Maintain pension parity between Army Officers retiring on different sets of dates : Hon'ble Supreme Court

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In a landmark decision, the Hon’ble Supreme Court of India in Union of India Vs SPS Vains (Retd) (SLP No 12357 of 2006 decided on 09 September 2008) has upheld the orders of the Hon’ble Punjab & Haryana High Court wherein it was directed that Major Generals retiring prior to 1-1-96 (implementation date of 5th Pay Commission) should be granted a pension at par with post 1-1-1996 retirees. The Writ Petition in the Hon’ble Punjab & Haryana High Court was filed by Major Generals who retired prior to 1-1-1996 and whose pension was fixed lower than post 1-1-1996 retirees. This had happened since the start of the pay scale of Major Generals (18400) was less than the starting pay of Brigadiers (16700+2400 Rank Pay = Rs 19100) leading thereby to a situation that the pension of a pre 1996 retiree Maj Gen was fixed at Rs 9200 but Rs 9550 for a Brigadier. To cater to this anomaly, the govt had stepped up the pension of pre 1996 Major Generals to Brigadier level thereby leaving them at a loss as compared to post 1996 retirees. The High Court had allowed the Writ Petition and had directed equal treatment for pre and post 1996 retirees. The orders were challenged by the Govt of India in the Hon’ble Supreme Court but the Apex Court through a detailed order has upheld the High Court directions and has also laid down a landmark law which would come as a relief to all defence retirees and the value of which shall be known in times to come.

Here are some pearls from the judgement of the Hon’ble Supreme Court :

“….The larger issue involved is whether there could be a disparity in payment of pension to officers of the same rank, who had retired prior to the introduction of the revised pay scales, with those who retired thereafter….”


“….The question regarding creation of different classes within the same cadre on the basis of the doctrine of intelligible differentia having nexus with the object to be achieved, has fallen for consideration at various intervals for the High Courts as well as this Court, over the years. The said question was taken up by a Constitution Bench in the case of D.S. Nakara (supra) where in no uncertain terms throughout the judgment it has been repeatedly observed that the date of retirement of an employee cannot form a valid criterion for classification, for if that is the criterion those who retired by the end of the month will form a class by themselves. In the context of that case, which is similar to that of the instant case, it was held that Article 14 of the Constitution had been wholly violated, inasmuch as, the Pension Rules being statutory in character, the amended Rules, specifying a cut-off date resulted in differential and discriminatory treatment of equals in the matter of commutation of pension. It was further observed that it would have a traumatic effect on those who retired just before that date. The division which classified pensioners into two classes was held to be artificial and arbitrary and not based on any rational principle and whatever principle, if there was any, had not only no nexus to the objects sought to be achieved by amending the Pension Rules, but was counter productive and ran counter to the very object of the pension scheme. It was ultimately held that the classification did not satisfy the test of Article 14 of the Constitution….”

“….The object sought to be achieved was not to create a class within a class, but to ensure that the benefits of pension were made available to all persons of the same class equally. To hold otherwise would cause violence to the provisions of Article 14 of the Constitution. It could not also have been the intention of the authorities to equate the pension payable to officers of two different ranks by resorting to the step up principle envisaged in the Fundamental Rules in a manner where the other officers belonging to the same cadre would be receiving a higher pension….”

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