1. Temporary government servant retired compulsorily under Rule 56(j)(ii) of Fundamental Rules after completing over 20 years of service — dispute over entitlement to pensionary benefits. (Para 2 , 3 )
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1995 Supreme(SC) 973
SUPREME COURT OF INDIA
G.B.Pattanaik : Kuldip Singh
A.P.Srivastava
Versus
Union Of India
Case No. : .
Date of Decision : 9/20/95
Advocates Appeared: Agarwal Rajesh : Gupta D.N. : Nambiyar A.S. : Parameswaran P. : Parmeshwaran P. : Sharma Hemant : Subhashini A.
Advocates:
A.S.NAMBIYAR, A.Subhashini, D.N.GUPTA, HEMANT SHARMA, P.PARMESHVARAN, Rajesh Agarwal
A.S.NAMBIYAR, A.Subhashini, D.N.GUPTA, HEMANT SHARMA, P.PARMESHVARAN, Rajesh Agarwal
A temporary government servant who has completed 20 years of service is entitled to pensionary benefits even if compulsorily retired by the employer under Rule 56(j) of the Fundamental Rules, as pension is a right earned for service rendered and not a bounty.
Headnote:
Administrative tribunals Act, 1985 - Section 26 - Fundamental Rules - Rule 56 - Pension - Promotion - Order of compulsory retirement - Appellant joined services government of India as temporary Lower Division Clerk central Tractor Organization - He was promoted to post of Upper Division Clerk on probation on having continued for year she was reverted to post of temporary Lower Division Clerk - Pending initiation of departmental proceeding he was suspended - Departmental proceeding was initiated - Disciplinary authority finally passed an order of punishment - Against order punishment an appeal was preferred by appellant but that appeal had not been forwarded to appellate authority by disciplinary authority – Held, In view of rival submissions at bar question for consideration is whether there is any rationale behind rule disentitling pension to government servant when an order compulsory retirement is passed in exercise power Rule Fundamental Rules As has been noticed earlier after completion particular period of service employer has right to compulsorily retire employee in public interest and similarly employee has right to voluntarily retire on giving three months notice - It has been by this court time and again that pension is not charity or bounty nor is it conditional payment solely dependent on sweet will employer - It is for rendering long service is often described as deferred portion of payment for past services - It is fact nature social security plan provided for superannuated government servant - If temporary government servant who has rendered years of service is entitled to pension if he voluntarily retires there is no justification for denying right to him when he is required to retire by employer in public interest - In other words condition precedent for being entitled to pension in case of temporary government servant is rendering of years of service – Appeal allowed
Legal Category Hierarchy
Table of Contents
2. Whether a temporary government servant completing 20 years of service is entitled to pension upon compulsory retirement under Rule 56(j) as opposed to voluntary retirement under Rule 56(k). (Para 4 )
3. Pension is earned deferred payment for past services and social security, not a bounty; denying it to temporary servants with 20 years' service upon compulsory retirement lacks justification. (Para 5 )
4. A temporary government servant completing 20 years of service is entitled to pension even if compulsorily retired by the employer in public interest under Rule 56(j) of Fundamental Rules. (Para 6 )
5. Appeal allowed — Tribunal's direction set aside — appellant held entitled to pensionary benefits having rendered more than 20 years of service. (Para 7 )
6. Is compulsory retirement of a temporary government servant under Rule 56(j) of the Fundamental Rules considered a punishment?
No, the court held that an order of compulsory retirement in exercise of power under Rule 56(j) of the Fundamental Rules is not an order of punishment. (Para 3 , 6 )
7. What is the legal nature of pension for a government servant?
Pension is not a charity, bounty, or conditional payment dependent on the employer's will; it is earned for rendering long service, acting as a deferred payment for past services and a social security plan. (Para 5 )
8. Is a temporary government servant entitled to pension if compulsorily retired after 20 years of service?
Yes, a temporary government servant is entitled to pension after completing 20 years of service, regardless of whether they retire voluntarily under Rule 56(k) or are compulsorily retired by the employer under Rule 56(j). (Para 5 , 6 )
JUDGMENT
G.B.PATTANAIK, J.
(1) SPECIAL leave granted.
(2) THE short question which arises for consideration is whether an employee who was a temporary government servant loses his right to receive pension when the employer exercises its option and retires the employee after he attains the age of 55 years in accordance with Rule 56(J)(II) of the Fundamental Rules, even though the employee might have completed more than 20 years service?
(3) THE appellant joined the services of the government of India as temporary Lower Division Clerk in the central Tractor Organisation on 6/10/1955. He was promoted to the post of Upper Division Clerk on probation on 28/12/1962 and having continued for 8 years, he was reverted to the post of temporary Lower Division Clerk on 1/12/1970. Pending initiation of departmental proceeding he was suspended on 1/12/1980. The departmental proceeding was initiated on 10/4/1981. The disciplinary authority finally passed an order of punishment on 1/6/1985. Against the order of punishment an appeal was preferred by the appellant on 19-7-1985 but that appeal had not been forwarded to the appellate authority by the disciplinary authority. As the appeal was not disposed of the appellant approached the Principal bench of the central Administrative tribunal on 15/1/1987. While the aforesaid proceeding was pending before the Tribunal, the Under secretary in the Ministry of Home Affairs issued an order prematurely retiring the appellant under Rule 56(j)(ii) of the Fundamental Rules on 26/2/1988 making it effective from 1/3/1988. This order was challenged by the appellant again before the central Administrative tribunal which was heard on 31/1/1991. On account of difference of opinion between the two members of the tribunal the matter was referred to the Chairman under Section 26 of the Administrative tribunals Act, 1985 who in his turn referred the matter to the Vice-Chairman. The Vice-Chairman gave his opinion that the order of compulsory retirement of a temporary government servant under Rule 56(/) of the Fundamental Rules is not an order of punishment. He also found that the employee will not be entitled to any pensionary benefit since neither he has retired on reaching the age of superannuation nor he has been declared permanently incapacitated for further government service nor he has sought voluntary retirement after completion of 20 years of service.
(4) IN view of the aforesaid opinion the appellant having been deprived of the pensionary benefits, has approached this court. The learned counsel for the appellant contended that if a temporary government servant who voluntarily retires after completion of 20 years of service would be entitled to the pension, there is no reason to deny the same when the employer compulsorily retires him after the employee has completed 20 years of service. In other words when Rule 56(j) of the Fundamental Rules confers power on the employer to retire government servant in public interest after giving three months notice under the circumstances mentioned therein and Rule 56(k) similarly entitles a government servant to voluntarily retire after giving three months notice, there should not be any different criteria in the matter of award of pension. Learned counsel appearing for the respondents on the other hand contended that in view of the specific provision of the Rules and the Rule being given its literal meaning there is no escape from the conclusion that a temporary government servant will not be entitled to any pension even if he has completed more than 20 years of service when the employer compulsorily retires him in exercise of power under Rule 56(j) of the Fundamental Rules.
(5) IN view of the rival submissions at the bar, the question for consideration is whether there is any rationale behind the rule disentitling pension to a government servant when an order of compulsory retirement is passed in exercise of power under Ru
