T.S. DAS AND ORS. versus UNION OF INDIA AND ANR.
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[2016] 6 S.C.R. 541 T.S. DAS AND ORS. v. UNION OF INDIA AND ANR. (Civil Appeal No. 2147 of201 l) OCTOBER 27, 2016 (T.S. THAKUR, CJI, A.M. KHANWILKAR AND DR. D.Y. CHANDRACHUD, JJ.J Armed Forces: Navy Act, 1957 - Navy (Pension) Regulations, 1964 - Regns. 92, 95 - Reservist Pension and Special Pension - Grant of - Applicants appointed as Sailors in Indian Navy prior to 03.07.1976 - Appointment letter to the effect that applicant engaged as Sailor for JO years active service and JO years on fleet service thereafter, if required - Applicants continued for a brief period beyond the initial term of I 0 years in active service - Meanwhile, discontinuation of Fleet Reserve Service because of the Government policy dated 03.07.1976 - Applicants discharged without drafting them to fleet reserve services and paid gratuity - Claim of applicallfs for the grant of special pension and reservist pension before the tribunal - Rejected by the tribunal - In another application, tribunal accepted to the claim of appellants for gram of reservist pension - On appeal, held: There is no provision either i11 the Act of 1957 or the Regulatio11s framed thereu11der, to suggest that drafti11g of such Sailors on Fleet Reserve Service was ''automatic" after expiration of their active service/enrolment period - Effect of the Government Policy is to disband the establishment of the Reserve Fleet Service with effect from 03.07.1976 - Drafting of Sailors to the Reserve Fleet Service was dependellf 011 an express order to be passed by the competent Authority - Sailors did 11ot have a vested or accrued right for being placed in the Reserve Fleet Service - Hence, 110 right of the Sailors in active service was affected or taken away because of the Policy - Consequence of not placing the concerned Sailor to the Fleet Reserve Service may result in deprivation of Reservist Pe11Sion ~ However, applica11ts e111itled W..Special Pension u11der Regn. 95, bei11g a separate dispe11Sation for such Sailors, u11less discharged by way of punishme111 under Regn. 279 - None 541 A B c D E F G H 542 A B c D E F G H SUPREME COURT REPORTS [2016] 6 S.C.R. of the applicants entitled for Reservist Pension in terms of Regn. 92 - All Sailors appointed prior to 03.07.1976 and whose tenure of initial active service/empanelment period expired on or after 03.07.1976 eligible for Special Pension under Regn. 95, subject to fulfilling other requirements - Navy Ceremonial Conditions of Services and Miscellaneous Regulations, 1964 - Regn. 269. Disposing of the appeals, the Court HELD: 1.1 The condition in the appointment letter cannot be read in isolation. From the provisions in the Navy Act, 1957, there is nothing to indicate that the Sailor after appointment or enrolment is "automatically" entitled to continue in Fleet Reserve Service after completion of initial active service period of 10 years. The provisions, however, indicate that on completion of initial active service of 10 years or enhanced period as per the amended provisions is entitled to take discharge in terms of Section 16 of the Act. The applicants assert that none of the applicants opted for discharge. That, however, does not mean that they would or in fact have continued to be on the Fleet Reserve Service after expiration of the term of active service as a Sailor. There ought to have been an express order issued by the competent Authority to draft the concerned applicant in the Fleet Reserve Service. In absence of such an order, on completion of the term of service of engagement, the concerned sailor would stand discharged. Concededly, retention on the Fleet Reserve Service is the prerogative of the employer, to be exercised on case to case basis. In the instant case, however, on account of a policy decision, the Fleet Reserve Service was discontinued in terms of notification dated 03.07.1976. [Para 15] (564-B-F] 1.2 As per the policy dt. 03.07.1976, the initial period of engagement was enhanced to 15 years. At the same time the transfer of Sailors to Fleet Reserve was discontinued. None of the relevant provisions even remotely suggest that the Sailor is "automatically" transferred to the Fleet Reserve Service. Whereas, it is expressly provided that on expiration of the term of service of engagement the Sailor would be placed on Fleet Reserve Service only if an express order in that behalf is passed by the Competent Authority to draf
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