IN THE HIGH COURT OF KERALA AT ERNAKULAM
A. MUHAMED MUSTAQUE, SHOBA ANNAMMA EAPEN, JJ.
State of Kerala – Petitioner
Versus
Jose Cyriac – Respondent
O.P. (KAT) No. 25 of 2016
Decided On : 31-01-2024
Pension Eligibility - Reckoning Prior Service - Kerala Service Rules - Rule 11 of Chapter II, Part III - Executive Orders - Statutory Provisions
Fact of the Case:
The case involves the eligibility of a retired Inspecting Assistant Commissioner to reckon prior service with the Rubber Board for pensionary benefits. The Kerala Administrative Tribunal ruled in favor of the respondent, allowing the prior service to be counted. The State challenged this ruling in the original petition.
Finding of the Court:
The court found that the respondent was not entitled to reckon his past service with the Rubber Board as qualifying service for pension in the State Government, as per the statutory provisions in the Kerala Service Rules.
Issues: The main issue was the interpretation of Rule 11 of Chapter II, Part III of the Kerala Service Rules and the applicability of executive orders versus statutory provisions in determining pension eligibility based on prior service.
Ratio Decidendi: The court held that the executive orders issued in 1987 ceased to have any force after 2002, as they were replaced by statutory provisions. The omission of Central Public Sector Undertakings from the statutory rule was decisive, and the respondent could not rely on the earlier government order. The court also rejected the argument that autonomous bodies were not excluded, stating that the unamended provision only referred to Central Public Sector Undertakings.
Final Decision: The court set aside the Tribunal's order and disposed of the original petition in favor of the State, ruling that the respondent was not entitled to reckon his prior service with the Rubber Board for pensionary benefits.
JUDGMENT :
A. MUHAMED MUSTAQUE, J.
1. The short issue in this case is the eligibility of the respondent-applicant who retired from the Commercial Taxes Department as Inspecting Assistant Commissioner on 31/10/2013 to reckon his prior service with the Rubber Board, a public sector autonomous body under Government of India, for pro rata pensionary benefits. The Kerala Administrative Tribunal (KAT) answered in favour of the respondent-applicant. It is challenging this order that the State has come up with this original petition.
2. The respondent-applicant joined the Commercial Taxes Department as Assistant Sales Tax Officers on 30/10/1991. He had worked in the Rubber Board from 9/2/1984 to 29/10/1991. Thus, he had 7 years, 8 months and 21 days service in the Rubber Board.
3. Under Rule 11 of Chapter II, Part III of the Kerala Service Rules (KSR), the Government is competent to declare that any specified kind of service rendered shall qualify for pension. The Government of Kerala as early as on 31/3/1987 issued an executive order that the Government employees who had prior service in Government of India/Autonomous Body, are allowed to count former service towards pension. Under note-2 to Rule 11 of Part III KSR, this benefit was statutorily recognised with effect from 12/11/2002. Thereafter, an amendment was brought on 22/11/2010 omitting Central Public Sector Undertakings from the ambit of note-2; it is appropriate to refer note-2 as stands now:
It is also appropriate to refer the gazette notifying the amendment which reads thus:
2. The symbol and words omitted by G.O. (P) 608/2010/Fin. dated 22-11-2010 published as SRO No. 1125/2010 in Kerala Gazette Extraordinary No. 2765 dated 03-12-2010. The amendment shall be deemed to have come into force on 12th November 2002. Omitted words ran as follows:
“Central Public Sector Undertakings”
4. The above amendment was brought into effect from 12/11/2002, that means, no employee will be entitled to claim for pension reckoning past service if he has retired with effect from 12/11/2002. There is no challenge against the amendment.
5. The learned State Attorney appearing for the petitioners submitted that the status of the Government employee is governed by the extant rules and there are no rights outside these rules. He placed reliance on the judgment of the Apex Court in Civil Appeal No. 9746/2011 and connected case, dated 20/5/2022 [See State of Himachal Pradesh and Others vs. Raj Kumar and Others, 2022 Live Law (SC) 502] and the judgment of the Apex Court in Roshan Lal Tandon and Another vs. Union of India and Another, 1967 KHC 764.
6. The learned State Attorney further placed reliance on the judgment of the Apex Court in Deokinandan Prasad vs. State of Bihar and Others, 1971 KHC 559 to buttress his argument that right to pension flows from rules and not from the order granting pension. Per contra, the learned counsel for the respondent-applicant pla
The main legal point established in the judgment is that statutory provisions supersede executive orders, and the omission of specific entities from statutory rules can be decisive in determining eli....
The court determined that prior service in a public sector cannot count as qualifying service for pension benefits under applicable laws.
Retrospective amendments to pension rules cannot divest vested rights of retired employees regarding pension calculations.
Service in Kendriya Vidyalaya Sangathan is not recognized for pension benefits as it is an autonomous body, not a Central Government entity.
Prior government service must be considered for pension computation if previously established by legal precedent.
Sandwiched non-qualifying service as break in two services is condonable and prior public service shall be reckoned as qualifying service for pension.
Prior Central Government service may be recognized for pension benefits despite breaks in service under specific conditions.
Service rendered in central public sector undertakings by government employees retiring after 12.11.2002 cannot be reckoned for pensionary benefits under the Kerala Service Rules, rendering claims fo....
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