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2024 Supreme(Pat) 573

IN THE HIGH COURT OF JUDICATURE AT PATNA
K. VINOD CHANDRAN, CJ. and PARTHA SARTHY, J.
CWJC Nos. 644 of 2023 with 10463, 17263, 20846, 22613 of 2018
(27.8.2024)
Dr. Shiv Deo Singh & Anr.(in 644)
Md. Habib & Ors. (in 10463)
Ashutosh Kumar Thakur (in 17263)
Mahashottam Jha (in 20846)
Braj Nath Thakur & Anr. (in 22613)
vs.
State of Bihar & Ors. ... Respondents
(in all)

Advocates:
For the Petitioners: M/s Mrigank Mauli, Sr. Adv., Krishna Chandra (in 644); Nikhil Kumar Agrawal, Aditi Hansaria (in 10463, 20846); Abhinav Shrivastava, Roshan Kumar Mishra (in 17263); Kumar Kaushik (in 22613).
For the State : Mr. Pawan Kumar, A.C. to AG (in 644); P.K. Shahi, AG, Vikas Kumar(in 10463, 20846); Mrigendra Kumar, AC to GP-20 (in 10463); Subhash Chandra Mishra, SC-16 (in 17263); Raghwanand, GA-11, Pratik Kumar, AC to GA-11 (in 22613).
For the LNMI : M/s Ravindra Kumar Shukla, Ritu Raj Shukla, Pratyush Pratap Singh (in 644, 10463, 17263, 20846); R.K.Shukla (in 22613).
For Resp. Nos. 6 & 7 : M/s R.K.Shukla, Manish (in 22613.
For the Acctt. Gen. : Mr. Chaitnya Swaroop(in 22613).

Headnote:

Bihar Private Educational Institutions (Taking Over) Act, 1987 – Section 3 and 11(1) & Lalit Narayan Mishra Institute of Economic Development and Social Change Service Condition Rules, 2017 – Rule 9 – Old pension Scheme and New Pension Rules applicability to L.N. Mishra Institute Employees – Rule 9 provided for regular employees appointed and working prior to 01.09.2025 to be governed by the Old Pension Scheme and the Bihar General Provident Fund Scheme while those appointed after 01.09.2005 would be governed by New Pension Rules determined by the State Government – There is a dichotomy insofar as the employees of L.N. Mishra Institute; both the teaching and non-teaching included, insofar as the persons who retired between the date of original notification bring in the Rules of 2017 and 23.07.2024, when Rule 9 stood amended by a notification in the Official Gazettee – The former would be entitled to Pension and the later will have to challenge the amendment now carried out – The Rules of 2017, with Rule 9 as originally framed would be applicable to all those persons, who retired between the interrugnum – Insofar as the persons, who are still serving, necessarily the amendment made would apply; subject only to any challenge made by them, while declaring the eligibility to pension under the Old Scheme, for all those persons regularly absorbed to the services of the L.N. Mishra Institute after its takeover, regularized prior to 01.09.2005, who also retired between the Gazette notification of Rules of 2017 and 23.07.2024; it was left to the serving employees to challenge the amendment made as per the Official Gazette notification issued on 23.07.2024. (Paras 30 & 31)

Lalit Narayan Mishra Institute of Economic Development and Social Change Service Condition Rules, 2017 – Rule 1 – Status of the petitioners, some of them having been in service of the Institute prior to the takeover and the others appointed after the takeover – As per sub-rule (4), it extends to the entire Institute and its employees; to which it is confined – It also takes in those whole-time working teachers/non-teaching employees who were in the service of the Institute at the time of takeover – There is absolutely no dichotomy in status of employment of those existing at the time of takeover and those appointed later; if the former had been adjusted as per Section 6 of the Bihar Private Educational Institutions (Taking Over) Act, 1987 in the service of the State Government, for the purpose of application of the Rule – The Rule applies to all the employees of the Institute, those regularized after takeover and those appointed thereafter. (Para 37)

State of H.P. Vs. Rajesh Chander Sood, (2016) 10 SCC 77; Punjab State Coop. Agricultural Development Bank Ltd. Vs. Coop. Societies, (2022) 4 SCC 363; G. Sadasivan Nair Vs. Cochin University of Science & Technology, 2022 (1) BLJ 118 (SC) : (2022) 4 SCC 404; Railway Board Vs. C.R. Rangadhamaiah, (1997) 6 SCC 623 – Relied.

Employee's State Insurance Corporation Vs. Union of India, (2022) 11 SCC 392; Union of India Vs. G.S. Chatha Rice Mills, (2021) 2 SCC 209; I.T.C. Bhadrachalam Paperboards Vs. Mandal Revenue Officer, (1996) 6 SCC 634; Dr. Punam Singh Vs. State of Bihar, 2024(2) BLJ 713 – Referred.

K. Vinod Chandran, CJ.—The challenge raised in the batch of writ petitions; by the teaching and non-teaching staff of the Lalit Narayan Mishra Institute of Economic Development and Social Change, Patna ('L.N Mishra Institute' for short), is to the sustainability of the amendment to the rules regulating service conditions brought out by notification dated 19.12.2017, produced as Annexure-6 in CWJC No. 644 of 2023. By the said notification the benefit of pension as per the Old Pension Scheme, as applicable to the Government employees, which was made applicable to the teaching and non-teaching staff of the L.N Mishra Institute by the Lalit Narayan Mishra Institute of Economic Development and Social Change Institute Service Condition Rules, 2017 (Rules of 2017, for short) was amended and modified to one under the Provident Fund Scheme. The petitioners, all of whom are/were the employees of the L.N Mishra Institute prior to 01.09.2005, claim that the notification at Annexure-6 cannot take away their vested rights to pension on superannuation, brought in by the Rules of 2017.

2. Mr. Mrigank Mauli, learned Senior Counsel appeared for the petitioners in CWJC No. 644 of 2023, the first of whom has already retired in March-2024 and the second petitioner is still in service. It is pointed out that the Institute was taken over by the State under the Bihar Private Educational Institutions (Taking Over) Act, 1987 ('Act of 1987' for short) produced as Annexure-1 in CWJC No. 644 of 2023. Even before the said enactment, there was an Ordinance by which the take-over was effected which culminated in the Act of 1987. As per Section 3, the L.N Mishra Institute, which alone was scheduled in the Act, stood vested absolutely in the State Government. Section 6 provided for the manner of determination of the terms of service of the teaching and other employees of the L.N Mishra Institute. The statutory requirement was the appointment of a Committee of Experts to examine the credentials of each member of the teaching and non-teaching staff and based on the Committee's recommendation, to decide as to whether the individuals should be absorbed into the service of the L.N Mishra Institute or not. As per the statutory mandate, Committees were formed and the writ petitioners were regularized and absorbed into the service of the Government as per Annexure-12 produced in the supplementary affidavit filed. The petitioners herein are at Serial No. 3 and 5 having been regularized respectively from their date of appointment i.e.18.04.1986 and 17.08.1987. The recommendation which led to their regularization is produced at Annexure-3 to the writ petition which is a report of 15.10.2007.

3. While the petitioners were continuing so, the Executive Government made the Rules of 2017 as empowered under Section-11(1) of the Act of 1987. The translation of Annexure-4 i.e. the Rules of 2017 is produced along with the supplementary affidavit. Rule-9 provided for regular employees appointed and working prior to 01.09.2005 to be governed by the Old Pension Scheme and by the Bihar General Provident Fund Scheme while those appointed after 01.09.2005 would be governed by the New Pension Rules determined by the State Government. A few days later, by Annexure-5, Rule 9 was kept in abeyance and subsequently by Annexure-6 in the year 2017 itself, it was amended taking away the benefit of pension conferred on the employees of the L.N. Mishra Institute, as was available to the Government employees.

4. It is argued that Annexure-5 was a letter issued by the Secretary and not one emanating from the Government or issued under the authority of the Governor. Employee's State Insurance Corporation vs. Union of India and Others reported in (2022) 11 SCC 392 was relied on to argue that when there is a conflict between the executive instruction or an office memorandum and statutory regulations, the latter would prevail. Annexure-6 is also asserted to be not notified in the Gazette which makes the a

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