UNION OF INDIA versus ALL INDIA SERVICES PENSIONERS ASSOCIATION & ANR.

Citation: [1988] 2 S.C.R. 697 · Decided: 14-01-1988 · Supreme Court of India · Bench: E.S. VENKATARAMIAH · Disposal: Appeal(s) allowed

Cited by 2 judgment(s) · cites 1 · see the full citation network in Lexace

Judgment (excerpt)

,, 
' 
.-,: 
UNION OF INDIA 
v. 
ALL INDIA SERVICES PENSIONERS ASSOCIATION 
& ANR. 
JANUARY 14, 1988 
[E.S. VENKATARAMIAH AND B.C. RAY, JJ.] 
Cicil Service: Pension and gratuity-Distinctipn· between-
Pension payable periodically as long as pensioner alive-Gratuity ordi-
narily paid once only on retirement. 
A 
B 
c 
Members of All India Services-Retired prior to January I, 
I973-Not entitled to claim gratuity on basis of Notification dated 
January 24, 1975. 
Constitution 
of India 
1950: Articles 
136 
and 
141-
S.L.P. dismissed giving reasons-Decision attracts Article 141 and D 
becomes binding. 
All India Service (DeatiLcum-Retirement Benefit) Rules 1958. 
Rule 28(6) and Government of India Notification No. 33/ 12/73-AIS 
(ii) dated January 24, 1975--Gratuity-Upward revision of-Those 
members of the service who retired prior to January I, 1973 not entitled 
E 
to benefit of the additional amount. 
' 
' 
In a petition filed by the All India Services Pensioners' Associa· 
-; 
lion, and an I.A .S. Officer who had retired from service prior to 
~ 
1. 1.1973 (respondents in the Appeal) the Central Administrative Tri-
bunal by its decision dated August 5, 1985, declared that Rule 28(6) of F 
·~ the All India Services (Death-cum-Retirement Benefits) Rules; 1958 
i 
insofar as it tended to restrict pensioners to retirement benefits to which · 
they were entitled on the date of their retirement, and sought to deny 
them the benefit of the liberalised pension and gratuity in the amended 
Notification No. 33/12/73-AIS (ii) dated January 24, 1975 was violative 
of Article 16 of the Constitution, and directed that all the members of G 
::, .. " 
the All India Service would be entitled to liberalised pensionary benefits 
including gratuity as per the said Notification irrespective of whether 
] 
they had retired prior to January 1, 1973 or thereafter, 
The Appellant-Union of India in its appeal by Special Leave to 
this Court had not questfoned the Tribunal's order insofar as its liabil-
H 
697 
698 
SUPREME COURT REPORTS 
[1988] 2 S.C.R. 
}-· 
A 
ity to pay pension was concerned, but so10ght leave against the direction 
to pay gratuity in accordance with the Notification even to those mem-
" ... 
hers of the All India Services who had retired prior to January I, 1973. 
On the question: whether the members of the All India Services 
who had retired prior to January I, 1973 are entitled to payment of 
B gratuity as a part of retirement benefits at the rates specified in the 
f 
Notification No. 3312 :7J.-AIS (ii) dated 24. l. 1975. 
' 
Allowing the appeal, 
i " 
~ . 
.... 
HELD: J. In the Andhra Pradesh State Government Pensioners' 7 
Association v. State of Andhra Pradesh, [1986] 3 SCC 501 this Court 
c had given reasons for not applying the rule in D.S. Nakara v. Union of 
)... 
India, [1983] 2 SCR 165 insofar as the liability of the Government to 
pay gratuity on retirement is concerned. [704A-BI 
2. The views expressed by this Court apply to all cases of gratuity 
•• 
D 
where similar features exist and it should apply to the instant case 
too. [704DI 
..... 
3. The way the Tribunal in the instant case, has tried to ignore 
the decision of this Court in the Andhra Pradesh State Government 
Pensioners' Association case is not correct. The first ground relied on 
by the Tribunal not to follow the said decision is that it had been 
y 
E 
rendered by this Court while dismissing some special leave petitions is a 
wholly untenable ground. The second ground given by the Tribunal 
' 
that the decision was one rendered in a case involving a Notification 
k"' 
issued by the Andhra Pradesh Government and not one touching the 
,._ 
Notification dated January 24, 1975 is also not tenable. [704C-D I 
~ 
F 
4. When reasons are given for dismissing Special Leave Petitions 
r 
the decision becomes one which attracts Article 141 of the Constitution 
which provides that the law declared by the Supreme Court shall be 
binding on all the courts within the territory oflndia. I 704B-C I 
5. This Court has made a distinction between the pension payable 
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~ -?..._ 
G 
on retirement and the gratuity payable on retirement. While pension is 
payable periodically as long as the pensioner is alive, gratuity is ordi-
'( 
narily paid only once on retirement. [706C-D) 
6. The observation made by this Court in Andhra Pradesh State 
Governmerit Pensioners' Association case and in M.L. Abhyankar v. 
H U.0.1., [1981] 3 SCC 125 are binding insofar as the applic

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