04 August 1972
Supreme Court
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R. L. NARASIMHAM Vs UNION OF INDIA

Bench: SIKRI, S.M. (CJ),SHELAT, J.M.,DUA, I.D.,KHANNA, HANS RAJ,MATHEW, KUTTYIL KURIEN
Case number: Writ Petition (Civil) 630 of 1970


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PETITIONER: R.   L. NARASIMHAM

       Vs.

RESPONDENT: UNION OF INDIA

DATE OF JUDGMENT04/08/1972

BENCH: DUA, I.D. BENCH: DUA, I.D. SIKRI, S.M. (CJ) SHELAT, J.M. KHANNA, HANS RAJ MATHEW, KUTTYIL KURIEN

CITATION:  1972 AIR 2405            1973 SCR  (1) 773  1972 SCC  (2) 763

ACT: Govt.  of India Act, 1935.  Sections 221 and 309,  Govt.  of India  (High Court Judges) Order 1937, Paras 18, 19 and  21- Whether  create a legal obligation for the  authorities  and vested  right in the High Court Judges to  receive  pension, expressed  in  Sterling, converted to rupees at  the  market rate of exchange. Constitution of India Art. 221(2). High  Court (Judger) Conditions of Service Act 1954  (28  of 1954) Sections 14, 15, 18 and 25, Scheduled  I, Part I paras 4  and 5-Whether these provisions preserve the ’benefit’  of exchange  rate  ’guaranteed’ under  1937  order-Whether  the constitutional   provisions   and  1954  Act   afford   less favourable terms in matters of the exchange rate. Constitution   of   India,   Art.   14-Whether   there   was discrimination in matters of fixation of pension amongst the ICS Officers.

HEADNOTE: M.   & D. the two ex-Chief Justices of Allahabad High  Court filed a W.     P..  in Allahabad H. C. for appropriate  Writ and directions challenging the fixation of their pension  in rupee  and  to  re-fix the pension in  accordance  with  the provisions of the Govt. of India (High Court Judges)  Order, 1937 in Sterling and then to convert the same into rupees at the present market rate of exchange after the devaluation of rupee  on  June  6, 1966.  D  further  claimed  a  direction enabling him to draw his pension at the Treasury in  England in Sterlings.  Both the petitions were dismissed by the full Bench  of  the Allahabad H.C. They 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 see. 309 of the  Govt.  of India Act, 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 India, be converted at such rate of exchange as the Secy. of  State  may  from  time to  time  prescribe".   With  the

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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 the  guarantees of not varying salaries, pensions etc. to the  disadvantage, of  the Judges, as guaranteed by Sec. 221 of the  1935  Act. In  1954,  Parliament  passed an  enactment  regulating  the salaries, pensions payable to the H. C. Judges including the Judges  who  belong to the I . C . S . Part 1. Part  11  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 11, in which pension payable to an  ICS 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  1937 Order) provided that pensions expressed in Sterling shall be converted  into  rupees  at such rate  of  exchange  as  the Central Govt. may from 774 time to time specify in this behalf.  Sec. 25(1) of the  Act restated the guarantees in Art 221 of the Constitution  that the   pension  conditions  shall  not  be  varied   to   the disadvantage of the Judges. M was governed by Sec. 14 of the Act r/w Art. 221(2) of  the Constitution as he was appointed the C.J. in 1947.  D and  N who  were  ICS  Judges opted for the  pensions  to  be  paid according to the Part I of the First Schedule annexed to the 1954 Act.  They were appointed C.J. after 1954.  Before this Court,  the three ex-Judges contended that they had a  right under  the 1937 order to get the pension expressed in  Pound Sterlings  and to convert the same into rupees according  to the  prevalent  market rate, after the  devaluation  of  the rupee.   They  further  contended that the  said  right  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., 1, Part I of the Act, which  expressed pension in rupees only.  M was governed  by the  provisions  of  the  1954  Act  and  Art.  221  of  the Constitution.   Strictly speaking for determining the  ques- 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 obligation 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  any vested  right in the Chief Justices.  Further, by virtue  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-H] (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 question of any  such  right  being   protected

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under the Constitution or under Sec. 25 of  the  1954   Act. [793B-F] (4)  Since  D had opted for payment according to Part  I  of Schedule  I  of  the 1954 Act, his  prayer  for  payment  of pension  in  Sterlings on the Treasury in  England  was  not tenable. (5)  N’s  contention  that as a creditor of the Govt.  or  a person  having  a  money  claim  he  was  entitled  to   the conversion  at  market rate, ’was untenable in view  of  the fact that neither the Constitution nor 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 C] (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. [798B] (7)  D’s contention that the Pound Sterling is intrinsically more  stable than the rupee and therefore he was given  less favourable terms was contrary to his own election of payment under Part I Schedule I of the 1954 Act and was without  any merit. [799A] 775 Appeals  of  M  &  D were dismissed and  N  was  allowed  to withdraw writ petition.

JUDGMENT: ORIGINAL/CIVIL APPELLATE JURISDICTION : Writ Petition No. 630 of 1970. Under  Article  32  of the Constitution  of  India  for  the enforcement 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 Misc.  Writ 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. B.   Sen, R. M. Mehta, R. N. Sachthey, S. P. Nayar, B. D. Sharma    for respondents Nos. 1 and 2. J.   B.  Dadachanji,  O. C. Mathur, Ravinder Narain,  P.  C. Bhabpatai. I.   M.  Lal and E. C. Agarwala for the intervener  (Kirshna Prasada) E. C.  Agarwala for the intervener (I.  M. Lal) Civil Appeal No. 2065 of 1970. C.   K. Daphtary, S. C. Manchanda, A. K. Nag and 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, J. P. Goyal  and  G.  N. Wantoo  and  R.  A.  Gupta,  and  M.  C.  Setalvad  for  the appellant. B. Sen, R. M. Mehta and S. P. Nayar for the respondents. 776 The Judgment of the Court was delivered by Dua,  J.-This judgment will dispose of three cases (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

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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. Narasimham, at the hearing addressed us in  person in support of his writ petition under Art. 32  of the   Constitution  and  Shri  S.  C.  Manchanda   addressed arguments on behalf of Shri Malik in C.A. No. 2065 of  1970. 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 to  his  representation, he had not fully developed  in  his earlier  oral  address.   In reply the Union  of  India  was permitted  to  file written arguments by May 5,  1972.   The relevant facts of the three cases may now be briefly stated W.P.  No. 630 of 1970: Shri Narasimhan, petitioner  in  W.P. No.  630  of  1970  joined  the  Indian  Civil  Service   on October12, 1931 and he was assigned to Bihar Cadre. On  July 26,1948 when  India  was  a  Dominion  under  the   Indian IndependenceAct,1947  he was appointed a Puisne Judge  of the  Orissa  High  Court and on March 31,  1956,  after  the enforcement  of  the  High  Court  Judges’  (Conditions   of Service) Act, 28 of 1954 (hereinafter called the 1954  Act), enacted by the Parliament as provided in Art. 221(2), he was appointed  Chief Justice of that High Court.  On January  4, 1965 he was appointed Chief Justice of the Patna High  Court from  where  he retired on August 2, 1968.  Soon  after  his retirement  he was appointed a Member of the Law  Commission on  August  2,  1968.   On June 6,  1965  Indian  rupee  was devalued  and  on  November  18,  1967  English  pound   was devalued.                             777 Sometime  prior  to the actual date of  his  retirement  the question  of  determining  the exact amount  of  pension  in rupees payable to the petitioner arose.  The petitioner  did not  claim  that he was entitled to receive his  pension  in pounds  sterling under the provisions of the  Government  of India  (High 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  rate  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 amount of pension calculated in accordance with the terms of the 1937 Order being more favourable to him than the  amount determined  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 pursuance of the proviso to section 15  of               the High Court Judges (Conditions of Services)               Act,  1954 I, R. L. Narasimham, I.C.S.,  Chief               Justice of the Patna High Court, hereby  elect                             to receive the pension payable to me u

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nder Part               I of the First Schedule to that Act.               The  exercise of this option it  made  without               prejudice  to  my right to  claim  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. Narasiniham               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 among  others,  to  Shri Narasimham,  the  sanction  of  the Government  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 per mensem (Rs. 20,000/-  p.a.)  to Shri Narasimham. --L 152 Sup CI/73 778 After  the dismissal of the Writ Petitions of Shri B.  Malik and Shri N. C. Desai by the Allahabad High Court Shri  Nara- simham is stated to he 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 Narasimham filed the present writ  petition in  November, 1970.  Apart from questioning the  correctness of  the  aforesaid judgment of the Allahabad High  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 governed by the Government of India Act, 1935 and  by virtue  of  Section  221  of  that  Act,  Art.  221  of  the Constitution and s. 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 terms of  the 1937 Order has been preserved, claims Shri Malik, and it  is added  that he is entitled to be paid the equivalent of  his pension  expressed  in pounds in terms  of  Indian  currency calculated  at the prescribed exchange rate when pension  is paid  to  him in India.  The prescribed  rate  of  exchange, according, to the submission, must be current market rate of exchange. 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 Court on December  13,  1948.  He became a permanent  Judge  of  that Court  on January 24, 1950.  He was appointed Chief  Justice 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  that  time  not thought  of  the question as to what his pension  would  be,

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under the 1937 Order and in Para 7 thereof that there was no question  of  the exercise of any option  between  the  1937 Order and the 1954 Act, the option being confined as between Part                             779 I  and Part II of the First Schedule of the 1954  Act.   The pension payment order was actually issued to him for payment of  pension of Rs. 1,611.65 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 balance 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 converted  into  rupees at a rate of exchange fixed  by  the Government  of India.  The Accountant General on  March  17, 1967 sent a reply starting 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 of 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 Service Regulations.  In  March, 1968 he 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  Malik’s writ  petition  prayers were made inter alia that  the  High Court be pleased :-(i) to issue an order, direction or  writ in  the  nature  of certiorari and quash the  order  of  the Accountant  General U.P., Allahabad 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 to 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  the  Indian  rupee   in supersession of PPO No. 118260 for Rs. 1,299.10 ps. p.m. 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 directing the opposite party No. 1 (Union of India) to  pass suitable 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 to recalculate the  amount  of  his  pension  that  has  been  commuted  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."

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A Full Bench of the Allahabad High Court, by a common  order dated  September 10, 1969, dismissed both the  Petitions  of Shri  Malik and Shri Desai. That Court,  however,  certified the  cases  to be fit for appeal to this Court  under  Arts. 132(1)  and 133(1)(c) of the Constitution.  It is  in  these circumstances  that  these  three  cases  have  been   heard together. The  principal  distinction between C.A. No.  2065  of  1970 (Shri B. Malik vs.  Union of India & Anr.) and the other two cases, as suggested at the bar, is that Shri B. Malik  never belonged to the Indian Civil Service whereas Shri Narasimham and  Shri  Desai  originally belonged to  the  Indian  Civil Service  and were appointed Judges of their respective  High Courts  as members of that service.  The difference  between these two categories of cases lies in the difference in  the rules of service with regard to payment of pension governing the Judges Who came from the Indian Civil Service and  those who never belonged that service. Shri  Narasimham  and Shri 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 were appointed  as  Chief Justices  after the enforcement of the 1954 Act.  We do  not consider  it  necessary to trace the origin  of  the  Indian Civil  Service  and refer to its historical  background  for discovering   the  dominant  object  and  purpose   of   the provisions  relating to payment of pensions embodied in  the 1937  Order  by  correlating them with  the  provisions  for making  payment  of  the salaries  and  pensions  in  pounds sterling in England or of its equivalent in rupees in India, to  the  members of the Covenanted  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.  At the bar reference was only made to  the 1937  Order for founding the claims of all the  three  Chief Justices  before us, as their rights under this  Order  were stated  to have been preserved in subsequent enactments  and also  in the present Constitution of India and in  the  1954 Act.   We may, therefore, start with the examination of  the relevant  provisions  dealing with the  pension  payable  to Judges of the High Courts as contained in 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.-               The Judges of the several High 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 respect of  leave  and               pensions, 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 of 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 sterling  in the Third Schedule.  It does not  require  such research  or analysis to discover the reason  why  salaries, unlike pensions, of Chief Justices and Judges were specified

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in rupees only and quite obviously this distinction  between 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  with 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)   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   Court,   in               accordance with the scale and rules in Part II               of the said Schedule.               782               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 referred to  in               the next succeeding subparagraph.               (3)_If  any such Judge is not eligible  for  a               pension  under  paragraphs 17 and 18  of  this               Order  or, being eligible for such  a  pension               elects  not  to  receive  that  pension,   the               pension payable to him shall be--               (a)   the pension for which he would have been               eligible 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  five               hundred  rupees per annum in respect  of  each               completed  year of service for pension in  any               one or more of the High Courts, but not in any               case  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 for which he would have been  eligible               if  all  his  service  for  pension  had  been               service  rendered  otherwise  than  as   Chief               Justice.               21.Pensions  expressed  in  sterling   only               shall, if paid in India, be converted at  such               rate of exchange as the Secretary of State may               from time to time prescribe :               Provided that nothing in this paragraph  shall

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             affect  any specific privilege in  respect  of               the conversion of sterling pensions which  was               conferred by any Rules previously 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 783 could  scarcely 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 enforcement of the 1954 Act. When  India  secured independence in 1947 by virtue  of  the Indian  Independence Act, 1947 (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)The  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  provisions  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 the meaning of the Government of                India Act,, 1935, continues on and after  the                appointed day to serve as Judge in either  of                the new Dominions, shall  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  Judge,,  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 circumstances  may  permit, as that person was  entitled  to immediately before the appointed day. 784               (3)Nothing  in this Act shall be construed  as               enabling  the  rights  and  liability  of  any               person  with  respect to  the  family  pension               funds  vested in Commissioners  under  section               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               Council  and  rules made  (whether  before  or

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             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,  1947  was  the appointed  day  with  effect  from  which  the   Independent Dominion  of India was set up.  In S. 221 of the  Government of India Act 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  apparently 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   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).  According 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 of  the  High Courts holding office immediately 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 Schedule.               (2)Every  Judge shall 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 specified in  the               Second Schedule :               Provided  that  neither the  allowances  of  a                             Judge  nor  his rights in respect of leave  of               absence  or  pension 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 article217  the Judges of a High Court  in               any Province holdingoffice 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  there-               upon   be  entitled  to  such   salaries   and               allowances  and to such rights in  respect  of               leave  of absence and pension as are  provided

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             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               appointment  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  between the salary specified in para  10(1)  and the salary which they were drawing before such commencement. Para 10(4) dealing with the rights of the High Court  Judges 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 commencement  of               this  Constitution,  were  applicable  to  the               Judges  of  the High  Court  in  corresponding               Province." 786 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 now  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),  enacted 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 special  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 1, 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  amended  in 1961 with retrospective effect  from  the inception  of the principal Act and then again in 1964  with retrospective effect.  It is not necessary to go into  those details.   No doubt, Shri Malik had retired on  January  11,

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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 plainly 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 under :               "14.   Pension payable to Judges.--Subject  to               the 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 :               787               Provided that no such pension shall be payable               to a Judge unless--               (a)   he  has completed not less  than  twelve               years of service for pension; or               (b)   he  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 appointment 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 payable under  this  Act               shall  be in lieu of, and not in  addition  to               that pension.               Explanation.-In  this Section ’Judge’ means  a               Judge who is not a member of the Indian  Civil               Service or has 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 substituted 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.  It reads :               "15.  Special provision for pension in respect               of               Judges who are members of service.-               Every Judge-               (a)   who  is  a member of  the  Indian  Civil               Service  shall, on his retirement, be  paid  a               pension  in  accordance  with  the  scale  and               provisions               in  Part  11  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  pension  in               accordance  with the scale and  provisions  in               Part Ill of the First Schedule.               788               Provided that every such Judge shall elect  to               receive  the  pension payable  to  him  either               under 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

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             be calculated accordingly." The  proviso  is  significant so far  as  the  I.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 the  First Schedule and if they elected 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 Schedule 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  pension  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 section 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 Act 40 of 1958 with retrospective effect from November 1, 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 :               "25.  Savings.--(1) Nothing contained in  this               Act shall have effect so as to give to a Judge               who is serving as such at the commencement  of               this  Act less favourable terms in respect  of               his allowances or his right in               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. Sub-section (2) of this section which was added by Act 46 of 1958  with  retrospective  effect  from  November  1,  1956- apparently  in order to give effect to the Proviso  to  Art. 221 of the Constitution so far as Judges of the former  High Courts  in Part B States were concerned is not relevant  for our  purpose.   The  whole controversy before  us  would  in effect  seem to centre mainly round the construction  to  be placed  on  these  two  sections and  on  Art.  221  of  the Constitution  for determining the nature and extent  of  the preexisting rights in respect of pensions which were claimed by  the  Chief  Justices  to  have  been  preserved  by  the Constitution and the 1954 Act. Beginning  with the First Schedule of the 1954 Act  we  find that  all the paras of Part I specify the amount of  pension payable  in rupees.  Para 3 provides for basic  pension  and

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paras 4 and 5 for additional pension.  Para 4 reads :               "4. For the purpose of calculating  additional               pensions,   service  as  a  Judge   shall   be               classified as follows :-               Grade I., Service as Chief Justice in any High               Court;               Grade  II. Service as any other Judge  in  any               High Court." Para  5 which also fixes the maximum aggregate  pension  per annum provides :               "5.  For  each completed year of  service  for               pension  in either of the grades mentioned  in               paragraph  4, the Judge who is eligible for  a               basic,  pension  under  this  Part  shall   be               entitled  to the additional pension  specified               in relation to that grade in the second column               of the table annexed hereto :               Provided  that  the aggregate  amount  of  his               basic and additional pension shall not  exceed               the  amount specified in the third  column  of               the said table in relation to the higher grade               in which he has rendered service for not  less               than one completed year.       TABLE  Service   Additional pension  Max. aggregate       per annum pension. pa.       Rs.  Rs.  Grade 1   740  20,000  Grade 11  470  16,000" 790 it is not denied that Shri Malik who is not a member of  the Indian Civil Service is to be paid his pension in accordance with  the  scale  and  provisions in Part  I  of  the  First Schedule as laid down by s. 14 of the 1954 Act.  As  regards Shri  Desai  also  it is not disputed that  he  had  on  his retirement  elected under the proviso to s. 15  to,  receive his pension under Part I of the First Schedule.  All that he has  pleaded  in-the rejoinder affidavit is that  there  was never any question of option between the 1937 Order and  the 1954 Act.  This plea ignores the fact that had be  exercised his  option  to receive his pension under Part 11  he  would have  been  entitled  to invoke the ordinary  rules  of  the Indian  Civil  Service applicable to him, had  he  not  been appointed as Judge, and that his election to receive pension under Part 1 rules out all claim to pension in sterling.  So far  as these two Chief Justices are concerned it is  hardly open to dispute that they have both to receive their pension under  Part 1. The claim made in the writ petition  by  Shri Desai  that  he  was entitled to draw  his  pension  at  the Treasury  in  England  in sterling is also in  view  of  his election  not  easy  to sustain  and  indeed  no  convincing argument  was  advanced in its support.  It is only  in  the case  of Shri Narasimham that it was suggested that  he  had exercised his option without prejudice to his right to claim pension  in  pounds  sterling under the  1937  Order  to  be converted  into rupees, if that would be more favourable  to him.  Under the proviso to s. 15 as is clear he was required to elect to receive his pension either under Part I or under Part  11.  Part 11 of the First Schedule applies to a  Judge who is a member of the Indian Civil Service and who has  not elected  to receive the pension payable under Part 1.  Under paragraph  2 of Part 11 pension payable to such a  Judge  is the pension to which he would be entitled under the ordinary rules  of  the  Indian  Civil Service if  he  had  not  been appointed  a Judge, his service as a Judge being treated  as

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service  therein  for calculating that pension, and  to  the additional  pension, if any, to which he would  be  entitled under  paragraph  3. It may be recalled  that  the  original paragraph  3  as  enacted in 1954 provided for  a  scale  of additional pension for Judges completing not less than seven years  of  service,  and that the amount  was  expressed  in sterling.  By the Amending Act no. 46 of 1958 this scale  in paragraph 3 was specified in rupees instead of sterling with retrospective  effect.   This amendment  was  affected  long before  Shri Narasimham retired.  The vires or  legality  of this amendment was not questioned before us. It  is  true  that  in  the  absence  of  election  by  Shri Narasimham  under  s. 15 it was apparently not  possible  to calculate  pension  payable to him under the 1954  Act.   It was,  however,  open to him, if he so desired, to  elect  to receive  pension under Part II.  Instead of so electing,  he elected to receive pension under Part I without prejudice to his right to claim act superannuation payment 791 of pension under the 1937 Order by converting sterling  into rupees  if  that  were more favourable to  him.   After  the amendment  of paragraph 3 of Part 11 of the First  Schedule, even  under  that Part there is no question  of  calculating pension  payable  to retired Judges of the  High  Courts  in pounds sterling.  Indeed, the 1954 Act, after its amendment, marks the final break with the foreign  currency   in    the matter  of payment of pensions to the High Court Judges  and the beginning of uniform treatment of all High Court  Judges in  the matter of payment of pension by providing  for  cal- culation and payment in Indian currency.  The anomaly  which was  a relic of the British rule originally motivated by  an apparent desire to bestow a special privilege and  facility, carrying financial  benefit,  on British Judges  serving  in India  was finally removed by this amendment.  It is  hardly necessary  in this connection to emphasise the  desirability of   keeping  our  basic  economic  structure,  so  far   as practicable,  free from the direct effects of  unpredictable fluctuations in the value of foreign currency.  It was  thus apparently  with the intention of delinking the fixation  of pension to the retired I.C.S. Judges of the High Courts from the pound sterling  a  foreign currency-that the  Parliament in  its wisdom decided to effect the necessary amendment  in the  1954 Act, which removed the anomaly of paying  pensions to  a  certain  category  of  High  Court  Judges  by  first determining the amount of pension in a foreign currency  and then  converting that amount into Indian rupees for  payment to them.  It also eliminated the possibility of    recurring variations. depending on. the uncontrollable fluctuations in the  value  of  pound sterling, in the  amount  of  pensions payable to that category of Judges. Reliance  was  placed  on  s. 25 of the  1954  Act  for  the contention that this Act itself saves the preexisting  right of the Judges  serving  as such at the commencement of  this Act  in respect of their pensions.  Section 25 read with  s. 18,  according to the argument, entitles the Chief  Justices to receive their pensions when expressed in sterling in  the 1937  Order  after  converting  them  into  rupees  at   the prevailing rate of exchange.  Linked with this submission is the  argument  that  the  Proviso  to  Art.  221(2)  of  the Constitution initially saved this right and s. 25 merely re- produces this constitutional protection.  Let us examine the cogency  and the validity of this argument.  While doing  so we are completely ignoring the election made under s. 15  of the 1954 Act. The relevant provisions of the Constitution, the validity of

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which is beyond challenge, must, after January 26, 1950,  be considered  as the basic source of the rights in respect  of the pensions claimed by three Chief Justices.  We have  only to examine those provisions in order to find out the  nature of their rights created or 792 preserved thereunder.  In this connection it is important to bear  in  mind  that Shri Narasimham  and  Shri  Desai  were appointed Chief Justices not only after the commencement  of the Constitution but also after the enforcement of the  1954 Act.   Their  rights  in their capacity  as  Chief  Justices would,  therefore, prima facie, seem to be governed  not  by the  1937  Order but by the Constitution and the  1954  Act. They were not serving as Chief Justices at the  commencement of the 1954 Act with the result that s. 25 of that Act would seem to be ineffective so far as their rights for pension as Chief  Justices are concerned.  Shri B. Malik had,  however, been  appointed  as Chief Justice in December, 1947  and  he retired in January, 1955.  But he was never a member of  the Indian  Civil Service and different considerations arise  in his case. Now  s.  25 of the 1954 Act-enacted by  Parliament  as  con- templated  by Art. 221(2)-which has already been  reproduced merely  saves  the  pre-existing right of  the  three  Chief Justices in respect of pensions from less favourable  effect of the provisions of the 1954 Act.  The question, therefore, arises if the 1954 Act has the effect of giving to the three Chief  Justices  less favourable terms in respect  of  their pensions than those to which they would have been  entitled, had  the  1954 Act not been passed.   For  determining  this question  we  have  to turn to the 1937 Order  :  vide  Art. 221(2) read with para 10(4), Part D, Second Schedule of  the Constitution.   Para 18 of the 1937 Order provided  for  the calculation  of pension, payable to a Chief Justice  on  his retirement  (whether  or not he is a member  of  the  Indian Civil  Service)  in accordance with the scale and  rules  in Part  I  of the Third Schedule.  In that Part  pensions  are expressed in sterling only.  According to para 21, it may be recalled,  such pension when expressed in sterling only,  if paid in India, had to be converted at such rate of  exchange as the Secretary of ’State (before India became a  Dominion) or  the  Governor General, (after India became  a  Dominion) may,  from  time  to  time,  prescribe.   This  para,  quite plainly,  did  not  impose  any  legal  obligation  on   the authorities concerned to adopt the current or market rate of exchange.  Neither any statutory provision nor any precedent or  principle was brought to our notice from which we  could be  persuaded  to  spell  out  any  such  obligation.    The authorities  concerned were free to prescribe whatever  rate of  exchange  they considered proper.  By  virtue,  of  Art. 221(2)   of  the  Constitution,  until  Parliament  by   law determined  differently,  every Judge was entitled  to  such rights in respect of pension as are. specified in the Second Schedule.   In  that  Schedule, as provided  by  para  10(4) (before   its   amendment  by  the   Constitution   (Seventh Amendment)  Act, 1956) of Part D, the rights in  respect  of pension  of the Judges of the High Courts were continued  to be governed by 793 the provisions which immediately before the commencement  of the   Constitution   were   applicable  to   them   in   the corresponding provinces.  The Proviso to Art. 221(2), it may be recalled, 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

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respect of pensions under the 1937 Order, it may be  pointed out, that there was no right conferred on a Judge under that Order to get his pension, specified in pounds sterling only, converted  into  rupees  at the current or  market  rate  of exchange.   There  was, therefore, no question of  any  such right  being  protected under the  Constitution.   The  only right  that could be protected was to get the  "pension  ex- pressed in sterling only" converted for payment in India "at such rate of exchange as the Governor General may from  time to time prescribe".  The protection thus granted was also to last only for the interim period till Parliament made a  law in  respect  of pensions as provided by Art.  221(2).   This sub-Article, in our view, clearly shows that the framers  of the  Constitution intended the law relating to  pensions  of all  High Court Judges, including the Chief Justices, to  be placed  on a more uniform, rational and stable basis.   Such law  in  the form of the 1954 Act, it may be  recalled,  was brought  on  the  statute  book  in  1954.   The  protection guaranteed  to the Judges of the High Courts in the  Proviso to Art. 221(2) was reproduced in the 1954 Act as well in the form of s. 25.  How if there was no preexisting right in the three  Chief Justices, to get their pensions,  expressed  in sterling only, converted for payment to them into rupees  at the current or market rate of exchange, obviously there  was no  question  of  preserving or protecting  any  such  right either under the Constitution or under the 1954 Act.   Under the  said  Act  pensions expressed in  sterling  only  were, according to s. 18, to be converted into rupees at such rate of  exchange  as the Central Government  specified  in  this behalf from time to time.  This right is expressed in  terms identical  with those used in para 21 of the 1937 Order  ex- cept  that  the authority empowered to specify the  rate  of exchange  for  the conversion is the Central  Government  in substitution  for  the Governor General.  No  complaint  was made   by  the  Chief  Justices  before  us   against   this substitution.    It  is  thus  clear  that   the   statutory provisions beginning with the 1937 Order and ending with the 1954 Act nowhere vested in the High Court Judges a right  to have  their pensions expressed in sterling to  be  converted into rupees at the prevailing market rate of exchange at the time  of their retirement or of payment of pension to  them. We   are,  therefore,  unable  to  hold  that   either   the Constitution  or  the 1954 Act preserves any  right  in  the three  Chief  Justices to get their  pensions  expressed  in sterling  only converted for payment to them in  India  into rupees at the prevailing market rate of exchange. 794 Shri Narasimham, however, sought support for his  submission from  the previous history of the fixation of Is. 6d.  to  a rupee as the rate of exchange in February, 1928.  He  placed particular  reliance  on  an  extract  from  a  letter  (No. 23/44/48-Ests.  dated  December  14,  1948)  from  the  Home Ministry, Government of India, to the Chairman of the I.C.S. Association  (Annexure  I  to  Shri  Narasimham’s  rejoinder affidavit)  in which assurance was said to have  been  given that  the rate of exchange for the purposes of art.  933  of the  Civil Services Regulations would be the  one  generally applicable  to all official transactions between  India  and the  United  Kingdom  and that there  was  no  intention  to prescribe  such rate arbitrarily with reference to  pensions alone.   Apart  from  this assurance  Shri  Narasimham  also pressed  into  service the; "Principles of  Nominalism"  for founding his claim and in this connection reference was made to  certain  passages  in Dicey’s Conflict of  Laws  and  in Cheshire’s Private International Law.

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History of the background in which 1s. 6d. was fixed as  the rate  of  exchange  for a rupee is of  little  relevance  in determining the question in controversy before us.  It  does not  create  any  legal obligation in favour  of  the  Chief Justices  before  us which they can enforce in  the  present proceedings.   In any event the language of the  1937  Order and  of  the 1954 Act is quite plain and it  appears  to  us impermeable to refer to any such history for the purpose  of construing these provisions.  Similarly the extract from the letter dated December 14, 1948 can render little  assistance in  construing the clear provisions of the 1937 Order or  of the 1954 Act. For reasons best known to Shri Narasimham he did not care to produce  for our examination the letter to which the  letter dated  December  14, 1948 purports to be a reply, so  as  to enable  us  to  have a clearer and  fuller  picture  of  the context  in which this reply was given.  Some parts  of  the extract produced by Shri Narasimham, however, do throw  some light on what the Association had itself in all  probability suggested.   The actual words from the extract may  usefully be reproduced here               "The  Government of India agree that now  that               most  of  the European members of  the  I.C.S.               have  left, it is somewhat anomalous that  the               I.C.S. annuity should continue to be fixed  in               sterling.  The matter, however, forms part  of               a bigger issue affecting all services, and the               removal   of  the  anomaly  will  involve   an               alteration  of  the  whole  structure  of  the               pensionary   rules   in  the   Civil   Service               Regulations.   The Government of India  regret               that  they are not in a position to  undertake               this piece of reform just at present."                             795 It  seems  obvious  that in 1948 the  Government  felt  some difficulty  in  acting on the representation of  the  I.C.S. Association on such an important point as the removal of the anomaly of fixing in sterling the I.C.S. annuity but in  due course  after fuller deliberation when India ceased to be  a Dominion  and  became a Sovereign  Democratic  Republic  the suggestion made by the said Association itself was  accepted and  carried  out  on a permanent  basis  by  inserting  the necessary  provision  in  the  Constitution  and  later   by enacting  the 1954 Act so far as the High Court  Judges  are concerned.  We need not refer to the changes effected in the relevant  Civil  Service Regulations.  The  extract  of  the letter  produced  by Shri Narasimham would thus seem  to  be wholly unhelpful to him. The vires of s. 18 of the 1954 Act in so far as it  empowers the  Central Government to specify the rate of exchange  for converting  sterling into rupees was not  questioned  before us.   There being, therefore, no right created by  the  1937 Order  or  by any other statutory provision brought  to  our notice  vesting in the three Chief Justices a right  to  get their  pension converted from pound sterling into rupees  at the prevailing market rate of exchange at the time of  their retirement  or of actual payment, we do not think  they  can have any legitimate grievance against the fixation of  their pension  in  rupees on a permanent basis by  the  Parliament under  the 1954 Act as amended, in accordance with the  then prevailing  rate.  The amount of pension fixed by  the  1954 Act  as amended was indisputably not less favourable to  the three Chief Justices and even on their own argument they had no grievance. against it at that time.  The fact that it was so  fixed  on a permanent basis by the Parliament  does  not

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violate any right vested in the three Chief Justices. Reference  on behalf of the Chief Justices was also made  to certain  observations  by Dr. Katju, the then  Minister  for Home Affairs, during the discussion in the Parliament on the High Court Judges’ (Conditions of Service) Bill which  later emerged  as  the  1954 Act.  All that we need  say  in  this connection is that proceedings in Parliament are scaresly  a legitimate  or  a  helpful aid to the  construction  of  the statutes  and no observation made there can vary  the  plain meaning  of the statutory language which is otherwise  clear and unambiguous. It  was faintly suggested that the fact that s. 18 has  been retained in the 1954 Act even after its amendment by Act  46 of 1958 shows that a right of certain category of Judges  to have  their  pensions converted from  sterling  into  rupees still subsists.  According to the submission it is Judges in similar position as the three Chief Justices before us or at least the I.C.S. Chief Justices 796 like Shri Narasimham and Shri Desai for whose benefit s.  18 has  been  retained.   This argument in face  of  the  clear provisions  of  the  other  relevant  sections  and  of  the relevant  parts  of the First Schedule is, in  our  opinion, unacceptable  for  sustaining the claim of the  three  Chief Justices  to  get their pensions converted  into  rupees  in accordance  with the terms of the 1937 Order for payment  to them.   Section  18  may well have  been  retained  for  the benefit  of those I.C.S. Judges whose right to  pension  was governed by the 1954 Act prior to its amendment by Act 46 of 1958.  It is, however, unnecessary to express any considered opinion on this point. Shri  Narasimham’s argument that he being a creditor of  the Government  in  terms  of pound  sterling  was  entitled  to receive his pension as a debt by converting the pounds  into rupees at the current market rate of exchange is based on an untenable premise.  The relationship of creditor and debtor, assuming  it to exist in this case, could only  arise  after the  pension became due and payable.  After the  enforcement of  the 1954 Act as amended he could only become a  creditor in  terms  of  rupees  and not in  terms  of  pounds.   This contention   is,  therefore,  of  no  assistance   to   Shri Narasimham. This also fully answers the alternative plea that Shri Nara- simham   has  in  any  event  a  money  claim  against   the Government.   The  money claim in respect  of  pension  also materialises  only  when it becomes due.   No  provision  of statutory law or binding precedent was brought to our notice under which a claim under the 1937 Order could be kept alive so  far as the three Chief Justices are concerned after  the commencement of the Constitution and enforcement of the 1954 Act  beyond the extent to which any such claim was  actually preserved thereunder.  As observed earlier, the Constitution and.  the 1954 Act only contemplate calculation and  payment of pension in rupees. Reliance  was  placed  by Shri Narasimham  on  rule  149  of Dicey’s   "Conflict  of  Laws",  8th  edn.  in   which   the Nominalistic Principle is stated as follows :               "A  debt  expressed  in the  currency  of  any               country  involves  an obligation  to  pay  the               nominal  amount  of the debt  in  whatever  is               legal tender at the time of payment  according               to  the law of the country in the currency  of               which  the  debt is  expressed  (lex  monotee)               irrespective  of  any fluctuations  which  may               have occurred in the value of that currency in

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             terms  of sterling or any other  currency,  of               gold,  or of any commodities between  the  time               when  the  debt was incurred and the  time  of               payment (Principle of Nominalism)." 797 Reference in this very connection was also made to p. 684 of Cheshire’s Private International Law (eighth edn.) where  it is  stated  that in England an English  Court  cannot  order payment  except  in  English currency and  whatever  sum  is ordered  to  be paid must be expressed in English  money  or such  order  cannot  be enforced by the  ordinary  writs  of execution.   It is not understood how these  references  can help  Shri Narasiniham.  Once his plea as creditor or  money claimant  in  terms  of pounds  sterling  fails,  all  these arguments become wholly irrelevant and have to be repelled. It was pleaded in para 19 of Shri Narasimham’s writ petition (W.  P. No. 630 of 1970) that Shri lqbal Ahmed, who  retired as  Chief Justice of the Allahabad High Court in  September, 1946,  Shri R. K. Verma who retired as Chief Justice of  the same  Court  in  December, 1947 and Shri  P.  N.  Sapru  who retired  as Judge of that High Court in February,  1954  and Shri  Harish Chandra, I.C.S., who retired as a Judge of  the same  High  Court  in September, 1954 were  all  paid  their pensions  in  rupees at the prevailing  rates  of  exchange. These cases were stated to be identical with his case.   The last  instance,  namely,  that of Shri  Harish  Chandra  was particularly  relied upon by Shri Narasimham as a case  very close to his.  It was stated in the writ petition that  Shri Harish  Chandra’s  pension was initially sanctioned  at  the rate  of Rs. 1,222-4-0 per month, but on devaluation of  the rupee  in June, 1966 it was increased to Rs. 1,925/- and  on devaluation of the pound in November, 1967 it was reduced to Rs. 1,650/-. In  the  counter-affidavit it was explained that  the  first three  Judges  had retired prior to the enforcement  of  the 1954 Act and their pensions were paid at the rate of Is. 6d. to the rupee which was the rate prescribed for conversion of sterling  pension  at the relevant time.  Variation  in  par value of the rupee was not considered to have any bearing on the  rate of exchange to be prescribed under the 1937  Order or to be specified by the Central Government under the  1954 Act.  Shri Harish Chandra’ had undoubtedly retired after the enforcement  of  the 1954 Act but before  its  amendment  in 1958.  However, for the purpose of pension he had elected to be  governed  by Part IT of the First Schedule to  the  1954 Act.   He  was accordingly, paid pension to which  he  would have  been entitled under the ordinary rules of  I.C.S.,  if ,he  had not been appointed a Judge, his service as a  Judge being  treated  as  service  therein  for  the  purpose   of calculating  his  pension.   Shri Harish  Chandra  was  also stated to be entitled to an additional pension according  to the  scale prescribed under Part II.  It was also  added  in the counter-affidavit that even as an T. C. S. Officer  Shri Harish  Chandra’s pension should have been  expressed  under the relevant articles of the Civil.  Service Regulations in 798 rupees  as he wanted to draw his pension in India.  He  had, therefore, been wrongly sanctioned pension under a  mistaken belief that he was entitled to his pension in sterling.   In fact according to the counter-affidavit the pension cases of all  these four Judges were under the consideration  of  the Government.  These instances not being similar do not afford any  assistance in the present case.  Even the  instance  of Shri  Harish Chandra is distinguishable.  There is  thus  no question  of any hostile discrimination and the plea on  the

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basis  of  violation of Art. 14 of  the  Constitution  being misconceived  is unacceptable.  Shri Narasimham  retired  in 1968,  when  the  Parliament had by  the  1954  Act  already determined his right in respect of pension by converting the pounds sterling into rupees at the prevailing rate.  He also elected  to  receive  pension  under Part  I  of  the  First Schedule of the 1954 Act and not under Part II. The use of the singular in the Proviso in Art. 221(2) of the Constitution  relied  upon  by Shri Narasimham  is,  in  our opinion, of no particular significance.  It does not  change the  plain meaning of the Proviso which, in our  view,  does not  entitle the present Chief Justices to claim payment  of pensions  on  conversion  of the pound into  rupees  at  the current rate of exchange prevailing at the time of payment. Shri  Narasimham in his second set of written arguments  has prayed   for  a  further  opportunity  of  addressing   oral arguments.   In  our opinion, he has already had  more  than ample  opportunity of stating and developing  his  arguments and  there is no cogent ground for allowing him any  further opportunity of oral address. Shri Desai has in his written arguments, it may incidentally be  pointed  out, claimed that pension,  unlike  salary,  is earned  at  once, each instalment being only a part  of  the whole  pension.  On this basis he claimed that the 1954  Act gave   him  unfavourable  terms  by  substituting   unstable currency  like the rupee for the more stable  currency  like the pound sterling.  According to him the rate prevailing at the  time when the pension was converted into rupees by  the Parliament is also irrelevant as his pension had not  fallen due  to  him at that time.  The argument is  without  merit. Shri Desai retired in February, 1966 when the Parliament had already  validly  fixed  his pension in  rupees  :  he  also elected to receive pension according to Part I of the  First Schedule  to  the  1954 Act.  He  further  got  his  pension commuted in July, 1966 at the rate determined under the 1954 Act   after  the  devaluation  of  the  rupee.    In   these circumstances  it is difficult to appreciate what  right  he has now, to ask for pension being paid to him by  converting pound sterling into rupees at the current rate of  exchange. The bald assertion unsupported by any cogent material, 799 that pound sterling is intrinsically a more stable  currency than  rupee,  apart from being wholly unacceptable,  has  no relevance,  when we find that pension expressed in  sterling was  validly  converted into rupees by  the  Parliament  for payment to the Chief Justices and Judges of the High  Courts at a uniform rate. After  the  judgment  was ready the  office  of  this  Court circulated  to  us copies of Shri  Narasimham’s  application (C.M.P.  No.  4457 of 1972 in his Writ Petition No.  630  of 1970)  dated  July  12, 1972 praying that  in  view  of  the changed  circumstances,  this  ’Court  may  permit  him   to withdraw his writ petition and that the parties be  directed to  bear their own costs.  The change in  the  circumstances necessitating  the withdrawal of the writ petition  has  not been stated in the application. As all the three cases were heard together and on behalf  of Shri  Desai the arguments addressed in the other  two  cases were adopted by his counsel all the points of law raised  in all the three cases have to be decided by this Court.  It is accordingly not necessary to delete any part of the decision from  the  judgment.   All that we need  say  is  that  Shri Narasimham is allowed to withdraw his writ petition and that the  same is dismissed as withdrawn without any order as  to costs.

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There  is also another fact which requires notice.  Shri  B, Malik  has  after  the  judgment  was  ready,  sent  to   us individually by registered post additional written arguments in  his case (C.A. No. 2065 of 1970) with a covering  letter dated  July 7, 1972 stating that he had been  informed  that this Court had directed his appeal and other connected cases to be listed for further hearing after the re-opening of the Court  and  that  this  Court  had  also  directed   written arguments to be filed.  We do not think that Shri Malik  has been correctly informed.  Sending arguments to the Judges by post  also seems to us to be irregular and contrary  to  the practice and procedure of this Court.  A proper  application seeking permission to file additional arguments should  have been  filed in Court in accordance with rules.  However,  as almost  all  the points raised in his fresh  arguments  have already been dealt with in the judgment we need say  nothing more in this connection. The final result is that W.P. No. 630 of 1970 is allowed  to be  withdrawn and is accordingly dismissed as withdrawn  but without any order as to costs.  The other two appeals (C.As. 800 Nos.  2065 and 2165 of 1970) fail and are also dismissed  on the merits but without costs. S.B.W.                        Writ  Petition   and   Appeals dismissed. L152SupCI/73-2500--14-11-73-GIPF. 801