03 December 1975
Supreme Court
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UNION OF INDIA Vs P. M. JAYARAJAN

Case number: Appeal (civil) 219 of 1974


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PETITIONER: UNION OF INDIA

       Vs.

RESPONDENT: P. M. JAYARAJAN

DATE OF JUDGMENT03/12/1975

BENCH: RAY, A.N. (CJ) BENCH: RAY, A.N. (CJ) BEG, M. HAMEEDULLAH SARKARIA, RANJIT SINGH SHINGAL, P.N.

CITATION:  1976 AIR  218            1976 SCR  (2) 861  1976 SCC  (1) 367

ACT:      Constitution of  India (28th  amendment) Act  1972-Art. 312-A-Former Secretary  of State Service Officers (Condition of Service) Act 1972-Sq. (8) and 12 read with second proviso to  Art.  934  of  the  Civil  Service  Regulations-Rate  of conversion of pension payable is 1 sh. 6d. to a rupee.

HEADNOTE:      The claim  of his  pension at  the rate of 1sh-9d. to a rupee by  the  respondeent,  a  former  Secretary  of  State Service Officer  was allowed  by the Accountant General, but the Union appellant reversed it and directed recovery of the excess payment.  The respondent  basing his  claim under the second proviso  to Art. 934 of the Civil Service Regulations moved the  High Court  under Art.  226 of  the  Constitution which was  accepted. The  Letters Patent Appeal filed by the Union was dismissed. The appeal by special leave, in view of the Constitution  (28th amendment) Act 1972 introducing Art. 312A and  the Former  Secretary of  State  Service  Officers (Conditions of  Service) Act  1972,  was  accepted  and  the court. ^      HELD: (i)  Under S. 12 of the Former Secretary of State Service Officers  (Conditions of services) Act 1972, enacted by Parliament by virtue of Art. 312A of the Constitution the provisions of  the Act or of any order made thereunder shall have effect  notwithstanding anything inconsistent therewith contained in  any law  other than  the Act  or in  any rule, regulation or  order or  other instrument,  having effect by virtue of any law other than the 1972 Act. [863-B]      (ii) The  former members of the Indian Civil Service as a result  of Ss.  8 &  12 of  the Conditions of Service Act, 1972 are  not  entitled  to  claim  payment  of  pension  in sterling or  outside India, or by converting $ 1000/- at the rate of  exchange exceeding  the rate  of exchange of rupees thirteen one third to the pound sterling. [863-C]      (iii) The  Judgment of  the High Court holding that the second proviso  to Art. 934 of the Civil Service Regulations applied to  the instant  case, cannot be sustained by reason of change in law. [863-D]

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    V. B.  Raju v.  State of Gujarat & Ors. [1975] 1 S.C.R. 797, followed.

JUDGMENT:      CIVIL APPELLATE  JURISDICTION: Civil  Appeal No. 219 of 1974.      Appeal by  Special Leave  from the  Judgment and  Order dated the  3-3-1972 of  the Madras High Court in Writ Appeal No. 416 of 1970.      R. M. Mehta and S. P. Nayar for the Appellant.      A. V. Rangam and Miss A Subhashini for Respondent.      The Judgment of the Court was delivered by      RAY, C.J.  This appeal  is by  special leave  from  the judgment dated 3 March 1972 of the High Court of Madras.      The respondent  in an  application under Article 226 of the Constitution  asked for a writ of mandamus directing the appellant Unison  to pay  the respondent pension at the rate of 1s-9d  per rupee in accordance with Regulations 934-A and 934-D of the Civil Service Regulations. 862      The respondent  is a  Ceylonese national. He joined the Indian Civil  Service on  6th October  1933. After 15 August 1947  he  continued  to  serve  in  our  country  until  his retirement on 31 December 1949.      At his  retirement he  was sanctioned  an annuity  of $ 743-2 shillings-6 pence per annum. He commuted a part of his pension leaving a balance of Rs. 500 per month.      Between March,  1968 and  October 1969  he  resided  in Uganda in  East Africa. When the respondent was in Uganda he claimed pension at the rate of 1s-9d to a rupee. His request was accepted  by the  Accountant General,  Madras. The Union Government reversed  the  decision  and  directed  that  the conversion rate  should be  1s-6d to  a rupee and the excess payment  should   be  recovered  from  the  respondent.  The respondent thereafter  made an application under Article 226 of the Constitution.      The High  Court accepted the petition of the respondent on the ground that the respondent shifted his residence from Ceylon to  Uganda and  was, therefore,  entitled to  benefit under the second proviso to Article 934 of the Civil Service Regulations. The  second  proviso  to  Article  934  was  as follows:-           "Provided that  save where  a pensioner resides in      India (which  for  the  purpose  of  this  Article  and      Articles 934-A,  934-B, 934-C.  934-D and  935 shall be      deemed to  include Burma, Ceylon, Nepal, and the French      and Portuguese  establishments in  India)  the  minimum      rate of conversion shall be 1/9 per rupee".      The question  of payment  of pension  to Members of the Indian Civil  Service in Sterling was examined by this Court in V.  B. Raju  & Ors.  v.  State  of  Gujarat  &  Ors.  The Constitution (Twentyeighth  Amendment) Act,  1972 introduced Article 312-A.  Article 312-A confers power on Parliament to make law,  inter alia,  to vary  or revoke  prospectively or retrospectively  the   conditions  of  service  as  respects pension of persons who having been appointed by Secretary of State or Secretary of State in Council 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  commencement of the Constitution (28th Amendment) Act, 1972. The Constitution (28th Amendment) Act, 1972 came into existence on 27 August 1972.      Parliament on 21 September 1972 made the law called the

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Former  Secretary  of  State  Service  Officers  (Conditions Service) Act,  1972. A  former Secretary  of  State  officer means a  person referred  to in sub-clause (a) or sub-clause (b) sub-clause (1) of Article 312-A of the Constitution. The respondent is  a former  Secretary of  State Service officer within the  meaning of  sub-clause  (a)  of  clause  (1)  of Article 312-A.  Section 8(1)  of the  Conditions of  Service Act, 1972  enacts that  no former Secretary of State Service officer  shall  be  entitled  or  be  deemed  to  have  been entitled, to claim (a) pension in sterling; or (b) 863 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  commuted  in  the  rupee equivalent of  the amount  fixed in  sterling at  a rate  of exchange exceeding the rate of rupees thirteen and one-third to the pound sterling.      Section 12  of the  Former Secretary  of State  Service officers (Conditions  of Service)  Act, 1972 states that the provisions of this Act or of any order made thereunder shall have effect  notwithstanding anything inconsistent therewith contained in  any law  other than  this Act  or in any rule, regulation or  order or  other instrument  having effect  by virtue of any law other than the 1972 Act.      The Constitution  Bench of  this Court  in V. B. Raju’s case (supra)  held that  the former  Members of  the  Indian Civil Service  as a result of the Conditions of Service Act, 1972 are  not  entitled  to  claim  payment  of  pension  in sterling or  outside India  or by  converting $  1000 at the rate of  exchange exceeding  the rate  of exchange of Rupees thirteen and one third to the pound sterling.      The judgment  of the  High Court cannot be sustained by reason of  change in  law. The  appeal is  accepted and  the judgment of  the High  Court is  set aside. Parties will pay and bear their own costs. S.R.                                         Appeal allowed. 864