Case Note & Summary
The dispute arose from a service law/pension matter concerning nine appellants who had retired prior to September 1, 1985 as head clerks or chief clerks, the last retirement being June 30, 1985. A practice existed where upper division clerks in certain special posts were granted special pay of Rs.35 per month, but a decision was taken that on promotion as head clerk or special clerk, they would not carry this special pay. A memo dated July 11, 1979 expressly stated that special pay would not be paid to promoted head clerks or chief clerks. Following agitation, the Board of Arbitration decided that to remove the anomaly in pay structure, special pay of Rs.35 per month would be paid to promoted head clerks/special clerks with effect from September 1, 1985, without arrears. Certain employees approached the Central Administrative Tribunal, Delhi, which held that persons who had not been paid from July 11, 1979 till August 31, 1985 would also be entitled to special pay of Rs.35 per month, but without arrears of salary. Thus, employees who continued in service between July 11, 1979 and August 31, 1985 and thereafter were entitled to the special pay, without arrears. The present appellants sought stepping up of their pay by including Rs.35 per month for computing pension, but the Tribunal held they were not entitled. The appellants contended before the Supreme Court that they had actually worked as head clerks/chief clerks on par with those granted the benefit, and denial violated Article 14 of the Constitution. The Supreme Court found no merit in the argument. It noted that the benefit was granted to remove anomaly and bring uniformity by applying notional scale of pay to those promoted between July 11, 1979 to August 31, 1985, but payment of arrears was denied. No one actually received salary including Rs.35 as special pay; the benefit enured only to those who continued in service after September 1, 1985. Pension is computed on average of 10 months pay actually drawn. Since the appellants retired before September 1, 1985, they had not actually drawn pay including Rs.35 per month. Therefore, the scale of pay including Rs.35 could not be stepped up for computing pension. The appeal was dismissed without costs.
Headnote
A) Service Law - Pension - Notional Pay Not Counted for Pension Unless Actually Drawn - Constitution of India, Article 14 - The appellants retired before September 1, 1985, the effective date from which special pay of Rs.35 per month was notionally extended to promoted head clerks/chief clerks to remove pay anomaly; pension requires computation on average of 10 months pay actually drawn. The court held that since appellants had not actually drawn the pay including special pay, the notional scale could not be stepped up for pension computation, and there was no violation of Article 14 because the benefit was only for those continuing in service after September 1, 1985. Held that appeal is dismissed without costs (Pages 1-2).
Issue of Consideration
Whether head clerks/chief clerks who retired prior to September 1, 1985 are entitled to step up their pay by including Rs.35 per month special pay for the purpose of calculating pension.
Final Decision
Appeal dismissed; appellants not entitled to include Rs.35 special pay in pension computation because they did not actually draw that pay; no costs.
Law Points
- Pension computation based on average of 10 months pay actually drawn
- notional pay granted to remove anomaly cannot be included for pension unless actually drawn
- Article 14 of Constitution not violated by prospective grant of benefit only to those continuing in service after effective date
