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T.S. DAS AND ORS. versus UNION OF INDIA AND ANR.

Citation: [2016] 6 S.C.R. 541 · Decided: 27-10-2016 · Supreme Court of India · Bench: T.S. THAKUR · Disposal: Disposed off

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Judgment (excerpt)

[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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