2010 (2) Supreme 347
SUPREME COURT OF INDIA
J.M. Panchal and K.S. Radhakrishnan, JJ.
Punjab State Electricity Board & Anr. — Appellants
versus
Narata Singh & Anr. — Respondents
Civil Appeal No.2384 of 2007
Decided on : 23-02-2010
Facts of the Case :
Present Appeal has been filed against judgment of High Court by which appellants had been directed to count previous service rendered by respondent No.1, in the Departments of Punjab State as work charged employee for the purpose of determining qualifying service for pension payable to him as an employee of the Punjab State Electricity Board.
Findings of the Court :
A bare reading of rule 3.17(ii) makes it clear that periods of service in work charged establishments were not counted as qualifying service. Therefore, the work charged employees had challenged validity of said Rule. The matter was considered by Full Bench of Punjab and Haryana High Court in Kesar Chand vs. State of Punjab & Ors. And it was held that Rule 3.17(ii) was violative of Article 14 of Constitution of India. The Full Bench decision was challenged before Apex Court by filing a special leave petition which was dismissed. Thus, ratio laid down by Full Bench judgment that any rule which excludes the counting of work charged service of an employee whose services had been regularized subsequently, must be held to be bad in law was not disturbed by Apex Court. The distinction made between an employee who was in temporary or officiating service and who was in work charged service as mentioned in Rule 3.17(ii) of the Punjab Civil Services Rules disappeared when the said rule was struck down by the Full Bench. The effect was that an employee holding substantively a permanent post on date of his retirement was entitled to count in full as qualifying service the periods of service in work charged establishments.In view of this settled position, held that the work charged service rendered by respondent No.1 under Government of Punjab was qualified for grant of pension under rules of Government of Punjab and, therefore, Board was not correct in rejecting claim of respondent for inclusion of period of work charged service rendered by him with the State Government for grant of pension, on ground that service rendered by him in work charged capacity outside PSEB and in departments of the State Government was a non-pensionable service-Reference to Rule 3.17(ii) of the Punjab Civil Services Rules as well as the Full Bench decision of High Court in Kesar Chand vs. State of Punjab & Ors. and speaking order passed by Board rejecting claim of respondent No.1 showed that High Court had directed the appellants to count the period of service rendered by the respondent No.1 in work charged capacity with State Government for determining qualifying service for purpose of pension. Further, the respondent No.1 had been directed to deposit the amount of Employee’s contributory Fund which he had received from appellants along with interest as per directions of Board before pension is released to him. All these directions indicated that HighCourt had come to conclusion that period of service rendered by respondent No.1 in work charged capacity under State Government should be taken into consideration for determining qualifying service for purpose of pension. Non-mention of such direction in the impugned judgment was merely a slip and the appellants could not derive any advantage from this. Appeal having no merit dismissed.
Result : Appeal dismissed.
JUDGMENT
J.M. Panchal, J. —
1. This appeal by special leave is directed against judgment dated January 25, 2006 by the Division Bench of the High Court of Punjab and Haryana at Chandigarh in LPA No.694 of 1995 by which the appellants have been directed to count previous service rendered by respondent No.1, Narata Singh, in the Departments of Punjab State as work charged employee for the purpose of determining qualifying service for pension payable to him as an employee of the Punjab State Electricity Board (for short, the ‘Board’).
2. The admitted facts which emerge from the record of the case are as under: The respondent No.1 worked with Irrigation and Power Department of the State of Punjab on work charged basis from February 1, 1952 to September 18, 1953. From September 25, 1953, he worked as work charged employee with the Bhakra Dam Project and resigned therefrom on January 27, 1962. He thereafter joined the Beas Dam Project on February 1, 1962 and worked at the said project till April 15, 1978 as work charged employee. He was retrenched from the said project with effect from April 15, 1978 and was paid retrenchment compensation of Rs.11,803.20 and gratuity of Rs.8559/- by the competent authority of the project. Bhakra Dam Project and Beas Dam Project are under the Department of Irrigation and Power, State of Punjab and, thus, even as per the appellants, the services rendered by the respondent No.1 as work charged employee in the two projects was, in fact, service under the State of Punjab. The appellant No. 1, i.e., Punjab State Electricity Board is a statutory body constituted under Section 5 of the Electricity (Supply) Act, 1948. The respondent No.1 was employed on work charged basis as a special foreman by the Board as a fresh appointee. He worked in the same capacity from August 6, 1982 to January 5, 1984. With effect from January 6, 1984, he was appointed on regular basis. He retired from the service of the Board with effect from July 31, 1990 on attaining the age of superannuation. The respondent No.1 thereafter moved a representation requesting the Board to grant him pension and other retiral benefits after taking into account the entire service rendered by him on work charged basis under the State Government. By an order dated January 25, 1991, the respondent No.1 was paid a sum of Rs.29,250/- being the amount payable to him as death-cum- retirement gratuity. The relevant regulation framed by the Board provides that an employee who has served for a minimum period of qualifying service of 10 years would be entitled to pension. The claim of the Board is that the respondent No.1 had served the Board for 7 years, 11 months and 25 days including the work charged service in the Board and was, therefore, not qualified for grant of pension. The claim of the respondent No.1 was that service rendered by him in the State of Punjab as work charged employee should be counted for determining qualifying service for the purpose of pension. Therefore, he instituted C.W.P. No.10911 of 1991 before the High Court of Punjab and Haryana seeking inclusion of work charged service for the purpose of determining qualifying service. A Division Bench of the Punjab and Haryana High Court at Chandigarh, vide order dated January 28, 1992, allowed the writ petition of the respondent No.1 and directed the Board to include work charged service rendered by the respondent No.1 with the State of Punjab for the purpose of determining qualifying service for grant of pension to him. It may be mentioned that the Board had issued a Finance Circular No.24/92 dated May 29, 1992 deciding to include the period of work charged service of an employee with the Board for the purpose of grant of pensionary benefits as well as for counting the said period for determining qualifying service for grant of pension. Feeling aggrieved by the said decision, the appellants filed special leave petition (C) No.7515 of 1992 before this Court. The said petition was allowed by
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