Case Note & Summary
The appeals arose from a Full Bench judgment of the Jharkhand High Court which held that employees of the Adult Education and Non-Formal Education Project (a Central-State sponsored project) could not count their project service for pensionary benefits after being absorbed by the State Government. The appellants were appointed under the project between 1978 and 1990 in the undivided State of Bihar. After the bifurcation of Bihar, the project was closed by the Government of India on 1st April 2001, and the employees were declared surplus by the Jharkhand Government on 16th May 2001. Subsequently, a notification dated 30th May 2007 provided for absorption of these surplus employees into various government departments, but clauses 11 and 12 of the notification stated that the absorption would be treated as new appointments and past service would not count for seniority or pay protection. The employees challenged these clauses, seeking pensionary benefits and seniority. The High Court categorized the writ petitions into three groups: those who retired before absorption, those who retired after absorption, and those still in service. The High Court held that the project service did not satisfy the conditions for pensionable service under the Jharkhand Pension Rules, as the employees were not under government service, their employment was not substantive and permanent, and no declaration under Rule 59 had been made. The Supreme Court, however, noted a circular dated 12th August 1969 issued under Rule 59 of the Bihar Pension Rules (applicable to Jharkhand), which declared that temporary or officiating government servants with continuous service of more than 15 years would be considered pensionable. The Court found that the project employees, though initially not government servants, were absorbed and their past service was continuous and more than 15 years. The Court held that the circular applied to them, and clauses 11 and 12 of the notification could not deny pensionary benefits. The Court also referred to its earlier order in State of Jharkhand v. Asgar Ali which concluded the issue of arrears of salary. Consequently, the Supreme Court allowed the appeals, set aside the High Court's order, and directed that the past service of the appellants under the project be counted for pensionary benefits.
Headnote
A) Service Law - Pensionary Benefits - Past Service Counting - Rule 59 of Bihar Pension Rules, 1950 - The issue was whether employees of a Central-State sponsored project, later absorbed by the State, could count their project service for pension. The Supreme Court held that the circular dated 12th August 1969 under Rule 59 declares temporary service of more than 15 years as pensionable, and the project employees' service qualifies, thus clauses 11 and 12 of the absorption notification cannot deny pensionary benefits. (Paras 10-15) B) Service Law - Absorption - New Appointment - Clauses 11 and 12 of Notification dated 30th May 2007 - The High Court held that absorbed employees are new appointees and past service cannot be counted. The Supreme Court reversed, holding that the circular under Rule 59 overrides such clauses, and past service must be counted for pension. (Paras 4-8) C) Service Law - Pension - Temporary Government Servants - Rule 59 Bihar Pension Rules - The circular dated 12th August 1969 applies to temporary or officiating government servants with continuous service of more than 15 years. The project employees, though not initially government servants, were absorbed and their past service is deemed pensionable under the circular. (Paras 10-11)
Issue of Consideration
Whether the services rendered by employees under the Adult Education and Non-Formal Education Project can be counted for pensionary benefits after their absorption by the State Government, and whether clauses 11 and 12 of the notification dated 30th May 2007 denying such counting are valid.
Final Decision
The Supreme Court allowed the appeals, set aside the impugned order of the Full Bench of the Jharkhand High Court dated 16th June 2017, and directed that the past service of the appellants under the Adult Education and Non-Formal Education Project be counted for pensionary benefits in accordance with the circular dated 12th August 1969 under Rule 59 of the Bihar Pension Rules.
Law Points
- Pensionary benefits
- past service counting
- temporary government servants
- Rule 59 Bihar Pension Rules
- absorption as new appointment
- circular dated 12 August 1969
