The court held that NIACL's actions in rejecting the Appellant's voluntary retirement applications and subsequent disciplinary action were unreasonable and arbitrary, leading to the quashing of the charge sheet and the Appellant's entitlement to retirement benefits. The Central Government was directed to decide on the Appellant's request for counting past service for pensionary benefits.

SANJEEV NARULA, J.

1. The present appeals under clause X of Letters patent appeal are directed against the common judgment dated 29th July, 2015 whereby the learned Single Judge disposed of Writ Petitions No. 3416/2002 and 10209/2009.

2. Shri. P.C. Sekhar, the Appellant in LPA No. 656/2015 (hereinafter referred to as ‘the Appellant’) has succeeded in both the writ petitions and the learned Single Judge has quashed the charge sheet issued against him and allowed the Appellant to voluntary retire with effect from 12th September, 2005 along with consequential benefits with effect from the said date. Thus, in LPA No. 656/2015, the Appellant has a limited challenge. He is seeking directions against the Respondent-the New India Assurance Company Limited (hereinafter referred to as ‘NIACL’), for grant of retirement benefits under Special Voluntary Retirement Scheme 2004 (hereinafter referred to as ‘SVRS’) up till the date of his illegal removal; consequential benefits; and claim of counting of his past services. The NIACL, on the other hand, in LPA No. 657/2015 seeks the setting aside of the impugned judgment dated 29th July, 2015.

Background Facts

3. It would be apposite to note the facts in detail, since the present case has a long and chequered history.

4. On account of the death of the father of the Appellant, the Ministry of Commerce, Government of India (Respondent no. 3 in LPA 656/2015) by order dated 7th August, 1979 gave him compassionate appointment in the Central Government as an ‘Investigator’ in the pay scale of Rs.425-700/- along with allowances. He was appointed on substantive basis on 13th January, 1982.

5. The Appellant is a qualified chartered accountant. While serving in the Ministry of Commerce, on an opportunity being available, he applied for the post of Assistant Administrative Officer (AAO) in the pay scale of Rs.530-1050/- with NIACL, a subsidiary of General Insurance Corporation of India. He was successful and got appointed with NIACL on 12th March, 1986 on probation for a period of one year. The Appellant submitted a technical resignation in the Ministry of Commerce (Government of India) on 10th March, 1986. He did not receive any retirement benefits for the service by him rendered with the Government of India up to the date of submission of his technical resignation i.e. 10th March, 1986.

6. Till 12th March, 1986, the date of appointment with NIACL, there was no pension scheme in NIACL. Later, on 28th June, 1995, NIACL introduced the General Insurance (Employees') Pension Scheme (hereinafter, referred to as the Pension Scheme 1995).

7. The Appellant’s service was confirmed with NIACL as Assistant Administrative Officer (AAO). On 22nd August, 1996, he made a representation to NIACL for counting of his past service rendered with Ministry of Commerce, Government of India. The representations were rejected by NIACL by letter dated 17th April, 1998 stating that the appointment of the Appellant in the services of NIACL was through open competition and not by way of transfer by Government of India on permanent absorption basis and therefore it was not possible to consider his request. Dissatisfied with the rejection of his request, the Appellant made a further representation dated 12th May, 1998 to NIACL with a request that the same be forwarded to Ministry of Personnel, Public Grievances and Pensions. No response was received to the aforesaid representation.

8. In the meantime, on 9th January, 1999, the Appellant sought voluntary retirement from NIACL under the Pension Scheme, 1995 on the ground that he had completed 20 years of service. This was followed by another request on 8th February, 1999. This request was rejected by NIACL by letter dated 11th May, 1999. Since there was no provision in the Pension Scheme, 1995 to add the benefit of the past service rendered with the Ministry of Commerce, Government of India, NIACL maintained its stand and, on 20th December, 2001, another communication was sent to the Ap