In Brief
The Supreme Court held that government employees transferred from pensionable to non-pensionable establishments, who are in receipt of monthly pension and covered under Rule 6.17(b) of the Punjab Service Rules, are entitled to family pension benefits. Although Rule 5.3(3) contains a proviso stating that government has no liability for family pension, this proviso cannot override the Family Pension Scheme, a special benefit statute. A specific statutory scheme granting benefits prevails over a general proviso unless the scheme itself explicitly excludes such pensioners. The Court directed disbursement of arrears within 12 weeks or with 12% interest from the High Court judgment date.
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