03 January 1995
Supreme Court
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STATE OF RAJASTHAN Vs SEVANIVATRA KARAMCHARI HITKARI SAMITI


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STATE OF RAJASTHAN  

v.  SEVANIVATRA KARAMCHARI HITKARI SAMIT!  

JANUARY 3, 1995  

[P.B. SWANT AND G.N. RAY, JJ.]  

Constitution of India-Artilce 14-Service Law-ll.ajasthan Service  Rules 1951-Rules 261 and 268-H, Chapters XX/II and XX/II-A-Family  pension-Cut off date-Rules providing for family pension for dependants of  

C government servants-Liberalised optional scheme introduced by amendment  in 1964-0ption available to government servants who were in service on, or  would enter after, 29 February, 19M-Liberalised scheme extended to all de- pendents from April 1, 1988-Wliether cut off date, which restricted the  categories of pensioners till April 1, 1988, discriminatory and violative of  

D Article 14-Whether such rule conflicts with the principle in Nakartr-Held, it  is permissible to introduce different retiral benefit schemes on the basis of  date of retiremenr-The rule is not violative of Article 14-A new retiral benefit,  where the State has prescribed a date in a reasonable manner, would not be  contrary to Nakartr-However, State Government asked to sympathetically  consider antedating the benefits under the rule.  

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Judicial Review-Justiciability of public policy-Wisdom of policy  decision of government not justiciable unless it is wholly capricious, arbitrary  and whimsical or it offends any statutory provisions or the provisions of the  Constitution-Constitution of India, Article 14--Rajasthan Service Rules,  1951, Rule 268-H.  

The Rajasthan Service Rules, 1951 provided for grant of family  

pension to the family of an officer who dies, whether he is still in service  or has retired, where he has completed the qualifying period of service.  

On March 1, 1964, the rules were amended and a new liberalised  family pension scheme was introduced. The governlllent servants were  given the option to choose between the old and the new scheme. This was  applicable to government servants who were in service on, or would enter  after, February 29, 1964.  

H In 1965 and 1978, the benefits under the old scheme were enlarged,  8

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ST A TE 0 F RAJ. v. S.K. HITKARI SAMITI 9  

and on April I, 1988, the scheme introduced in 1964 was extended to A  widows of government senants even where they retired or died before  March 1, 1964 as also to those who had opted for the old scheme.  

Subsequently, the respondent, an unregistered association of retired  employees of the Government of Rajasthan, moved the High Court in a  writ petition contending, inter alia, that the cut of date of February 29, 1964  was discriminatory and violative of Article 14 of the Constitntion; that it  

was in conOict with the decision in Nakara v. Union of India, AIR (1983)  SC 130; and that the impugned expression prescribing the cut off date in  Rule 268-H being severable, it should be struck down. The High Court  

upheld the challenge.  

Before this Court it was contended for the appellant-State that  Nakara does not apply where the cut off date relates to anew retiral benefit,  

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as in this case. For the respondent it was urged that the government  servant who was in service OD February 29, 1964 and who retired or died  before that date constituted the same class and that the cut off date was D  discriminatory.  

Allowing the appeal, this Court  

HELD : 1.1. Rule 268-H of the Rajasthan Service Rules, 1951 is not E  violative of the Constitution. It is permissible to introduce different retiral  benefit schemes for government servants on the basis of the on the date of  retirement. Government servants can be governed by different sets of  retiral benefit rules with reference to their holding of office from a cut off  date. (21-C-B)  

F  2.1. As indicated in Krishena Kumar, Nakara was not concerned with  

a new scheme, but only the revision of an existing scheme; it was not a new  retiral benefit but upward revision of an existing benefit. In Krishena  Kumar's case a Constitution Bench upheld different sets of retiral benefits  being date applicable to employees retiring prior to a specified date and G  those retiring thereafter. The Court in that case indicated that any argn- ment to the contrary would mean that the government can never change  the condition of service relating to retira) benefits with effect from a  particular date. [20-B-D)  

D.S. Nakara v. Union of India, AIR (1983) SC 130, explained and H

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10 SUPREME COURT REPORTS (1995] 1 S.C.R.  

A distinguished.  

Krishena Kumar v. Union of India, [1990) 4 SCC 207, applied.  

Indian Ex-Se1vice League v. Union of India, AIR (1991) SC 1182 and  State of Rajasthan v. Rajasthan Pensioner Samaj, AIR (1991) SC 1743,  

B referred to.  

2. The cut off date mentioned in Role 268-H was not a mere ipse dixit  of the State government, nor was it introduced in arbitrary and capricious  manner, taking it out of a hat, without any basis whatsoever. The govern-

C ment had taken into consideration the need for a liberalised pension  scheme for those government servants who were. in service on February 29,  1964 and who would be retiring thereafter and the new liberalised pension  scheme was introduced with effect from March 1, 1964. [20-F, 21-B]  

3. Whether the liberalised benefit should also have been accorded to  D the government servants retiring prior to February 29, 1964 is a matter  

policy for the executive, and must be left to the consideration or the State  government. The wisdom in a policy decision of the government, as such  Is not justiciable unless such policy decision is wholly capricious, arbitrary  and whimsical thereby offending the Rule of Law as enshrined in Article  

E 14 or the Constitution or it offends any provisions of the Constitution or  a statute. Save as otherwise, the court need not embark on the uncharted  ocean of public policy. [20-G-H, 21-A]  

4. In view of inflation and escalating cost of living, the dependent  family members of government servants retiring before February 29, 1964  

F must have been suffering financial hardship. It may be reasonably as- sumed that the number of such pensioners must not be high . because of  long lapse of time. They deserve sympathetic consideration. It is hoped  that the State government will review the question of antedating the  benefits under Rule 268-H after taking into consideration all relevant  

G factors. [21-F-G]  

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 29 of  1995.  

From Judgment and Order dated 21.12.89 of the Rajasthan High  H Court in D.B.C.W.P. No. 3051 of 1988.

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STATE OF RAJ. v. S.KHITKARISAMITI(G.N. RAY,J.) 11  

Aruneshwar Gupta for the Appellant.  

Manu Mridul and Surya Kant for the Respondent.  

The Judgment of the Court was delivered by  

G.N. RAY, J. Special leave granted.  

In this appeal a Division Bench decision of the Rajasthan High Court  December 21, 1989 striking down the date i.e.' February 29, 1964 mentioned  in Rule 268-H of Rajasthan Service Rules, 1951 as being violative of Article  

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14 of the Constitution of India, is under challenge. The respondent,  Sevanivatra Karamchari Hitkari Samiti, Jodhpur, an unregistered associa- C  tion of retired employees of the Government of Rajasthan, moved a Writ  Petition in the Rajasthan High Court inter alia contending that the expres- sion 'in service on 29.2.1964 who is' as used in Rule 268-H of the Rajasthan  Service Rules was discriminatory and violative of Article, 14 of the Con- stitution. It was also contended that such Rule was also in conflict with the D  principle laid down in the decision of this Court rendered in D.S. Nakara  v. Union of India, AlR {1983) SC 130. It was also contended that the said  expression being severable from the other part of Rule 268-H, the same  should be struck down so that the validity of Rule 268-H without the  aforesaid expression is not affected.  

E  By the impugned judgment, the Rajasthan High Court has held that  

under Rule 268-H, the benefit of pension has been given only to the  government servants who are in service on 29.2.1964 but such benefit under  Rule 268-H was not extended to the government servants who had retired  prior to that date. The Rajasthan High Court has held that there is no  reasonable classification in excluding government servants who were not in F  service on 29.2.1964 and limiting the benefit of liberalised Family Pension  Scheme under Rule 268-H only to such government servants who were in  service on 292.1964. The High Court has also held that such classification  without any reasonable basis for discrimination cannot be sustained in  view of the decision of this Court rendered in D.S. Nakara's case.  

Rule 288-H of Rajasthan Service Rules, 1951 the validity of which  was the subject matter of challenge before the Rajasthan High Court is to  the following effect : -

'268-H Options to elect ~fits under this Chapter a Government H  ' I

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Servant in service on 29th Feburary, 1964 who is governed by the  family pension rules contained in Chapter XXIII of these Rules  shall have option to elect benefits under this Chapter in substitu- tion of the existing family pension benefits as admissible under  Chapter XXIII or retain their existing benefits. The option shall  be exercised within a period of six months from the date of  publication of the Rajasthan Service (Amendment) Rules, 1964, in  the Official Gazette in the Form given hereunder. An option once  exercise shall be final. Persons who fail to exercise option will be  deemed to have elected the benefits under this Chapter.  

(2) The option under sub-rule (1) shall be communicated by the  Officer concerned to the Head of Office, if he is a non-Gazetted·  Officer and to the Accountant General, Rajasthan, Jaipur, if he is  a Gazetted Officer. The option when received from a non- Gazetted Officer shall be counter-signed by the Head of the Office  and pasted in the Service book of the Officer concerned.'  

It appears that after the formation of the State of Rajastnan, Rajas- than State Services came into force w.e.f. April 1, 1951. Chapter XXIII of  the said Rules provides for grant of family pension in accordance with the  provisions contained in Rules 261 to 268. Rules 261 provides :  

"A family pension not exceeding the amount specified in Rule 262  may be granted to the family of an officer who dies. Whether still  in service or after retirement after completion of not less than 20  years qualifying service for a period of ten years.  

Provided that the period of payment of family pension will in  no case extend beyond a period of five years from the date on  which the deceased officer retired or on which he would have  retired on a superannuation pension in the normal course, accord- ing as the death takes place after retirement or while the officer  is in service."  

Thereafter, a Chapter being XXIIl-A containing Rules 268-A to  268-H relating to the New family Pension Scheme came into force w.e.f.  March 1, 1964 by insertion ofthe said Chapter XXIIl-A vide F.D. Notifica- tion No. 1(12) FDE-R/64 dated September 25, 1964. The said new Family  

H Pension Rules were made applicable lo all government servants on pen-

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STATE OF RAJ. v. S.K. HITKARI SAMITI [G.N. RAY, J.] 13  

sionable establishments whether temporary or permanent who were in A  service on 29.2.1964 or who would enter service on or after that date but  such family pension shall not apply to :  

(a) persons who retired before March 1, 1964 but may be re- employed on that date or thereafter  

(b) persons paid from contingencies  

( c) work-charged staff  

( d) casual labour  

( e) Contract Officers  

The new Rule 268-H gave option to elect benefits under Chapter  XXIII-A to those government servants who were in service on 29.2.1964  

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and who were governed by the Family Pension Rules contained in Chapter  XXIII of Rajasthan Service Rules, in substitution of the existing family D  pension benefits as admissible under Chapter XXIII, or to retain their  existing benefits. On January 4, 1%5, the State of Rajasthan again  liberalised the existing provision in regard to the family pension drawn by  the widows or minor childern of the employees under the Family Pension  Rules contained in Chapter XXIII who were actually in receipt of family E  pension on 29.2.1%4, even though such pension would have been stopped  on expiry-of five years since the death of the government servant. The State  Government extended the period of eligibility of such family pension upto  the death or re-marriage, whichever is earlier, in the case of widows and  the date of atta!ning majority in the case of children and until marriage,  if earlier, in case of daughters. F  

The State of Rajasthan further liberalised the existing provisions  contained in Chapter XXIII by providing relief to the widows of govern- ment servants/pensioners who expired before March 1, 1964 and ceased to  draw their family .pension in terms of the Chapter XXIII of Rajasthan G  Service Rules. For such pensioners, the State Government allowed family  pension w.e.f. March 1, 1978.  

On April 1, 1988, the State Government extended the benefits of the  provisions of new Family Pension Rules, 1964 as contained in Chapter  XXIII-A of the Rajasthan Service Rules w.e.f. April, 1, 1988 to the widows H

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A of government servants of pensionable establishments who retired or died  before March 1, 1964 or who opted for the family pension benefits as  admissible under Chapter XXIII of Rajasthan Service Rules.  

The said Sevenivatra Kararnchari Hitkari Samiti challenged the vires  of Rule 268-H in Chapter XXIII-A of Rajasthan Service Rules by contend-

B ing that the said Rule was violative of Article 14 being discriminatory  between two sets of government employees entitled to get family pension  only on the basis of such government servant's remaining in service on  29 2.1964 and thereafter . In the case of the government servant who was  not in service on 29.2.1964, the benefit of liberalised pension as contained  

C in Rule 268-H in Chapter XXIII-A was not made available initially but  such government servant or his dependent family members were entitled  to draw family pension only under the old Family Pension Scheme under  Chapter XXIII.  

D At the hearing of this appeal, Mr. Aruneshwar Gupta, learned coun- sel for the appellant, has contended that Rule 268-H under Chapter  XXIII-A merely provides for option to elect benefits under this Chapter  i.e. Chapter XXIII-A "to the government servants in service on 29.2.1964"  in substitution of the existing family pension benefits as admissible under  Chapter XXIII or retain their existing benefits.  

E  Mr. Gupta has submitted that Rule 268-H although introduced in  

1964 was never challenged as being unconstitutional until 1988 by moving  the aforesaid Writ Petition. He has submitted that the Government ser- vants and/or their family members continued to take benefits of the family  

p pension under Chpater XXIII even when there was hberalisation of the  existing provisions contained in Chapter XXIII vide Memorandum dated  January 4, 1965 and no grievance was made on the score of alleged  discrimination for introducing the benefits of Rule 268-H under Chapter  XXIIl-A. Similarly no grievance was also made regarding Rule 268-H  when there was further liberalisation under the provisions contained in  

G Chapter XXIII as introduced in 1978. There was also no grievance regard- ing Rule 268-H when by order dated December 31, 1982, the benefit of  ex-gratia pension to families of those government servants who retired  before March 1, 1964 and whose family members did not get any family  pension under the rules in force i.e. the provisions of Chapter XXIII, was  

H given.

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STATE OF RAJ. v. S.K. HITKARI SAMIT! [G.N. RAY, J.] 15  

Mr. Gupta has submitted that it is really unfortunate and also surpris- A  ing that when the Government of Rajasthan decided to give further benefit  to the families of the government servants who had retired or died before  March 1, 1964 and covered by the provisions contained in Chapter XXIII  of the Rajasthan Service Rules by extending the benefit of new Family  Pension Rules contained in Chapter XXIIl-A w.e.f. April 1, 1988 vide B  order dated July 18, 1988, that the said Writ Petition was filed by the  respondent making a belated grievance regarding Rules 268-H.  

Mr. Gupta has contended that the Writ Petition was filed by D.S.  Nakara and others challenging the validity of the Office Memorandum No.  F. 19(3)-EV-79 dated May 25, 1977 issued by the Government of India. C  Ministry of Finance whereby the formula of computation of pension was  liberalised and it was made applicable only to those government servants  who were in service on March 31, 1979 and retired from service on or after  that date. By the said government order, a slab system for computation of  pension was introduced. Such liberalised formula was made applicable to D  the government employees governed by the 1972 rules retiring on or after  the specified date.  

Referring to the decision rendered by this Court in D.S. Nakara's  case (supra), Mr. Gupta has contended that the questions formulated by  this Court in the said case were to the following effect : - E  

"(i) Do pensioners entitled to receive superannuation or retiring  pension under Civil Services (Pension) Rules, 1972, form a class  as a whole?  

(ii) Is the date of retirement a relevant consideration for eligibility F  when a revised formula for computation of pension is ushered in  and made effective from a specified date?  

(iii) Would differential treatment to pensioners related to the date  of retirement qua the revised formula for computation of pension G  attract Article 14 of the Constitution and the element of dis- crimination is liable to be declared unconstitutional as being viola- tive of Article 14.  

It has been held by this Court in the decision in D.S. Nakara's case  M: H

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(a) that pensioners entitled to receive superannuation or retiring  pension under Central Civil Services (Pension) Rules, 1972 from  one Class.  

(b) Date of retirement is irrelevant. But the revised scheme would  be operative from the date mentioned in the Scheme and would  

bring under its umbrella all retiring pensioners and those who  retired subsequent to that date. In case of pensioners who retired  

prior to the specified date, their pension would be computed afresh  and would be payable in future commencing from the specified  

date. No arrears would be payable. If the date is wholly remove,  revised pensions will have to be paid from actual date of retirement  of each pensioner. That is impermissible.  

( c) that the words being in service on the specified date and retiring  subsequent to that date violates Article 14 and is unconstitutional  and as such should be struck down.  

Mr. Gupta has further submitted that in the said decision it has been  specifically held by this Court that "unquestionably pension is linked to  length of service and the last pay drawn but the last pay does not imply the  pay on the last day of retirement but average emoluments as defined in the  

E Scheme." It has also been held in the said decision that :  

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"only the pension will have to be recomputed in the light of the  forrnnla enacted in the liberalised pension scheme and effective  from the date the revised Scheme comes into force and beware that  it is not a new Scheme. It is only a revision of existing Scheme. It is  not a new retiral benefit. It is an upward revision of an existing benefit.  If it was a wholly new concept, a new retiral benefit, one could have  appreciated an argument that those who had already retired could  not expect it. '1  

(Emphasis supplied)  

Mr. Gupta has contended that the members of the respondent- Association were governed by the provisions of rules contained in Chapter  XXIII of Rajasthan Service Rules as amended from time to time. The new  Family Pension Rules as contained in Chapter XXIII-A have been intro-

H duced for the benefit of government servants in service on a particular date

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STATE OF RAJ. v. S.K. HITKARISAMITJ[G.N.RAY,J.] 17  

and retiring on or after that date. Such benefit under Chapter XXJll-A A  was not introduced in substitution of the existing provision of family  pension rules as on March 1, 1964. Hence, the decision rendered in D.S.  Nakara's case is not applicable in the case of the members of the respon- dent Samiti. Mr. Gupta has submitted that unfortunately the Rajasthan  High Court has failed to appreciate the basic distinctive feature, namely, B  the members of the said Samiti were governed by the existing pension rules  under Chapter XXIII, but the government servants who were in service on  29.2.1964 were entitled to be governed by a new Family Pension Rules as  contained in Chapter XXITI-A if they had elected for the new Scheme.  Mr. Gupta has further submitted that after the impugned decision was  given by the Rajasthan High Court, there had been occasions for this Court C  to consider the import of the decision rendered in D.S. Nakara's case. Mr.  Gupta has referred to the Constitution Bench decision of this Court in  Krishena Kumar etc. v. Union of India and others, [1990] 4 SCC '1IJ7. In this  case, this Court has pointed out that in the decision in D.S. Nakara's case,  this Court has considered a case where an artificial date was specified D  classifying the retirees governed by the same rules and similarly situated  into two different classes, depriving one of such class of the benefit of  liberalised pension rules. It was found in that case that the specification of  the date for which liberalised pension rules were to come into force was  arbitrary and as snch the same was struck down as offending Article 14  of the Constitution. In Krishena Kumar's case, this Court pointed out that E  the employees retiring prior to April 1, .1977 and those retiring thereafter  were governed by different sets of rules. Accordingly, different pension  schemes were permissible for the said two classes of governed servants.  

Mr. Gupta has also referred to another Constitution Bench decision F  of this Court in Indian Ex-Services League and others v. Union of India,  AIR (1991) SC 1182. In the said case, retirees of Armed Force prior to  April 1, 1979 claimed same benefit by contending that there should be one  pension for one rank and they relied on the decision rendered in Nakara's  case. This Court considered the import of the decision rendered in  Nakara's case and pointed out that the decision in D.S. Nakara's case had G  a limited application and there was no scope for enlarging the ambit of the  said decision to cover all claims made by the pension retirees or a demand  for an identical claim of pension to any retiree from the same rank  irrespective of the date of retirement. Mr. Gupta has also relied on a  decision of this Court in State of Rajasthan v. Rajasthan Pensioner Samaj, H

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A AIR (1991) SC 1743. In the said case, this Court considered whether  contributory provident fund retirees and the employees opting for pension  scheme form one class or they can be treated differently. This Court has  held in the said decision that the decision in Nakara's case is not applicable  because contributory provident fund retirees and the employees opting for  

B pension scheme belong to different classes and contributory provident fund  retirees cannot as of right switch over to the pension scheme and get  benefit of the pension scheme retirees. In that case, however, the proposal  of the government to grant ex-gratia payment of Rs. 110 per month to the  widows covered by the contributory provident fund scheme on the sugges- tion of this Court was appreciated and accepted.  

c  Mr. Gupta has, therefore, submitted that the ratio of the decision in  

Nakara's case has been noticed by this Court in the aforesaid decisions and  it has been clearly indicated that the scope and ambit of the decision in  Nakara's case should not be extended and the said decision does not cover  

D the case of the government employees who are governed by two different  sets of retiral benefit rules. Mr. Gupta has submitted that in the instant  case, the government servants who were in service on or after 29.2.1%4  were governed by a new retiral benefit scheme under Chapter XXIII-A  whereas the retirees prior to 29.2.1%4 were governed by a different retiral  benefit scheme under Chapter XXIII. It was quite open to the government  

E to introduce a new retiral benefit scheme for the government servants who  were in service on or after 29.2.1%4. Accordingly, Rule 268-H was con- stitutionally valid and was not liable to be struck down. He has submitted  that the appeal should be allowed and the impugned judgment should be  set aside.  

F  Mr. Surya Kant, learned counsel for the respondent has submitted  

that after the Notification dated April 1, 1988 the benefit under Chapter  XXIII-A has also been made applicable to the Government servants or the  family members who had retired prior to 29.2.1964. But upto April 1, 1988,  the government servants or their family members were deprived of the  

G liberalised pension scheme under Chapter XXIII-A because of the words  appearing in Rule 268-H to the following effect : 'in service on 29ti!  February, 1964 who is'.  

Mr. Surya Kant has contended that the government servant who was  H in service on 29.2.1964 and the goverrunent servant who retired or died

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STATE OF RAJ. v. S.K. HITKARI SAMITI [G.N. RA Y,J.] 19  

prior to 29 2.1964 constitute the same class because both were government A  servants and both were governed by the family pension rules contained in  Chapter XXIII. Mr. Surya Kant has contended that the whole purpose of  making Chapter XXIIl-A of Rajasthan Service Rules was that the legisla- ture felt that family of a government servant who had given best part of his  life in the service of the State should not be left destitute more so because B  the widow of the Government servant will have hardly any thing to fall back  upon. It was felt that social justice will not be advanced by providing a  family pension as stipulated in Chpater XXIII and the families of the  deceased government servants will need benign protection of the State  under the liberalised pension rules. Viewed from this angle, there will be  hardly any justification to limir the benefit under Chapter XXIII-A only to C  government servants who were in service on 29.2.1964. Mr. Surya Kant has  submitted that except that the date 29.2.1964 coincides with the date on  which the rule 268-H was made, there is no discernible factor in fixing  29.2.1964 as the cut off date on which the government servant should be in  service so as to be entitled to get the benefit of liberalised pension under D •  Chapter XXIII-A. He has submitted that the discrimination made between  these two classes of government servants must be held as violative of  Articles 14 and 16 of the Constitution inasmuch as the government servants  who were in service on 29.2.1964 and those who ceased to be in service  before that date basically belong to the same class of persons, namely, the  class of persons who served government of Rajasthan for a specified period E  for becoming eligible to pension. Both the said groups, therefore, form one  class and the artificial distinction sought to be made under Rule 268-H  has no intelligible criterion having nexus to the object for which such  distinction was sought to be made. He has, therefore, submitted that in the  facts of the case, the impugned decision of the Rajasthan High Court  should be held to be correct and the appeal should be dismissed.  

· . After considering the respective contentions made by the learned  counsel for the parties, it appears to us that after the impugned decision  

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was made by the Rajasthan High Court, this Court has considered the  import of the decision rendered in D.S. Nakara's case. This court has G  noticed the ratio in D.S. Nakara's case as indicated in Krishena Kumar's  case (supra) and in Indian &-Services League's case (supra) and also in  Rajasthan Pensioners Samaj's case (supra), it has been clearly indicated by  this Court that the government servants can be governed by different sets  of 11:tiral benefit rules with a reference to their holding of office from a cut H

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20 SUPREME COURT REPORTS [1995] 1 S.C.R.  

A off date. In /(Jishena Kumar's case, it has been indicated that in D.S.  

B  

Nakara's case this Court considered a case where an mtificial date was  specified classifying the retirees into two different classes even though they  were governed by the same mies and were similarly situated. Such classifica- tion where both the groups were governed by the same rules amounted to  deprivation of one group of the benefit of liberalisation of pension rules.  It was only in that situation it was held in D.S. Nakara's case that specifica- tion of the date from which the liberalisation pension rules were to come  into force was arbitrary. This Courts, in D.S. Nakara's case, clearly indi- cated that it was not a new scheme but only a revision of the existing  scheme and it was not a new retiral benefit but it was a case of upward  

C revision of existing benefit. In D.S. Nakara's case, it was pointed out that  if it was wholly a new concept, a new retiral benefit, one could have  appreciated an argument that those who had already retired could not  expect it. The Constitution Bench in Krishena Kumar's case has upheld  different sets of retiral benefits being made applicable to the employees  

D retiring prior to April 1, 1977 and retiring thereafter. It has been indicated  by the Constitution Bench in /(Jishena Kumar's case that any argument to  the contrary would mean that the government can never change the  condition of service relating to retiral benefits w.e.f. a particular date. It  has, however, been pointed out that the State cannot back a date out of its  

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hat but it has to prescribe a date in a reasonable manner having regard to  the relevant fact; and circumstances.  

In the instant case, the date 29.2.1964 in Rule 268-H under Chapter  XXIII-A has not been taken out of hat. The government had taken into  consideration the need for a liberalised pension scheme for those govern- ment servants who were in service on 29 .2.1964 and who would be retiring  thereafter and the new hberalised pension scheme under Chapter XXIII-A  was introduced with effect from March, 1964.  

It is not necessary to go into the question as to whether the  liberalised benefit for pension should have also been accorded to the  

G government servants retiring prior to 29.2.1964 because such exercise being  a matter of policy decision for the executive, must be left to the considera- tion of the State Government. The wisdom in a policy decision of the  Government, as such, is not justiceable unless such policy decision is wholly  capricious, arbitrary and whimsical thereby offending the Rule of Law as  

H enshrined in Article 14 of the Constitution or such policy decision offends

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STATE OF RAJ. v. S.K. HITKARI SAMITI [G.N. RAY, J.] 21  

any statutory provisions or the provisions of the Constitution. Save as A  aforesaid, the Court need not embark on unchartered ocean of public  policy.  

It does not appear to us that the cut off date mentioned in Rule  268-H was only an ipsi dixit of the State Government and introduced in an  arbitrary and capricious manner taking out of hat without any basis what- B  soever. It is permissible to introduce different retiral benefit schemes for  

. government servants on the basis of the date of retirement as indicated in  the decisions of this Court in Krishena Kumar's case. Indian Ex-Services  League's case and Rajasthan Pensioners Samaj's case. Rule 268-H cannot,  therefore, be held violative of Article 14 of the Constitution as indicated C  in the impugned decision of Rajasthan High Court. We, therefore, allow  this appeal and set aside the impugned decision rendered by the Rajasthan  High Court.  

Before we conclude, we may indicate that the State Government of D  Rajasthan has given the benefit of the liberalised pension scheme under  Rule 268-H from 1988 to the pensioners even if the concerned government  servant had retired prior to 29.2.1964 because the government must have  felt that such pensioners deserve the benefit of liberalised pension scheme.  The learned counsel for the parties have not been able to enlighten us  about the number of persons who would be benefitted if the liberalised E  pension scheme under Rule 268-H is made effective even from a date prior  to 1988 and made available to those government servants including their  family members who had retired prior to 29.2.1964. We may reasonably  assume that the number of such pensioners must not be high because of  long lapse of time. In view of inflation and escalating cost of living, it does  not require any special imagination to hold that government servants F  re:iring before 29 .2.1964, particularly the widows and dependent family  members of such retirees must have been suffering from financial hardship  and they deserve sympathetic consideration in the matter of granting  liberalised retiral benefits including pensionary benefits. We hope and trust  that the State Government being fully alive to the hard· realities of the G  conditions of retirees prior to 29.2.1964 will review the question of antedat- ing the benefits under Rule 268-H to such retirees after taking into con- sideration all relevant factors. With this observation, the appeal is allowed  without any order as to costs.  

U.R. Appeal allowed.