LexV. B. RAJU AND ORS. versus STATE OF GUJARAT & ORS.
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A ,, ~ c D E F G H 797 V. B. RAJU AND ORS. v. STATE OF GUJARAT & ORS. August 22, 1974 [A. N. RAY, C.J., M. H. BEG, A. ALAG!R!SWAMI, P. K. GOSWAMI, R. S. SARKARIA, JJ.] Constitution of India. 1950 Art. 312A, introduced bv the Constitutio11 (Twenty Eighth) Amend1ne11t Act, 1972, and the Former Secretary of State Sef'- l'icc ()J[icers (Conditions of Service) Act, 1972. Ss. 7 and 8--~tmendments to Regulations 561 and 983 of Civil Service Regulations-Validity. Under Regulation 561 of the Civil Serviw ReguJations a mem_ber of the Indian Civil Service, who joined after 1921, was entitled on retirement to an annuity of Rs. 10666-10-8 subject to a minimum of £ 1000. Regulation 983 provided that such Officers were entitled to payment of annuity, at the option of the recipient, either in rupees conVerted into sterling at a rate of ex;hange declared to exist on the date on which payment fell due, or. at the fixed minimum sterling. If payment was taken in India it would be either in rupees or at the fixed sterling minimum converted into rupees at the rate of exchange declared to 'exist on the due date. In 1928, the Secretary of State for fndia laid down the rate of exchange at 1 sh-6 ct to a rupee and this rate of exchange continued upto the date of_ transfer of power to India, namely, 15th Augu·st, 1947. On 12th June, 1956, Regu~ lation 561 was amended by the President under Art. 309 of the Constitution. As a result of the amendment the Indian members of the Indian Civil Service,. on retirement, were entitled to an annuity of Rs. 13,333.33 p paYable in India in rupees only, which was equivalent to £ 1000, converted into rupees at the rate of 1 sh-6 d to a rupee. Article 312-A was introduced by the Comiti.- tution (Twenty Eighth .Amendment) Act, 1972, and it conferred power on Parliament to make a law to vary or revoke, whether prospectively or retros- pectively, the conditions of servicv as respects pension of persons who, having been appointed by the Secretary of State to a civil service of the Crown in India before the commencement of the Constitution. retired or otherWise ceased to be in service at any time before the co1nn1encement of that Amendment Act; Parlian1ent passed the Former Secretary of State Service Officers (Conditions of Service) Act, 1972, and it came into force on 1st October, 1972. Section 7 of the Act provided that all members of the Indian Civil Service who joined the servic~ after 1921 were entitled to an annuity of Rs. 13,333.33 P subject to certain reductions. Section 8 provided that no such officer shall be entitled or be deen1ed ever to have been entitled to claim, (a) pension in sterling; or (b) that his pension shall be paid outside India; or (c) where his pension was expressed in sterling or a fixed sterling minimum was applicable in respect of the pension payable to him, that his pension shall be computed in the rupee equivalent of the amount fixed in sterling at a rate of exchange exceeding- the rate of Rs. 13,333.33 of £ 1000 sterling, Some members, who had joined· the Jnd!an Civil Service after 1921 and residing: in India, contended that the Regulations could not he amended by the Act, on the ground that it was their basic right to be paid annuity by converting £ 1000 into Indian currency at the official rat~ of exchange. Reiectini?: the contentions, HELP.: ( 1) The 1956-amendment of Regulation 561 does not infringe the provLS1ons of. Arts. 14 and 16. It makes no distinction, in the matter of payment of pension ~o members of the Indian Civil Service retiring after 12th June. 1~56, LIT~~tiv~ of the fa::t thatt they are citi:zens of India or are of non-Indian domicile, 1£ thev draw their pension in India. On or after that date ~l members of !he fndian Civil Service having their residenco in India on ret1rement, are entitled to their annuity only in India and in rupees alone. ' [7938]' 798 SUPREME COURT REPORTS [1975] 1 S.C.R. (2) The pension to which these members, were entitled on 15th August, 1947, has not been altered. [793 HJ (3) All that has happened as a resu.lt of the. 1972-Act is to lay down that the annuitants are not entitled to claim payment of pension in sterling -0r outside India or by convertinJ! £ 1000 at the rate of exchange exceeding rhe rate of exchange of Rupees thirteen and one third to the pound sterling. A Indian currency is the legal tender and there is no constitutional vice in B
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