Pension Deduction From Re-Employment Salary Is Valid, Rules Supreme Court in State of Uttarakhand v. M.C. Bhandari
Case: State of Uttarakhand Thr. Chief Secretary and Others v. M.C. Bhandari and Another
Citation: 2026 INSC 1194
Date of Judgment: 04 November 2026
Court: Supreme Court of India
Coram: Justice S.V.N. Bhatti and Justice N.V. Anjaria
Proceedings: Civil Appeal No. 1614 of 2011 with Civil Appeal No. 1615 of 2011
Court Observation
“In other words, there is no withdrawing of the pension, it is only the withholding during the period when the posts of the Chairman or, as the case may be, the Member of the Uttarakhand PSC is held.”
Summary
The Supreme Court has upheld Regulation 7(2) of the Uttarakhand Public Service Commission (Conditions of Service) Regulations, 2004, which provides for deduction of the pension earned from previous service from the salary fixed for a post-retirement appointment as Chairman or Member of the Commission. The Court set aside the Uttarakhand High Court’s judgment of 15 April 2010, which had declared the regulation ultra vires Articles 14 and 39(d) of the Constitution.
The Court held that the “pay minus pension” principle does not violate the doctrine of equal pay for equal work, which cannot be applied mechanically. The pension is only kept in abeyance during the tenure of the new office and the entitlement revives fully once the appointee leaves office, so there is no forfeiture of pensionary benefits. The Court added that a person who accepts an appointment with full knowledge of the applicable service regulations cannot afterwards challenge those conditions.
Key Holdings
- Fixation of salary for retired government servants appointed to constitutional posts on a “pay minus pension” basis under statutory regulations does not violate Articles 14 or 39(d) of the Constitution.
- Keeping pension in abeyance during the tenure of a constitutional post does not amount to withdrawal or forfeiture of pension; the entitlement revives once the officer leaves office.
- The principle of equal pay for equal work cannot be invoked to claim full salary in addition to the pension from previous service.
- A government servant who accepts a post cannot afterwards be permitted to resile from or agitate in respect of the service conditions and regulations attached to the post.
- The Governor’s determination under Regulation 7(2) that pension would be deducted from the basic pay of retired officers appointed as Chairman or Member operates retroactively and is fully valid.
Background
Lieutenant General (Retd.) M.C. Bhandari retired from the Indian Army on 30 August 2006 and was appointed Chairman of the Uttarakhand Public Service Commission on 3 November 2006. His salary was fixed at a basic pay of Rs. 26,000, from which Rs. 17,627, the pension he was drawing, was deducted. Retired PCS officer Sohan Lal was appointed a Member of the Commission on similar terms. Both challenged Regulation 7(2) before the Uttarakhand High Court, which allowed their petitions on 15 April 2010; the State appealed to the Supreme Court.
Judgment Link: Read the full judgment (PDF)
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Disclaimer: This is a summary prepared for informational purposes only and does not constitute legal advice. Readers should refer to the official judgment for the authoritative text.
