IN THE HIGH COURT OF JUDICATURE AT PATNA
K. VINOD CHANDRAN, CJ. and RAJIV ROY, J.
LPA No.1293 of 2019 in CWJC No.6834 of 2017
(17.10.2023)
State of Bihar & Ors. ... Appellants
vs.
Chanarik Baitha & Anr. ... Respondents
Service Law – Pensionary benefits – First respondent who was working in a Public Sector Undertaking was sent on deputation to a government department and work was extracted from him for a long period, as is done from any other government employee – Instant deputation was not a simple deputation as normally understood in service jurisprudence rather it had an element of rehabilitation – State also benefited from same since otherwise by reason of excess employees in PSUs they would have collapsed immediately and such PSUs would have had responsibility to retrench its employees with suitable compensation – Deputation granted by State, to its own departments was on a definite policy framed by Government which while providing succour to employees of PSUs also ensured that already unviable PSUs were not saddled with further financial burden – Writ Court rightly directed authority to treat respondent petitioner to have been absorbed on and from date of deputation and be granted pensionary benefit in terms of pension rule operational at that time – Letters Patent Appeal dismissed with exemplary cost of Rs. 10,000/- payable to first respondent together with other retirement dues. (Paras 25, 26, 30 and 31)
K. Vinod Chandran, CJ. – The obstinate recalcitrance of the State Government, very evident from the above appeal filed, is to deny the first respondent pension to live a peaceful retired life, as a government employee, despite having succeeded in the various litigations before this Court. The learned Single Judge directed that the writ petitioner, the first respondent herein, should be treated to have been absorbed on and from the date of deputation and should be granted the pensionary benefits in terms of the pension rules which were operational at the relevant time. The main plank of the State in challenging the impugned judgment is the decision of the Hon’ble Supreme Court in an appeal from the order in L.P.A. No. 608 of 2006 and connected matters preferred by the State of Jharkhand, which judgment (in L.P.A) was consistently relied on by various Benches of this Court to allow the claim of the respondent and other similarly situated deputationists.
2. We need to look at the various judgments as available from the records before we look at the facts of the case. The admitted facts are that many of the public sector undertakings (PSUs) floated by the State failed to achieve the desired objects and purposes and in course of time became dysfunctional, having suffered huge losses, making their continuation a burden on the exchequer. Faced with the prospect of closing down, the State at first resorted to pruning of manpower and permitted deputations to be carried out so that the personnel of these PSUs/Corporations were accommodated in government departments. A selection procedure was resorted to and many of the excess personnel were accommodated in the various departments, wherein, based on their satisfactory performance the deputations were extended. Some of them were regularly absorbed in the Government but others were denied such absorption.
3. Such regularization on mere whim and caprice also led to repatriations to the parent department wherein the deputationists would be denied of pension; especially when cancellation of deputation resulting in the repatriations was made just prior to retirement and to dysfunctional entities. Solitary cases taken up by those employees whose deputations were cancelled were allowed by this Court. But a batch of such cases were dismissed by the learned Single Judge which led to appeals being filed, eight of which were disposed of by judgment dated 19.04.2010 in LPA No. 608 of 2006 and connected matters (Avinash Vatsyayan vs. The State of Bihar & Ors.).
4. In L.P.A 608 of 2006 and connected cases, the appellants who were also the writ-petitioners and employees of a Cooperative Society (the BISCOMAUN) in which at the relevant time, there was an Administrator appointed. The appellants were sent on deputation to Government departments because of the poor financial condition of the Society, its very viability having been threatened by its dismal performance. The learned Single Judge found that the deputation of petitioners to the Government departments, which saved their employment, could only be treated as any other deputation, liable for repatriation to the parent Organization at any time. The State Government’s stand that there was never a decision taken to absorb those who were on deputation, which itself was a temporary measure, was accepted by the Writ Court.
5. The Division Bench of this Court found that though there was no formal notification of the government policy to transfer the services of the petitioners to the government departments, the mere term employed, of deputation cannot deprive them of the benefit of the policy which has been extended to many similarly situated persons.
6. There were also judgments of this Court, though in solitary instances, wherein similar deputation of employees under the government policy decision, culminated in their absorption enabling every benefit due to a government employee on superannuation; reckoning the period spent on such deputation as government s
State of Bihar vs. Gopal Prasad
Md. Amanullah vs. State of Bihar
The petitioner was entitled to the 6th pay revision as applicable to regular employees, as per the judgment in Bihar State Beverages Corporation Limited and Others vs. Naresh Kumar Mishra and Others.
Point of Law : A person cannot be deprived of this pension without the authority of law, which is the Constitutional mandate enshrined in Article 300 A of the Constitution.
The court reaffirmed that employees on extended deputation due to closure of parent organizations may be entitled to retirement benefits and regularization, under principles of equal treatment in emp....
Appointments on deputation do not confer a right to continue beyond the specified term, and the distinction between transfer and appointment on deputation is significant.
Pension calculations for deputationists must exclude deputation allowances, relying solely on average emoluments from the parent bank as per applicable regulations.
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