Full Judgment Text
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CASE NO.:
Appeal (civil) 7805 of 1997
PETITIONER:
UNION OF INDIA AND ANR.
RESPONDENT:
P.O. YADAV
DATE OF JUDGMENT: 16/10/2001
BENCH:
B.N. KIRPAL & SHIVARAJ V. PATL & P. VENKATARAMA REDDI
JUDGMENT:
JUDGMENT
2001 Supp(4) SCR 209
The Judgment of the Court was delivered by
SHIVARAJ V. PAIL, J. In short the facts leading to filing of these appeals,
are as stated below.
Civil Appeal No. 7805/1997
The respondent here in joined Navy as a Sailor in April, 1965 and was
commissioned in October, 1980. On account of certain alleged misconduct and
irregularities, he was tried by General Court Martial on five charges. He
was found guilty of the charges 2,3,4 and 5 and consequently a penalty of
dismissal from service was imposed on him on 26.2.1990. He was given a
show-cause notice on 21.6.1991 under Regulation 15(2) of the Navy (Pension)
Regula-tions, 1964 as to why his pensionary benefits should not be
forfeited. He sent a reply on 24.7.1991. The appellants informed him on
7.5.1992 that the action will be taken soon pursuant to the show-cause
notice issued. However, without waiting any further, he filed a writ
petition on 20.1.1993 in the High Court. After the filing of the said writ
petition, an order was passed on 28.3.1994 forfeiting 50% of the pensionary
benefits. The High Court partly allowed his writ petition and remanded the
case giving certain directions to the appellants by the order dated
4.3.1997. Feeling aggrieved by the same, the appellants are before this
Court in this appeal.
Civil Appeal No. 7806/1997
The respondent was commissioned in the Indian Army on 30.6.1963 and was due
to retire on 31.3.1989. On 17.2.1988, he was tried by General Court Martial
on certain charges and was dismissed from service on 13.6.1988 under
Section 71 of the Army Act. He submitted papers for payment of pension
stating that he had qualifying service. Since pension was not given to him,
he filed Civil Writ Petition No. 1249/90 in the High Court on 3.3.1990. On
16.4.1991, a show-cause notice was issued under Section 16(a) of the
Pension Regulations of the Army (Part I) proposing forfeiture of pension on
the ground that he was dismissed from service. He submitted reply to the
said show-cause notice. However, the President of India by order dated
22.7.1992 under said Regulation 16(a) forfeited 50% of the pensionary
benefits. He filed Writ Petition No. 2866/90 for amendment of the writ
petition challenging the said order. The High Court by the impugned order
quashed the order dated 22.7.1992 and directed the appellants to reconsider
his case in the light of the directions given in the judgment. Hence this
appeal.
Civil Appeal No. 7807 of 1997
The respondent was commissioned in the Army as Engineer Graduate Officer on
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11.1.1968. He was tried by General Court Martial on the allegation of
splitting purchase orders for shelters, to bring them within the financial
limits and for making purchases at rates higher than scheduled and
sanctioned rates. After trial by General Court Martial he was cashiered on
11.3.1994 and was directed to undergo rigorous imprisonment for two months.
He forwarded papers on 29.6.1994 to the authorities for grant of pension.
On 22.2.1995, a show-cause notice was issued to him under Regulation 16(a)
of Army Pension Regulations for forfeiture of pension. He claimed to have
sent a reply to the show cause notice but the order was passed forfeiting
his pensionary benefits stating that he had not sent any reply to the show-
cause notice. The High Court quashed the impugned order forfeiting his
pension and directed the appellants for re-consideration and passing fresh
order. Aggrieved by the said order of the High Court dated 4th March, 1997,
this appeal is filed.
Civil Appeal No. 7808 of 1997
The respondent herein entered Army service and was commissioned on
12.6.1960. He was promoted to Selection Grade rank of Acting Brigadier in
December, 1986. He retired from service on 31.5.1990 on attaining the age
of superannuation. He was tried by General Court Martial between 26.5.1990
to 26.9.1990 on certain charges of misconduct. Charges 2, 3,5,9 & 10 were
held proved. Consequently he was ordered to be (i) cashiered (ii) to suffer
rigorous imprisonment for six months and (iii) to forfeit all arrears of
pay and allow-ances and other public money due to him at the time of
cashiering. The first two of the sentences were confirmed by the Chief of
Army Staff on 12.2.1991 but the third one was remitted. Consequently, it
stood set aside. After retire-ment on 31.5.1990, he was initially paid
provisional pension w.e.f. 1.6.1990. However, a show-cause notice was
issued to him on 13.11.1992 under Regu-lation 16(a) of Army Regulations. He
sent a reply to the said notice. Since no order was passed for quite some
time, he sent reminders to the authorities. A final order was passed by the
President on 4.1.1994 forfeiting the entire pensionary benefits.
Questioning this order, he filed Civil Writ Petition No. 2813/1994 in the
High Court. The High Court quashed the order impugned in the writ petition
and directed the appellants to reconsider and pass fresh orders in the
light of certain directions given. Hence this appeal is filed by the
appellants aggrieved by the impugned judgment.
Mr. Mukul Rohtagi, learned Additional Solicitor General, urged that -
1. Section 71 and Regulation 16(a) are distinct and operate in dif-ferent
fields. While Section 71(h) contemplates a punishment at the conclusion of
the Court Martial, Regulation 16(a) contem-plates a stage subsequent to the
awarding of punishment by Court Martial and its confirmation; Regulation
16(a) deals with the pension of an officer, who is cashiered, dismissed or
removed from service.
2. Though the Army Pension Regulations are non-statutory in char-
acter the pensionary benefits are provided for and payable under them;
these very Regulations provide for forfeiting pension in given situations;
in other words, the Regulations which provide for grant of pension also
provide for taking it away on justifiable ground; further these Regulations
may not have statutory force but they are not contrary to any statutory
provisions under the Act or the Rules.
3. The High Court committed an error in stating that the
authorities did not consider in forfeiting pension, partly or fully, that
the services of the respondents up to the date of commission of offences
were satisfactory and that the Court Martial did not inflict the punishment
of forfeiture of services.
4. The orders passed by the President of India forfeiting pension
were neither arbitrary nor unreasonable; in fact they were passed after
taking into consideration the nature of offences, the punishments awarded
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and all relevant factors.
5. (a) The High Court has also failed to see that the right to
grant pension is not with the Court Martial under Section 71; the grant of
pension is within the powers of the President under Regulations, who can
grant/forfeit pension to the officers who are cashiered, dismissed, removed
or called upon to retire. (b) In passing the orders forfeiting pension of
the respondents, partly or fully, well established procedure was followed
in that a show cause notice was issued; on receipt of reply to the show
cause notice from the respondents and after consid-eration orders were
passed.
6. The High Court was also not right in saying that the services
of the respondents cannot be termed as unsatisfactory because of their
involvement in the cases of misconduct; the High Court was not right in
giving directions to the appellants to reconsider the matter after issuing
a supplementary show cause notice.
He added that Army Pension Regulation 16(a) and Navy Pension Regulation
15(2) are similar in content except that the authority to pass order under
Regulation 16(a) vests with the President and whereas under Regulation
15(2) it vests in the Central Government; the Army Pension Regulations are
non-statutory and Navy Pension Regulations are statutory; hence the same
submissions cover the cases dealt with Army Pension Regulations and Navy
Pension Regulations.
In short and substance the arguments advanced by the learned counsel on
behalf of the respondents are :
1. Pension is not a bounty or a charity given by the State; it is a
deferred portion of compensation for services rendered; right to receive
pension is a Fundamental Right and is right to property under Article 300A
of the Constitution of India which cannot be taken away except by authority
of law.
2. Under the Army Act it is only the Court Martial, which can order
for forfeiture of service for purposes of increased pay, pension or any
other prescribed purpose under Section 71(h) or 71(k) of the Army Act; in
case service of army personnel is terminated on the administrative side
(without holding court martial) then the statu-tory authority to decide
forfeiture or the grant of these benefits is the competent authority under
Rule 14(5) and 15 of the Army Rules. Therefore, there is no question of
applying non-statutory pensionary regulations to the respondents;
alternatively Regulation 16(a) is inconsistent with and contrary to Section
71(h) and 71(k) of the Army Act and Rules 14(5) and 15 of the Army Rules.
3. If the Court Martial has not thought fit to forfeit the
pensionary benefits then those benefits cannot be forfeited by the non-
statu-tory regulations and there has been undue delay in passing the order
forfeiting the pension in some cases.
4. The orders passed forfeiting the pensionary benefits, fully or
partially, as the case may be, are unreasonable and without proper
application of mind to the facts and circumstances of the case.
5. Since no punishment was imposed forfeiting pensionary benefits
under Section 71(h) or (k) by the General Court Martial, it was not open to
pass orders forfeiting pension, partially or fully, exercising power under
Regulation 16(a); it may amount to im-posing punishment twice in respect of
the same charges of mis-conduct.
It may be necessary to narrate in brief as to the nature of charges framed
against the respondents and the punishment imposed on them to appreciate
the contentions urged on behalf of the respondents as to the validity,
reasonableness and justification in passing the orders forfeiting pension.
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Five charges were framed against P.D. Yadav (respondent in CA 7805/ 97). He
was found guilty in respect of charges 2 to 5. The said charges 2 to 5 are
:-
2. Did on the Twenty ninth day of September one thousand nine
hundred eighty nine at about 1401 hours willfully disobey the lawful
command of Lieutenant Commander (Special Duties Com-munication) Man Singh
Rawat (81917 Z), his Superior officer in the office of the Officer-in-
Charge? Communication Centre, Delhi when ordered to go out of the said
office and to come afterwards and thereby committed an offence punishable
under Section 47(a) of the Navy Act, 1957.
3. Did on the Twenty ninth day of September one thousand nine
hundred eighty nine at about 1402 hours behave in a disorderly manner in
the office of the Officer-in-Charge, Communication centre, Delhi and
thereby committed an offence punishable under Section 48(c) of the Navy
Act, 1957.
4. Did on the Twenty ninth day of September one thousand nine
hundred eighty nine at about 1402 hours strike Lieutenant Commander
(Special Duties Communication) Man Singh Rawat (81917 Z) his superior
officer in the office of the Officer-in-Charge, Communication Centre, Delhi
and thereby committed an offence punishable under Section 45(a) of the Navy
Act, 1957.
5. Did on the Twenty ninth day of September one thousand nine hundred
eighty nine at about 1403 hours use violence against Lieutenant Commander,
(Special Duties Communication) Man Singh Rawat (81917 Z) his superior
officer in the office of the Officer-in-Charge, Communication Centre, Delhi
and thereby committed an offence under Section 45(c) of the Navy Act, 1957.
Twelve charges were framed against B.S. Ahluwalia (respondent in CA
7806/97) but the Court Martial found him guilty of charges 5, 7 and 10 and
with certain variations of charges 1, 2 and 3. They are :-
1. At Dehradun on 22.2.1985", while employed as CWE, Dehradun and
having already given technical sanction for Table dining (OR) FD-165 @ Rs.
450 per tabel, with intent to defraud, vide contract Agreement No.
CWE/CLT/23 of 84-85, entered into an agreement with M/s. Doon Furnishers
for 496 dining tables @ Rs. 730 per table and thereby caused loss to the
State to the tune of Rs. 1,38,800.
2. At Dehradun, on 21.6.1985, while employed as CWE, Dehradun with
intent to defraud vide CA No. CWE/DDN/6 of 85-86, final-ized a contract
agreement with Allied Traders for supply and fixing of ceiling fans at an
exorbitant rate of Rs. 498 per fan, while DGS & D contract rate was Rs.
413.56 per fan,
3. At Dehradun, on 21.6.1985, while employed as CWE, Dehradun with
intent to defraud vide CA No. CWE/CLT/7 of 85-086 finisalised a contract
agreement with M/s. Allied Traders for supply and fixing of ceiling fans at
an exorbitant rate of Rs. 488 per fan, while DGS & D contract rate was Rs.
413.56 per fan.
5. At the place and date mentioned in the Charge No. 4. improperly accepted
the contract agreement with the altered rates as mentioned in the said
charge.
7. At the place and date mentioned in the charge 6 (21.6.1985) improperly
accepted the contract agreement with the altered rates as mentioned in the
said charge.
10, At Dehradun between 29.3.1985 and 5.7.1985, while employed as CWE,
Dehradun, contrary to the provisions of para 24 of the General conditions
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of contract (IAFW-1815Z) instead of claim-ing composition from M/s. Doon
Furnishers for failure to com-plete the work by due date, improperly
allowed extension of time by 15 days and 30 days for phases I and II
respectively.
Thirteen charges were framed against E.K. Sugathan (respondent in CA
7807/97) and was found guilty of charges 6, 10,11 and 12 and of charges 1,
2, 3,4, 5, 7, 8 and 9 with certain variations. He was sentenced to be
cashiered and to suffer rigorous imprisonment for two months. However,
while confirm-ing the finding and sentence GOC-in-C, Northern Command
remitted the sentence of rigorours imprisonment. The said charges are :
1. He at field between 28th January, 1991 to 6th March, 1991 while
being Garrison Engineer 571 Engr. Park when ordered to fabri-cate 28 SL
shelters at the cost of Rs. 10 lacs, with intent to defraud, splitted the
purchases of said order by placing the supply orders in contravention to
para 748 of Military Engr. Services Regulations 1968 edition read with HQ
Northern Command letter No. 12846/2/policy/II/SB dt. 31st October, 1975
which prohib-ited splitting of the purchase order to avoid the necessity of
obtaining the sanction of higher authority with reference to the total
amount of the said order.
2. He at field, between 25th January, 1991 to 6th March, 1991 while
being Garrison Engineer 571 Engr. Park when ordered to pur-chase 5 SI
Shelters, 6 bathing cubicles flock and 6 latrine cubicles valued at Rs. 10
lacs, with intent to defraud splitted the said purchase order by placing
the supply orders in contravention to para 748 of Military Engr. Services
Regulations 1968 edition read with the Northern Command letter No.
42346/2/policy/ll/Eng, Dated 31st October. 1975 which prohibit splitting of
the purchase order to avoid the necessity of obtaining the sanction of
higher authority with reference to the total amount of the said amount.
3. He, at field, between 12th March, 1991 to 25th March, 1991,
while being Garrison Engineer 571 Engr. Park when ordered to purchase 10 SI
shelters valued Rs. 10 lacs, with intent to defraud, splitted the said
purchase order by placing the supply orders in contravention to para 748 of
Military Engineer Services Regula-tions edition read with HQ Northern
Command letter No. 42346/ 2/policy/l 1/E3 dt. 31st October, 1975 which
prohibited splitting of the purchase order to avoid the necessity of
obtaining the sanction of higher authority with reference to the total
amount of the said order.
4. He, at field between February 1,1991 to February 18,1991 while
being Garrison Engineer 571 Engr. Park when ordered to pur-chase 713
chassis valued Rs 4.281 lacs, with intent to defraud splitted the said
purchase order by placing the supply order in contravention to para 748 of
Military Engineering Services Regu-lations 1968 edition read with HQ
Northern Command letter No. 42346/2/Policy/ll/EB dated 31st October, 1975
which prohib-ited splitting of the purchase order to avoid the necessity of
obtaining the sanction of higher to authority with reference to the total
amount of the said order.
5. He, at field, between February 1, 1991 to February 18, 1991,
while being GE 571 Engr. Park, when directed by Chief Engineer Northern
Command vide letter No. 42392/203/E3 RR dated November 17, 1990 to procure
713 chassis, without authority purchased 213 timber planks of various sizes
for which no sanction existed.
6. He, at field, on 13 Feb. 1991, when Garrison Engineer 571 Engr.
Park with intent to defraud placed supply order No. 3027/169 IWS dt. 13th
February, 1991 for "Steel door she 6’ -10" double leaf type each divided in
the four parts for fixing of glass sheets of size 12-3/4"x20" 4 Nos. and
PGI sheets 27"x20" duly fixed and welded provided with two lower bolt 6"
sliding door belt duly fixed for looking arrangements. The frame of door
made out of angle iron 40x4x40x6mm thick door leaf duly fixed with three
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hinges of 4" to each leaf with two bow handle of 9" size and leaf made out
of angle iron 32x32x6mm qty. 20 on M/s CDS Traders Malhard Road, Garhi
Udhampur at the rate of Rs. 1650 each well knowing that the rate approved
by him was higher than the prevailing market rate of Rs. 1329 each.
7. He, at field, on 12th March, 1991, when Garrison Engineer, 571
Engr. Park with intent to defraud placed supply order No. 3027/ 185/IWS dt
12th March, 1991 for "Rear corner column made out of ISMB 6"x3"xlO’ long
welded with base plate 10"xlO"xlOmm thick having 4 holes of 7/8" dia and
gusset plate 4"x4"x6"mm thick welded to base plate. Top plate 7"x7"xlOmm
thick having 2 holes of 9/10" dia welded at tope cleats of angle iron
50x50x6mm 9" long 4 Nos. having two holes of 9/16" dia welded to the column
at place sq. 10, on M/s. Indow Traders, Transport Yard, Udhampur, at the
rate of each well knowing that the rate approved by him was higher than the
prevailing market rate of Rs. 1147.50 each Rs. 2680.
8. He, at field, on 13th March, 1991, when Garrison Engineer, 571
Engr. Park with intent to defraud placed the supply order No. 3027/199/IWS
dt. 13th March, 1991 for "front right hand side column made out of ISMB
6"x3"xlO’ long welded with base plate 10"xlO"xlOmm thick having 4 holes of
7/8" dia and gusset plate 4"x4"x6mm thick welded to the base plate, top
plate 7"x7"xlOmm thick having 2 holes of 9/10" dia welded atop, 4 cleats of
angle iron 50x50x6 mm 6" long having 2 holes of 9/16" dia welded to the
column at places, qty. 10 on M/s. Mushtak Hardware, Garhi Udhampur at the
rate of Rs. 2680 each well knowing that the rate approved by him was higher
than the prevailing market rate of Rs. 1147.5 each.
9. He, at field, on 16th March, 1991, Garrison Engineer, 571 Engr.
Park with intent to defraud placed the supply order No. 3027/205/ IWS dt.
16th March, 1991 for middle column made of ISMB 6"x3"xlO long welded with
base plate 10"xlO"mm thick having four holes of 7/8" dia and gusset plate
4"x4"x6mm thick having four holes of 7/8" dia and gusset plate 4"x4"x6mm
thick welded to the base plate, top plate 7"x7"xlOmm thick having two holes
of 9/10 welded at top. 4 cleats of angle iron 50x50x6mm6" long having two
holes of 9/10" dia welded to the column at places qty. 10, on M/s. Veekay
Enterprises Dhar Road, Udhampur at the rate of Rs. 2680 each well knowing
that the rate approved by him was higher than the prevailing market rate of
1147.50 each.
10. He, at field, on 12th March, 1991, when Garrison Engineer, 571
Engr, Park with intent to defraud placed the supply order No. 3027/183/IWS
dated 12th March, 1991 for middle side made out of at 50x50x6mm welded to
6mm thick plate of size 14x7" 1 nos. at Joints, 6 cleats of AI 60x50x6mm 6"
long welded attend to each truss having 9/16" dia hole for fixing columns 6
nos. cleats angle iron 50x50x6mm 4 "long having two holes 9x16" dia welded
to truss for fixing of purlin at places" qty. 10 on M/s Bansi Dhar and Sone
near Krishna Mandir, Adarsh Colony, Udhampur at the rate of Rs. 2770 each
well knowing that the rate approved by market rate of Rs. 2218.72 which was
higher than the prevail-ing market rate.
11. He, at field, on 1st Feb., 1991, when Garrison Engineer, 571
Engr. Park with intent to defraud placed the supply order No. 3027/148/ IWS
dt. 1st Feb., 1991 for "timber plank partal 11x11"x8-3/4" free from cracks
qty. 60 on M/s Akbar Furniture House and Saw Mills, Garhi, Udhampur, at the
rate of Rs. 570 each well knowing that the rate approved by him was higher
than the prevailing market rate of Rs. 429 each.
12. He, at field, on 12th Feb., 1991, when Garrison Engineer, 571
Engr. Park with intent to defraud placed the supply order No. 3027/162/IWS
dt. 12th Feb., 1991 for sal wood plants 3600mmx 225mmx 100mm" qty. 25 on
M/s. Sharma Saw Mills Ram Nagar Chowk, Udhampur at the rate of Rs. 1250
each well knowing that the rate approved by him was higher than the
prevailing market rate of Rs. 858 each.
A.K. Malhotra (respondent in CA 7808/97) was tried on eleven charges. He
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was not found guilty of charges 1, 2, 4 and 6 to 11. He was found guilty of
charges 3 and 5. He was sentenced to be cashiered and his five years
service was forfeited for the purpose of pension. On revision he was not
found guilty of charges 1, 6, 7, 8 and 11 but was found guilty of charges
2, 9 and 10 with exceptions. Consequently there was revision in sentence
also sentencing him to be cashiered, to suffer rigorous imprisonment for
six months and to forfeit all the arrears of pay due to him at the time of
his cashiering. Confirming authority while confirming the finding and
sentence, had revised and remitted the sentence of forfeiture of all
arrears of pay and allowances and other public money due to him at the time
of his cashiering on 13.2.1991, which was promulgated on 16.3.1991. Charges
2, 3, 5, 9 and 10 are :-
2. At Madras, between Aug. 87 and Nov. 87, when DDST HQ ATNKK & G
Area, improperly ordered dispensation of sample testing from Composite Food
Laboratory, of 41.098 tons of Tea (CTC) locally purchased by Supply Depot,
Madras, from M/s. Vickey Enterprises, Madras, contrary to Army HQ letter
No. 72312/III/2/SI-4 dated 11 Nov. 86.
3. At Madras between October, 1987 and November, 1987, when DDST
HQ ATNKK and G Area, improperly ordered dispensation of sample testing from
Composite Food Laboratory or Defence Research Laboratory (Material),
Kanpur, of 19.85 IL of Cresoli Liquid Black locally purchased from M/s.
Gautam Chemicals, Madras and M/s. Testo Chemicals, Madras, contrary to Para
1086 of ALC Training Volume II (Supplies) 1968.
5. At Madras, between 24th October, 1987 and 14th December, 1987 when DDST
HQ ATNKK & G Area, improperly and with-out justification obtained approval
for local purchase of 29 KL of Cresoli Liquid Black from MG ASC HQ Southern
Command, when there was no emergent requirement of local purchase of that
quantity of the said item.
9. At Madras, between 31 Oct. 1987 and 25 November, 1987 when DDST
HQ ATNKK & G Area, improperly allowed Supply Depot, Madras, to split-up the
sanctioned local purchase of 19.85 KL of Cresoli Liquid Black valued at Rs.
2,67,975.00 (Rupees two lakhs sixty seven thousand nine hundred seventy
five only), in order to bring the same within the financial powers of MG
ASC, HQ Southern Command, contrary to Rule 133 of Financial Regula-tion
Part I (Volume I), 1983, which prohibits such splitting-up.
10. At Madras, between November 1987 and February 1988, When DDST HQ
ATNKK & G Area, with intent to defraud, directed Supply Depot, Margao, to
split-up the sanctioned local purchase of 86,190.800 Kgs. of Meat Tinned
valued at Rs. 61,19,451.23 (Rupees sixty one lakhs nineteen thousand four
hundred fifty one and paise twenty three only), in order to bring the same
within the financial powers of MG ASC, HQ Southern Command.
We notice the relevant provisions of the Acts and Regulations :-The Army
Act, 1950
"71. Punishments awardable by courts-martial. - Punishments may be
inflicted in respect of offences committed by persons subject to this Act
and convicted by courts-martial, according to the scale following, that is
to say,-
(a) ...........
(b) ...........
(c) ...........
(d) ...........
(e) ...........
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(0 ...........
(g) ...........
(h) forfeiture of service for the purpose of increased pay, pen-sion or
any other prescribed purpose;
(i) .............. (i) ..............
(k) forfeiture in the case of a person sentenced to cashiering or dismissal
from the service of all arrears of pay and allow-ances and other public
money due to him at the time of such cashiering or dismissal;
(1) ...........
Pension Regulations for the Army, 1961
"1. Unless otherwise provided, these Regulations shall apply to the
personnel of the Army and all claims to pension, gratuity or allowances
shall be regulated by the regulations in force at the time of an individu-
al’s retirement, release, resignation, discharge, death etc., as the case
may be."
"2-A Unless there be something repugnant in the subject of context, the
terms defined in this Chapter are used in the regulations in the sense here
explained :-
(1) to (3)
(4) Pension shall include gratuity except when it is used in contradic-
tion to term gratuity.
(5) to (7)..........."
"3. The full rate of pension or gratuity provided for in these Regula-tions
shall not be granted unless the service rendered has been satis-factory. If
the service has not been satisfactory, the competent author-ity may make
such reduction in the amount of pension or gratuity as it thinks proper."
"4. Future good conduct shall be an implied condition of every grant of a
pension or allowance."
"16. (a) When an officer who has to his credit the minimum period of
qualifying service required to earn a pension, is cashiered or dismissed or
removed from the service, his/her pension, may at the discretion of the
President, be either forfeited or be granted at a rate not exceeding that
for which he/she would have otherwise qualified, had he/she retired on the
same date."
The Navy Act, 1957
"81. (1) The following punishments may be inflicted under this Act, namely
:-
(a) ................
(b) ................
(c) dismissal with disgrace from the naval service;
(d) ................
(e) dismissal from the naval service; (0 to (l) ................
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(m) forfeiture of pay, head money, bounty, salvage, prize money and
allowances earned by, and all annuities, pensions, gratuities, medals and
decorations granted to, the offender or of any one or more of the above
particulars; also in the case of desertion, of all clothese and effects
left by the deserter in the ship to which he belongs;
(n) ................
(2) ................"
The Navy (Pension) Regulations, 1964
"15. Officers dismissed, discharged, etc. - (1) No pension shall be granted
to an officer who is dismissed with disgrace from service.
(2) In the case of an officer who is dismissed otherwise than with disgrace
from the service, the question whether any pension shall be granted and if
so, the rate of such pension shall be decided by the Central Government,
provided that the pension, if granted shall not exceed the rate which would
have been admissible to him if he had retired on the same date.
(3)
It is useful to look at the position of law emerging from various deci-
sions. The facts of the case in Lt. Col. (T.S.) Harbans Singh Sandhu v.
Union of India & Ors., Writ Petition No. 553 of 1972 decided on November
22, 1978 were that a General Court Martial tried the petitioner and imposed
a punish-ment of cashiering under Section 71(d) of the Army Act and no
further pun-ishment was imposed under Section 71(h) of the Army Act for
forfeiture of service for the purpose of increased pay, pension or any
other prescribed purpose: he applied for grant of pensionary benefits; the
authorities did not respond: hence, he filed writ petition seeking
direction to the authorities for granting gratuity and pension due. Both
the sides pointed to Regulation 16(a). From the records, it was found that
no order had been passed under the said Regulation. In the absence of
passing any order under Section 16(a), the Court directed the respondent to
pay the sum due towards gratuity and pension. Under Section 71(h) a
punishment of forfeiture of service for the purpose of pension could be
passed but neither that punishment was imposed on the petitioner nor order
was passed under Regulation 16(a) forfeiting his pensionary benefits. In
those circumstances, the Court gave direction as stated above.
It is clear from the said judgment that the questions of law, whether
regulations being non-statutory could be enforced for denying pension;
whether those regulations were contrary to the provisions of the Act or
Rules or whether when punishment was not imposed under Sections 71(h) or
(k), even then pension could be forfeited under Regulation 16(a) that arise
for consideration in the present cases, were neither raised nor decided.
In the case of Major G.S. Sodhi v. Union of India, [1991] 2 SCC 371 also,
relief was granted relying on the decision of Harbans Singh Sandhu
mentioned above without deciding questions of law as is clear from para 3
of the judgment. This judgment proceeded on the ground that in Harbans
Singh Sandhu’s case, a question of law that if no other penalty of
forfeiting the pensionary benefits was passed under Section 71, pensionary
benefits could not be withheld; but in Harbans Singh Sandhu’s case, this
question was not de-cided; it was only noticed as a fact that no further
penalty was imposed under Section 71(h) of the Act. The direction was given
in that case as no order had been passed forfeiting pension under
Regulation 16(a). No principle of law was decided in the said cases. In
this view, these two judgments do not support the respondents. The Full
Bench of the High Court itself in Malhotra’s case has said that in G.S.
Sodhi’s case, no legal issue was decided and, therefore, it cannot be a
precedent. The High Court in Yadav’s case specifically referring to the
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cases of Harbans Singh Sandhu and G.S. Sodhi held that they were not
applicable to support the case of the petitioner.
This Court in Major (Retired) Hari Chand Pahwa v. Union of India & Anr.
[1995] Supp. 1 SCC 221 while dealing with the specific contention that
Pension Regulations have no statutory force and pensionary benefits could
not be forfeited under Regulation 16(a), has in clear terms in para 5
stated that "We do not agree with the second contention advanced by the
learned counsel. The provisions of Regulation 16(a) are clear. Even if it
is assumed that the Pension Regulations have no statutory force, we fail to
understand how the provisions of the said Regulations are contrary to the
statutory provisions under the Act or the Rules. The pension has been
provided under these Regulations. It is not disputed by the learned counsel
that pension was granted to the appellant under the said Regulations. The
Regulations which provided for the grant of pension can also provide for
taking it away on justifiable grounds. A show-cause notice was issued to
the appellant. His reply was considered and thereafter the Presi-dent
passed the order forfeiting the pension and death-cum retirement gratuity.
We see no infirmity in the order. The appeal is, therefore dismissed." We
are in respectful agreement with the view expressed in the aforementioned
decision that the Regulations, which provide for grant of pension, can also
provide for taking it away not arbitrarily but subject to satisfying the
conditions incorpo-rated in the Regulations.
In Union of India & Ors. v. Brig. P.K. Dutta (Retd.), [1995] Supp. 2 SCC 29
while specifically dealing with the effect of order passed under Sections
71(h) and (k) and the order passed under Regulation 16(a) directly arising
on the contentions as are raised in the present cases held that clause (h)
of Section 71 contemplates forfeiture of service for the purpose of
increased pay, pension or any other prescribed purpose and is wholly
different from Regulation 16(a). It is further slated that a reading of
both these provisions clearly brings out the distinct fields occupied by
them and this Court went on to say :-
"Regulation 16(a) contemplates a situation where an officer is cashiered,
dismissed or removed from service and provides how his pension is to be
dealt with. Whereas Section 71(h) provides the punishments which can be
awarded by the Court Martial. Section 71(h) contem-plates a punishment
awarded at the conclusion of the Court Martial while Regulation 16(a)
contemplates a stage subsequent to the award-ing of punishment of Court-
Martial and its confirmation. The nature and content of both the
impositions is altogether different and distinct. So is the field occupied
by clause (k) of Section 71 wholly distinct from Regulation 16(a). We are,
therefore, unable to see any inconsist-ency between Section 71(h) and
Regulation 16(a)."
In this judgment, a reference is made to the case of Major (Retd.) Hari
Chand Pahwa (supra) and affirmed that the pension regulations, though non-
statutory in character, the pensionary benefits are provided for and are
payable under the said regulations; therefore, the same can be withheld or
forfeited as provided by the very regulations. In this judgment, it is also
stated that Army Rule 14 has absolutely no relevance in regard to the
forfeiture of pension under Regulation 16(a).
Yet again in the case of Union of India & Ors. v. Lt Col. P.S. Bhargava,
[1997] 2 SCC 28 it is stated that Regulation 16(a) gives the President the
power either to forfeit or to reduce the rate of pension in the event of an
officer being cashiered, dismissed or removed from the service. Reference
is made to Regu-lation 4 to say that conduct of the officer must be good as
a condition for the grant of pension or allowance. Dealing with the
contention that withholding the pension when the respondent had been Court
Martialled and dismissed, would amount to double jeopardy, this Court in
Union of India & Ors. v. Subedar Ram Narain & Ors., [1998] 8 SCC 52 did not
find any merit in the contention and held thus :-
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"Section 71 of the Army Act provides for different types of punish-ments
which could be inflicted in respect of an offence committed by a person
subject to the Army Act and convicted by courts martial. The punishments
are of varying degrees, from death as provided by Section 71 (a) to
stoppage of pay and allowance as provided by Section 71(h). The punishment
of forfeiture of pay and allowances as provided by Section 71(j) is of a
lesser nature than that of dismissal from service as provided by Section
71(e). When punishment under Section 71(j) is imposed, no recourse can be
had to Regulation 113(a), because the said regulation applies only if an
order of dismissal is passed against the person concerned. In other words
Section 71(j) and Regulation 113(a) cannot apply at the same time. On the
other hand, when the punishment of dismissal is inflicted under Section 71
(e) the provisions of Regulation 113(a) become attracted. The result of
punishment is that the benefit of pension or gratuity which is given under
the regu-lation is taken away. The order of dismissal under the provisions
of the Army Act in the case of an employee like the respondent would make
him ineligible for pension or gratuity. For a person to be eligible to the
grant of pension or gratuity, it is imperative that he should not have been
dismissed from service. The dismissal under the provisions of the Army Act
is, therefore, a disqualification for getting pension or gra-tuity."
The High Court in the impugned judgments has held that Regulation 16(a) is
not inconsistent with Sections 71(h) and (k) of the Army Act and that they
cover different fields; so also Regulation 16(a) and Rules 14(5) and 15 of
the Army Rules operate in different fields. The High Court has upheld the
validity of Army Pension Regulation 16(a) and Navy Pension Regulation
15(2). The High Court also did not find that these Regulations were
inconsist-ent with or contrary to relevant provisions of the Act relating
to punishment referred to in the judgment. We approve these conclusions of
the High Court. The High Court quashed the impugned orders forfeiting
pension on the ground that prior satisfactory service of the respondents,
coupled with the fact that Court Martial did not consider it appropriate to
impose the punishment under Section 71(h), was not taken into consideration
by the authorities. The High Court was of the view that although a person
may be cashiered or dismissed from service; that itself was not enough to
forfeit pension and that prior satisfactory services of the respondents
ought to have been taken into consid-eration before passing the order
forfeiting pension fully or partly. The High Court also held that
provisions of Regulation 15(2) of the Navy Pension Regulation are not ultra
vires of the provisions of Sections 81, 82, 47 and 27 of the Navy Act and
that where the Court Martial has imposed a punishment (like dismissal)
which does not entail forfeiture of pension, it is still open to the
competent authority under the Regulation 15(2) to forfeit a part or whole
of the pension by following due procedure. With regard to the delay in
passing orders under the Pension Regulations, the High Court observed that
the orders should be passed within a reasonable period, preferably within
six months of cessation of service. Of course, whether there was delay or
not, in passing the order forfeiting pension depends on the facts of each
case. However, the High Court having regard to the facts of the cases did
not consider the delay unreasonable and, therefore, declined to quash the
orders of forfeiting pension merely on the ground of delay in passing them
and rightly so in our opinion.
Section 71 of the Army Act provides for various kinds of punishments which
may be imposed for offences committed by persons subject to the Act and
convicted by Court Martial which may vary from death to stoppage of pay and
allowances. In terms of Army Pension Regulation 16(a) and Navy Pension
Regulation 15(2), pension may be forfeited partly or fully subject to the
conditions mentioned therein. These Regulations are independent and the
authority to grant or forfeit pension is the President of India and the
Central Government respectively. As rightly found by the High Court, the
said Regu-lations are neither inconsistent with nor contrary to the
provisions of the Army Act or the Navy Act as the case may be. The said
Regulations and the provi-sions dealing with the punishments under the Acts
cover different fields and have different purposes to serve. Punishments
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are imposed after trial on the basis of the misconduct proved. The Pension
Regulations deal with the grant or refusal of pension depending on
satisfactory qualifying service earned by a person and depending on the
nature of punishments imposed, mentioned in the Regulations. The
Regulations come into play at a stage subsequent to the imposition of
punishemnt. No doubt, pension is not a bounty but it is the earning of a
person after satisfactory completion of qualifying service and if not
otherwise disentitled. Under Section 71(h), a punishment of forfeiture of
service for the purpose of increased pay, pension or any other prescribed
purpose, can be imposed. If forfeiture of service has the effect of
reducing total qualifying service required to earn pension, a person
concerned is disentitled for pension itself. In other cases, it may have
bearing in regard to claim for increased pay or any other purpose. If by
virtue of such punishment itself, a person is not entitled for any pension,
the question of passing an order forfeit-ing pension under Regulation 16(a)
may not arise. As per Section 71(k), in case of a person sentenced to
cashiering or dismissal from the service, a further punishment of
forfeiture of all arrears of pay and allowances and other public money due
to him at the time of such cashiering or dismissal may be imposed. Clause
(k) of Section 71 does not speak of pension unlike clause (h) of the same
Section.
The argument that since no punishment was imposed under clause (k) by the
authorities, although it could have been done, then there is no warrant to
pass an order forfeiting pension under the Army Pension Regulations in
respect of same offence cannot be accepted. As already noticed above, the
provisions relating to punishments under the Acts and Pension Regulations
operate in different fields. Clause (k) refers to forfeiture of arrears of
pay and allowances and other public money due to a person at the time of
cashiering or dismissal. Pension is one, which becomes due subsequent to
retirement or termination of service subject to satisfying certain
conditions of satisfactory qualifying service and if not otherwise
disentitled for claiming pension. Firstly, clause (k) does not speak of
pension as such; it speaks of all arrears, pay, allowances and other public
money due to a person. It cannot be said that on the date of cashiering or
dismissal there could be any arrears of pension. Section 73 of the Army Act
enables the authorities to impose punishments in combination. Merely
because punishment is not imposed under clauses (h) or (k) of Section 71
and other punishments are imposed, it does not mean that the President is
deprived of his power and jurisdiction to pass order under Regu-lation
16(a); so also the Central Government under Regulation 15(2) of the Navy
Pension Regulations taking note of the punishment imposed under Sec-tion 81
of the Navy Act. In a case where punishment is imposed under Section 81(m)
of the Navy Act forfeiting pension and/or gratuity, need for passing an
order forfeiting pension under Regulation 15(2) of the Navy (Pension) Regu-
lations may not arise. But that does not mean that in case of punishments
imposed, which are covered by Regulation 15 the Central Government is
deprived of its power to pass appropriate orders under the said Regulation,
when such power is specifically conferred on the Cetnral Government under
the very Regulations, which enables granting of pension and/or grantuity.
It is rather not possible to accept the contention that a General Court
Martial and confirming authorities imposing punishments can debar the
President or the Central Government from passing orders as provided for
specifically and expressly under the Pension Regulations.
A contention, though feebly, was advanced on behalf of some of the
respondents that forfeiture of pension in addition to the punishment
imposed under Section 71 of the Army Act amounted to double jeopardy. In
our view, this contention has no force. There is no question of prosecuting
and punishing a person twice for the same offence. Punishment is imposed
under Section 71 of the Army Act after trial by Court Martial. Passing an
order under Regulation 16(a) in the matter of grant or forfeiture of
pension comes thereafter and it is related to satisfactory service. There
is no merit in the contention that the said Regulation is bad on the ground
that it authorized imposition of a double penalty; may be in a given case,
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penalty of cashiering or dismissal from service and the consequential
forfeiture of pension may be harsh and may cause great hardship but that is
an aspect which is for the President to consider while exercising his
discretion under the said Regulation. May be in his discretion, the
President may hold that the punishment of cashiering or dismissal or
removal from service was sufficient having regard to circumstances of the
case and that a person need not be deprived of his right to pension. A
crime is a legal wrong for which an offender is liable to be prosecuted and
punished but only once for such a crime. In other words, an offender cannot
be punished twice for the same offence. This is demand of justice and
public policy supports it. This principle is embodied in the well-known
maxim "Nemo debet bis vexari, si constet curiae quod sit pro una et eadem
causa" meaning no one ought to be vexed twice if it appears to the court
that it is for one and the same cause. Doctrine of double jeopardy is a
protection against prosecution twice for the same offence. Under Articles
20-22 of the Indian Constitution, provisions are made relating to personal
liberty of citizens and others. Article 20(2) expressly provides that "No
one shall be prosecuted and punished for the same offence more than once."
Offences such as criminal breach of trust, misappro-priation, cheating,
defamation etc., may give rise for prosecution on criminal side and also
for action in civil court/other forum for recovery of money by way of
damages etc., unless there is a bar created by law. In the proceedings
before General Court Martial, a person is tried for an offence of
misconduct and whereas in passing order under Regulation 16(a) for
forfeiting pension, a person is not tried for the same offence of
misconduct after the punishment is imposed for a proved misconduct by
General Court Martial resulting in cashiering, dismissing or removing from
service. Only further action is taken under Regulation 16(a) in relation to
forfeiture of pension. Thus, punishing a person under Section 71 of the
Army Act and making order under Regulation 16(a) are entirely different.
Hence, there is no question of applying principle of double jeopardy to the
present cases.
Our discussion and reasoning with reference to scope and application of
Army Pension Regulation 16(a) will equally apply in relation to Navy
Pension Regulation 15(2).
It is to be noted that the punishment imposed on these respondents by Court
Martial, as confirmed, have become final as the respondents have not
questioned their validity and correctness any further. The High Court
having rejected all other contentions raised by the respondents, partly
allowed their claim on the ground that the otherwise prior satisfactory
services of the re-spondents till the date of imposition of various
punishments on them was not taken into consideration by the President or
the Central Government, as the case may be, in passing the orders under the
Pension Regulations forfeiting their pension. Mainly on this ground, the
High Court directed the authorities to reconsider the cases of the
respondents and pass orders after issuing supple-mentary show-cause
notices. Consideration of prior satisfactory service of a person till the
date of imposition of punishment of cashiering or dismissal or removal from
service cannot be read into Army Pension Regulation 16(a) or Navy Pension
Regulation 15(2). For exercise of power under the said Regu-lations, what
is to be seen is whether the very terms of these Regulations are satisfied
or not. A plain reading of these Regulations shows that in case of a person
who has been cashiered or dismissed or removed from service, at the
discretion of the President under Regulation 16(a) and in case of an
officer who is dismissed otherwise than with disgrace from the service, the
Central Gov-ernment under Regulation 15(2) of the Navy Pension Regulations
can pass order forfeiting pension, partly or fully. The very fact that such
punishment is imposed on a person for proved misconduct after trial by the
Court Martial, itself shows his unsatisfactory service. In our view, the
High Court has read something more in these Regulations in insisting for
considering prior satisfactory service of a person upto the date of
imposition of punishment, which is not required by the very Regulations. We
may clarify here itself that in these cases we are only considering, so far
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as they relate to grant or forfeiture of pension in relation to and in the
context of Regulation 16(a) of Pension Regulations for the Army and
Regulation 15(2) of the Navy (Pension) Regu-lations. Under Regulation 2-
A(4) of the Army Pension Regulations ’pension’ is defined as including
gratuity except when it is used in contradiction to the term gratuity.
Hence the pension and gratuity, as defined, are included for consideration.
Regulation 3 shows that full rate of pension or gratuity shall not be
granted unless the service rendered has been satisfactory; if the service
has not been satisfactory the competent authority may reduce the rate of
pension or gratuity as it thinks proper. Thus, Regulation 3 and Regulation
16(a) of the Army Pension Regulations deal with distinct and different
situations. Further, Regulation 4 states that future good conduct shall be
an implied condition for every grant of pension or allowances.
Consideration of satisfactory service may be relevant in terms of
Regulation 3 for granting pension in the normal course after satisfactory
qualifying service. But Regulation 16(a) being a distinct and specific
Regulation enables for forfeiture of pension, partly or fully, as a sequel
to imposition of a particular type of punishment. Regulation 16(a) in this
regard is self-contained. The High Court clearly committed an error in
holding that previous satisfactory service of a person upto the date of
imposition of punishment should have been taken into consideration for
exercise of power under Regulation 16(a) and it cannot be sustained. This
being the position we are unable to agree with the High Court that a
previous satisfactory service of a person prior to the date of imposition
of punishment should be considered for the purpose of Regulation 16(a).
Consequently the impugned judgments cannot be sustained.
What remains to be seen is whether the orders passed by the President and
the Central Government, as the case may be, forfeiting pension of the
respondents, were arbitrary, unreasonable or without application of mind.
It is the case of the appellants that before passing orders forfeiting
pension either under Army Pension Regulation 16(a) or Navy Pension
Regulation 15(2), show cause notices were issued to the respondents;
replies received from the respondents and all the relevant factors
appearing from the records were considered. According to them, the orders
passed in their discretion by the President or the Central Government, as
the case may be, having regard to all aspects, are justified and
sustainable. We have perused copies of the notings of the Ministry of
Defence and the orders made pursuant thereto. From the said records, we
find that there has been application of mind and having regard to the
serious nature of charges already narrated above and keeping in view the
relevant circumstances including the punishments imposed on proved charges,
the impugned orders appear to have been passed forfeiting pension. The said
orders passed forfeiting pension are not merely based on the fact that the
appellants were punished by Court Martial, as assumed by the High Court.
Moreover, by issuing show-cause notices giving opportunity to the
respondents to explain the circumstances and their hardship before passing
the impugned order, the principles of natural justice were also complied.
In the given circumstances when the impugned orders forfeiting pension were
passed in the discretion of the authorities exercising the power available
under the Regulations, we cannot find fault with them. Thus, the orders
passed are neither arbitrary nor unreasonable. In this view, we do not find
any error or infirmity or illegality in passing the said orders.
Having regard to the provisions and position of law, the discussion made
and for the reasons recorded hereinabove, we find merit in these appeals
and they deserve to be accepted. Hence, the impugned judgments of the High
Court are set aside and the appeals are allowed. No cost.