Natural justice requires a hearing before administrative reduction of pensionary benefits affecting civil rights

Administrative orders reducing superannuation pension and death-cum-retirement gratuity, though not a reduction in rank under Article 311(2), were held to affect vested civil rights. The Supreme Court applied natural justice and ruled that where an authority acts to a government servant's prejudice, audi alteram partem requires a reasonable prior opportunity to be heard and to contest the material relied upon. The cut in pensionary benefits could not validly be imposed without such a hearing, and the reduction was upheld.

---

---

Issues: Whether a reduction in superannuation pension and death-cum-retirement gratuity could be made by an administrative order without giving the government servant a reasonable opportunity of being heard.

Analysis: The impugned order, though not a reduction in rank within Article 311(2) of the Constitution of India, adversely affected vested civil rights. The governing principle was that even an administrative order having civil consequences must conform to natural justice. The requirement of audi alteram partem applied because the authority was deciding to the prejudice of the government servant, and a prior opportunity to explain or contest the material relied upon was necessary. The earlier decision treating pension as a matter protected by legal right, and the later approval of natural justice in administrative decision-making, controlled the case.

Conclusion: The cut in pension and gratuity could not validly be imposed without affording a hearing; the challenge to the reduction failed and was answered against the appellant.

Final Conclusion: An administrative determination affecting pensionary benefits and civil consequences must observe natural justice, and the impugned reduction was upheld.

Ratio Decidendi: Where an administrative authority makes an order affecting civil rights or interests to a person's prejudice, it must comply with the rule of audi alteram partem and provide a reasonable opportunity of being heard.

---