Union of India & Ors. v. Col. (TS) P.D. Poonekar
Background
The respondent, an Army Medical Corps doctor, was granted two years of study leave abroad to specialise in prosthetic surgery, later extended by twelve months by special sanction of the President of India. The Army paid him during the original two years but denied him pay and allowances for the extended twelve-month period. He challenged this before the Armed Forces Tribunal, which ruled in his favour, and the Union of India appealed that ruling to the Supreme Court.
Decision Breakdown
The Court held that Army Instruction 13/1978, which entitles an officer to full pay during study leave and counts such leave towards pay, promotion and pension, applied equally to the extended period since it was sanctioned on the same special dispensation as the original leave. It rejected the Union's reliance on an older instruction (191/62) denying pay during "secondment," finding the later instruction controlling. The Tribunal's interpretation was upheld as correct, and the Union was directed to pay all outstanding dues within two months with 9% annual interest, recompute retiral benefits accordingly, and pay costs of Rs. 50,000 to the respondent.
Lesson Learnt
When specific, later-issued service rules grant a benefit (like full pay during sanctioned study leave), they override older, more general rules, and government employees who are wrongly denied legitimately sanctioned benefits are entitled to both the arrears and interest for the delay.