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K. C. Kaushik vs The State Of Haryana

Supreme Court21 October 2024Pankaj Mithal

Ratio decidendi

The rule this decision rests on

Where a pensioner claiming parity with government employees seeks retrospective revision of pension with effect from a specified date, and such revised pension is paid with effect from that date, no interest on the belated payment is owing, provided the pensioner was not entitled to the revised pension in the first instance and obtained it only by comparison with employees who had successfully litigated for it, unless there is a written instruction from a competent authority of the State explicitly directing that interest be paid. Where a writ petition is disposed of on concessions made orally by State counsel without contested proceedings on the merits, and the learned Single Judge records orders of grant based on such oral concessions without written instructions from a responsible officer of the State, such orders conferring benefits beyond what the law provides cannot be enforced against the State; the court should pass orders only on the basis of written instructions from competent authority to enable fixing of liability on the correct official responsible for any wrongful representations or instructions, and relying solely on oral instructions given to counsel by junior staff may lead to factual error and misrepresentation.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

1 2024 INSC 803 REPORTABLE

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL No. OF 2024 (Arising out of SLP (C) No.5017 of 2023 1)

K.C.KAUSHIK AND OTHERS ... APPELLANT(S)

VERSUS

STATE OF HARYANA AND OTHERS ... RESPONDENT(S)

WITH

CIVIL APPEAL No. OF 2024 (Arising out of SLP (C) No.5018 of 2023 2)

K.R.MALIK AND OTHERS ... APPELLANT(S)

VERSUS

STATE OF HARYANA AND OTHERS ... RESPONDENT(S)

WITH

CIVIL APPEAL No. OF 2024 (Arising out of SLP (C) No.5019 of 2023 3) Signature Not Verified

Digitally signed by SNEHA DAS Arising from the judgment and order dated 29.09.2022 in LPA No.2396 of 2017 in CWP No.8988 of 2015 1 Date: 2024.10.21

(High Court of Punjab and Haryana at Chandigarh) 17:25:16 IST Reason:

2 Arising from the judgment and order dated 29.09.2022 in LPA No.1490 of 2018 in CWP No.10318 of 2015 (High Court of Punjab and Haryana at Chandigarh) 3 Arising from the judgment and order dated 29.09.2022 in LPA No.578 of 2018 in CWP No.11702 of 2015 (High Court of Punjab and Haryana at Chandigarh) 2

INDERJEET BHARTI AND OTHERS ... APPELLANT(S)

VERSUS

STATE OF HARYANA AND OTHERS ... RESPONDENT(S)

WITH

CIVIL APPEAL No(s). OF 2024 (Arising out of SLP (C) Nos.8613 – 8619 of 2023 4)

SAVITRI MALIK AND OTHERS ... APPELLANT(S)

VERSUS

STATE OF HARYANA AND OTHERS ... RESPONDENT(S)

JUDGMENT

R.MAHADEVAN, J.

Leave granted.

2. The challenge in these appeals is to the common judgment and order dated

29.09.2022 passed by the Division Bench of the High Court of Punjab and

Haryana at Chandigarh5, in LPA Nos. 2396 of 2017 (O&M) etc. cases 6, by

4 Arising from the judgment and order dated 29.09.2022 in LPA No.2396/2017 against CWP No. 8988/2015, LPA No.1454 of 2018 in CWP No.10207/2015, LPA No.1490/2018 in CWP No.10318 of 2015, LPA No.1102/2018 in CWP No.22924/2015, LPA No.1766/2018 in CWP No.11288/2015, LPA No.578/2018 in CWP No.11702/2015 and LPA No.1841 /2018 in CWP No.11654/2015 (High Court of Punjab and Haryana at Chandigarh) 5 For brevity, “the High Court” 6 State of Haryana and another v. Banarsi Dass and others 3

which, the High Court has allowed the appeals filed by the State / respondent(s)

and set aside the orders of the learned Single Judge dated 30.11.2016 in CWP

No.8988 of 2015 and other connected cases, insofar as the grant of interest to

the writ petitioners/ appellants herein.

3. The appellants were working as Lecturers / Principals in the Government

Aided Private Colleges in the State of Haryana and they retired from service

prior to 01.01.2006. Claiming parity with the Lecturers/Librarians of the

Government Colleges in relation to the increase of their pension, based on the

Haryana Civil Services (Revised Pension) Part I Rules, 2009 7, the appellants

preferred the aforesaid civil writ petitions for issuance of a Writ of

Certiorarified Mandamus, to quash the orders of the respondent authorities

denying revised pension to the appellants as that of the employees / teachers of

the Government Colleges in Haryana, and to direct the respondent(s) to grant

pension to the appellants in the corresponding scale of Rs.37400 – 67000 +

AGP8 Rs.9000/- with effect from 01.01.2006 with interest.

4. In the course of hearing of the civil writ petitions, the State counsel

produced a copy of the letter dated 07.11.2016 sent by the Principal Secretary to

Government of Haryana, Higher Education Department, Chandigarh, addressed

to the Director Higher Education, Haryana, Panchkula, by which the State had

7 Hereinafter shortly referred as “the Rules, 2009” 8 Academic Grade Pay 4

agreed to give revised pension to the retired employees of the Private Aided

Colleges, and also gave an undertaking on the basis of the instructions

furnished by one Assistant by name Preet Singh, who was present in the Court,

to the effect that the State would also pay interest on the delayed payment. In

view of the said letter and the oral instructions, the learned counsel for the

appellants sought to withdraw the petitions. The learned Single Judge recorded

all these statements and dismissed the civil writ petitions as withdrawn on

30.11.2016, besides issuing a direction to release the arrears of pension to the

appellants within a period of three months. Subsequently, on applications, by

order dated 23.12.2016, the word “w.e.f. 01.01.2006” was inserted after the

words “revised pension” in the said orders dated 30.11.2016 passed by the

learned Single Judge in CWP No.8988 of 2015 and connected cases.

5. Between 2017 and 2018, the State disbursed the arrears of revised pension

to the appellants. However, they preferred a Review Application bearing

No.RA-CW-383-2017, seeking to review the learned Single Judge's orders

dated 30.11.2016 passed in CWP No.8988 of 2015 and connected matters, on

the premise that payment of interest on the amount of arrears to be paid w.e.f.

01.01.2006 was not justified as the decision to revise the pension in the pay

band of Rs. 37400 - 67000 + 9000 AGP was taken and approved by the

Government of Haryana, Finance Department, vide U.O.No. 66/5/2016-2FD- 5

II/28139 dated 07.10.2016 and therefore, interest on belated payment of pension

was payable not from 01.01.2006 but from 07.10.2016. By order dated

16.08.2017, the learned Single Judge dismissed the Review application, with

liberty to the State to approach the appellate forum.

6. Feeling aggrieved and dissatisfied with the order passed in the Review

Application, the State preferred LPA(s) before the Division Bench seeking to

set aside the orders of the learned Single Judge dated 30.11.2016, to the extent

of granting payment of interest as clarified on 23.12.2016 in the civil writ

petitions and on 16.08.2017 in the review application. The High Court allowed

the State’s appeals and set aside the orders of the learned Single Judge with

respect to grant of interest on delayed payment of revised pension to the

appellants, by the common judgment and order impugned herein.

7. In the given facts and circumstances of the case, more particularly that the

appellants were paid the revised pension with effect from 01.01.2006, the only

question to be answered in all these cases is, whether they are entitled to interest

on belated payment of revised pension.

8. Let us first examine the genesis of the present lis. The Haryana

Government, Department of Finance, vide Notification dated 17th April, 2009,

framed the Haryana Civil Services (Revised Pension) Part - I Rules, 2009 9, 9 For short, “the Rules, 2009” 6

which were deemed to have come into force on the 1 st January, 2006. The

Rules, 2009 applied to all pensioners / family pensioners, who were drawing

their pension/ family pension or who were eligible / entitled to pension/family

pension as on 01.01.2006 under the Punjab Civil Services Rules, Volume II as

amended from time to time and as applicable to the pensioners/family

pensioners under the rule making power of Haryana Government. Rule 6 deals

with ‘minimum ceiling of pension/family pension’, which reads as under:

“6(1). The fixation of revised entitlement of pension shall be subject to the provision that the revised entitlement of pension so worked out shall, in no case, be lower than fifty percent of the minimum of the pay in the pay band + grade pay in the corresponding revised scale in terms of Haryana Civil Services (Revised Pay) Rules, 2008, or as the case may be, Haryana Civil Services (Assured Career Progression) Rules, 2008, to the pre-revised pay scale from which the pensioner had retired.

(2) The entitlement of pension calculated at 50 per cent of the minimum of pay in the pay band plus grade pay would be at the minimum of the pay in the pay band (irrespective of the pre-revised scale of pay) plus the grade pay corresponding to the pre-revised pay scale. For example, if a pensioner had retired in the pre-revised scale of pay of Rs.18400-22400, the corresponding pay band being Rs.37400-67000 and the corresponding grade pay being Rs.10,000/- per month his minimum guaranteed pension would be 50 per cent of Rs.37400/- + Rs.10,000 that is Rs.23,700/-.

(3) The entitlement of pension is worked out in terms of sub-rules (1) and (2) above shall further be reduced pro-rata in all cases, where the pensioner had less than the minimum service required for full pension as per rules as applicable on 1st January, 2006 and in no case, it will be less than Rs.3500/- per month.”

Pursuant to the aforesaid Rules, pay scale was revised and the teachers working

in the Government Colleges were receiving the revised pension. While so, the

Higher Education Commissioner, Haryana, sent a communication dated

07.09.2010 to the banks, stating that the revised pension will be payable only to

those, who were in service as on 01.01.2006 and not to those who had retired 7

prior to 01.01.2006 and accordingly, ordered to reduce the pension and recover

the excess payment made. The said order was challenged in CWP No.19266 of

2010 and connected cases, titled as Satyapal Yadav v. State of Haryana and

others. By order dated 25.07.2012, the said civil writ petitions came to be

allowed, by setting aside the order dated 07.09.2010 passed by the Higher

Education Commissioner, Haryana, after having held by the learned Single

Judge that the petitioners therein had completed 3 years of service in the pre-

revised scale of Rs.12000 – 18300 prior to their retirement, i.e., before

01.01.2006, and hence, they are entitled to the fixation of pension by placing

them in the minimum pay band of Rs.37400 – 67000 with AGP of Rs.9000/- or

revision of their pension / family pension with effect from 01.01.2006. The

appeals10 preferred by the State before the Division Bench of the High Court of

Punjab and Haryana as well as this Court, ended in dismissal. Since the order

dated 25.07.2012 passed in CWP.No.19266 of 2010 and connected cases,

attained finality, the Haryana Government complied with the same, by order

dated 07.11.2014.

9. In the meanwhile, the appellants approached the respondent authorities

seeking pension in the corresponding scale of Rs.37400- 67000 + AGP

Rs.9000/- with effect from 01.01.2006 on par with the employees/teachers of

the Government Colleges in Haryana, which was rejected on the ground that 10 LPA No.1955 of 2012 was dismissed on 14.01.2013 and SLP (C) No.26907 of 2013 was dismissed on 10.07.2014 8

such benefit was granted only to the teachers working in the Government

colleges and not for the teachers working in Government Aided Colleges.

Challenging the said rejection, CWP.No.8988 of 2015 etc. cases were filed.

During the pendency of the same, the State accepted the claim of the appellants

and hence, the writ petitions came to be dismissed as withdrawn on 30.11.2016.

Seeking to review the order in respect of grant of interest on delayed payment

of pension, the State preferred the Review application, which was dismissed.

However, the Letter Patent Appeals 11 filed by the State were allowed by the

High Court, by observing that the appellants were fence-sitters and were

seeking the benefits on the strength of the original litigation, which others had

successfully contested upto Apex Court and therefore, they cannot be placed at

a better footing than the original litigants, who never got interest. The said order

of the High Court is questioned in these appeals by special leave.

10. The common submission made by the learned counsel appearing for the

appellants in all the appeals is that by the order impugned herein, the appellants

have been illegally and arbitrarily denied interest on the belated payment of

revised pension w.e.f 01.01.2006, by observing that they were fence-sitters and

hence cannot be placed at a better pedestal than the original litigants, who had

successfully contested and won the case and were not granted interest.

According to the learned counsel, the said observation of the High Court is in 11 LPA Nos.2396 of 2017 etc. cases against the order dated 30.11.2016 in CWP No.8988 of 2015 and connected cases 9

complete disregard to the fact that the original litigants referred to in the order

impugned herein, were Lecturers/Librarians in the Government Colleges, who

had started getting the revised pension w.e.f. 01.01.2006 and from whom

recovery was initiated by the respondent authorities on the premise that they

were made excess payment and therefore, the issue of interest on delayed

payment of pension did not arise therein. It is further elaborated that the

appellants who had retired from Government Aided Private Colleges prior to

01.01.2006 were claiming parity with the pension allowed and paid to the

Lecturers of Government Colleges and hence, by no stretch of imagination they

could be termed as fence sitters; and by payment of interest on the delayed

payment of pension, it cannot be said that they will be placed at a better footing

than the original litigants, since the original litigants continued to get the

revised pension, whereas in the case of the appellants, even the revised pension

was not paid to them until the year 2017-2018, despite the passing of the orders

dated 30.11.2016 by the learned Single Judge.

11. Continuing further, the learned counsel for the appellants submitted that

denial of grant of interest to the appellants is contrary to the stand taken by the

State in the writ proceedings, in which, the Learned Single Judge passed the

orders dated 30.11.2016 on the basis of the undertaking given by the State

Counsel that the revised pension is allowed to the appellants, who had retired 10

prior to 01.01.2006 and the Government shall pay interest on the delayed

payment. Thus, it is urged that in terms of the orders dated 30.11.2016 passed in

CWP No.8988 of 2015 etc. cases, the appellants were entitled to revised

pension along with interest on the delayed payment.

12. It is also pointed out by the learned counsel for the appellants that in the

Contempt Petition bearing COCP No.2846 of 2017 in CWP No. 8988 of 2015,

titled as Banarsi Dass and Ors. v. Jyoti Arora and another, an affidavit was

filed by Mrs. Jyoti Arora, Additional Chief Secretary to the Government of

Haryana, Higher Education Department, Chandigarh, on 01.05.2018 stating

inter alia that the writ petitioners therein are entitled to interest from the date of

issuance of the Policy dated 12.10.2010 by the Principal Secretary, Higher

Education, Government of Haryana, regarding revision of pension/ family

pension of the retirees of Non-Government Affiliated Aided Colleges in the

State; and accordingly, interest at 9% was calculated w.e.f. 12.10.2010.

However, on 22.10.2018, an additional affidavit dated 22.10.2018 was filed by

the said Mrs. Jyoti Arora, stating that the writ petitioners therein are not entitled

to any interest. Thus, the respondent authorities have taken different stand at

every stage of the proceedings, thereby depriving the appellants from getting

their legitimate claim of interest on the delayed payment. Without properly

appreciating the same, the High Court erred in allowing the State’s appeals by 11

setting aside the orders of the learned Single Judge in respect of grant of interest

on the delayed payment to the appellants and hence, the same is liable to be

quashed.

13. Opposing the claim of the appellants, the learned counsel for the State /

respondent(s) made the following submissions: (i) Rule 6 of the Rules, 2009

specifically deals with the case of Retired Government employees and there is

no provision in the Rules, 2009 to award interest for any belated payment; (ii)

Earlier and present litigations only pertain to grant of revised pension to the

Government College Lecturers and Private Aided College Lecturers, both on

the basis of 2009 Rules; (iii) The pay scale revisions are retrospective in nature

and are without interest; (iv) interest cannot be offered, based on equitable

considerations12; and (v) Concessions made by a Government counsel cannot be

granted, unless there are written instructions from a responsible officer 13. Thus,

the learned counsel submitted that considering the facts and circumstances of

the case, the High Court correctly denied the grant of interest on the delayed

payment, which does not call for any interference by this court.

14. As a riposte, the learned counsel for the appellants submitted that the

decisions relied on the side of the State are not applicable to the facts of the

present case, wherein the case was not contested on merits and based on the

Union of India and others v. Dr. J K Goel (1995) Supp (3) SCC 161 12

Periyar & Pareekannai Rubber Ltd v. State of Kerala (1991) 4 SCC 195 13 12

statement made by the State in the writ proceedings, the learned Single Judge

passed the orders dated 30.11.2016 relating to grant of interest on the delayed

payment. It is also submitted that on behalf of the State, one Assistant by name

Preet Singh was present in the Court and after obtaining instructions from him,

the State counsel made the statement before the learned Single Judge that the

Government shall pay interest on the delayed payment. Therefore, the learned

counsel prayed to this Court that the State may be directed to grant interest at

the rate of 9% from 01.01.2006 or at least from the date on which the

Government approved the grant of revised pension to the retired teachers of the

Government Aided Private Colleges.

15. We have considered the submissions made by the learned senior counsel

and learned AAG appearing for the parties and perused the materials on record.

16. Concededly, the appellants were paid the arrears of revised pension w.e.f.

01.01.2006, on par with the employees / Lecturers of the Government Colleges,

during 2017-2018. Claiming interest on such payment, which was originally

granted by the learned Single Judge and was subsequently, denied by the High

Court, the appellants are before us.

17. As we have already stated, in terms of the order dated 25.07.2012, which

attained finality on 10.07.2014, the retired employees / Lecturers of the

Government Colleges were given revised pension with effect from 01.01.2006,

on 07.11.2014. However, they were not granted any interest for the payment of 13

arrears of pension due to them. Having compared with them, the appellants

sought revised pension, by filing CWP No.8988 of 2015 and connected cases.

During the writ proceedings, the State accepted the claim of the appellants and

paid the arrears of revised pension with effect from 01.01.2006. Therefore,

since the appellants were claiming parity with the employees / Lecturers of the

Government colleges, they should not be entitled to any payment of interest.

18. Apparently, the entire case of the appellants rests on the factum recorded

by the learned Single Judge in his orders dated 30.11.2016 to the effect that the

Assistant, Preet Singh gave oral instructions to the State counsel that interest

will be given by the Government on delayed payment of revised pension.

However, it is interesting to note that there was no written instruction furnished

by the State; the appellants did not argue the matter on merits; and the learned

Single Judge passed the orders dated 30.11.2016, only on the concessions made

on behalf of the State. In such circumstances, the claim of the appellants

seeking interest, has no legs to stand.

19. It is also required to be pointed out that the revised structure of pay of

teachers and equivalent teachers in Universities and Colleges in Haryana, was

issued by the Government of Haryana, Finance Department, on 27.08.2009,

which was subsequently clarified on 02.09.2009. On the basis of the same, the

employees / teachers working in the Government colleges received the revised

pay. In the meanwhile, the Rules, 2009 relating to all pensioners / family 14

pensioners, who were drawing their pension/ family pension or who were

eligible / entitled to pension / family pension as on 01.01.2006, were notified on

17.04.2009, and they were deemed to have come into force with effect from

01.01.2006. As per Rule 6 of the Rules, 2009, and the subsequent clarification

issued by the Higher Education Commissioner, Haryana, the person, who had

completed 3 years of service in the pre-revised scale of pay and/ or the

corresponding pay scale applicable prior to 01.01.1996, shall be placed in the

minimum of the pay band of Rs.37400 – 67000 + AGP of Rs.9000/- for revision

of pension / family pension, with effect from 01.01.2006. Pursuant to the same,

the retired employees / Lecturers of the Government colleges started litigation

in the year 2010, which attained finality in the year 2014 and consequently, they

were paid the arrears of revised pension on 07.11.2014. Only thereafter, the

appellants initiated the writ proceedings in the year 2015. Thus, it is manifestly

clear that the appellants waited till the rights of the retired employees /

Lecturers of the Government Colleges, were crystalised and thereafter, made

representation to the respondent authorities and hence, they are not entitled to

get any interest, by treating them as fence-sitters. Though there may be some

lapses on the part of the officials representing the State in furnishing

instructions about the case, to the Court, however that by itself will not give any

room for the appellants to get unjust enrichment.

15

20. In view of the above stated reasons, we do not find any infirmity or

illegality in the common judgment passed by the High Court, setting aside the

orders of the learned Single Judge qua grant of interest on the belated payment

of pension to the appellants.

21. Therefore, all the Appeals are devoid of merits and are accordingly

dismissed. However, there is no order as to costs. Pending application(s), if

any, shall stand disposed of.

22. Before parting, we wish to observe that each party should present truthful

and accurate information to the court to facilitate fair adjudication. Such

information should be provided in the form of writing. Relying on the oral

instructions may lead to factual errors, misunderstanding / misrepresentations,

etc., ultimately compromising the integrity of the judicial process. Misleading

representations not only affect the parties involved, but also erode public trust

in the judicial system as a whole. The Court should also pass orders only based

on the written instructions, so as to enable it to fix the liability on the correct

official(s), responsible for any such wrongful representations / instructions.

Therefore, it is imperative that the official(s)/counsel(s) appearing before the

Court to represent the Government authorities should equip with proper written

instructions from the competent authority(ies). Needless to state that if any

misrepresentation is made on the part of the parties, in particular, Government 16

authorities, the court should not shy away from it, rather act sternly by mulcting

with costs on the official(s) who make the same.

.....................................J. [Pankaj Mithal]

.....................................J. [R. Mahadevan]

NEW DELHI OCTOBER 21, 2024

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