Payment Of Pension Is Not A Bounty But A Recurring Occurrence: SC While Directing Gujarat HC To Reconsider Pension Claim Dismissed On Grounds Of Delay

The Supreme Court has set aside an order by the Gujarat High Court dismissing a plea seeking terminal benefits and pension on 'grounds of delay' and remanded the case for reconsideration on the merits.

The Appellant had approached the High Court in 2022 seeking terminal benefits and pension and was initially denied relief due to a seven-year delay in challenging a 2014 order.

The Bench of Justice BV Nagarathna and Justice Pankaj Mithal said, "We have considered the arguments advanced at the bar in light of the impugned order(s) and the material on record. We find that the payment of pension is not a bounty but a recurring occurrence, as stated by D.A. Desai, J. in D.S. Nakara and Ors. vs. . Union of India: (1983) 1 SCC 305: AIR 1983 SC 130."

The High Court’s Division Bench had upheld the single judge’s decision, citing delay and laches as valid reasons for dismissal.

However, the Apex Court held that pension payments are recurring entitlements and should not be dismissed purely on procedural grounds, as clarified in the landmark case D.S. Nakara vs. Union of India (1983). Justice D.A. Desai’s observation in Nakara emphasized that pension is not a mere gratuity but a recurring obligation.

AoR Ajay Kumar, appearing for the appellant, argued that the High Court had failed to consider that each monthly pension accrual gave rise to a fresh cause of action.

On the contrary, AoR Deepanwita Priyanka, appearing for the respondent state, asserted that the appellant’s silence over the years indicated his acceptance of the 2014 order, challenging the validity of the appeal.

"In the circumstances, we find that the High Court was not right in dismissing the Special Civil Application on the ground of delay and laches. Instead, the High Court ought to have considered the case of the appellant on merits and on the basis of the applicable rules and decided the matter on the entitlement of the appellant towards pension and other terminal benefits," the Court said. 

Accordingly, the Court allowed the appeal. "Therefore, on the aforesaid reason, we set aside the impugned order(s) and remit the matter to the learned Single Judge of the High Court for reconsideration of the Special Civil Application No. 364 of 2022 filed by the appellant herein. It is needless to observe that the said reconsideration shall be made expeditiously and in accordance with law. The present appeal is allowed and disposed of in the aforesaid terms," the Court ordered. 

Cause Title: Starpayal Natarajan Iyer v. The State of Gujarat & Anr. [SLP (C) No. 19195/2022]

Appearance:-

Petitioner: AoR Ajay Kumar, Advocates Avinish Kumar Saurabh, Nirmal Kishore

Respondent: AoR Deepanwita Priyanka, Advocate Kanu Agarwal

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