
C of this Court in *D.S. Nakara's case obliges the appellant to pay pension 
calculated on the revised scales of pay under the R.O.P.A. Rules, 1990, to all 
the erstwhile emj>loyees of the State Government irrespective of their date of 
retirement. 
The appellant-State submitted that the pre-1986 retirees were not 
D entitled to re-calculation of pension on the basis of the revised pay scale. It 
was contended that there was no revision of pay of employees who had retired 
prior to 1.1.1986 notionally or otherwise; in keeping with the Nakara 
principle the formula for calculation for pre-1.1.86 and for post 1.1.1986 
retirees, namely, 50% of the last pay drawn was the same. Additionally, all 
E retirees were getting Dearness Allowance commensurate with the consumer 
price index. On behalf of the appellant-State, it was also contended that after 
the West Bengal Services (Revision of Pay and Allowances) Rules, 1998 came 
into force all pensioners whether pre or post -1986 were entitled to revision 
of their pension based upon a notional fixation of pay as on 1.1.1986 by 
adopting the same formula as for the serving employees but with effect from 
F 1.1.1996. Therefore, the dispute in the appeal is confined to the formula 
applied to the period 1.1.86 to 31.12.1995 when the R.O.P.A. Rules, 1990 were 
in operation. 
Allowing the appeal and setting aside the impugned order of the High 
G Court, the Court 
HELD: I. The respondents' case is based upon a failure to distinguish 
between the pension scheme on the one hand and the revised pay scales on 
the other. Pension Schemes are based on the West Bengal Services (Death-
cum
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