Ex Navy Direct Entry Artificers Association & Ors. v. the Union of India & Ors.
A. K. SIKRI, J. 1. Appellant No. 1 is a registered Association
of Ex Navy Direct Entry Artificers, whereas appellant Nos. 2 to 5 are
Ex Direct Entry Artificers of the Navy. Primarily, it is the cause of
appellant Nos.2 to 5 which is espoused by their Association as well i.e.
appellant No.1. These appellant Nos. 2 to 5 have rendered actual service
of 10 years. For an Artificer to become entitled to pension, he is supposed
to render minimum service of 15 years as per Regulation 78 of the Navy
(Pension) Regulations, 1964. The appellants claim that after their initial
engagement period of 10 years as Artificers, they were placed in Fleet
Reserve for a period of 10 years and as per Regulations, 50% of the
period of Reserve is to be counted for the purpose of pension. On that
basis, it is claimed that 5 years period of Reserve would enure to their
benefit and on adding this period of 5 years with actual ser vice of 10
years, it is to be treated that they have rendered 15 years of service and
are accordingly entitled to receive pensionary benefits. The respondents
deny the placement of appellant Nos. 2 to 5 in Fleet Reserve for a
period of 10 years as claimed by the said appellants. Therefore , the
moot question is as to whether the appellants, after render ing actual
service of 10 years in the Navy, were drafted into Fleet Reserve or not.
2. The appellants had filed O.A. No. 8 of 2013 before the Armed
Forces Tribunal (hereinafter referred to as the ‘AFT’), Regional Bench,
Kochi in which prayer to grant benefit was sought by them. The AFT,
however, has not accepted the case set up by the appella nts. As a
result, their O.A. stands dismissed by the AFT vide order dated January
22, 2014. The appellants thereafter filed review petition seeking review
of that judgment which was also dismissed by the AFT on Mar ch 25,
2014. Simultaneously, however, prayer for leave to appeal to this Court
have been granted by the AFT seeking authoritative pronouncement of
this Court on the following questions of law formulated by the Tribunal:
379
“(1) Whether the applicants’ reserve liabilities imposed at the time
of enrolment ipso facto amounted to their being drafted to Fleet
Reserve without any specific order to draft them to the Rese rve
on completion of regular Naval service? If so, whether the period
of such reserve liability as per the stipulated scheme was liable to
be taken into account for computing the length of service of the
applicants for pension purposes?
(2) Whether the applicants Nos. 2 to 5 were entitled to be treated
at par with the Apprentice Entry Artificers for pension purposes
only on the ground that both of them belong to the same
homogenous class of Artificers?
3. Both these orders passed in O.A. as well as in review petition
have been assailed by the appellants by way of instant appeal preferred
under Section 30 of the Armed Forces Tribunal Act, 2007.
4. We now advert to the seminal facts which have led to the
present litigation.
5. In the Indian Navy, the sailors are of two classes, the Artificers
class and the non-Artificer class. Artificers are considered to be skilled
sailors and they work on sophisticated technologies of warships. For the
Artificer Class, there are two channels of Entry, known as Apprentice
Entry Artificers and Direct Entry Artificers. The appellants joined Indian
Navy as Direct Entry Artificers. At the relevant point of time (i.e. prior
to July 3, 1976), the initial engagement of the Apprentice Entry Artificers
as well as of the Direct Entry Artificers (appellants herein) was for 10
years active service. On the expiry of this term, they could b e drafted
into Fleet Reserve for a period of 10 years. A person who is kept in
Fleet Reserve can be recalled at any time, during the said period of 10
years, to serve in the Navy.
6. The Apprentice Entry Artificers (with education qualification
of Matriculation) get 4 years training in Indian Navy during which period
they get a special rate of pay (fixed stipend per month). After the 4
years training period in naval establishment, the Appr entice Entry
Artificers are advanced to the rank of Artificer Vth Class and their
initial engagement of 10 years active service commences. At the end of
it, they could also be kept in Fleet Reserve for 10 years. I t may be
mentioned that after one year in the rank of Artificer Vth Class, these
Apprentice Entry Artificers are advanced to the rank of Artificer Acting
EX NAVY DIRECT ENTRY ARTIFICERS ASSOCIATION
& ORS. v. THE UNION OF INDIA & ORS. [A. K. SIKRI, J.]
IVth Class to complete the engagement 10 years active service. On the
other hand, Direct Entry Artificers, to which class appellants belong,
with qualification of 3 years Diploma in Engineering from recognized
Universities in the country are directly enrolled to the rank of Artificer
Acting IVth Class with initial engagement of 10 years active service. It
may also be stated that in the rank of Artificer Acting I Vth Class, the
Apprentice Entry Artificers and Direct Entry Artificers are merged
together, and are treated at par for the purposes of rank, work, promotions,
pay and allowances, leave and other benefits allowed for sailors. They
are all governed by the same Navy (Pension) Regulations, 1964. In
their respective ranks, they relieve each other when transferred to ships
and establishments.
7. These facts are noted, as stated by the appellants, beca use of
the reason that the appellants are claiming that since Apprentice Entry
Artificers are given the pension, after counting the 4 years training period
in Naval Establishment, same treatment be given to the appe llants as
well. Question No. 2 framed by the AFT and referred to this C ourt
touches upon this aspect.
8. Reverting to the facts of the appellants’ case, as p ointed out
above, appellant Nos. 2 to 5 were engaged as Direct Artif icers for a
period of 10 years. All these appellants were engaged prior to July,
1976. This is the actual service rendered by them. According to them,
they were drafted into Fleet Reserve for a period of 10 years a nd 50%
of this period have been counted for pension. On that basis, they claim
that they have become entitled to receive pension. Therefore, they made
a request on May 10, 2012 to the respondents to grant pension to them.
However, vide reply dated June 25, 2012, respondents turned down their
request as ‘ not tenable in accordance with the extent rules/
regulations’ . The reason given by the respondents was that the
appellants were not drafted into Fleet Reserve at all and, therefore, there
was no reason to count 50% of the Fleet Reserve per iod. The
respondents, in this behalf, referred to Government Order
No. AD/5374/2/76/2214/S/D(N.II) dated July 3, 1976 as per w hich
drafting into Fleet Reserve was discontinued from 1976 onwards a nd,
therefore, the appellants were never drafted into Fleet Reserve. After
receiving this rejection of their request, the appellants approach the AFT
in the form of O.A. which has met the fate of dismissal, as already
mentioned above.
381
9. A perusal of the impugned judgment of the AFT would reveal
that the appellants were enrolled into Navy under Regulation 268(1) of
the Navy Regulations, Part III. Regulation 269 thereof provides for an
initial engagement of 10 years, followed by liability to remain 10 years in
Fleet Reserve. However, further 10 years service in F leet Reserve is
subject to regulations of Fleet Reserve. At the time of recruitment itself
of the appellants, it was made clear to them that they would be drafted
into Fleet Reserve only if required and regulations for Indian Fleet Reserve
specifically stipulate that ‘ no man can claim to join Fleet Reserve as
a right’ . Therefore, the appellants did not have any automatic right to
get drafted into Fleet Reserve. In any case, in terms of G overnment’s
letter dated July 3, 1976, transfer of sailors into Fleet Re serve was
discontinued and, therefore, no orders for drafting the appe llants into
Fleet Reserve were ever made. There is no notation on records that
they are being drafted into Fleet Reserve on expiry of their active service.
In this behalf, the AFT has quoted relevant portion of Governm ent’s
letter dated July 3, 1976 which is as under:
“SUB: CONDITIONS OF SERVICE OF SAILORS.
I am directed to state that the President is pleased to approve the
following modifications in the conditions of service of sailors:—
- - - -
(f) Transfer to Current Fleet Reserve: — Transfer of sailors
into the Fleet Reserve to be discontinued. ———
3. Appropriate Government Regulations/Orders will be amended
in due course.”
10. The AFT also found that subsequently, Regulations for the
Navy was amended by the Government of India vide SRO.No.106 of
1978 dated 28th March 1978. Relevant portions of the SRO are gi ven
below:
“S.R.O.106:— In exercise of the powers conferred by section
184 of the Navy Act, 1957 (62 of 1957), the Central Government
hereby makes the following regulations further to amend the Navy
Ceremonial, Conditions of Service and Miscellaneous Regulations,
1964, namely:—
2. In the Naval Ceremonial, Conditions of Service and
Miscellaneous Regulations, 1964—
EX NAVY DIRECT ENTRY ARTIFICERS ASSOCIATION
& ORS. v. THE UNION OF INDIA & ORS. [A. K. SIKRI, J.]
(i) in regulation 269, in sub-regulation (1), for the brackets and
figure “(1)”, the brackets, figure and words “(1) Old Entra nts”
shall be substituted, and after subregulation (1) as so a mended,
the following sub-regulation shall be inserted, namely:—
“(1A) New Entrants:—(a) Boys, Artificer, Apprentice s and
Direct Entry sailors may be enrolled for a period calculate d to
permit a period of 15 years’ service to be completed from the
date of enrolment or from the date of attaining the age of 17
years, whichever is later, provided their services are so l ong
required.
…...........
(1B)(a) In case of the existing sailors, their period of engagement
shall be governed by sub-regulation (1), except that they shall not
be transferred to Fleet Reserve.
(b) . . . . . .
(1C) Persons joining service on or after the 3rd July, 1976 shall be
deemed to be New Entrants.”
11. After going through the various provisions of Navy Act, Navy
Regulations, Part III and the aforesaid amendments, the AFT culled out
the relevant features in the form of salient points in the following manner:
“25. Salient points that emerge from the above Regulations, which
are of relevance in this case are:—
(a) Sailors having 10 years continuous service shall be liable, if
required, for further service in Indian Fleet Reserve, subject to
provisions of Regulations for Indian Fleet Reserve (Regulation
269).
(b) When an active service rating is within six months of
completion of his term of enrollment, the Commandin g
Officer has to inform the Registrar of Reserves whether or
not he is recommended for Fleet Reserve Service and his
service certificate is to be endorsed accordingly (Regulation
11 of Fleet Reserve).
(c) Qualifications have been specified for enrolment into Fleet
Reserves. Joining Reserves is not a Right (Regulations 4 and
6 of Fleet Reserves).
383
(d) Recruiting officers are mandated to explain and mak e the
recruits fully understand terms and conditions of service and
liabilities before they are enrolled into the Navy (Regulation 264
of Regulations for the Navy).
(e) A Fleet Reservist Certificate will be issued to each person on
enrolment in Fleet Reserves.
26. It is evident from the Regulations that a Sailor after his active
service has to be drafted into Fleet Reserve and it is not an
automatic re-enrollment. There is no specific claim or right to join
the Fleet Reserve as there are terms and conditions which have
to be fulfilled by a person before he can be drafted into Fl eet
Reserve. It is also evident that, at the time of initial
enrollment no recruit can be given any guarantee/promise
of his being enrolled into Fleet Reserve as his perform ance
in the active service and recommendations he receiv es
would decide his eligibility for enrollment into Fl eet
Reserve. Therefore even prior to the promulgation of policy for
discontinuance of drafting into Fleet Reserve from 1976,
Respondents 1 and 2 were clearly at liberty to decide if a Sailor is
to be enrolled into Fleet Reserve or not. In view of the above, we
cannot agree with the submission of the learned couns el for
applicants that they were made to understand anything else.”
12. The appellants advanced two arguments before the AFT. In
the first instance, it was argued that at the time of their recruitment into
the service, which was before the Government’s order dated July 3,
1976 was passed, they were given to understand that they would be
rendering 10 years of active service followed by 10 years of Fleet Service.
Thus, they understood that 50% of the Fleet Service was counted towards
pension to enable them to receive pension. Hence, the Governm ent
was bound by Principle of Promissory Estoppel to accord the aforesaid
benefit to them. Second argument advanced by the appellants was that
the appellants, namely, Direct Entry Artificers and Appre ntice Entry
Artificers formed a homogenous class. Thus, when pensionary benefits
were accorded to the Apprentice Entry Artificers, there was no reason
to deny the same to the appellants and such a denial was discriminatory
and violated the provisions of Article 14 of the Constitution of India.
Both these contentions have been negated by the AFT. At the same
time, as already noticed above, on both these aspects, questions of law
have been framed while granting leave to appeal to the appellants.
EX NAVY DIRECT ENTRY ARTIFICERS ASSOCIATION
& ORS. v. THE UNION OF INDIA & ORS. [A. K. SIKRI, J.]
13. We now proceed to take up the two questions for our
consideration.
Question No. 1 - Whether the applicants’ reserve liabilities
imposed at the time of enrolment ipso facto amounted to their being
drafted to Fleet Reserve without any specific order to draft them to the
Reserve on completion of regular Naval service? If so, whet her the
period of such reserve liability as per the stipulated scheme was liable to
be taken into account for computing the length of service of the applicants
for pension purposes?
14. To find an answer to the aforesaid question, we shall have to
traverse through some relevant provisions of the Navy Act , the Naval
Regulations Part-III as well as decision taken by the Gove rnment to
discontinue with the policy of drafting into Fleet Reserv e. Insofar as
Navy Act is concerned, following provisions therefrom are relevant for
deciding the controversy.
“14. Liability for service of officers and sailors:—
(1) Subject to the provisions of sub-section (4), officers and sailors
shall be liable to serve in the Indian Navy or the Indian Naval
Reserve Forces, as the case may be, until they are duly discharged,
dismissed with disgrace, retired, permitted to resign, or released.
17. Provisions as to discharge.—(4) Every sailor who is dismissed,
discharged, retired, permitted to resign or released from serv ice
shall be furnished by the prescribed officer with a cert ificate in
the language which is the mother tongue of such sailor and also in
the English language setting forth—
(a) the authority terminating his service;
(b) the cause for such termination; and
(c) the full period of his service in the Indian Navy and the Indian
Naval Reserve Forces.
[184A. Power to make regulations with retrospective effect. —
The power to make regulations conferred by this Act shall include
the power to give retrospective effect, from a date not earlier
than the date of commencement of this Act, to the regulations or
any of them, but no retrospective effect shall be given to any
regulation so as to prejudicially affect the interests of any person
to whom such regulation may be applicable.”
385
15. The relevant regulations from the Pension Regulations for the
Navy, 1964 are re-produced below:
“78. Minimum qualifying service for pension – Unless otherwise
provided, the minimum service which qualifies for se rvice
pension is fifteen years.
79. Service qualifying for pension and gratuity – (1) All service
from the date of enrolment or advancement to the ra nk of
ordinary seaman or equivalent to the date of discharge shall qualify
for pension or gratuity with the exception of ——
87. Sailors transferred to the reserve—A sailor transferred to the
reserve after earning a service pension shall be granted such
pension from the date of his transfer.
……..
92. Reservist pension and gratuity—(1) A reservist who is not in
receipt of a service pension may be granted, on completion of the
prescribed naval and reserve qualifying service of ten years each,
a reservist pension of rupees eleven per mensem or a gratuity of
rupees nine hundred in lieu of pension.
(2) A reservist who is not in receipt of a service pensi on and
whose qualifying service is less than the period of engageme nt
but not less than fifteen years may, on completion of the period of
engagement or on earlier discharge from the serve otherwise than
at his own request, be granted a reservist pension at rupees seven
hundred and fifty in lieu of pension.”
16. Navy Regulations Part III laid down the conditions of service
of sailors in the Navy. Some of the provisions thereof, with which we
are concerned, are as under:
“261. Recruitment – The Chief of the Naval Staff may recr uit
sailors required for the Service.
(2) Recruitment of sailors shall be made through boy entry, artificer
apprentice entry, and direct entry, as necessary….
……..
268. Engagements – (1) Boys, Artificer Apprentices and Direct
Entry sailors shall be enrolled for co0ntinuous service as provided
in sub-regulation (1) of Regulation 269.
EX NAVY DIRECT ENTRY ARTIFICERS ASSOCIATION
& ORS. v. THE UNION OF INDIA & ORS. [A. K. SIKRI, J.]
269. Continuous Service – (a) Old Entrants Boys, Artifi cer
Apprentices and Direct Entry sailors may be enrolled for a period
calculated to permit a period of 10 years’ service to be completed
from the date of attaining 17 years of age or from the date of
being ranked in the Man’s rank on successful completion of initial
training, whichever is later, provided their services are s o long
required.
Continuous Service sailors of all Branches shall be liable, if required,
for a further 10 years’ service in the Indian Fleet Reserve, subject
to the provisions of the Regulation for the Indian Reserve.
(1-A) New Entrants:-
(a) Boys, Artificer-Apprentices and Direct Entry sailors may be
enrolled for a period calculated to permit a period of 1 5 years
service to be completed from the date of attaining the age of 17
years, whichever is later, provided their services are so l ong
required.
…….
(1-B) (a) In case of the existing sailors, their period of engagement
shall be governed by sub regulation (1) except that they shall not
be transferred to Fleet Reserve.
……….
(1-C) Persons joining service on or after the 3 rd July, 1976 shall
be deemed to be New Entrants.”
17. It will also be apt to reproduce Regulation 269 (unamended)
as it existed prior to the amendments carried out in the year 1978, which
is as follows:
“269. Continuous Service: – (1) Boys, Artificer Apprentices and
Direct Entry sailors may be enrolled for a period calculat ed to
permit a period of 10 years’ service to be completed from the
date of attaining 17 years of age or from the date of being rated in
the Mans rate on successful completion of initial training, whichever
is later, provided their services are so long required.
Continuous Service sailors of all Branches shall be liable, if required,
for a further 10 years’ service in the Indian Fleet Reserve, subject
to the provisions of the Regulations for the Indian Fleet Reserve.”
387
18. We have already reproduced portions of Government of India’s
decision dated 3 rd July, 1976 whereby transfer of Sailors into Fleet Reserve
was discontinued. Likewise, we have already extracted the relevant
portions of SRO 106 dated 28 th March, 1976. In addition, it would also
be pertinent to note Regulations for Indian Fleet Reserve which are as
follows:
“4. Regulation 4, lays down Qualification criteria in respec t of
Character, Efficiency, Medical Status and Age for joining the fleet
reserve.
6. Claim to join Fleet Reserved:—No man can claim to join t he
Fleet Reserve as a right.
……..
11. Enrolment:— The Registrar of Reserves is authorized to enrol
or re-enrol ratings in the Royal Indian Fleet Reserve, acting under
the authority of the Officer Commanding the Royal Indian Navy.
(a) When an Active Service rating is within six months of
completing his terms of enrolment the Commanding Officer of
the ship in which he is serving is to inform the Registrar whether
or not he is recommended for Fleet Reserve Service and is to
endorse his Service Certificate accordingly.
13. Fleet Reservist Certificate:— Every man on enrollment or
re-enrollment in Royal Indian fleet Reserve is to be issued with a
Fleet Reservist Certificate (Form RINF.3P). This ce rtificate
identifies the man as a member of the Royal Indian Fleet Reserve
and contains a detachable Emergency Movement Order for use
on General Mobilisation.
19. Regulation 19 lays down mandatory training period for
reservists.
21. Notations on Service Certificates:— On the conclusion of
each period of training the Registrar will cause the follow ing
information to be entered in the Service Certificates of the ratings
concerned:—
(a) Character.
(b) Ability in substantive rating held.
(c) Fitness to hold non-substantive rating (vide Article 7(v)]
EX NAVY DIRECT ENTRY ARTIFICERS ASSOCIATION
& ORS. v. THE UNION OF INDIA & ORS. [A. K. SIKRI, J.]
The Registrar is to sign the Service Certificate on page 4 as being
satisfied that the prescribed training has been carried out and that
the man is in possession of his Fleet Reservist Certifi cate and
know where to report on mobilization.”
19. Following position emerges from the conjoint reading of the
aforesaid provisions:
(i) Once a person is enrolled as Sailor/Officer in the Indian Navy,
he is liable to serve in the Indian Navy or in the Indian Naval Forces, as
the case may be, until he is discharged, dismissed with disgrace, retired,
permitted to resign or released.
(ii) In the event of discharge, dismissal etc, i.e., at the ti me of
severance from Naval service, every sailor has to be furnis hed with a
certificate in his mother tongue and also in English langua ge. Such a
certificate states the authority terminating his servi ces; the cause of
such termination; and the full period of service in the Indian Navy and
the Indian Naval Reserve Forces.
(iii) In order to become qualified to receive service p ension,
minimum service of 15 years is required.
20. Calculating the qualifying period for the purpose of pension
and gratuity, entire service from the date of enrolment or advancement
to the rank of ordinary seaman or equivalent till the date of discharge is
to be counted. Thus, whereas full continuous service in the Navy is to
be reckoned for pension, insofar Fleet Reserve is concerned those who
are drafted thereinto are entitled to count 50% of the peri od of Fleet
Reserve as reckonable service towards pension.
21. Insofar as, drafting into Fleet Reserve is concerned, Regulations
in respect thereof provide as under:
(i) Those Sailors who are having 10 years’ service as Sailors are
eligible for drafting in Indian Fleet Reserve.
(ii) As per Regulation 269, those who have rendered 10 years’
service, their service is to be treated as continuo us service. This
Regulation further provides that continuous service of Sailors of all
branches shall be liable, if required, for a further 10 years’ service in the
Indian Fleet Reserve.
389
(iii) Regulation 4 of the Regulations for Indian Fleet Reserve lays
down qualification criteria in respect of character, eff iciency, medical
status and age for joining the Fleet Service, which mea ns only those
who fulfill qualifications contained in Regulation 4 can be considered for
drafting into Fleet Reserve. Further, Regulation 6 specifically declares
that no person can join the Fleet Reserve as a matter of right. The
manner of enrolment is mentioned in Regulation 11, as per whi ch,
Commanding Officer has to make a specific recommendation for such
an enrolment, i.e., he has to say as to whether or not he is recommending
a particular Sailor for Fleet Reserve service and his serv ice certificate
has to be endorsed accordingly.
(iv) In case of positive recommendation, a Fleet Reserve certificate
has to be issued to such a person on enrolment in Fleet Reserve.
22. It is clear from the above that liability to serve in the Indian
Fleet Reserve, if required, as stipulated in Regulation 269, is only when
such a Sailor is drafted into Indian Fleet Reserve. There has to be, thus,
a positive act of enrolment in the Fleet Reserve. A person who is enrolled
as Artificer in the Indian Navy and completes 10 years’ of service, cannot
presume that he stands automatically enrolled in Fleet Reserve.
23. So far as Appellant Nos. 2 to 5 are concerned, there wa s no
such enrolment in Fleet Reserve.
24. In fact, the appellants were conscious of the aforesaid position.
That was the reason that Principle of Promissory Estoppel was invoked
on the ground that since their enrolment was prior to July 03, 1976, the
decision of the Government of India to discontinue transfer of Sa ilors
into Fleet Reserve as contained in communication dated July 03, 1976 is
not binding on them. Even if we proceed on that basis, the legal position
that has been culled out from the relevant statutory p rovision and
enumerated above, clearly shows that there was no promise held out to
these appellants that after the completion of continuous servic e of 10
years as Sailors, they would be drafted into Fleet Reserve. The Tribunal
has correctly remarked that at the time of initial enrolme nt no recruit
can be given any guarantee/promise of his being enrolled into Fleet
Reserve as his performance in the active service and recommendations
he receives would decide his eligibility for enrolment into Fleet Reserve.
Therefore, even prior to the promulgation of policy for discontinuance of
drafting into Fleet Reserve from 1976, Respondent Nos. 1 and 2 were
EX NAVY DIRECT ENTRY ARTIFICERS ASSOCIATION
& ORS. v. THE UNION OF INDIA & ORS. [A. K. SIKRI, J.]
clearly at liberty to decide if a Sailor is to be enrolled into Fleet Reserve
or not. It may be pertinent to mention that the aforesaid view of ours
has not been taken for the first time. We are not treading on unchartered
territory. Precisely, this very question has been decided by a three Judge
Bench of this Court in T.S. Das & Ors. v. Union of India & Anr. 1.
The factual background in which the aforesaid judgment is rendered is
identical as can be seen from the following question pose d therein for
determination:
“25. In the absence of an express order of the compe tent
authority to take the applicants on the Fleet Reserve Service, the
moot question is: whether the applicants can be treated as deemed
to be in the Fleet Reserve Service on account of the stipulation in
the appointment letter—that on completion of 10 years of naval
service as a Sailor, they may have to remain on Fleet Reserve
Service for another 10 years. That condition in the appointment
letter cannot be read in isolation. The governing w orking
conditions of Sailors must be traced to the provisions in the 1957
Act or the Regulations framed thereunder concerning servic e
conditions. From the provisions in the 1957 Act, there is nothing to
indicate that the Sailor after appointment or enrol ment is
“automatically” entitled to continue in Fleet Reserve Service
after completion of initial active service period of 10 years. The
provisions, however, indicate that on completion of initial active
service of 10 years or enhanced period as per the am ended
provisions is entitled to take discharge in terms of Section 16 of
the Act. The applicants assert that none of the applicants op ted
for discharge. That, however, does not mean that they would or in
fact have continued to be on the Fleet Reserve Service after
expiration of the term of active service as a Sailor. There ought to
have been an express order issued by the competent authority to
draft the applicant concerned in the Fleet Reserve Service. In the
absence of such an order, on completion of the term of service of
engagement, the Sailor concerned would stand discha rged.
Concededly, retention on the Fleet Reserve Service is the
prerogative of the employer, to be exercised on case-to- case
basis. In the present case, however, on account of a policy
decision, the Fleet Reserve Service was discontinued in terms of
Notification dated 3-7-1976.”
1(2017) 4 SCC 218
391
25. The Court reproduced the aforesaid notification dated July 7,
1976 and continue with the discussion in the following manner:
“27. As noted hitherto, none of the relevant provisions e ven
remotely suggest that the Sailor is “automatically” transferred to
the Fleet Reserve Service. Whereas, it is expressly provided that
on expiration of the term of service of engagement the Sai lor
would be placed on Fleet Reserve Service only if an expre ss
order in that behalf is passed by the competent authority to draft
him on the Fleet Reserve and not otherwise. Section 16 of t he
Act merely gives an option to the Sailor to take a discharge after
expiration of term of service of engagement. It is not a deeming
provision that if such option is not exercised by t he Sailor
concerned, he would be treated as having been drafted on the
Fleet Reserve Service for another 10 years “automatically”.
28. Regulation 269 spells out the conditions of servi ce. It
reinforces the position that the services of a Sailor would be
continued “so long required” or “if required”. The second part of
sub-regulation (1) of that Regulation uses the expres sion “if
required”, for further 10 years’ service in the Indi an Fleet
Reserve, subject to the provisions of the Regulations for the
Indian Fleet Reserve. This view taken by the Tribunal (Principal
Bench, New Delhi) in Niranjan Chakroborty v. Union of
India [Niranjan Chakroborty v. Union of India , 2010 SCC
OnLine AFT 803] commends to us.
29. As aforesaid, on introducing the new policy on 3-7-1976, the
Fleet Reserve was discontinued and instead the Sailors in service
at the relevant time were given an option to continue in acti ve
service for a further term of 5 years. Some of the Sailors opted to
continue till completion of 15 years, who, then became eligible for
“service pension” having qualifying service.
30. The quintessence for grant of reservist pension, as per
Regulation 92, is completion of the prescribed Naval and Reserve
qualifying service of 10 years “each”. Merely upon completion of
10 years of active service as a Sailor or for that matter continued
beyond that period, but falling short of 15 years or qualifying
Reserve Service, the Sailor concerned cannot claim benefit
under Regulation 92 for grant of reservist pension. For, to qualify
for the reservist pension, he must be drafted to the Fleet Reserve
EX NAVY DIRECT ENTRY ARTIFICERS ASSOCIATION
& ORS. v. THE UNION OF INDIA & ORS. [A. K. SIKRI, J.]
Service for a period of 10 years. In terms of Regulation 6 of the
Indian Fleet Reserve Regulations, there can be no claim to jo in
the Fleet Reserve as a matter of right. None of the appl icants
were drafted to the Fleet Reserve Service after complet ion of
their active service. Hence, the applicants before the Tr ibunal,
could not have claimed the relief of reservist pension...”
26. In the absence of any such assurance of enrolme nt of
drafting into Fleet Reserve, at the time of initial recruitment, the
Principle of Promissory Estoppel cannot be invoked. The Tribunal has,
in this behalf, taken note of certain judgments 2 of this Court and on that
basis rightly concluded that mere recruitment/enrolment for acti ve as
well as reserve service without making any order of transfe r to Indian
Fleet Reserve under Regulation 269 of Navy Regulation Part III as well
as Regulations of Indian Fleet Reserve, it cannot be treated that any
promise was accorded to the appellants about drafti ng into Fleet
Reserve, at any time. We would, at this juncture, like to reproduce para
31 of T.R. Das case.
“31.The original applicants contend that if the Government Policy
dated 3-7-1976 is applied to the serving Sailors, inevitably, it will
result in retrospective application thereof to their detriment. That
is forbidden by Section 184-A of the Act. This argument does not
commend to us. In that, the effect of the Government Policy is to
disband the establishment of the Reserve Fleet Service w ith
effect from 3-7-1976. As found earlier, drafting of Sailors to the
Reserve Fleet Service was not automatic, but dependent on a n
express order to be passed by the competent authority in t hat
behalf on case-to-case basis. The Sailors did not have a vested or
accrued right for being placed in the Reserve Fleet Service. Hence,
no right of the Sailors in active service was affected or ta ken
away because of the Policy dated 3-7-1976...”
27. It would, however, be pertinent to mention here that in T.R.
Das , though the Court had specifically held that such direct Entry
Artificers were not entitled to reservist pension, they were entit led for
special pension, in terms of Regulation 95 of the Pension Regulations.
The relevant portion of the discussion which ensued on this as pect is
contained in paras 34 and 36 of the judgment in T.R. Das and these
paras read as under:
2 Motilal Padampat Sugar Mills Co. Ltd. v. State of Uttar Pradesh & Ors. (1979) 2 SCC
409; Bakul Cashew Co. & Ors. v. Sales Tax Officer, Quilon & Anr. (1986) 2 SCC 365
393
“34. The next question is whether the Sailors appointed before
1973 were entitled to a special pension, in terms of Regulation 95
of the Pension Regulations. Indeed, this is a special provision and
carves out a category of Sailors, to whom it must a pply.
Discretion is vested in the Central Government to grant speci al
pension to such Sailors, who fall within the excepted cate gory.
Two broad excepted categories have been noted in Regulation
95. Firstly, Sailors who have been discharged from their duties in
pursuance of the government policy of reducing the strength of
establishment of the Indian Navy; or secondly, of reorganisation,
which results in paying off of any ships or establishment. In the
present case, clause ( i) of Regulation 95 must come into play, in
the backdrop of the policy decision taken by the Government as
enunciated in the Notification dated 3-7-1976. On and from that
date, concededly, the Fleet Reserve Service has bee n
discontinued. That, inevitably results in reducing the strength of
the establishment of the Fleet Reserve of the Indian Navy to that
extent, after coming into force of the said policy. None of the
Sailors have been or could be drafted to the Fleet Reserv e after
coming into force of the said policy—as that establishment did
not exist anymore and the strength of establishment of the Indian
Navy stood reduced to that extent. Indisputably, the Sailors
appointed prior to 3-7-1976, had the option of continuing on the
Fleet Reserve Service after expiration of their active s ervice/
empanelment period. As noted earlier, in respect of each
applicants the appointment letter mentions the peri od of
appointment as 10 years of initial active service and 10 years
thereafter as Fleet Reserve Service, if required. The opt ion to
continue on the Fleet Reserve Service could not be offer ed to
these applicants and similarly placed Sailors, by the Department,
after expiration of their empanelment period of 10 years or less
than 15 years as the case may be. It is for that reason , such
Sailors were simply discharged on expiration of their active
service/empanelment period. In other words, on acco unt of
discontinuation of the Fleet Reserve establishment of the Indian
Navy, in terms of Policy dated 3-7-1976 it has entailed in reducing
the strength of establishment of the Indian Navy to that extent.
xxx xxx xxx
EX NAVY DIRECT ENTRY ARTIFICERS ASSOCIATION
& ORS. v. THE UNION OF INDIA & ORS. [A. K. SIKRI, J.]
36. Thus understood, all Sailors appointed prior to 3-7-1976 and
whose tenure of initial active service/empanelment period expired
on or after 3-7-1976 may be eligible for a special pension under
Regulation 95, subject, however, to fulfilling other requirements.
In that, they had not exercised the option to take discharge on
expiry of engagement (as per Section 16 of the 1957 Act) and yet
were not and could not be drafted by the competent authority to
the Fleet Reserve because of the policy of discontinuing the Fleet
Reserve Service w.e.f. 3-7-1976. The cases of such Sailors (not
limited to the original applicants before the Tribunal) m ust be
considered by the competent authority within three months for
grant of a “special pension” from three years prior to the date of
application made by the respective Sailor and relea se
payment after giving adjustment of gratuity and
death-cum-retirement-gratuity (DCRG) already paid to them from
arrears. They shall be entitled for interest @ 9% p.a. on the
arrears, till the date of payment.”
28. We, thus, answer question no. 1 in the negative and hold that
the appellants are not entitled to count 50% of the Fleet Reserve as they
were never drafted into the said reserve. Consequently, the appellants
are not entitled to reservist pension. However, their cases would be
considered for grant of special pension on same lines as was done in
T.R. Das judgment and directed in para 36 of the said judgment.
Question No. 2 - Whether the applicants Nos. 2 to 5 were
entitled to be treated at par with the Apprentice Entry Ar tificers for
pension purposes only on the ground that both of them belong to the
same homogeneous class of Artificers?
29. Insofar as Apprentice Entry Artificers are concerned the y
are getting pension and the appellants’ claim that since Artificer is one
homogeneous class, whether the Entry thereto is after comple ting the
Apprenticeship course or it is a direct entry (as in the case of Appellants)
all the Artificers are to be treated alike. There is no q uarrel about this
proposition. However, in the instant case, we are concerned wi th the
question as to whether the appellants are eligible for se rvice pension
even after they have rendered only 10 years of service (as they are held
not entitled to count any period of Fleet Reserve in which the y were
never drafted). Had Apprentice Artificers also got t he pension on
395
rendition of 10 years’ service, there would have been some force in the
argument of the appellants. However, that is not so. As already noted
above, insofar as Apprentice Entry Artificers are concer ned, they had
undergone 4 years’ training in Naval establishment. Ther eafter, they
were advanced to the rank of Artificer V and their initial engagement of
10 years’ active service commenced. After one year in th e rank of
Artificer Vth Class, these Apprentice Entry Artificers wer e advanced
to the rank of Artificer acting IVth Class. In their cases, the training
period of four years has been counted for considering their eligibility for
the purpose of pension. This has happened pursuant to the judgment of
this Court in Anuj Kumar Dey & Anr. v. Union of India & Ors. 3. In
the cases of Apprentice Entry Artificers, the Government h ad refused
to reckon the period for the purpose of pension. The question be fore
this court was as to whether the training period spent on App rentice
Artificers was liable to be taken into account for pension purposes. The
Court decided the question in favour of the Apprentice Entry Artificers.
Thus, these Apprentice Entry Artificers became entitled to pension on
the inclusion of training period towards the service. Their case is, therefore,
entirely different from the appellant’ who are Direct E ntry Artificers
and had no benefit of such training.
30. An attempt was made by learned counsel for appellants to
argue that Anuj Kumar Dey does not lay down correct law as the
training period could not have been reckoned for calculating qualifying
period for pension. However, it is not open to the appellants to raise such
an argument. In the first place, this argument would not enure to the
benefit of the appellants as it would not entitle them to pension in an y
case. Even if the contention of the appellants is presumed a s correct,
the only effect thereof would be to hold that even Apprenti ce Entry
Artificer are not entitled to pension. We may note, however, that learned
counsel for appellants was candid in his submission that he did not want
Apprentice Entry Artificers to be deprived of their pension. Secondly, in
any case, in the absence of Apprentice Entry Artificers, such an argument
cannot be considered. Thirdly, the law laid down in Anuj Kumar Dey
has held the filed for more than 20 years and there is no reason to upset
the same. For all these reasons, we reject the contention a nd answer
Question no. (2) against the appellants.
3(1997) 1 SCC 366
EX NAVY DIRECT ENTRY ARTIFICERS ASSOCIATION
& ORS. v. THE UNION OF INDIA & ORS. [A. K. SIKRI, J.]
31. As a consequence, this appeal stands dismissed insofar as
claim for reservist pension is concerned. However, their cases for grant
of special pension shall be considered as directed above.
No order as to costs.
Nidhi Jain Appeal dismissed.