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2005 Supreme(Pat) 1030

PATNA HIGH COURT
Aftab Alam and Rekha Kumari JJ.
Secretary, Finance (National Savings) Department, Government Of Bihar
Versus
Vinod Kumar
Letters Patent Appeal No. 834 of 2004 ;
Decided On : DECEMBER 1, 2005

Headnote:Service law-Pension-Service renderad under the corporation can not be added to the service under the State Government for computation of retiral dues and pension-A corporation is held to be an instrumentality or agency of the State under Article 12 of the Constitution and consequently it is made answerable like the State for violation of any fundamental rights enshrined under Part III of the constitution-But the parallel between the Govt. and the corporation ends there and a corporation is certainly not at par with the Govt. in matter relating to service conditions including payment of retiral dues and pension to its employees-Claim to add service rendered under the corporation, as part of service with the State Govt. for the purpose of retiral dues and pension is, unfounded and cannot be allowed. (Para 12)

       AIR 1970 SC 82, (2003)5 SCC 163, (2003)6 SCC 1, CWJC No. 11957/2001/ CWJC 120 48/98-Referred to.

       

Judgment

1. This appeal is directed against the judgment and order by which a learned Single Judge allowed the writ petition filed by the writ petitioner-respondent no. 1 and directed the State Government and its concerned authorities to fix his retiral dues, and to grant him Pension taking into account the service rendered by him under the Bihar State Agro Industries Development Corporation Limited.

2. The facts of the case are simple and without controversy. The writ petitioner respondent no. 1 was appointed as a Senior Clerk in the Bihar State Agro Industries Development Corporation Limited on 22.8.1967. It is one of the State Governments Corporations that became moribund and were unable for a long time even to pay salaries to their employees. It was in those circumstances that on 20.4.1998 the writ petitioner-respondent no. 1 came to work on deputation as an Accountant in the Finance (National Savings) Department of the State Government. It may be noted here that the post of Section Officer in the Corporation, which the writ petitioner-respondent no. 1 had reached by that time carried a higher scale of pay than what was admissible to the Accountant in the State Government. But in the Corporation, the writ petitioner-respondent no. 1 would not get his salary. Hence, he consented to work in the State Government on deputation in a lower scale of pay. After working on deputation for about a year, the writ petitioner-respondent no. 1 was given the offer of absorption on the vacant post of Accountant on a temporary basis on certain conditions vide office order issued under memo no. 246 dated 5.4.1999. One of the conditions was that he would be given the pay scale of the Accountant at the initial stage and the first annual increment would be due on completion of one year from the date of his joining pursuant to absorption. The other condition was that he should gave a declaration in writing that he would not demand from the Department/State Government the pay scale of his parent organizations or his dues etc. there. The writ petitioner-respondent no. 1 gave the written declaration as asked for in which he stated that he would not demand from the Department/State Government the pay scale of his parent organization nor his seniority or dues of any kind there. He was then appointed as an Accountant in the aforementioned Department. About four years later, he superannuated on 30.11.2003. The period of his service with the State Government being less than ten years, the writ petitioner-respondent no. 1 was not entitled to any pension in terms of Government Resolution No. 3014, dated 31.7.1980. He was, accordingly, paid his G.P.F. amount and the retiral dues under other heads for his service with the State Government.

3. The writ petitioner-respondent no. 1 made an application making the request to take into account the period of service rendered by him under the Corporation for the purpose of his retiral dues, including pension. The request was rejected by Officer order issued under Memo No. 632, dated 12.6.2004. This led him to come to this Court in C.W.J.C. No. 6037 of 2004 seeking a direction to the State Government and its authorities to take into account the service rendered by him under the Corporation for fixing his retiral dues, including pension. The writ petition was allowed by judgment and order coming under appeal.

4. The learned Single Judge allowed the writ petition relying upon an earlier decision dated 27.11.2001 in Ramashish Rajak V/s. State & Ors. (C.W.J.C. No 11957 of 2001) which in turn had followed the decision dated 31.8.2000 in Prem Prakash V/s. State of Bihar & Ors. (C.W.J.C. No. 12048 of 1998). Apart from the two decisions, the learned Single Judge, accepted the plea made on behalf of the respondent no. 1 that the Bihar State Agro Industries Development Corporation Limited being a State Government Undertaking was an instrumentality of the State and, therefore, the service rendered at the Corporation must be tak



















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