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PETITIONER: V. B. RAJU AND ORS.

       Vs.

RESPONDENT: STATE OF GUJARAT & ORS.

DATE OF JUDGMENT22/08/1974

BENCH: RAY, A.N. (CJ) BENCH: RAY, A.N. (CJ) BEG, M. HAMEEDULLAH ALAGIRISWAMI, A. GOSWAMI, P.K. SARKARIA, RANJIT SINGH

CITATION:  1974 AIR 2055            1975 SCR  (1) 797  1975 SCC  (3) 171  CITATOR INFO :  F          1976 SC 218  (7)  R          1982 SC1174  (1)

ACT: Constitiution  of India, 1950 Art. 312A, introduced  by  the Constitution  (Twenty Eighth) Amendment Act, 1972,  and  the Former  Secretary  of State Service Officers  (Condition  of Serivice) Act, 1972, Ss. 7 and 8--Amendments to  Regulations 561 and 983 of Civil Service Regulations--Validity.

HEADNOTE: Under  Regulation  561 of the Civil Service-  Regulations  a member  of the Indian Civil Service, who joined after  1921, was  entitled on retirement to an annuity of Rs.  10666-10-8 subject  to  a minimum of & 1000.  Regulation  983  provided that  such Officers were entitled to payment of annuity,  at the option of the recipient, either in rupees converted into sterling at a rate of exchange declared to exist on the date on  which  payment  fell  due,  or.  at  the  fixed  minimum sterling.  If payment was taken in India it would be  either in  rupees or at the fixed sterling minimum  converted  into rupees at the rate of exchange declared to exist on the  due date.   In 1928, the Secretary of State for India laid  down the rate of exchange at 1 sh-6 d to a rupee and this rate of exchange  continued  upto the date of transfer of  power  to India, namely, 15th August, 1947.  On 12th June, 1956, Regu- lation  561 was amended by the President under Art.  309  of the  Constitution.As  a result of the amendment  the  Indian members  of  the Indian Civil Service, on  retirement,  were entitled  to an annuity of Rs. 13,333.33 p payable in  India in rupees only. which was equivalent to pond 1000, converted into rupees at the rate of 1 sh 6-d to a rupee. Article 312- A   was  introduced  by  the  Constitution  (Twenty   Eighth Amendment)  Act, 1972. and it conferred power on  Parliament to  make a law to vary or revoke, whether  prospectively  or retrospectively,  the  conditions  of  service  as  respects pension  of  Persons  who,  having  been  appointed  by  the Secretary of State to a civil service of the Crown in  India before  the  commencement of the  Constitution.  retired  or

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otherwise  ceased  to be in service at any time  before  the commencement  of that Amendment Act; Parliament  passed  the Former  Secretary of State Service Officers  (Conditions  of Service)  Act, 1972, and it came into force on 1st  October, 1972. Section 7 of the Act provided that all members of  the Indian Civil Service who joined the service after 1921  were entitled to an annuity of Rs. 13,333.33 P subject to certain reductions. Section 8 provided that no such officer shall be entitled  or be deemed ever to have been entitled to  claim, (a)  pension in sterling; or (b) that his pension  shall  be paid  outside India; or (c) where his pension was  expressed in  sterling or a fixed sterling minimum was  applicable  in respect  of  the pension payable to him,  that  his  pension shall  be  computed in the rupee equivalent  of  the  amount fixed  in sterling at a rate of exchange exceeding the  rate of  Rs. 13,333.33 of pond 1000 sterling.  Some members,  who had joined the Indian Civil Service after 1921 and  residing in  India,  contended  that the  Regulations  could  not  be amended  by the Act, on the ground that it was  their  basic right to be paid annuity by converting pond 1000 into Indian currency at the official rate of exchange. Rejecting the contentions, HELD:  (1)  The 1956-amendment of Regulation  561  does  not infringe  the  provisions of Arts. 14 and 16.  It  makes  no distinction, in the matter of payment of Pension to  members of the Indian Civil Service retiring after 12th June,  1956, irrespective of the fact that they are citizens of India  or are,of  non-Indian domicile, if they draw their  pension  in India.   On  or after that date all members  of  the  Indian Civil   Service   having  their  residence  in   India,   on retirement, are entitled to their annuity only in India  and in rupees alone. 798 (2)  The  pension to which these members, were  entitled  on 15th August, 1947. has not been altered. [793 E] (3)  All that  has happend as as a result of  the   1972-Act is,  to  lay down that the annuitants are  not  entitled  to claim payment of pension in sterling or outside India or  by converting  pond 1000 at the rate of exchange exceeding  the rate  of  exchange of Rupees thirteen and one third  to  the pound  sterling.   Indian currency is the legal  tender  and there  is  no  constitutional vice in  fixing  the  rate  of exchange  and  mode of payment by  legislation.   There  are neither  basic rights nor merits in the alleged  claim.  [E- 4(3]

JUDGMENT: CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 141 of 1971 and 268 of 1972. of the Gujarat High Court in S.C.A. Nos. 1 of 1968 and  1273 of 1967 respectively).                             AND Civil Appeals Nos. 2467 & 2468 of 1972. (Appeals from the Judgments & Orders dated the 20th January, 1972 of the Delhi High Court in L.P.As Nos. 65-66, and 74 of 1970 respectively).                             WITH Writ  Petitions  Nos.  12  of 1971, 17  &  471-474  of  1972 Petitions Under Article 32 of the Constitution) S.  K. Bisaria, for the appellant (In CA.  No. 147 of 71)  & petitioners (In W.P. No. 17/1972) I.  M. Lal and E. C. Aggarwala, for the Petitioner  (In  WPS Nos.  12,  471-474/72)  & Appellant (In CAs.   Nos.  2467  &

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2468/1972) B.  Sen, (excepting in to P. No. 471/72) R. M. Mchta and  R. N.Sachthey  for  the  appellant (In  CA.   No.  268/72)  and Respondents Nos. 1-4 (In CA.  No. 147/1971), Respondent  No. 1  (In  W.P. No. 12, 17, 471-474/1972 and  CA.   Nos.  2467- 2468/72). G.  S.  Chatterjee, for the respondent No. 2 (In W.  P.  No. 12/1971) S.  N.  Choudhry,  for the respondent No.  3  (In  W.P.  No. 12/1971) O.  P.  Rana, for the respondent No. 2 (In  CA.   No.  2467- 68/1972) J. P. Goyal, for the respondent (In CA.  No.. 268 of 1972) The  Intervener  (R.   P. Kapur)  appeared  in  penson  (Not present) (In W. P. No. 12/71) The judgement by the Court was delivered by RAY, C.J.The only question which falls for determination in these  petitions and appeal is whether Regulations  561  and 983 of the Civil Service Regulations could be amended by the Former  Secretary of State, Service Officers (Conditions  of Service) Act, 1972. 799 The  1972 Act is to provide for the variation or  revocation of  the conditions of service of former Secretary  of  State Service  Officers in respect of certain matters and  matters connected therewith or incidental thereto.  The 1972 Act has changed  Regulations 561 and 983 of the Civil  Service  Reg- ulations. Regulation  561  provided that officers who had  joined  the Indian Civil Service prior to 1921 were entitled to  annuity of pond 1000.  Officers who joined the Indian Civil  Service after 1921 were entitled to annuity of Rs. 10,666-10-8.  The annuity was subject to a minimum of pond 1000. Regulation  983  provided that officers who  joined  service prior  to 1921 could be paid annuities in sterling money  in London  or  in  India  in rupees at  Rs.  10-2/3  for  pound sterling in certain cases of annuitants and at Rs. 10-65 for pound  sterling in the case of some other  annuitants.   Any annuitant who resided in India could exercise the option  of receiving it at the rate of exchange fixed for the  judgment of   transactions  between  the  British  and   the   Indian Exchequers.   Officers  who joined service after  1921  were entitled  to  payment  of  annuity  at  the  option  of  the recipient  either in rupees converted into sterling  at  the rate  of  exchange declared to exist on the  date  on  which payment  fell  due  or at the fixed  minimum  sterling.   If payment  was taken in India it would be either in rupees  or at  the fixed sterling minimum converted into rupees at  the rate  of  exchange declared to exist on the  date  on  which payment fell due.  Annuitants of certain classes were  given the  option to receive annuity converted into rupees at  the rate 1 sh-6 d to a rupee so long as they resided in India. On 15 August, 1947 under Regulation 561 of the Civil Service Regulations  a  member  of  the  Indian  Civil  Service   on retirement  was  entitled to an annuity of  Rs.  10,666-10-8 subject  to  a  minimum of pond 1000.  If a  member  of  the Indian Civil Service chose to draw his pension at the  "Home Treasury" that is London, he could draw his sterling minimum of  pond 1000.  It may be stated here that the Secretary  of State in a despatch dated 25th February, 1928 laid down  the rate of exchange for the purpose of pension and overseas pay etc.  at  1  sh-6 d to a rupee, and this  rate  of  exchange continued up to the date rupees at the rate of 1 sh-6 d to a rupee. Regulation  561  was  amended by  the  President  under  the

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provisions  of Article 309.  The amended came into force  on 12 June, 1956.  As a result of the amendment Indian  members of the Indian Civil Service who retired or sought retirement were  entitled  under Regulation 561, to an annuity  of  Rs. 13,333.33  payable in India in rupees only.  The annuity  of Rs.  13,333.33  was equivalent to pond 1000  converted  into rupees at the rate of 1 sh-6 d to a rupee. The amended Regulation 561 converted the payment of  annuity of pond 1000 at the rate of 1 sh-6 d to a rupee, that is  to say,  at the rate which was fixed by the Secretary of  State in 1928 and which continued up to 15 August, 1947. 800 The  amendment  in 1956 delinked the pension to  a  currency which  no  longer  continued to be legal  tender  in  Indian Treasuries.   This  was  necessary because  of  the  changed condition.,, flowing from the transfer of power. The  amendment  of  Regulation 561  does  not  infringe  the provisions  of Articles 14 and 16 of the Constitution.   The amendment  makes no distinction in the matter of payment  of pension to the members of the Indian Civil Service  retiring after  12 June, 1956 irrespective of the fact that they  are citizens of India or are of non-Indian domicile if they draw their pension in India. On  or  from 12 June, 1956 all members of the  Indian  Civil Service  having their residence in India-on  retirement  are entitled to their annuity only in India and in rupees alone. Under  Regulation 561 the petitioners and the appellants  in CA  147 of 1971, 2467 and 2468 of 1972 were entitled  to  an annuity  of, Rs. 13,333.33 subject to reduction  for  Family Pension and Death-cum-Retirement Gratuity. Under  section  7 of the 1972 Act the  petitioners  and  the appellants  are  entitled  to an annuity  of  Rs.  13,333.33 subject  to  reduction  of  Family  Pension  and  Death-cum- Retirement  Gratuity.   The 1972 Act came into  force  on  1 October, 1972.  Section 8 of the Act provides that no former Secretary of State Service officer shall be entitled, or  be deed  ever  to have been entitled, to claim (a)  pension  in sterling:  or  (b) that his pension shall  be  paid  outside India; or (c) where his pension was expressed in sterling or a  fixed sterling minimum was applicable in respect  of  the pension  payable to him, that his pension shall be  computed in the rupee equivalent of the amount fixed in sterling at a rate of exchange exceeding the rate of Rs. 13,333.33 to pond 1000 sterling. A member of the Indian Civil Service who is also a member of the Indian Administrative Service is entitled to an  annuity of  Rs. 13,333.33 which was equivalent to X- 1000  converted into rupees at the rate of 1 sh-6 d to a rupee. Article  312A  which  was  introduced  by  the  Constitution (Twentyeighth Amendment) Act confers power on Parliament  to make  a  law  to vary or revoke,  whether  prospectively  or retrospectively,  the  conditions  of  service  as  respects pension of persons who, having been ap.pointed by  Secretary of  State  or  Secretary of State  in  Council  to  a.-Civil Service  of  the Crown in India before the  commencement  of this  Constitution,  retired or otherwise ceased  to  be  in service   at  any  time  before  the  commencement  of   the Constitution (Twentyeighth Amendment) Act, 1972. The  petitioners and the appellant in CA 147 of 1971 and  CA 2467  and 2468 of 1972 all joined the Indian  Civil  Service after  1921.   The  pension to which these  members  of  the Indian  Civil Service were entitled on 15 August,  1947  has not been altered. 801 Shri  Raman  one  of the  petitioners  appearing  in  person

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submitted  that  the  salary, annuity  and  pension  of  the members  of  the Indian Civil Service were,  to  borrow  his words, basic structure which could not be amended by any Act of Parliament.  This is only to be stated to be rejected. The petitioner Raman in particular and others who  supported him contended that officers who belonged to the Indian Civil Service  were entitled to payment of annuity  by  converting pound  1000  into Indian currency at the  official  rate  of exchange.  The contentions of the petitioners are that it is their  basic right to be paid annuity in Indian currency  at the  official  rate of exchange of rupee to  a  pound.   The petitioners submit that these officers are denied such basic rights and it is unconstitutional to deny them these rights. The  alleged  basic rights are not only absurd but  also  in supportable in law.  When Indian Civil Servants, were in the employment  of  the  British  Government,  they  had   under Regulations  561 and 983 certain privileges.  Even  in  1928 the  Secretary of State regulated the rate of exchange.   On the  date  of  transfer  on 15  August,  1947  the  officers belonging  to  the  Indian Civil Service  were  entitled  to annuity of Rs. 10,666-10-8 which was subject to a minimum of pound  1000.   Officers who received annuity  at  equivalent Indian currency were paid at the rate of exchange of 1 sh  6 d to a rupee. After  the  1956  amendment of Regulation  561)  the  Indian members  of the Indian Civil Service who retired  or  sought retirement  were  entitled to an annuity  of  Rs.  13,333.33 which  is payable in India in rupees only.  The  members  of the   former  Indian  Civil  Service  and  of   the   Indian Administrative Service are under the 1972 Act entitled to an annuity  of Rs. 13,333.33 which is equivalent to pound  1000 converted  into rupees at the rate of I sh-6 d to  a  rupee. here has been no change.  All that has happened as a  result of  the  1972  Act is to Jay down that  annuitants  are  not entitled to claim payment of pension in sterling or  outside India  or by converting pound 1000 at the rate  of  exchange exceeding  the  rate of exchange of Rupee thirteen  and  one third  to  the  pound sterling.  The  annuitants  reside  in India.   Indian currency is the legal tender.  There  is  no constitutional  vice in fixing the rate of exchange and  the mode  of  payment by legislation.  The petitioners  and  the appellants  have  neither  right nor merit  in  the  alleged claims. For the foregoing reasons, the petitions fail and CA 268  of 1972 is allowed and C.A. 147 of 1971, 2467 and 2468 of  1972 are dismissed.  Parties will pay and bear their own costs. V.P.S.                           Petitions dismissed. 5--L192SupCI/75 802