# R. L. NARASIMHAM v. UNION OF INDIA

- **Citation:** [1973] 1 S.C.R. 773
- **Court:** Supreme Court of India
- **Decided:** 1972-08-04
- **Bench:** M .• Sikri, J. M. Shelat, D. Dua, H. R. Khanna, K. K. Mathew
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/r-l-narasimham-v-union-of-india-5716
- **Pages:** 28

## Headnote

Govt. of lfldl_a A.ct, 1935. Sections 221 and 309 Govt. of India (High
Court Judges) Ordtr 1937, Paras 18, 19 and 21-WheJher create a legal
Jb/igation for the authorities and vested right in the High Court Judges to
r«eive peruion, expressed in Sterling, converted to rupees at the nJarket
rate of exchange.
Co!Utltutlon of India Art. 221(2).
High Court (Judges) Condltio!IS of Service Act 1954 (28 'of 1954)
Sections 14, IS, 18 and 25, Scheduled t, Part I paras 4 arid 5-Whether
these provisions preserve the 'benefit' of exchange rate 'guarameed' under
1937 order-Whether the constitutional provisions and 1954 Act afford
/e:r.J favourable ·terms in matters of 'fhe exchange rate.
Constitution of India, Art. 14---Wltether there \.\'as disc:rhninatio11 in
matters of fixation of pension amongst the JCS Officers .
. M. & D. the two ex-Chief Justices of Allahabad Hiah Court filed a
W. P. in Allahabad H. C. for appropriate Writ and directions challengin~
the fixation of their pension in rupee and to re-fix the pension in accord·
aoce with the provisions of the Govt. of India
(High Court
Jud11es)
Order, 1937 in Sterling and then to. convert the same into rupees at the
preaent market rate of exchange after the devaluation of rupee on Juno
6, 1966. D further claimed .a direction enabling him to clraw his pension
at the Treasury in England in Sterlings. Both the1 petitions were dis·
missed bv the full Bench of the Allahabad H. C. Thev appealed to this
Court after obtaining the certificate of fitness, N field a W.P. under Art
32. of the Constitution claiming similar reliefs.
In exercise of power u/s 221 r/w sec. 309 of the Govt. of India Aot.
1935, the' Governor General issued Govt. of India (H.C. Judges) Order.
1937. Schedule III to the Order expressed the pensions payable in Pound
Sterlings.
Para 21 provided "Pensions expressed in Sterling only shall.
if paid in l~dia, be converted at such rate of exchange as the Secy.
of
State may from time to time prescribe". With the adoption of the Constitution in 1950, the services of the three Judges were continued under
Art. 376 of the Constitution. Art. 221 of the Constitution provides for
the salaries, leave etc. of Judges and continues th~ guarantees of not ,varying salaries, pensions etc. to the disadvantage of the Judges, as guaranteed
by Sec. 221 of the 1935 Act. Jn 1954, Parliament -passed an enactment
regulating the salaries, pensions payable to the H. C. Judges including
the Judges who belong to the J.C.S. Part I. Part II and Part III of the
First Schedule gave different options to be elected by the Judges u/s 15
of the Act. In 1958, new paragraph 3 specifying in rupees the new sCale
for additional pension was substituted for the original paragraph 3 of
Part JI, in which J!Cnsion payable to an JCS Judge, had been expressed
in Sterling only. Part I of the Sch. provide for the pensions payable in
rupees only.
Sec. 18 of the Act (reiterated provisions of para 21 of
1'937 Order) provided that pensions expressed in S'erling shall be converted into rupees at such rate of exchange as the Central Govt. mav from
174
SUPREME COURT REPORTS
[1973) l S.C.'R.
time to time specify in this behalf. Sec. 25(1) of the Act restated the
£Uarantees in Art. 221 of the Constitution that the pension cond,itions shall
not be varied to the disadvantaae of the Judges.
M was &o,..,rned by Sec .. 14 of ihe Act r/w Art. 221 (2) of the Consti"
tution as he was appointed the C.J. in 1947. D and N who were JCS
Judges opted for the pensions to be paid according to the Part I of the
First Schedule aunexed to the 1954 Act. They were appointed C.J. after
1954.
Before this Court, the three ex-Judges contended that they had a
riaht under the 1937 order to get the pension expressed in Pound Sterlin&" and to convert the same into rupees
according to the
prevalent
market rate, after the devaluation of the rupee.
Thev further contended
that the said ri&ht was protected and preserved by the Constitution and the
1954 Act, and that the f

## Text

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R. L. NARASIMHAM
v.
UNION OF INDIA
August 4, 1972
773
[S, M .• SIKRI, C.J., J. M. SHELAT, I, D. DUA, H. R. KHANNA
AND K. K. MATHEW, JJ.]
Govt. of lfldl_a A.ct, 1935. Sections 221 and 309 Govt. of India (High
Court Judges) Ordtr 1937, Paras 18, 19 and 21-WheJher create a legal
Jb/igation for the authorities and vested right in the High Court Judges to
r«eive peruion, expressed in Sterling, converted to rupees at the nJarket
rate of exchange.
Co!Utltutlon of India Art. 221(2).
High Court (Judges) Condltio!IS of Service Act 1954 (28 'of 1954)
Sections 14, IS, 18 and 25, Scheduled t, Part I paras 4 arid 5-Whether
these provisions preserve the 'benefit' of exchange rate 'guarameed' under
1937 order-Whether the constitutional provisions and 1954 Act afford
/e:r.J favourable ·terms in matters of 'fhe exchange rate.
Constitution of India, Art. 14---Wltether there \.\'as disc:rhninatio11 in
matters of fixation of pension amongst the JCS Officers .
. M. & D. the two ex-Chief Justices of Allahabad Hiah Court filed a
W. P. in Allahabad H. C. for appropriate Writ and directions challengin~
the fixation of their pension in rupee and to re-fix the pension in accord·
aoce with the provisions of the Govt. of India
(High Court
Jud11es)
Order, 1937 in Sterling and then to. convert the same into rupees at the
preaent market rate of exchange after the devaluation of rupee on Juno
6, 1966. D further claimed .a direction enabling him to clraw his pension
at the Treasury in England in Sterlings. Both the1 petitions were dis·
missed bv the full Bench of the Allahabad H. C. Thev appealed to this
Court after obtaining the certificate of fitness, N field a W.P. under Art
32. of the Constitution claiming similar reliefs.
In exercise of power u/s 221 r/w sec. 309 of the Govt. of India Aot.
1935, the' Governor General issued Govt. of India (H.C. Judges) Order.
1937. Schedule III to the Order expressed the pensions payable in Pound
Sterlings.
Para 21 provided "Pensions expressed in Sterling only shall.
if paid in l~dia, be converted at such rate of exchange as the Secy.
of
State may from time to time prescribe". With the adoption of the Constitution in 1950, the services of the three Judges were continued under
Art. 376 of the Constitution. Art. 221 of the Constitution provides for
the salaries, leave etc. of Judges and continues th~ guarantees of not ,varying salaries, pensions etc. to the disadvantage of the Judges, as guaranteed
by Sec. 221 of the 1935 Act. Jn 1954, Parliament -passed an enactment
regulating the salaries, pensions payable to the H. C. Judges including
the Judges who belong to the J.C.S. Part I. Part II and Part III of the
First Schedule gave different options to be elected by the Judges u/s 15
of the Act. In 1958, new paragraph 3 specifying in rupees the new sCale
for additional pension was substituted for the original paragraph 3 of
Part JI, in which J!Cnsion payable to an JCS Judge, had been expressed
in Sterling only. Part I of the Sch. provide for the pensions payable in
rupees only.
Sec. 18 of the Act (reiterated provisions of para 21 of
1'937 Order) provided that pensions expressed in S'erling shall be converted into rupees at such rate of exchange as the Central Govt. mav from
174
SUPREME COURT REPORTS
[1973) l S.C.'R.
time to time specify in this behalf. Sec. 25(1) of the Act restated the
£Uarantees in Art. 221 of the Constitution that the pension cond,itions shall
not be varied to the disadvantaae of the Judges.
M was &o,..,rned by Sec .. 14 of ihe Act r/w Art. 221 (2) of the Consti"
tution as he was appointed the C.J. in 1947. D and N who were JCS
Judges opted for the pensions to be paid according to the Part I of the
First Schedule aunexed to the 1954 Act. They were appointed C.J. after
1954.
Before this Court, the three ex-Judges contended that they had a
riaht under the 1937 order to get the pension expressed in Pound Sterlin&" and to convert the same into rupees
according to the
prevalent
market rate, after the devaluation of the rupee.
Thev further contended
that the said ri&ht was protected and preserved by the Constitution and the
1954 Act, and that the fixation of their pension in rupees only was
illegal,
Dismissing the appeals,
HELD :
(i) N & D were appointed C.J. after 1954 and exercised
the option in terms of Sch. I, Part I of the Act, which expressed pension
in rupees only,
M was governed by the pro,isions of the 1954 Act and
Art. 221 of the Constitution.
Strictly speaking for determining the qu""-
tion of the creation and preservation of the rights claimed by three Chief
Justices, we have to look to the provisions of the Constitution and to the
statutory enactment made in accordance with it.
(2) Para 21 of the 1937 Order did not impose any legal obli~ation
on the authorities concerned to adopt the current or market rate of exchange.
The Secy. of States' Governor General were free to prescribe
whatever they considered the proper rate of exchange.
The 1937 order
did not create anv vested right in the Chief Justices.
Further, bv Tirtue
of Art. 221(2) of the Constitution the provisions of 1937 Order were
applicable only till the Parliament made a law in respect of pensions.
[792F-Hl
(3) Art. 221(2) only protected the rights of a Judge in respect of
pension against variation to his disadvantage.
Assuming thiS proviso to
take within its fold, the right of a Judge in respect of pensions under the
1937 Order. there was no right conferred on a Judge under that Order
to get his pension specified in Pound Sterling only, converted into rupees
at the current or market rate of exchange. There was therefore no ques ..
tion of anv such ri£ht bein£ protected under the Constitution or under
Sec. 25 of the 1954 Act.
[793B-Fl
( 4) Since D had opted for paymenti according to Part I of Schedule
I of the 1954 Act, his prayer for payment of pension in Sierlings on the
Treasurv in En~and was not tenable.
(5) N's contention that as a creditor of the Govt .. or a person having
a money claim be was entitled to the conversion at market rate,
was ,
untenable in view of the fact that neither the Constitution hor the 1954
Act preserve 'the right' to express the pension in Pound. The Constitu•
tion and the said Act only contemplate calculation and payment of pension
in rupees. [796 Cl
(6\ The plea of discrimination and violation of Art. 14 of the Constitution raised by .N was misconceived as the facts of his case were distinguishable from the facts of other ICS Officers. H!l$B]
(7) D's contention that the Pound Sterling is intrinsically more stable
than the rupee and therefore he was
given le.s favourable terms was
contrarv to bis own election of pavment under Part I Schedule I of the
1954 Act and was without any merit. [799AJ
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Il. L. NAilASWHAM l'. UNION
775
Appeals of M & D were dismissed and N was allowed to withdraw
the writ petition.
ORIGINAL/CML APPELLATE JURISDICTION :
Writ Petition
No. 630 of 1970.
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Under Article 32 of the Constitution of India for the enforcec
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ment of fundamental rights.
AND
Civil Appeals Nos. 2065 & 2165 of 1970.
Appeals by certificate from the judgment and order
dated
September 10, 1967 of the Allahabad High Court in Civil Milll:: .
.Vrit Petitions Nos. 3006 of 1967 and 1646 of 1948.
Writ Petition No. 630 of 1970
C. K. Daphtary, B. P. Singh and D. N. Misra for the petitioner.
n. Sen, R. M. Mehta, R. N. Sachthey, S. P. Nayar, B. D.
Sharma for respondents Nos. I and 2.
J. B. Dadachanji, 0. C. Mathur, Ravinder Narain, P.
C.
Bhabpatai.
I. M. Lal and E. C. Agarwala for the intervener (Kirshna
Prasada)
E. C. Agal'Wa/a for the intervener (I. M. Lal)
Civil Appeal No. 2065 of 1970.
C. K. Daphtary, S. C. Manchanda, A. K. Nag a;id Sapna
Ghosh for the appellant
M. C. Setalvad, M. C. Bhandare, B. Sen, R. N. Sachthey and
S. P. Nayar for the respondents.
Civil Appeal for 2165 of 1970.
M. C. Chagla, S. C. Manchanda, 1. P. Goyal and G. N.
Wantoo and R. A. GuptCJ, and M. C. Setalvad tor the appellant.
B. Sen, R. M. Mehta and S. P. Nayar for the respondent.
716
SUPREME COURT REPORTS
[1973) 1 S.C.R.
'Qle Judgment of the Court was delivered by
Dua, J .-This judgment will. dispose of three case9 (i) W. P.
No. 630 of 1970 (Shri R. L. Narasimham vs. Union of India
& anr.) (ii) C.A. No. 2065 of 1970 (Shri B. Malik vs. Union of
India & anr.) and (iii) C.A. No. 2165 of 1970 (Shri M. C. Desai
vs. Union of India) because they raise common questions of law.
These cases were originally heard in November, 1971
by
a
Bench of which. our late brother Roy J., was a member. Unfortunately before the judgment could be announced Roy
J.,
died with the result that these cases were set down for hearing before the present Bench. The parties then filed written arguments,
supplementing them by oral address.
Shri R. L. Narasimhan1,
~t the hearing adressed us in person in support of his writ petition under Art. 32 of the Constitution and Shri S. C. Mancharda
addressed arguments on· behalf of Shri Malik in C.A. No. 2065
of 197v. On behalf of Shri Desai in C.A. No. 2165 of 1970
Shri Gupta adopted the arguments addressed in the other two
cases.
In April 27, 1972 Shri Narasimham was permitted to
file additional written arguments on two points which, according
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to his representation, he had not fully developed in his earlier
oral address. In reply the Union of India was permitted to file
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written arguments by May 5, 1972. The relevant facts of the
1hree cases may now be briefly stated :
W.P. No. 630 of 1970 : Shri Narasimhan, petitioner in W.P.
F
No. 630 of 1970 joined the Indian Civil Service on October 12,
1931 and he was assigned to Bihar Cadre. On July 26, 1948
when India was a Dominion under the Indian Independence Act,
1947 he was appointed a Puisne Judge of the Orissa High
Court and on March 31, 1956, after the enforcement of ·the
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High Court Judges' (Conditions of Service) Act, 28 of 1954
(hereinafter called the 1954 Act), enacted by the Parliament
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as proviOOd in Art. 221 ( 2), he was appointed Chief 1 ustice
of that HJgh Court.
On January 4, 1965 he was appointed
Chief Justice of the Patna High Court from where he i:etired
on August 2, 1968.
Soon after his retirement he was appointed
a Member of the Law Commission on August 2, 1968. On June
ff
6, 1965 Indian rupee was devalued ans on November 18, 1967
English pound was devalued.
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R. L. NARASJMHAM v.,UNION (Dua, 1.)
777
Sometime prior to the actual date of his
retirement
the
question of determining the exact amount of pension in rupees
payable to the peti•tioner arose.
The pe'titioner did not claim
that he was entitled to receive his pension in pounds sterling
under the provisions of the Government of India (Hi.2h Court
Judges) Order, 1937 (hereinafter called the 1937 Order). His
main prayer was that he was entitled to be paid his pension
in rupees by calculating · it initially as payable in pounds
sterling and then converting the sterling into rupees
at the
current rnte of exchange prevailing at the time
of
payment:
( vide last part of para 16 of his writ petition and last part of
para 3 of his rejoinder-affidavit).
According to the petitioner
the atnount of pension calculated in accordance with the terms
of the 1937 Order being more favourable to him than th€l amount
determine!! under the 1954 Act, he was entitled
to
receive
pension under the former.
The Government, however, decided
to calculate his pension in accordance with the scale and the
provisions of the 1954 Act which provide for payment of pension
in terms of rupees without any reference to pound sterling or to
its current rate of exchange into rupees.
On July 2, 1968
the petitioner, in terms of the proviso to s. 15 of the
1954
Act elected to receive the pension payable to him under Part I
of the First Schedule to that Act. His option reads :
"In pJJrsuance of the proviso to section 15 of the
High Court Judges (Conditions of Services) Act, 1954
I, R. L. Narasimham, l.C.S., Chief Ju~tice of
the
Patna High Court, hereby elect to receive the pension
payable to me under Part I of the First Schedule to
that Act.
The exercise of this 011tion it made without prejudice
to my right to claiμJ. pension in pound sterling under
the provisions of the High Court Judges Order, 1937
to be converted into rupees at superannuation if it will
be more favourable time.
Sd./- R. L. Narasimham
[
2-7-68
On October 9, 1968 (as per annexure F to Shri Narasimham's
writ petition) the Accountant General, Bihar, intimated to the
Accountant General,
Central
Revenues, New Delhi and also
H
among others, to Shri Narasimham, the sanction of the Governmynt of India with respect to the payment of Rs. 93,062.75 being
the commuted value of Rs. 883/- out of the pension of Rs.
1,666.65 oer mensem (Rs. 20,000/- p.a.) to Shri Narasimham.
15-L 152 Sup CI/73
778
SUPREME COURT REPORTS
[1973] I S.C.R.
After the dismissal of the writ petitions of Shri B.
Malik
and Shri N. C. Desai by the Allahabad High Court Shri Narasiniham is stated to ha~ approached 'the Home Secretary in the
matter of payment of his pension and to have tried to distinguish
his case from those of Shri Malik and Shri Desai. Having failed
to get the desired relief from the Government Shri N arasiniham
filed the present writ petition in November, 1970. Apart from
questioning the correctness of the aforesaid judgment of the
Allahabad Hi~. Court he also tried to distinguish his case from
the cases of the other two Chief Justices.
Civil Appeal No. 2065 of 1970: Shri B. Malik was an Advocate of the Allahabad High Court when he was appointed a Puisne
Judge of that High Court in 1944 and. was appointed Chief
Justice of the same Court on December 15, 1947. He retired
as Chief Justice of that Court on January 11, 1956. According
to his submission at the time of his appointment he was toverned
by the Government of India Act, 1935 and by virtue of Section
22i of 1that Act, Art. 221 of the Constitution ands. 25 of the 1954
Act, his right in respect of pension could not be varied to his
disadvantage after his appointment. His right to receive pension
in tenns of the 1937 Order has been preserved,
claims Shri
Malik, and it is added that he is entitled
to be pa!'l
the
equivalent of his pension expressed in pounds in tenns of Indian
currency calculated at the
prescribed
exchange
rate
when
pension is paid to him in India. The prescribed rate of ex-
. change, according to the submission, mus~ be current
·"larket
rate 'of exchange.
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Civil Appeal No. 2165 of 1970 : Shri M. C. Desai having
joined the Indian Civil Service in December, 1925 was appointed
an Additional Judge of the Allahabad High Ccurt on December
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13, 1948. He became a pennanent Judge of that Court on Jan·
uary 24, 1950. He was appointed Chief-Justio~ of the same Court
on January 17, 1961, after the 1954 Act had come into force,
and retired as Chief Justice of that Court on February 25, 1966.
The President sanctioned a sum of Rs. 19,340.00 per annum
payable to Shri Desai· by way of pension in accordance with
Part I of First Schedule of the 1954 Act.
Obviously Shri Desai
had elected to receive pension under Part I as provided by the
proviso to s. 15 of that Act.
Indeed, it is so admitted by him
in para 6 of his rejoinder-affidavit dated February 12,
1969
though it is stated in para 5 thereof that he had at tl!at time
not thougl:\! of the question as to what his pension would be
under the 1937 Order and in para 7 thereof that there was no
question of_th\l exercise of any option between the 1937 Or~er
and the 1954 Act, the option being confined as between Part
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R. L. NARASJMHAM v. UNION (Dua, I.)
779
I and Part ll of the First Schedule of the 1954 Act. The pension
payment order WM actually issued to him for payment of pension
of Rs. 1,611.1'5 ps. per month by the Accountant General of
U.P. This payment order was addressed to the Treasury Officer,
Allahabad.
On July 12, 1966 Shri Desai got commuted half
of his pension with effect from that date and received in lieu
thereof Rs. 87,219.80 ps. with the result that his
pension
payment order was revised by the Accountant General, U.P.,
and the. bclan_r.e of the pension payable to him was fixed at
Rs. 805.85 pS. per mensem. The order commuting his pension,
according to his writ petition, was passed in October,
1966
which was obviously after the devaluation of the Indian rupee.
On January 19, 1967 he wrote to the· Accountant General of
U.P. pointing out that his pension was to
be
expressed
in
sterling and then convected into rupees at a rate of exchange
fixed by the Government of India. The Accountant General on
March 17, 19_~7 sent a reply st~ting that he could only fix the
amount of pension as sanctioned by the President of India. Shri
Desai thereupon wrote to the Secretary,
Ministry of Home
Affairs, Government of India, New· Delhi on May 9, 1967 ·for
either refixing his pension in rupees after taking into consideration
the effect of devaluation cif the rupee or for making an order
of payment of pension to him in sterling in England.
In that
letter he claimed payment of pension under paragraph 933A of
the Civil Serviee Regulations.
In March, 1968 h~ represented .
his case to the Minister of Home Affairs in which he tried to
distinguish his case from that of Shri Malik whose writ petition
was at. that. time pending in the Allahabad High Court. His
prayer was rejected by the Home Ministry on April 20, 1968.
Both Shri Malik and Shri Desai applied to the Allahabad
High Court under Art. 226 of the Constitution •the former in
August, 1967 and the latter in May, 1968.
In Shri Malil:'s
writ petition prayers v.i::re made inter alia that the High €our!
be 'J)lea>ed :-{i) to issue an order, direction or writ in the
nature of certiorari and quash the order of the Accountant General U.P,, A_Ua)rnbad expressed in his letter No. PAI/SA/5990
dated February 6, 1967, and (ii) to issue an order, direction
or writ in the nature of mandamus directing the
Accountant
General, Allahabad tb issue a fresh PPO for Rs. 2,060.38 ps.
per mensem and Rs. 24,724.56 ps. per annum in view of the
devaluation of ~he Indian rupee in supersession of PPO No.
118260 for Rs. 1,299.10 ps. p.lll. and Rs. 15,590.00 per annum:
Shri Desai prayed for " (a) a writ, order or direction
to the
Union of India to refix his pension in accordance with the provisions of the Government of India
(High Court Judges)
Order, 1937 in sterling and then to convert the same into rupees
at the present rate of exchange, (b) a writ, order or direction
780
SUPREME COURT REPORTS
[1973] 1 S.C.R.
d~ecting the opposit~ party No. 1 (Union of India)
to pass
surtable orders enabling the petitioner· to draw his pension at the
Treasury in England in sterling; ( c) a writ, order or direction
directing the opposite party No. 1 t;:i re-calculate the amount of
· his pension that has been commllted in accordance with
the
provisions of the Government of India (High Court Judges)
Order, 1937 according to the present rate of exchange and to
pay to the petitioner the difference between the said amount and
the amount already paid to him."
A Full Bench of the Allahabad
High Court, by a common order dated September
10,
1969,
dis missed both the petlitions of Shd Malik and Shri Desai.
That Court, however, ce~trlied the cases to. be fit for appeal to
this Cou:t under Arts. 132(1) and 133(l)(c) of the Consti•
tution. It is in these circumstances that these three cases have
been heard together.
The principal distinction between C.A. No. 2065 of 197v
(Shri B. Malik vs. Union of India & Anr.) and the other two
cases, as sugi:ested at the bar, is that Slu:i
B. Malik ·never
belonged to !he Indian Civil Service whereas Shri N arasimham
and Shri Desai originally belonged to the Indian Civil
Servic~
and ·were appointed Judges of their respective High Courts as
members of thii'. iervice.
The difference between these
two
categories of cases lies in the difference in the rules of service
with regard to payment of peroion governing the Judges who
came from the Indian Civil Service and those who never belonged that service.
Shri Narasimham and Shti Desai had originally joined the
Indian Civil Service and were appOinted first as puisne Judges
and then as Chief Justice of their respective High Courts.
As
already noticed, ·they wen ~ppointed as Chief Justices after the
enforcement of the 1954 Act. We do not consider it necesbry
to trace the origin of the Indian Civil Service and refer to its
histmical background for discovering the dominant object and
purpose of the provisions relating to paymel,lt of pensions embodied in the 1937 Order by correlating them with the provisions for making payment of the salaries
and pensions in
pounds ~ierling in England or of its equivalent in· rupees
in
India, to the members of the Covenated Services entering into
covenants with the British Crown in England for serving in India,
which at that time happened to be a part of the British Empire.
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At the bar reference was only made to the 1937 Order for
foundinl!: the claims of all the three Chief Justices before us,
as their rights under this Order were stated to have been pr<:1·
served in subsequent enactments and also in the present ConstiH
tution of India and in the 1954 Act. We may, therefore, start
with the examination of the relevant provisions dealing with the.
pension payable 110 Judges of the High Courts as contained in
.,
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R. L. NARASIMHAM v. VNION"(Dua, J.)
781
the 1937 Order. This Order was made by His Majesty in
Council under s. 221 read with r. 309 of the Government of
India Act, 1935.
Section 221 reads :
"221. Salaries etc., of Judges.-
Th~ Judges of the several lfigh Courts shall be
entitled to such salaries
and
allowances,
including
allowances for expenses in respect of equipment and
travelling upon appointment, and to such rights in res·
pect of leave and 'f)ensions, as may from time to time
be fixed by His Majesty in Council :
Provided that neither the salary of a judge, nor his
rights in respect of leave of absence or pension, shall
be varied to his disadvantage after his appointment."
The 1937 Order provided for all the matters mentioned in s. 321
Para 5 pf the Second Schedule of this Order shows that , salaries
payable to the Chief Justices and Judges of various High Courts
in British India were specified in rupees.
Pensions payable to
them were, however, expressed in pounds llterling in the Third
Schedule. It does not req~ such research or analysis to discover the reason why salaries, unlike pensions, of Chief Justices
and Judge£. were specified in rupees only and quiite obviously
this distinction- betwelen payment of salary and
payment
of
pension was not unintentional or without purpose. The intended
beneficiaries of these provisions were obviously those who were
expected ordinarily to receive their salaries in India and their
pensions. in England.
The subject of pensions is dealt with in
paras 17 to . 24 of this Order though we are directly concerned
~
paras 18, 19 and 21 only.
These paragraphs read as
under :-
"18(1) .-Subject to the provisions of this Order,
the pension payable to a Judge who on his retirement
is entitled to a pension shall be calculated-·
(a)
(b)
in the case of a Chief Justice or Judge who is
not a member of the Indian Civil Service, or of
a Chief Justice of a Chartered High Court who
is a member of the Indian Civil Service, in
accordance with the scale and rules in Part I
of the Third Schedule to this Order.
in the case of a Judge who is a member of the
Indian Civil Service and is not a Chief Justice
of a Chartered High Co&rt, iD. accordance with
the scale and rules in Part II of the said
Schedule.
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19. ( 1) The provision of this paragraph shall apply in
relation to a Judge who is a member of a civil service
of the Crown in India.
(2) If any such Judge is eligible for a pension under
paragraphs 17 and 18 of this Order he shall elect to
receive either that pension or such pension as is refered to in the . next succeeding sub-paragraph.
(3) If any such Judge is not eligible for a pension
under paragraphs 17 and 18 of this Order pr, being
eligible for such a pension eleots not to receive that
pension, the pensi in payable to him .shall be-
(a) the pension for which· he would have been eli--
gi_ple under the rules of his civil service if he
had not been appointed a-Judge, his service as
a Judge being treated as service for the purpose
of calculating that pension; and
(b) if he is not a member of the Indian Civil Service, a special additional pension of fut~ hundred rupees per annum in respect of each completed year of servi•,e for pension in any one or
more of the High Courts, but not in any
c'1)ie exceeding two thousand five hundred
rupees per annum.
( 4) The pension payable to
any
such Judge
part of whose service includes service as a Chief Justice
shall in no case be less than the pension Jor which he
would have been. eligible if all his service for pension
had been iervice rendered otherwise than as Chief
Justice.
21. Pensions expressed in 'ter!ing only 'hall,
if
paid in India, be converted at ~uch rate of exchange
as the Secretary of State may from time to time pr~
cribe:
Provided that nothin)!; in this para)!;fa.ph shall affect
aJ!Y speciiic privilege in respect of the conversion of
sterling Qjlnsions which was conferred by any llules
previou§IY in force on persons who on the 1st February, 1921, were members of a civil service of the
Crown in India."
We do not consider it necessary to reproduce the relevant
portions of the Third Schedule. It is, however, clear that para
18 in so far as it provides for pension payable to a Chief Justice
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R. L. NARASIMHAM v. UNION (Dua, J.)
783
could sc;arcely apply to the •two I.C.S. Chief Justices who never
held the offices of Chief Justices during the operation of the
1937 Order, having been appointed as Chief Justices only after
the emorcement of the 1954 Act.
When India secured independence in 1947 by virtue of the
Indian Inde~ndence Act, 194 7 ( 10 and 11 Geo. VI, c. 13)
protection :in certain respects was granted to the Secretary of
State's Services by enacting s. 10 which provided .-
"10. Secretary of State's Services etc. :
( 1 ) Thi> provisions of this Act keeping in force
provisions of the Government of India Act, 1935 shall
not continue in force the provisions of that Act relating to appointments to the civil service of, and civil
posts under, the Crown in India by the Secretary of
State, or the provisibns of that Act relating to the reservation of posts.
(2) Every person who-
(a) having been appointed by the
Secretary of
State or Secretary of State in Council, to a civil
service of the Crown in India continues on
and after the appointed day to serve under the
Government of either of the new Dominions or
of any Province or part thereof; or
(b) having been appointed by His .. Majesty before
the appointed day to be a Judge of the Federal
Court or of any Court which is a High Court
within th\) meaning of the Government of India
Act, 1935, continues on and after the appointed
da_y to serve as Judge in either of '!he
new
Dominiolli,
&hall be entitled to receive from the Governments of
the Dominions and Provinces or parts which he is from
time to time serving or, as the case may be, which are
served by the courts in which he is from time to time
a Judg~, .the same conditions of service · as respects
remuneration, leave and pension, and the same rights
as respects disciplinary matters or, as the case may be,
as respects the tenure of his office, or rights as similar
thereto as changed ckcUlllS1tances may permit, as that
person was entitled to immediately before the apoointed day.
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SUPREME COURT REPORTS
[1973] l S.C.R.
( 3 ) Nothing in this A.ct shall be construed as enabling 1the rights and liability of any person with respect to the family pension funds vested in Commissioners
under sec_tion two hundred and seventy three of the
Government of India Act, 1935, to be governed otherwise "than by Orders in Council made (whether before
or after the passing of this Act or the appointed day)
by His Majesty in Coiμicil and rules made (whether
before or after the passing of this Act or the appointed
day)_ by a Secretary of State or such other Minister
of the Crown as may be designated in that behalf by
Order in Council under the Ministers of the Crown
(Transfer of Functions) Act, 1946."
According to s. 1 of this Act, August 15,
194 7 was the
appointed day with eJ:Iect from which the Independent Dominion
of India was set up.
In s. 221 of the Government of India Act
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the "Governor General" was substituted for "His Majesty in
.COuncil".
Similarly, in para 21 of the 1937 Order "Governor
General" was substituted for "Secretary of State".
This appaD
rently became necessary as a result of India having become an
Independent Dominion.
When the new Constitution was framed
India constituted itself into a Sovereign Democratic Republic.
Chapter V of Part VI deals with the High Courts in the States so
far as relevant for our purpose.
In order to be qualified for
appointment as a Judge of a High Court a person must, among
I:
other qualifications stated in Art. 217(2), be a citizen of India.
The existing Judges of the High Courts were, however, specifically
exempted from the requirement of qualification of Indian citizenship contained in this sub-Article: vide Art. 376(1). Accoraing
to Art. 216 every High Court is to consist of a Chief Justice and
such other Judges as the President may from time to time deem it
necessary to appoint.
Article 221 of the Constitution fixed the
salaries of Judges and also made provision for leave of absence
and pensions. This Article prima facie seems to refer to Judges
appointed under the Constitution. The Judges '()f the High Courts
holding office inunediately before the commencement of the Constitution were by virtue of Art. 376(1) also entitled, unless they
had elected otherwise, to such salaries and allowances and to· such
rights in respect of leave of absence and pensions as are provided
for under Art. 221, which reads :
"221. Salaries etc., of Judges :
(1) There shall be paid to the Judges of each High
Court such salaries as are specified in the Second ScheJule.
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( 2) Every Judge snail be entitled to such allowances
and to such rights in respect of leave of absence and
pensions as may from time to time be determined by or
under law made by Parliament and, until so determined,
to such allowances and rights as are; suecified in the
Second Schedule :
Provided that neither the allowances of a Judge nor
his rights in respect of leave. of absence or pensi;in shall
be varied to his disadvantage after his appointment."
Article .376( 1) provides :
"376. Provisions as to Judges of High Courts.
(1) Notwithstanding anything in clause
(2) of
article 217 the Judges of a High Court in any Province
holding office immediately before the commencement of
this Constitution shall, unless they have elected otherwise, become on such commencement the Judges of the
High Court in the corresponding State, and shall thereupon be entitled to such salaries and allowances and to
such rights in respect of leave of absence and 'pension as
are provided for under article 221 in respect of the
Judge,of any other High Court."
Any such Judge shall, notwithstanding that he is not
a citizen of India, be eligible for !J.ppointment as Chief
Justice of such High Court, or as Chief Justice or other
Judges of any other High Court."
The last part was added by the First Constitution Amendment Act,
1951.
Para 10 (1), Part D of the Second Schedule provides for
salaries to be paid to the Chief Justice and Judges of High Courts.
The Chief Justices and Judges drawing higher salary immediately
before the commencement of the Constitution were entitled to
receive as special pay an amount equal to the difference beiween
the s~lary specified in !'ara 10(1) and the salary which they were
dra"".!ng before su~h commencement.
Para 10 ( 4) dealing with
the nghts of the High Court Judges in respect of leave of absence
and pensions provided :
"10( 4). The rights in respect of leave of absence
(including leave allowances) and pension of the Judges
of the High Court of"any State shall be governed by the
provisions which, immediately before the comniencement of this Constitution, were applicable to the Judges
of the High Court in corresponding Province."
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SUPREME COURT llEPORTS
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This sub-para became unnecessary when the Parliament made the
required law with respect of pensions as contemplated by Art.
221 (2). Strictly speaking, therefore, we have nqw to look only
to the provisions of our Constitution and to the statutory enactments made in accordance therewith for determining the question
of the preservation or creation of the rights claimed by the. three
Chief Justices in these proceedings. . This position was not, as
indeed in face of the scheme of our Constitution, could not, be
controverted by them.
In 1954 Parliament, as contemplated by Art. 221 (2), enacte<l
the 1954 Act.
This Act sought to provide for one common scale
of pensions for all Chief Justices and another common scale for
other Judges because under the Constitution one uniform rate of
salary for Chief Justices and another uniform rate of salaries for
other Judges of High Courts was provided.
The Judges already
drawing higher salary, it may ·be recalled, were compensated by
the grant of a speci!ll pay under the Constitution.
The fact that
as originally enacted "the High Court" as defined in this Act
meant the High Court of Part A States is immaterial for our purpose because now there are no Part B States and, therefore, no
Part B State High Courts.
Chapter III and First Schedule of this
Act deal with the subject of pensions payable to the Judges so far
as relevant for our purpose.
This Act was amended in some
important respects in 1958 with retrospective effect from November l; 1956 (vide: Act 46 of 1958). That was the date with
effect from which the Constitution Seventh Amendment Act was
enforced.
By virtue of s. 10 of this Amending Act in Part II of
the First Schedule new paragraph 3 specifying in rupees the new
scale for additional pension was substituted for the original paragraph 3 in which pension payable to an I.C.S. Judge had been
expressed in sterling only ( vide s. 15). This Act was again
111Dended in 1961 with restrospective effect from the inception of
the principal Act and then again iO: 1964 with retrosjlective effect.
It is not necessary to go into those details.
No doubt, Shri Malik
bad retired on January 11, 1955 but no point was sought to be
made on his behalf on the ground of these retrospective amendments being subsequent to his retirement.
His case is pWnly
governed by s. 14 as originally framed read with Art. 221 ( 2) of
the Constitution and we will ignore the later amendments. Section
14, after the aforesaid amendments with retrospective effect, reads
as linder:
"14. Pension payable to Judges.-Subject to )he
provisions of this Act, every Judge shall, on his retirement, be paid a pension in accordance with the scale and
provisions in Part I of the First Schedule :
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787
Provided that no such pension shall be payable to a
Judge unless--
(a) he has completed not less than t:.velve .years of
·
service for pension; or
(b) h~ has attained the age of sixtytwo years; or
( c) his retirement is medically certified to be necessitated by ill-health.
Provided further that if a Judge at the time of his
apr,:Mtment is in receipt of a pension (other than a disability or wound pension) in respect of any previous
service in the Union or a State, the pension pafable
under this Act shall be in lieu of, and not in addition to
that pension.
Explanation.-In this Section 'Judge' means a Judge
"'ho is not a member of the Indian Civil Service or ha5
not held any other pensionable civil post under. the
Union or a State and includes a Judge who being a
member of the Indian Civil Service or having held any
other, pensionable civil post under the Union or a State
has elected to receive the pension payable under Part I
of the First Schedule."
The second·proviso was added by the 1958 Amendment Act
and in cl. (b) of the first proviso the word 'sixtytwo' was substi·
tuted for the word 'sixty' by amendment in 1964.
Section 15 which has retained its original form contains special provision for pension in respect of Judges who are members
of service. lt reads ':
"15. Special provision for pension in respect of
Judg~ who are members of service.-
Every Judge-
( a) who iil a member of the Indian Civil Service
shall, on his ~etirement, be paid a pension in
accordance with the scale and provisions in
Part II of the First Schedule;
(b) who is not a member of the Indian Civil Service
but has held any other pensionable civil post
under the Union or a State, shall, on his retirement, be paid a pe.nsion in accordance with the
scale and provisions in Part III of the First
Schedule.
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SUPREME COURT REPORTS
[)973] 1 S.C.R.
Provided that every such. Judge shall elect to receive
the pension payable to him either unc!er Part I of the
First Schedule or, as the case may be, Part II or Part III
of the First Schedule, and· the pension payable to him
shall be calculated accordingly."
The proviso is significant so far as the l.C.S. Chief Justices,
namely, Shri Narasimham and Shri Desai, are concerned because
they were required to elect to receive the pension payable to them
either under Part I or Part II of tl.e First Schedule and if they
elect<;d in favour of Part I then their case would be similar to that
of Shri Malik, who, under s. 14 has prima facie, as is clear from
the explanation, to be paid his pension "in accordance with the
scale and provisions in Part I." Apart from the two parts of the
First ~chedule there was no third option open to the two I.C.S.
Chief Justices before us because Part III of the First Schedule
does not apply to the I.C.S. Judges.
Before considering the First
Schedule we may as well read ss. 18 and 25 (1) of this Act :
"18. Conversion of sterling pensioh into rupees.-
Pensions expressed in sterling only shall, if paid in
India, be converted into rupees at such rate of exchange
as the Central .Government may, from time to time,
specify, in this bhalf.
Provided that nothing in this section shall affect any
specific privilege in respece of the ·conversion of sterling
pensions which was conferred by any rules previously in
force in respect of persons who, on the 1st February,
1921, were members of the Indian Civil Service."
(Emphasis supplied).
This secti<?n is a reproduction of para 21 of the 1937 Order except
that "Central Government" is substituted for "Governor-General".
The proviso which expressly excludes from the operation of this
section any specific privilege in respect of conversion of sterling
pensions conferred by prior rules on pre-1921 members of the
Indian Civil Service, was omitted by Aet 46 of 1958 with retrospective effect from· November~ 1956.
No argument was founded on the purpose of the original enactment of this proviso and
its retrospective removal in 1958.
Section 25 (1) ,reads :
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"25. Savings.-(1) Nothing ~ontained in this Act
shall have effect so as to give to a Judge who is serving
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789
respect of leave of absence (including leave allowances)
or pension than those to which he would be entitled if
this Act had not been passed.
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Sub.section (2) of this section which was added by Act 46 of
1958 with·retrospective ef'iect from Novemb~r 1, 1956 app~ntly
in order to give eITct to t:1c Proviso to Art.