High CourtSingle JudgeAppeals dismissed.

Sudhir Kumar Consul v. Allahabad Bank

Case / Petition Number:Civil Appeal No. 1982-83 of 2011
Neutral Citation:[2011] 2 S.C.R. 1119

Case Details & Bench

Court
High Court
Hon'ble Judges
  • D.K. Jain
  • H. L. Dattu
Judgment Date
2011-02-21
Court Decision / Holding
Appeals dismissed. The Court held that pension in lieu of gratuity under the Old Pension Scheme is limited to officers appointed on or before 01.07.1979; the appellant’s promotion in 1983 excludes him from that benefit; the Court endorsed rational, non-arbitrary cut-off dates under Article 14 and allowed the appellant liberty to opt to join the 1995 Regulations within 30 days, with sympathetic consideration to be given by the Bank within 60 days if exercised.
Final Disposition
Appeals dismissed.

Parties to the Case

Appellants / Petitioners

  • Sudhir Kumar Consul

Respondents

  • Allahabad Bank

Legal Representation & Advocates

Counsels for Petitioners

  • • Sudhir Kumar Consul

Counsels for Respondents

  • • Yashraj Singh Deora
  • • Sarwa Mitter (Mitter & Mitter Co.)

Case Synopsis & Summary

This appeal concerns pension rights under changing retirement schemes in a public sector bank. The appellants had started as a clerk in 1976, were promoted in 1983, and retired in 2001. After retirement, he sought pension under the Old Pension Scheme (as amended by subsequent Allahabad Bank Pension Regulations) but was informed that Regulation 46 of the 1979 Regulations makes pension in lieu of gratuity available only to officers appointed on or before 1 July 1979; since the appellant became an officer only in 1983, his claim under the Old Pension Scheme was rejected. The High Court directed payment of gratuity under Regulation 46(2) after adjusting gratuity already paid, which the Bank challenged. The Supreme Court held that Regulation 46(1) indeed restricts pension in lieu of gratuity to those officers appointed on or before 01.07.1979, and that officers recruited or promoted after that date are not entitled to pension under the Old Pension Scheme. It reinforced the principle that substitution or revision of pension schemes must be anchored in rational, non-arbitrary criteria under Article 14, citing several precedents that authorize cut-off dates based on financial and policy considerations. The Court also recognized the validity of potential opt-in to the 1995 Regulations, directing sympathetic consideration if the appellant exercises that option within 30 days. Ultimately, the appeals are dismissed, with liberty to opt for the 1995 Regulations and a 60-day period for consideration if exercised.

Provisions of Law Cited

Constitution of India, 1950, Article 14Allahabad Bank Officers Service Regulations, 1979, Regulation 46(1) (and Regulation 46(2))Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, Section 12(2)Old Pension SchemeAllahabad Bank Employees (Pension) Regulations, 1995Draft/Proposed Allahabad Bank Employees (Pension) Regulations, 1993Payment of Gratuity Act, 1972

Legal Doctrines & Maxims

  • Rule of law applies over sympathies
  • Sympathies cannot override the Rules and Regulations
  • Justice according to law is a principle as old as the hills (Life Insurance Corporation v. Asha Ramachhandra Ambekar)
  • Cut-off dates for benefits must be objective and rational (University Grants Commission v. Sadhana Chaudhary)
  • A cut-off date can create a valid classification if not arbitrary (State Government Pensioners' Association v. State of A.P.; Ramrao v. All India Backward Class Bank Employees Welfare Assn.)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that he is entitled to pension under the existing Old Pension Scheme as exercised in terms of the draft/proposed 1993 Regulations and subsequently via the 1995 Regulations; he argues Regulation 46(1) restricts pension in lieu of gratuity to officers appointed on or before 01.07.1979 and that his service as a Clerk on 01.07.1979, followed by promotion in 1983, should still qualify under the Old Pension Scheme; he challenges the vires of Regulation 46(1) under the Banking Act, and asserts that the 1995 Regulations validate earlier options and that he should be allowed to opt for pension under the 1995 Regulations and CPF; he seeks equal treatment and protection of existing pension rights under Article 14.

Contentions of Respondents

The respondent Bank contends that the appellant cannot claim pension under the Old Pension Scheme since he became an officer after 01.07.1979; Regulation 46(1) provides pension in lieu of gratuity only to officers appointed on or before 01.07.1979; the appellant, promoted in 1983, cannot claim pension; vires of Regulation 46(1) are in harmony with Article 14; the 1995 Regulations codify and extend benefits but cannot override the fixed cut-off date; the Bank argues the rational basis for the cut-off date and that the appellant’s case falls outside the old scheme; if the appellant exercises the 1995 option, it should be considered per due procedure.

Cited Precedents (15)

Case NameCitationTreatmentExplanation
Union of India v. P.N. Menon4 SCC 68PositiveCited as authority supporting that revising post-retirement schemes with a cut-off date can be reasonable and not violative of Article 14.
State Government Pensioners' Association v. State of A.P.3 SCC 501PositiveCited for upholding rational cut-off date in pensionary benefits.
Action Committee South Eastern Railway Pensioners v. Union of India1991 Supp (2) SCC 544PositiveCited in discussion of dearness pay and cut-off date rationality.
All India Reserve Bank Retired Officers' Association v. Union of India1992 Supp (1) SCC 664PositiveCited regarding rational basis for post-retirement benefit schemes.
University Grants Commission v. Sadhana Chaudhary10 SCC 536PositiveCited for principle that fixation of a date for classification should not be arbitrary if rational.
T.N. Electricity Board v. R. Veerasamy1999 3 SCC 414PositiveCited to illustrate difference in applicability of pension rules based on retirement dates.
State of Punjab v. Boota Singh3 SCC 733PositiveCited for justification of cut-off dates due to financial considerations.
State of Punjab v. J.L. Gupta3 SCC 736PositiveCited to reinforce non-arbitrary nature of date-based benefits.
Ramrao v. All India Backward Class Bank Employees Welfare Assn.2 SCC 76PositiveCited regarding classification created by cut-off dates for promotions.
State of Bihar v. Bihar Pensioners Samaj5 SCC 65PositiveCited for the validity of cut-off-date rationalization under Article 14.
Indian Ex-Servicemen v. Union of India2 SCC 104 (1991)PositiveNoted as distinguishing Nakara; supports selective application of pension reform.
Nakara case1983 1 SCC 305Mentioned OnlyCited in context but not applied; later decisions distinguished its scope.
K.L. Rathee v. Union of India1997 6 SCC 7PositiveCited to show Nakara cannot be read to require equal benefits irrespective of retirement date.
Life Insurance Corporation v. Asha Ramachhandra Ambekar2 SCC 718PositiveCited for the maxim: justice according to law; cautions courts against purely sympathetic decisions.
D.R. Nim v. Union of IndiaSCR 325 (1967)Mentioned OnlyQuoted as part of a broader discussion on cut-off dates; not treated as controlling.

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A c [2011) 2 S.C.R. 1119 ## SUDHIR KUMAR CONSUL ## _v._ ALLAHABAD BANK (Civil Appeal No. 1982-83 of 2011) FEBRUARY 21, 2011 [D.K. JAIN AND H.L.DATIU, JJ.] B _Allahabad Bank Officers Service Regulations, 1979:_ - _Object of the Act Discussed._ - - _Regulation 46 Pension under Old Pension Scheme Appellant working as clerk as on 1._ 7. _1979 and promoted as an officer in 1983_ - _Claim for pension under the Old Pension Scheme_ - _Held: By virtue of Regulation 46 (1), pension in lieu_ 0 _of gratuity was available only to the officers appointed prior to or on 01.07.1979 and not to officers appointed; recruited or promoted thereafter_ - _Therefore, appellant was not eligible_ - _to claim any benefit under the Old Pension Scheme Service_ - _law Pension._ E > _Constitution of India, 1950:_ _Article 14_ - _Fixing of cut-off date for granting retirement benefits such as gratuity or pension_ - _By virtue of Regulation 46(1) of Allahabad Bank Officers Service Regulations, 1979, benefit of pension in lieu of gratuity available only to the_ F _officers appointed prior to or on 01.07.1979 and not to officers appointed, recruited or promoted thereafter- Reasonableness_ - _of such differentiation Held: Fixing of cut-off date, thereby, creating two distinct and separate classes of employees is_ - _reasonable and not offend Article 14 Allahabad Bank_ G - _Officers Service Regulations, 1979 Regulation 46(1)._ ## _Administrative law:_ 1119 H [20111 2 S.C.R. ## 1120 SUPREME COURT REPORTS A - - _Subordinate legislation Legality of Held: Can be challenged on the ground that it is arbitrary, unreasonable and offends Article 14 of the Constitution_ - _Constitution of India, 1950_ - _Article 14._ The appellant was appointed as a clerk in 8 respondent bank on 21.02.1976. He was promoted to the post of JMG scale I Officer Grade on 02.05.1983. The services of the appellant, after promotion were governed by the Allahabad Bank Officers Service Regulations, C 1979. The appellant applied for the voluntary retirement pursuant to the Allahabad Bank Employees Voluntary Retirement Scheme, 2000 which was accepted on 12.04.2001 and the appellant stood relieved from the services of the Bank on 30.04.2001. After retirement, the appellant was offered gratuity under the Payment of D Gratuity Act, 1972 by the respondent which the appellant declined to accept. The appellant made a request to the competent authority for sanction of pension in lieu of gratuity, but his request was rejected as not maintainable on the ground that an officer employed or appointed after E 01.07.1079 was ineligible for pension under the Old Pension Scheme in view of Regulation 46 of the 1979 Regulations. The appellant filed writ petition before the High Court. The High Court partly allowed the appeal and directed the respondent to pay gratuity to the appellant F as per Regulation 46(2) of the 1979 Regulations after adjusting the amount of gratuity already paid to the appellant. The instant appeals were filed challenging the order of the High Court. ## G Dismissing the appeals, the court HELD : 1. The appellant is not entitled to claim pensionary benefit in view of Regulation 46(1) of the Allahabad Bank Officers Service Regulations, 1979. Regulation 46(1) provides pensionary benefit under H ## SUDHIR KUMAR CONSUL _v._ ALLAHABAD BANK 1121 existing supplementary pension Scheme in lieu of A gratuity only to those officers who were officers on the appointed date i.e. the officers who were appointed on or before 01.07 .1979. Moreover, Provision 3 of the Old Pension Scheme stipulates that the officers who are . recruited or promoted after 01.07 .1979, i.e. the date of B implementation of the 1979 Regulations, are not entitled for pension as per the said Regulations. It is an admitted fact that the appellant was working with the respondent as a Clerk on 01.07.1979 and was promoted as an officer only in 1983. Therefore, the appellant is not eligible to c claim any benefit under the Old Pension Scheme. [Para 8] [1128-B-E] 2. It is. well settled law that the vires of any subordinate legislation can be challenged on the ground that it is arbitrary, unreasonable and offends Article 14 of D the Constitution of India. The 1979 Regulations were introduced with a view to standardize and provide comprehensive and compact set of rules in respect of wages and perquisites of the officers of the Bank. In furtherance of this object, Regulation 46 (1) of the 1979 E Regulations provides pension in lieu of gratuity only to the officers appointed prior to or on 01.07.1979 and not to officers appointed, recruited or promoted thereafter. In this view, the said Regulation 46 (1) lays down a reasonable criteria for differentiation between the officers F appointed prior to or on 01.07.1979 and not to officers appointed, recruited or promoted thereafter. Hence the said Regulation 46(1) is in consonance with the Article 14 of the constitution of India. Moreover, the fixing of the cutoff date for granting retirement benefits such as gratuity G or pension under the different schemes incorporated in the subordinate legislation, thereby, creating two distinct and separate classes of employees is well within the ambit of Article 14 of the Constitution. The differential treatment of two sets of officers appointed prior to the H ## 1122 SUPREME COURT REPORTS [2011] 2 S.C.R. A notified date would not offend Article 14 of the Constitution. The cut off date may be justified on the ground that additional outlay as involved or the fact that under the terms of appointment, the employee was not entitled to the benefit of pension or retirement. [Para 9) B [1128-F-H; 1129-A-C] _Union of India v. P.N. Menon,_ (1994) 4 SCC 68; _State_ · _Government Pensioners' Association v. State of A.P._ (1986) 3 SCC 501; _Action Committee South Eastern Railway· Pensioners v. Union of India,_ 1991 Supp (2) SCC 544; _All_ C _India Reserve bank Retired Officers' Association v. Union of India_ 1992 Supp (1) SCC 664; _University Grants Commission v. Sadhana Chaudhary_ (1996) 10 SCC 536; _T.N. Electricity Board v. R. Veera samy_ (1999) 3 SCC 414; _State of Punjab v. Boota Singh_ (2000) 3 SCC 733; _State of_ · D _Punjab v. J. L. Gupta_ (2000) 3 SCC 736; _Ramrao v. All India Backward Class Bank Employees Welfare Assn.·_ (2004) 2 SCC 76; _State of Punjab v. Amar Nath Goyal_ (2005) 6 SCC 754; _State of Bihar v. Bihar Pensioners_ Samaj (2006) 5 SCC - 65 relied on. E 3. In a society governed by Rule of law, sympathies cannot override the Rules and Regulations. However, liberty is granted to the appellant, if he so desires, to exercise his option to join the 1995 Regulations within 30 F days. If such an option is exercised by the appellant, the respondents are directed to consider the same sympathetically within 60 days from the date of the option. [Para 21) (1135-C-D-G] _Life Insurance Corporation of India v. Asha_ G _Ramachhandra Ambekar and Anr._ (1994) 2 SCC 718 - relied on. Case Law Reference: H (1994) 4 sec 68 referred to Para 4 ## SUDHIR KUMAR CONSUL _v._ ALLAHABAD BANK 1123 |(1986) 3sec501|referredto|Para11|A| |---|---|---|---| |1991Supp(2)sec544referredto||Para12|| |1992Supp(1)sec664referredto||Para13|| |(1996) 1osec536|referredto|Para14|B| |(1999) 3sec414|referredto|Para15|| |c2000)3sec733|referredto|Para16|| |c2000)3sec736|referredto|Para17|c| |(2004) 2sec76|referredto|Para18|| |c2005)6sec754|referredto|Para19|| |c2006)5sec65|referredto|Para20|| |(1994) 2sec718|referredto|Para20|D| CIVIL APPEALATE JURISDICTION : Civil Appeal No. 1982-1983 of 2011. From the Judgment & Order dated 25.02.2009 of the High Court ofUttarakhand at Nainital in Writ Petition No. 69 (S/B) of 2007. Sudhir Kumar Consul, In-Person. Yashaj Singh Deora, Sarwa Mitter (for Mitter & Mitter Co.) for the Respondent. The Judgment of the Court was delivered by > H.L. DATIU, J. 1. Leave granted. G 2. These appeals, by special leave, are directed against the Judgment and Order dated 25.02.2009 of the High Court of Uttarakhand in Writ Petition No. 69 of 2007. By the 1 impugned order, the Court has rejected the Writ Petition filed · by the appellant for granting certain reliefs which would include H, [2011] 2 S.C.R. ## 1124 SUPREME COURT REPORTS A claim for pensionary benefits under the New Pension Scheme, known as Allahabad Bank Employees (Pension) Regulations, 1995 [hereinafter referred to as, "the 1995 Regulations"]. 3. The issue involved in the present appeals for our B consideration is: Whether the appellant is eligible and entitled for the pensionary benefits under the Allahabad Bank Employees Pension Scheme, 1890 [hereinafter referred to as "Old Pension Scheme"] in terms of the Allahabad Bank Officers Service Regulations, 1979 [hereinafter referred to as "the 1979 C Regulations"]. 4. The factual matrix in brief is as under : The appellant was appointed as a Clerk in the Nainital Branch of the Allahabad Bank, the respondent herein, on 0[21.02.1976. ][Subsequently, ][the ][appellant ][was ][promoted ][to ][the ] post of JMG-Scale-1 Officer Grade on 02.05.1983. The services of the appellant, after promotion, were governed by the 1979 Regulations. The Regulation 46 of 1979 Regulations provides retirees an option of gratuity or pension in lieu thereof, and E further, the pension benefits for the retirees opting for pension are available under the Old Pension Scheme. Pursuant to the Tripartite Memorandum of Settlement [hereinafter referred to as "the Tripartite Settlement"], among the management, workers and officers of the various banks dated 29.10.1993, the respondent formulated a draft/proposed Allahabad Bank F Employees (Pension) Regulation 1993 [hereinafter referred to as "the draft/proposed 1993 Regulations"] _vide_ Instruction Circular no. 3904 dated 06.09.1994. The draft/proposed 1993 Regulations provided the option to the employees, who were on the rolls of the Bank as on 31.10.1993, to opt for pension G as per the Old Pension Scheme plus Contributory Provident Fund [hereinafter referred to as "the CPF"). Accordingly, the appellant claimed pension under the Old Pension Scheme in terms of the draft/proposed 1993 Regulations on 30.11.1994. Subsequently, on 29.09.1995, the respondent formally adopted H SUDHIR KUMAR CONSUL _v._ ALLAHABAD BANK 1125 [H.L.DATTU, J.] the 1995 Regulations pursuant to the Tripartite Settlement. The A 1995 Regulations superseded the draft/proposed 1993 Regulations _vide_ Circular No. 4318 dated 16.11.1995 by further extending the benefit under the draft/proposed 1993 Regulations to the employees who were on the rolls of Bank as on 29.09.1995 to opt for pension as per the Old Pension B Scheme plus CPF. Further, the 1995 Regulations, in express terms, have validated the earlier options exercised by-the employees in accordance with the draft/proposed 1993 Regulations. The appellant applied for the voluntary retirement pursuant to the Allahabad Bank Employees Voluntary c Retirement Scheme, 2000 [hereinafter referred to as "the VRS2000"], whichwas accepted on 12.04.2001 and the appellant stood relieved from the services of the Bank on 30.04.2001. After retirement, the appellant was offered gratuity under the Payment of Gratuity Act, 1972 by the respondent _vide_ letter 0 dated· 01.09.2001, which the appellant declined to accept. Subsequently, on 09.10.2001, the appellant made a request to the competent authority for sanction of pension in lieu of gratuity, but his request was rejected by the General Manager (Personnel Administration), _vide_ letter dated 13.11.2001 as not maintainable on the ground that an officer employed or E appointed after 01.07.1079 is ineligible for pension under the Old Pension Scheme in view of Regulation 46 of the 1979 Regulations. In this backdrop, the appellant alternatively requested the General Manager (Personnel Administration) _vide_ letter dated 05.03.2002 to accept his option for Pension F under the 1995 Regulations and further intimated his provisional acceptance of the said gratuity of Rs. 2,36,449/- under protest, which was not replied to by the respondent. Eventually, the respondent _vide_ Instruction Circular no. 7331 dated 04.06.2002, lowered down the eligibility criteria from 25 years G to 15 years for sanction of proportionate pension under Old Pension Scheme to retirees under the VRS-2000. In view of this, the appellant again requested _vide_ letter dated 06.08.2002 to the competent authority for the grant of pension under the H ## 1126 SUPREME COURT REPORTS [2011] 2 S.C.R. A Old Pension Scheme and the same was rejected in terms of Regulation 46 of the 1979 Regulations. The appellant further made representations before the Chairman and Managing Director of the respondent _vide_ letters dated 16.08.2006 and 19.03.2007, which were rejected by the Assistant General B Manager _vide_ letter dated 05.04.2007 on the ground that the appellant was not eligible to claim pension under the Old Pension Scheme in terms of the 1979 Regulations. Being aggrieved, the appellant approached the High Court of Uttarakhand by filing a writ petition under Article 226 of the C Constitution of India and the same was partly allowed by the judgment and order dated 25.02.2009, wherein the High Court directed the respondent to pay gratuity to the appellant as per Regulation 46(2) of the 1979 Regulations after adjusting the amount of gratuity already paid to the appellant in terms of Payment of Gratuity Act, 1972. The appellant, aggrieved by the D Judgment and Order of the High Court in Writ Petition, fifed a Review Application, which was rejected _vide_ Order dated 31.03.2009. Aggrieved by these Orders, the appellant is before us in these appeals. E 5. We have heard Shri Sudhir Kumar Consul, the appellant, who has appeared in person, and Shri Yashraj Singh - Deora, learned counsel for the respondent Bank. 6. The appellant contends that he is entitled to claim the F benefit of pension under the existing Old Pension Scheme in addition to CPF in view of exercise of his option in terms of the draft/proposed 1993 Regulations. The appellant submits that he is an officer governed by the 1979 Regulations and duly eligible for pension under the existing Old Pension Scheme in G terms of the Regulation 46(1) of the 1979 Regulations. In other words, the appellant argued that he was the employee of the respondent on the appointed date as per the said Regulation 46 (1). He further submits that the respondent has wrongly deprived him of his pensionary benefits under the Old Pension Scheme by misinterpreting Regulation 46 (1). In _arguendo,_ the H SUDHIR KUMAR CONSUL _v._ ALLAHABAD BANK 1127 [H.L.DATTU, J.] appellant challenged the _vires_ of Regulation 46 of 1979 A Regulations, as being beyond the Scope of Section 12 (2) of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 [hereinafter referred to as "the Banking Act"] and in violation of the guarantee of equality before law and equal protection of laws enshrined in Article 14 of the B Constitution of India. The appellant submits that Section 12 (2) of the Banking Act duly protects the existing pensionary and other rights of the employee and the introduction of Regulation 46 (1) of 1979 Regulations unjustifiably deprives the appellant of his existing pensionary right under the Old Pension Scheme. C The appellant further submits that the said Regulation 46 (1) creates an arbitrary and unreasonable distinction between the same class of officers of the respondent, merely on account of their date of appointment as employee with the respondent. In other words, the appellant argued that the said Regulation 46 discriminates the officers appointed on and before 01.07.1979 D from those officers who are appointed, recruited or promoted after the said date. B 7. Shri Yashraj Singh Deora, learned counsel for respondent, submits that the appellant is not eligible to claim E any pension under the Old Pension Scheme in terms of Regulation 46 (1) of the 1979 Regulations as the appellant had admittedly become officer after 01.07.1979 on his promotion on 02.05.1983. It is also submitted that the appellant, prior to his promotion, was a Clerk with the respondent on the appointed F date in tenns of the said Regulation 46 (1). Hence, the appellant cannot claim any pensionary benefit under the Old Pension Scheme. In response to appellant's alternative submissions, the learned counsel for the respondent submits that Section 12 (2) _of the Banking Act was introduced in 1970 after nationalization G of the Banks. Section 12 (2) of the Banking Act cannot be invoked by appellant as Regulation 46 of the 1979 Regulations was introduced on 01.07.1979 only for officers whereas the appellant became officer only in 1983 by way of promotion. In other words, the appellant, being a Clerk at the relevant time H E G H [2011) 2 S.C.R. ## 1128 SUPREME COURT REPORTS - A when the said Regulation 46 was introduced as applicable to officers, cannot challenge its _vires_ on the touchstone of Section 12 (2) of the Banking Act. The learned counsel further submits that the Regulation 46 (1) of 1979 Regulations is in harmony with Article 14 of the Constitution of India. B 8. We have carefully considered the rival submissions of the appellant in person and the learned counsel for the respondent-Bank. In our opinion, the appellant is not entitled to claim pensionary benefit in view of Regulation 46 (1) of the 1979 Regulations. The said Regulation 46 (1) provides C pensionary benefit under existing supplementary pension Scheme in lieu of gratuity only to those officers who were officers on the appointed date i.e. the officers who were appointed on or before 01.07.1979. Moreover, Provision 3 of the Old Pension Scheme stipulates that the officers who are D recruited or promoted after 01.07.1979, i.e. the date of implementation of the 1979 Regulations, are not entitled for pension as per the said Regulations. It is an admitted fact that the appellant was working with the respondent as a Clerk on 01.07.1979 and was promoted as an officer only in 1983. E Therefore, the appellant is not eligible to claim any benefit under the Old Pension Scheme. 9. It is well settled law that the _vires_ of any subordinate legislation can be challenged on the ground that it is arbitrary, F unreasonable and offends Article 14 of the Constitution of India. The 1979 Regulations were introduced with a view to standardize and provide comprehensive and compact set of rules in respect of wages and perquisites of the officers of the Bank. In furtherance of this object, Regulation 46 (1) of the 1979 Regulations provides pension in lieu of gratuity only to the G officers appointed prior to or on 01.07 .1979 and not to officers appointed, recruited or promoted thereafter. In this view, we are of the opinion that the said Regulation 46 (1) lays down a reasonable criteria for differentiation between th.a officers appointed prior to or on 01.07.1979 and after the said date. ## H SUDHIR KUMAR CONSUL _v._ ALLAHABAD BANK 1129 [H.L.DATTU, J.] Hence the said Regulation 46 (1) is in consonance with the A Article 14 of the Constitution of India. Moreover, the fixing of the cut-off date for granting retirement benefits such as gratuity or pension under the different schemes incorporated in the subordinate legislation, thereby, creating two distinct and separate classes of employees is well within the ambit of Article B 14 of the Constitution. The differential treatment of two sets of officers appointed prior to the notified date would not offend Article 14 of the Constitution. The cut off date may be justified on the ground that additional outlay as involved or the fact that under the terms of appointment, the employee was not entitled c to the benefit of pension or retirement. 10. This Court, in _Union of India v. P.N. Menon, (1994) 4_ sec _68,_ has held: "8. _Whenever the Government or an authority, which can_ D _be held to be_ a State _within the meaning of Article 12 of the Constitution, frames_ a _scheme for persons who have superannuated from service, due to many constraints, it is not always possible to extend the same benefits to one and all, irrespective of the dates of superannuation. As_ E _such any revised scheme in respect of post-retirement benefits, if implemented with_ a _cut-off date, which can be held to be reasonable and rational in the light of Article 14 of the Constitution, need not be held to be invalid. It shall not amount to "picking out_ a _date from the_ hat~ _as_ F _was said by this Court in the case of D.R. Nim v. Union of India, (1967) 2 SCR 325, in connection with fixation of seniority. Whenever_ a _revision takes place,_ a _cut-off date becomes imperative because the benefit has to be allowed within the financial resources available with the_ G _Government."_ ## The Court further observed: _"14 ... No scheme can be held to be foolproof, so as to_ • _cover and keep in view all persons who were at_ one _time_ [2011] 2 S.C.R. ## 1130 SUPREME COURT REPORTS A _in active service. As such the concern of the court should only be, while examining any such grievance, to see, as to whether_ a _particular date for extending_ a _particular benefit or scheme, has been fixed, on objective and rational considerations."_ B 11. In _State Government Pensioners' Association_ v. _State of A.P.,_ (1986) 3 SCC 501, the Order in question provided that retirement gratuity may be one-third of the pay drawn at the time of retirement for every six-monthly service, subject to maximum C of 20 months' pay limited to '30,000. This Order was made effective from 01.04.1978. The petitioners, who were government employees and had retired before 01.4.1978, contended that the gratuity, being a part and parcel of the pensionary benefits, they were also entitled to the same retrospectively. On behalf of the State, it was pointed out that D the gratuity which had accrued to the petitioners prior to 01.4.1978, was calculated on the then existing rules and pay, and such petitioners formed a distinct class, for the purpose of payment of gratuity, from others who retired after 01.04.1978, the date from which the revised pension rules were made E applicable by the Government. This Court held that the upward revision of gratuity which took effect from a specified date i.e. 1-4-1978 with prospective effect, was legal and not violative of Article 14 of the Constitution. F 12. In _Action Committee South Eastern Railway Pensioners_ v. _Union of India,_ 1991 Supp (2) SCC 544, this Court has examined the concept of 'dearness pay', including the two options for retirement benefits given to the employees which had been framed fixing a cut-off date. This Court held: G _·12._ . .. _Learned counsel for the petitioners only submitted that if the formula adopted in the case of employees having retired after March 31, 1985 vide circular dated May 17, 1985 is applied in the case of the petitioners then it would make substantial difference in_ H SUDHIR KUMAR CONSUL _v._ ALLAHABAD BANK 1131 [H.L.DATTU, }] _the calculation of the amount of gratuity and commuted_ A _value of pension. As already discussed above no such claim can be allowed nor the_ same _can be permissible on any principle of equality enshrined under Article 14 of the Constitution inasmuch as the petitioners form_ a _different class from those who were continuing in service_ B _on or after March 31, 1985. The petitioners of their own accord had opted for the choice given to them and the principle enunciated in D.S. Nakara case_ (1983) 1 sec 305 _cannot be applied in the case of the petitioners."_ 13. In A// _India Reserve Bank Retired Officers'_ C _Association_ v. _Union of India,_ 1992 Supp (1) SCC 664, the Retired Officers' Association of the Reserve Bank of India questioned the validity of introduction of pension scheme in lieu of Contributory Provident Fund Scheme. The bank employees, who retired prior to 01.01.1986, had not been given benefit of D the said Pension Scheme. This Court held that the said cut-off date was neither arbitrary nor artificial or whimsical. It was further observed: "10 .... The underlying principle is that when the State E decides to revise and liberalise an existing pension scheme with a view to augmenting the social security cover granted to pensioners, it cannot ordinarily grant the benefit to a Section of the pensioners and deny the same to others by drawing an artificial cut-off line which cannot be justified F on rational grounds and is wholly unconnected with the object intended to be achieved. _But when an employer introduces an entirely new scheme which has no connection with the existing scheme, different considerations enter the decision making process. One such consideration_ may _be the financial implications of_ G _the scheme and the extent of capacity of the employer to bear the burden. Keeping in view its capacity to absorb the financial burden that the scheme would throw, the employer would have to decide upon the extent of_ H [2011] 2 S.C.R. 1132 SUPREME COURT REPORTS A _applicability of the scheme."_ (Emphasis added) 14. In _University Grants Commission_ v. _Sadhana Chaudhary,_ (1996) 10 SCC 536, this Court has observed: 8 _"21 ._ ... _It is settled law that the choice of_ a _date as_ a _basis for classification cannot always be dubbed as arbitrary even if no particular reason is forthcoming for the choice unless it is shown to be capricious or whimsical in the_ c _circumstances. When it is seen that_ a _line or_ a _point there must be and there is no mathematical or logical way of fixing it precisely, the decision of the legislature or its delegate must be accepted unless it can be said that it is very wide off the reasonable mark."_ D 15. In _T.N. Electricity Board v. R. Veerasamy,_ (1999) 3 sec 414, the pension scheme was applied differently to persons who had retired from service before 01.07.1986, and those who were in employment on the said date. This Court held: E - _"15._ . . . _We are of the view that the retired employees (respondents), who had retired from service before 1-71986 and those who were in employment on the said date, cannot be treated alike as they do not belong to one_ - F _class. The workmen, who had retired after receiving all the benefits available under the Contributory Provident Fund Scheme, cease to be employees of the appelfantBoard w.e.f. the date of their retirement. They form_ a _separate class."_ G 16. In _State of Punjab v. Boota Singh case,_ {2000) 3 SCC 733, this Court has held that the benefit conferred by the notification dated 9-7-1985 can be claimed by those who retire after the date stipulated in the notification and those who have retired prior to the stipulated date in the notification are H governed by different rules. They are governed by the old rules, SUDHIR KUMAR CONSUL _v._ ALLAHABAD BANK 1133 [H.L.DATTU, J.] i.e., the rules prevalent at the time when they retire. The two categories of persons are governed by different sets of rules. They cannot be equated. The grant of additional benefit has financial implications and the specific date for the conferment of additional benefits cannot be considered arbitrary. This Court held: A B "In the case of _Indian Ex-SeNices League v. Union of India_ (1991) 2 SCC 104 this Court distinguished the decision in _Nakara case_ (1983) 1 SCC 305 and held that the ambit of that decision cannot be enlarged to cover all claim by retirees or a demand for an identical amount of pension to every retiree, irrespective of the date of retirement even though the emoluments for the purpose of computation of pension be different. We need not cite other subsequent decisions which have also distinguished _Nakara case_ (1983) 1 SCC 305. The latest decision is in the case of _K.L. Rathee v. Union of India_ (1997) 6 SCC 7 where this Court, after referring to various judgments of this Court, has held that _Nakara case_ (1983) 1 SCC 305 cannot be interpreted to mean that emoluments of persons who retired after a notified date holding the same status, must be treated to be the same. The respondents are not entitled to claim benefits which became available at a much later date to retiring employees by reason of changes in the rules relating to pensionary benefits." C D E F 17. In _State of Punjab v. J.L. Gupta,_ (2000) 3 SCC 736, this Court reiterating the views expressed in _Boota Singh (supra),_ held: _"5. The controversy involved in the present appeal and connected appeals is squarely covered by the aforesaid_ G _decision. The respondents are thus not entitled to claim benefits under the notification dated 9-7-1985 since the said benefits became available on a much later date to the retiring employees by reason of change in the rules relating to pensionary benefits. In this view, the judgment_ H 1134 SUPREME COURT REPORTS [2011) 2 S.C.R. A _of the High Court cannot be sustained."_ 18. In _Ramrao v. All India Backward Class Bank Employees Welfare Assn.,_ (2004) 2 SCC 76, this Court has held that, even for the purpose of effecting promotion, fixing of 8[a cut-off ][date ][was ][neither arbitrary, unreasonable ][nor ][did ][it ] offend Article 14 of the Constitution. This Court further observed: _"32. If_ a _cut-off date can be fixed, indisputably those who fall within the purview thereof would form_ a _separate class. Such a classification has_ a _reasonable nexus with the_ C _object which the decision of the Bank to promote its employees seeks to achieve. Such classifications would neither fall within the category of creating_ a _class within_ a _class or an artificial classification_ so as _to offend Article 14 of the Constitution of India._ D _33. Whenever such_ a _cut-off date is fixed, a question may arise as to why_ a _person would suffer only because he comes within the wrong side of the cut-off date, but, the fact that some persons or_ a _Section of society would face hardship, by itself cannot be a ground for holding_ E _that the cut-off date so fixed is ultra vires Article 14 of the Constitution."_ 19. In _State of Punjab v. Amar Nath Goyal,_ (2005) 6 SCC 754, this Court held: F "37. In the instant case before us, the cut-off date has been fixed as 1-4-1995 on a very valid ground, namely, that of financial constraints. Consequently, we reject the contention that fixing of the cut-off date was arbitrary, irrational or had no rational basis or that it offends Article G 14." 20. In _State of Bihar v. Bihar Pensioners Samaj, (2006) 5 SCC 65,_ this Court held: H _"17. We think that the contention is well founded. The only_ ## SUDHIR KUMAR CONSUL _v._ ALLAHABAD BANK 1135 [H.L.DATTU, J.] A _ground on which Article 14_ has _been put forward by the_ A _teamed counsel for the respondent_ is _that the fixation of the cut-off date for payment of the revised benefits under the two notifications concerned_ was _arbitrary and it resulted in denying arrears of payments to certain Sections of the employees. This argument_ is _no longer_ B res _integra. It_ has _been held in_ a _ca ten_ a _of judgments that fixing of_ a _cut-off date for granting of benefits_ is _well within the powers of the Government_ as _long_ as _the_ reasons _therefor are not arbitrary and are based on_ some _rational consideration."_ c 21. We have sympathies for the appellant but, in a society governed by Rule of law, sympathies cannot override the Rules and Regulations. We may recall the observations made by this Court while considering the issue of compassionate appointment in public service. In _Life Insurance Corporation of_ D _India v._ Asha _Ramachhandra Ambekar and Anr._ (1994) 2 SCC 718, wherein the Court observed: _"The High Courts and the Administrative Tribunals cannot confer benediction impelled by sympathetic consideration.... Yielding to instinct will tend to ignore the cold logic of law. It should be_ E f _remembered that "law_ is _the embodiment of all wisdom". Justice according to law_ is a _principle_ as _old_ as _the hills. The Courts are to administer law_ as _they find it, however, inconvenient it may be. n_ E f F 22. In view of the above discussion, the appeals fail and are, accordingly, dismissed. However, we grant liberty to the appellant, if he so desires, to exerCise his option to join the 1995 Regulations in terms of instruction Circular No. 11143/PA/201011/27 dated 15.09.2010 within 30 days from today. If such an option is exercised by the appellant, the respondents are directed to consider the same sympathetically within 60 days from the date of the option. Parties are directed to bear their own costs. G Appeals dismissed. H D.G.