UNION OF INDIA versus A.S. GANGOLI AND ORS.

Citation: [2007] 5 S.C.R. 706 · Decided: 26-04-2007 · Supreme Court of India · Bench: TARUN CHATTERJEE · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
UNION OF INDIA 
v. 
A.S. GANGOLI AND ORS. 
APRIL 26, 2007 
B 
[TARUN CHA TTERJEEAND R.V. RA VEENDRAN, JJ.] 
Pension: Air Force Officers-Circular dated 19.2.1987 permitting 
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prorata pensionary benefits to officers of defence services on immediate 
c absorption in Public Sector Undertaking-Circular dated 30.10.1987 
modifying regulations concerning pensionary benefits-As per Note (I) to 
clause 5 of the said circular, there was no weightage to the quaiifying service 
for determining pension in case of officers who retire prematurely for 
permanent absorption in PSU's-High Court declared Note (1) to clause 5 
D as illegal-Correctness of-Held: Persons who retired prematurely for 
immediate purpose of joining PSU's, clearly formed a distinct and separate 
class-Jn view of the special benefits extended to them, if Note (1) to clause 
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5 excluded them from the benefit of weightage which was given to other 
retirees, it is not discrimination-High Court completely overlooked these 
aspects and its decision cannot therefore be sustained 
•
E 
The Government of India, by Circulars dated 17.3.1986 and 19.2.1987 
of the Defence Ministry, read with O.M. dated 6.3.1985 of Finance Ministry 
permitted pro-rata pensionary benefits to officers of defence services on their 
immediate absorption in Central Public Enterprises. 
F 
A scheme was notified by IAF on J.4.1986 inviting the officers in the 
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age group of 40 to 47 years to retire voluntarily and join Mis. Vayudoot Ltd. 
- a public sector undertaking. Several IAF officers including Respondents 1 
to 10 applied for premature retirement from IAF under the said scheme. The 
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respondents accordingly joined Vayudoot Ltd. By order dated 13. 7.1987, the 
Ministry of Defence sanctioned pensionary benefits to respondents in terms 
of Ministry's Circular dated 19.2.1987. 
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The Government of India issued a Circular dated 30.I 0.1987 in regard 
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706 
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, ..., 
U.0.1. v. A.S. GANGOLI 
707 
to the implementation of the Government decisions on the recommendations 
of the Fourth Central Pay Commission relating to pensionary benefits for 
Armed Forces Officers/personnel retiring or dying in harness on or afte 
1.1.1986. The said circular modified the rules and regulations concerning 
pensionary benefits of Commissioned Officers and personnel below officer 
rank. Clause 5 of the said circular defined 'qualifying service' as the actual 
qualifying service rendered by the officer plus a specified weightage, for 
purposes of pension (the weightage being 9 years in the case of Pilot Offlcers 
and Flight Lieutenants, 8 years for Squadron Leaders, 7 years for Wing 
Commanders and Group Captains, 5 years for Air Commodores, and 3 years 
for Air Vice Marshals and Air Marshals). 
As per Notes (1) and (3) to clause 5 of the Circular dated 30.10.1987, 
there would be no weightage for officers and personnel below officer rank 
who retire prematurely for permanent absorption in PSUs and autonomous 
bodies. In view of Note (1) to clause 5, the pension and retirement gratuity of 
the respondents were settled by treating the actual service rendered by them, 
as the 'qualifying service', without addition of any weightage . 
The respondents were aggrieved by the non-addition of weightage of their 
qualifying service, for the purposes of pension and gratuity. According to them, 
when the scheme was introduced, they were assured that there would be no 
loss of pensionary benefits. They contended that Note (1) of clause 5 of the 
Circulated dated 30.10.1987 which denied them the benefit of weightage 
amounted to a 'denial' of pensionary benefits and was also discriminatory. 
They, therefore, filed writ petition in the High Court for quashing Note (1) to 
clause 5 of the circular dated 30.10.1987 as being violative of Article 14. 
They also sought a direction to the appellant to extend them the weightage of 
seven years for computing their pension and weightage of five years for 
computing their retirement gratuity, re-calculate their pensionary benefits, 
and pay the arrears. 
The High Court declared Note (1) appended to clause 5 of the 
Government Circular dated 30.10.1987 as illegal and inoperative and issued 
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D 
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a consequential direction to the appellant to grant a weightage of 7 years for G 
computing pension and weightage of 5 years for computing the retirement 
gratuity of the respondents and pay them the difference. Hence the present 
appeal 
Allowing the ap

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