The court established that the exclusion of employees from pension rules based on their receipt of pension from local funds and non-contribution to the pension fund was valid and constitutional.

1. - The notification dated 8.9.1989 (Exhibit-2 to the writ petition), excluding the applicability of the Rajasthan Municipal Services (Pension) Rules, 1989 (for short, hereinafter referred to as the Rules'), in particular, to the employees of the Ajmer-Merwara Municipalities (for short, hereinafter referred to as "Municipalities") appointed before 1.11.1956 and 1.11.1956 to 1.8.1970, is the subject matter of impingement in the present proceedings.

2. We have heard Mr. Sunil Samdaria, learned counsel for the petitioner and Mr. S. N. Kumawat, Additional Advocate General, Mr. B. K. Sharma and Mr. S. V. Sharma for the respondents.

3. The petitioner is a registered Union representing the concerned employees of the Municipalities. It is stated that the City of Beawar initially was a part of the erstwhile Ajmer State, which was subsequently, with effect from 1.11.1956, merged with the State of Rajasthan. The employees of the erstwhile Municipal Council, Beawar however, continued to be governed by the Central Laws and Rules, as applicable to them, before such merger. Prior to the promulgation of the Rajasthan Municipalities Act, 1959 (for short hereinafter referred to as the Act'), Ajmer Merwara Municipalities Regulations, 1925 were applicable to the employees of the municipalities of the then Ajmer Merwara, which included the Municipal Council, Beawar.

4. According to the petitioner, with the enactment of the Act, the respondent-Council was integrated with the other municipalities in the State with effect from the date of its enforcement i.e.17.10.1959. Consequent upon such enactment, amongst others, Ajmer Merwara Regulations were repealed and in terms of Section 2 of the Act, all Councils and Boards. established and constituted under the laws and enactments so repealed, were construed to be established and constituted thereunder, it was thereafter, that the Rajasthan Municipalities (Contributory Provident Fund and Gratuity) Rules, 1969 (for short, hereinafter referred to as 1969 Rules'), were promulgated with effect from 2.8.1970. The petitioner has insisted that in terms of the proviso to Rule 4 thereof, the municipal employees governed by the erstwhile Ajmer Merwara Provident Fund Rules, 1937, were excluded from the purview of the application thereof and thus, there was no scope for them to make any provident fund contribution. It referred to an order dated 26.5.1984 of the respondent State providing for the grant of benefit of pension to the following categories of employees of the erstwhile Ajmer Merwara area, who had been appointed or retired before the enforcement of the 1969 Rules, from the funds of the respective municipal board/council :

(1) Employees appointed before 1.11.1956 and those who had retired and would be so retired.

(2) Employees who had been appointed between 1.11.1956 and 1.8.1970 or those who have meanwhile retired from service.

5. The order also mentioned that those who had been appointed on or after 2.8.1970, would not be entitled to pension. It was clarified as well that in cases of officers and employees who had offered their share to the contributory provident fund, some interest thereon would first be deposited in the municipal account, where after the pension due, would be released to them. The impugned notification was issued thereafter incorporating sub-rule (2) in Rule 4 of the Rules as hereunder :

"In exercise of the powers conferred under Rule 24 of the Rajasthan Municipal Services (Pension) Rules, 1989, the Governor has been pleased to make the following amendments in these rules namely : In Rule 4 of the said Rules, the following shall be added as Para 2 after the existing Para :

(i) the employees of Kota Municipal Council appointed in between the period from 1.4.51 to 9.7.56.

(ii) Employees of Ajmer-Merwara Municipalities appointed prior to 1.11.56 and the employees appointed from 1.11.56 to 1.8.70.
By order of the Governor Sd./Illegible Secy, to Govt. L.S.G. Deptt.

No. F.3 (25) DLB/Pension/P