K. C. Kaushik vs The State Of Haryana
- Neutral2024 INSC 803
- SCR[2024] 10 SCR 1736
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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