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Supreme Court of India

BHARAT SANCHAR NIGAM LTD.versusS.K. BHATNAGAR & ORS.

Citation
2013 INSC 716
Decided
24 October 2013
Disposal
Appeal(s) allowed

Holding

The Supreme Court set aside the impugned order and remanded the case to the High Court for a complete and detailed consideration, rejecting any presumption of law against the appellant.

Summary

S.K. Bhatnagar retired from Bharat Sanchar Nigam Ltd. in 1990 and had applied for commutation of his pension before retirement. He later claimed that the commuted pension amount of Rs.87,400 was never received, leading him to file an application before the Central Administrative Tribunal (CAT) in 2007. The CAT noted disputed facts but nonetheless directed the company to produce proof of payment, threatening an adverse inference, while the High Court issued a brief order. The Supreme Court held that the tribunal had proceeded in haste, failed to examine the dispute in detail, and that a presumption of law should not be placed against the appellant given the 17‑year delay. It also noted that the claim might be barred by limitation or laches and remanded the matter to the High Court for a full, detailed adjudication, setting aside the impugned order. The appeal was allowed.

Issues considered

  • Whether a presumption of law can be applied against the appellant in a pension commutation claim after a long delay.
  • Whether the respondent's claim is barred by limitation or laches.
  • Whether the CAT erred by not conducting a detailed factual inquiry before directing proof of payment.
  • Whether the High Court's order was sufficient to resolve the dispute.

Subjects

Service lawPension commutationLimitationLachesPresumption of lawCentral Administrative TribunalRemand

Judgment

                    [2013] 10 S.C.R. 279


    BHARAT SANCHAR NIGAM LTD. (B.S.N.L.) & ANR.               A
                               v
                 S.K. BHATNAGAR & ORS.
              (Civil Appeal No. 9644 of 2013 )
                    OCTOBER 24, 2013
                                                              B
        [T.S. THAKUR AND VIKRAMAJIT SEN, JJ.]

         Service Law - Pension - Commutation of - Respondent
   retired from service of appellant-company - Prior to
   retirement, he had applied for commutation of his pension - C
   17 years after retirement, grievance raised by respondent in
. regard to non-receipt of commuted pension amount - Held:
   Tribunal proceeded iri haste in not addressing the dispute in
   detail - High Court also passed a laconic order - Matter
 . remanded back to· High Court for complete and detailed D
   consideration of the matter.

      Respondent no.1 retired from the service of
  appellant-company on 31-5-1990. He had applied for
  commutation of his pension prior to his retirement but he   E
. had not received the commuted pension amount of
  Rs.87,400/.: and was not receiving his full pension.
  Application was filed by respondent no.·1 before the
  iribunal in the year 2007. The Tribunal observed that
  disputed questions of fact had arisen and, therefore, it    F
  would not be proper for the Tribunal to decide the case,
  and yet went on to hold that it could not be concluded
  that the amount "of Rs.87 ,400/- had been paid to
  respondent no.1. On appeal, the High Court passed the
  impugned order whi,ch was challenged befo.re this Court.
                                                              G
     Allowing the appeal, the Court

     HELD: 1. While one appreciates that Respondent.
 no.1-claimant cannot prove the negative, viz., that he did
                          .   279                             H
                     3
    280      SUPREME COURT REPORTS            [2013] 10 S.C.R.


A not receive the cheque allegedly dispatched to him, the
  factum of the passage of 17 years would be good ground
  not to cast a presumption of law against the Appellants.
  Before this Court, a photocopy of the Cash Book
  maintained by the Appellants, presumably in the ordinary
B course of business, has been furnished. It purportedly
  indicates that three Demand Drafts had been got issued,
  ostensibly against cash deposit. The Tribunal proceeded
  in haste in not addressing the dispute in detail. [Para 2]
  [282-C-E]
c      2. Two facts are important - (a) that it is the case of
  Respondent no.1 himself that he applied for commutation
  of his pension before his retirement; and (b) that he was
  not receiving his full pension. This should have alerted
  any Adjudicating Authority to consider the veracity of his
D claim without invoking the principle of 'presumption in
  law'. [Para 3] [282-G-H; 283-A]

        3. There is no alternative but to remand the matter
   back to the High Court of Judicature at Allahabad for a
E· complete and detailed consideration of the matter. It must
   consider all the _evidence collected by both the
   adversaries and come to a definite answer without
   resorting to fastening a 'presumption in law' on either
   party kee'ping the long passage of time in perspective. It
F must also consider whether the claim stood barred by
   limitation, .or was pregnant of the possibility of being
   rejected for delay and !aches. [Para 4] [283-B-C]       ·

        Union of India v. Tarsem. Singh, (2008) 8 SCC 648 - held
    inapplicable. ·                                    ·
G
                        Case Law Reference:
                -

          (2008) s sec 648       held inapplicable    Para 3
      CIVIL APPELLATE JURISDICTION : Civil Appeal No.
H 9644 of 2013.
  BHARAT SANCHAR NIGAM LTD. (B.S.N.L.) v. S.K.                281
               BHATNAGAR
     From the Judgment & Order dated 22.11.2010 of the High           A
 Court of Judicature at Allahabad, Lucknow Bench at Lucknow
 in Writ Petition No. 1580 (S/B) of 2010.

      Dr. A.K. Gautam, Ashok Mathur for the Appellants.

     Y.S. Lohit, Dr. Sumant Bhardwaj, Mridula Ray Bharadwaj,          B
 Siddh.arth Sangal, Anil Kumar Sangal for the Respondents.

      The Judgment of the Court was delivered by

      VIKRAMAJIT SEN, J. 1. Leave granted.                            c
        2. This Appeal assails the Order passed on 22.11.2010
  by the Division Bench of the High Court of Judicature at
  Allahabad in Writ Petition No.1580 (S/B) of 2010. Regretfully,
  it is a laconic order in respect of an extremely cryptic decision
  of the Central Administrative Tribunal (CAT), Lucknow Bench,        D
  Luckno'!V rendered on 7.1.2008 in Original Application No.153
  of 2007 . In the impugned Order it has been noted that
  Respondent no.1 retired from the service of the Appellant-
  company on 31.5.1990; he was serving as Telecom District
  Engineer (Chambal), Gwalior. It is also duly noted that             E
  Respondent no.1 had applied for commutation of his pension.
  It stands admitted that he was receiving pension predicated on
  the commutation viz., not full pension. Neither of the Orders
  state the date of the application for commutation of pension,
  but in the hearing before us it has been indicated that this        F
  request was made in 1988. The Appellants' submission before
  the Division Bench of the High Court was that a Cheque
  No.312436 dated 18.12.1990 had.been dispatched to
  Respondent no.1 at his Lucknow address. Before this Court,
· the contention is that payment was made by a Demand Draft           G
  bearing even number. It was in 2007 that Respondent no.1 filed
  the abovementioned Original Application before the CAT,
  Lucknow Bench which passed the aforementioned cryptic Order
  on 7.1.2008. Since Respondent no.1 had retired on 31.5.1990
  his grievance of having not received the commuted pension           H
     282      SUPREME COURT REPORTS               [2013] 10 S.C.R.


A amount of Rs.87,400/- has come after the passage of 17 long
    years. It is palpably cl.ear that this inordinate delay has been
    glossed over in the impugned Order. So far as the CAT,
    Lucknow Bench is concerned it has firstly observed that
    disputed questions of fact have arisen and, therefore, it would
B not be proper for the Tribunal to decide the case yet, inexplicably
    it has gone. on to opine that it cannot .be concluded th.at the
  . aforesaid amount of Rs.87,400/- had been paid to Applicant-
    Respondent no.1. It has directed B.S.N.L. to furnish within one
    month valid proof of receipt of cheque by the Applicant-
C Respondent no.1, failing which an adverse inference would be
    drawn in law. While we appreciate that Respondent no.1-
    claimant cannot prove the negative, viz., that he did not receive
    the cheque allegedly dispatched to him, the fact\,lm of the
    passage of 17 years would be ·good ground not to cast a
D presumption of law against the Appellants. It appears that the
    State Bank of India has pleaded that the records, being more
    than ten years old, stand destroyed, and therefore no information
    in this regard could be furnished. In these circumstances how
    is the dispute to be decided. Before us, a photocopy of the
    Cash Book maintained by the Appellants, presumably in the
E ordinary course of business, has been furnished. It purportedly
    indicates that three Demand Drafts had been got issued,
    ostensibly against cash deposit. The Tribunal proceeded in
    haste in not addressing the dispute in detail.

F          3~ Learned counsel for Respondent no.1 has drawn our
    attention to -Union of India & Ors. v. Tarsem Singh (2008) 8
    . sec 648 wherein this Court has held that normally service
  matter claims are rejected either on limitation or on the grounds
  of delay/laches; the exception being cases of continuing wrong.
G We cannot appreciate how this advances the case of
  Respondent no.1. Two facts are important - (a) that it is the
  case of Respondent no.1 himself that he applied for
  commutation of his pension before his retirement; and {b) that
  he was not receiving his full pension. This should have alerted
H any Adjudicating Authority to consider the veracity of his claim
 BHARAT SANCHAR NIGAM L"fD. (B.S.N.L.) v. S.K.              283
      BHATNAGAR [VIKRAMAJIT SEN, J.]
without invoking the principle of 'presumption in law'. Tarsem      A
Singh, therefore, does not assist the case of Respondent no.1
a wit.
     4. We find that there is no alternative but to remand the
matter back to the High Court of Judicature at Allahabad for a
                                                                    8
complete and detailed consideration of the matter. It must
consider all the evidence collected by both the adversaries and
come to a definite answ~J without resorting to fastening a
'presumption in law' on either party keeping the long passage
of time in perspective. It must also consider whether the claim
stood barred by limitation, or was pregnant of the possibility of   C
being rejected for delay and laches.

    5. The impugned Order is accordingly set aside and the
matter is remanded to the High Court for fresh adjudication. The
Appeal is allowed accordingly. We hasten to clarify that nothing    D
contained in these presents shall be construed to indicate our
views on the merits of the case.

B.8.8.                                         Appeal allowed.


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