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2025 Supreme(Jhk) 2216

IN THE HIGH COURT OF JHARKHAND AT RANCHI
DEEPAK ROSHAN, J.
Alphonse Topno, son of John Topno – Appellant
Versus
The State of Jharkhand – Respondent 
W.P. (S) No. 752 of 2015
Decided on : 01-12-2025

Advocates Appeared:
For the Appellant : Mr. A.K.Das, Adv
For the Respondent: Mr. J.F.Toppo, G.A.-V Mr. Neil Abhijeet Toppo, A.C. to G.A.-V

State authorities are estopped from denying retiral benefits to employees of an aided institution when the state has consistently recognized their service and disbursed salaries throughout their tenure, as pension is a fundamental right not dependent on subsequent administrative classification of the institution.

Headnote:(A) Service Law - Pensionary benefits - Denial of claims based on date of institutional recognition - Principles of estoppal - Where the respondent-state has consistently recognized the services and disbursed salaries to employees of an educational institution since their appointment, it is precluded from denying retiral benefits such as pension and gratuity on the ground that the institution’s formal status was granted at a later date. (Paras 7, 11, 13)

(B) Pension - Constitutional right - Pension is a right and not a bounty flowing from statutory rules - It cannot be withheld without statutory authority and cannot be defeated by retroactive administrative objections regarding institutional status when service was otherwise accepted and paid for by the state. (Paras 10, 11)

Facts of the case:
The petitioners, former employees of an educational institution, sought payment of retiral dues including pension, gratuity, and leave encashment upon superannuation. The state authorities rejected the claims, contending that the institution did not possess official status for a portion of the service period and that appointments were not made directly by the government. The state had, however, consistently treated the institution as aided and paid salaries to the staff throughout their tenure.

Findings of Court:
The court observed that the state’s consistent practice of paying salaries and recognizing service established a valid employment relationship. The denial of retiral benefits after decades of service, solely based on administrative documentation regarding institutional status, was held to be arbitrary and unsustainable. The court further emphasized that pensioners are entitled to the fruits of their service as a matter of right.

Issues: The primary issue was whether the state, having acted as the primary paymaster for an educational institution's staff for many years, could subsequently deny retiral benefits by retroactively applying the date of official institutional recognition to exclude prior service years from calculation.

Ratio Decidendi: The state cannot take a contradictory stand by accepting the service of employees through continuous salary disbursement while simultaneously denying the consequential benefits of such service. Pension is a socio-economic right that cannot be withheld without clear statutory basis, and administrative failure to grant timely formal recognition to an institution shall not prejudice the rights of the employees who rendered service in good faith.

Result: Petition allowed.

Table of Content
1. initiation of writ proceedings and factual history of school recognition. (Para 1 , 2 , 3)
2. parties' contentions regarding salary arrears and retiral benefits. (Para 4 , 5 , 6)
3. application of precedent and established legal rights to pension/benefits. (Para 7 , 8 , 9 , 10)
4. final analysis of arbitrary state conduct leading to relief order. (Para 11 , 12 , 13 , 14)

JUDGMENT :

DEEPAK ROSHAN, J.

1. Heard the learned counsel for the parties.

2. The Petitioners herein have filed the instant writ Petition, inter-alia, praying therein for quashing the order dated 11.11.2014 (Annexure-13); issued under Memo No. 2083 by the Secretary, Human Resources Development Department, whereby the petitioners’ representation filed pursuant to this Court’s order dated 06.01.2014 in W.P.(S) No. 7516 of 2012 has been rejected, and for a further direction upon the respondent-authorities to release the petitioners’ arrears of salary for the periods February 1999 to May 2000 and February 2003 to October 2007, as well as to duly fix their pension and pay all consequential retiral dues, including pension, gratuity and leave encashment.

3. Brief Facts; -

(i) The Jayanti High School, Gangutoli, established by a minority community, was granted establishment permission vide Memo No. 4462-65 (Annexure-1) and was subsequently accorded permanent recognition on 04.04.1979 vide Memo No. 7753-58 (Annexure-2). Petitioner No. 1’s pay scale was fixed vide order dated 14.07.1980 (Annexure-3), and the State Govt. decided to pay the salary of all teaching and non- teaching employees of the school by way of grant-in-aid, and a Notification to that effect was issued by the District Education Officer, Simdega, vide order dated 07.06.1980 (Annexure-4). The Petitioner No. 1-4, and husband of Petitioner No. 5 were appointed in the year 1979, and since then they continuously received salary until January 2003, when it was stopped on the ground of absence of a formal minority-status notification. Thereafter, the State of Jharkhand, vide notification dated 28.09.2007 (Annexure-6), formally declared the School a minority institution, and salary resumed from October 2007.

(ii) Further facts reveals that the School has consistently functioned as a minority institution, and the State had been paying salaries to approved employees since 1980, except for February 1999–May 2000, prompting two staff members—Ramlakhan Ohdar and Lucas Kandulna—to file W.P.(S) No. 195 of 2006. Though their Writ Petition was dismissed, but their L.P.A. No. 267 of 2006 (Annexure-7) was allowed, and arrears up to 20.01.2006 were released. Likewise, three other employees, after dismissal of W.P.(S) No. 7078 of 2005, succeeded in L.P.A. No. 266 of 2006 (Annexure- 8), and upon filing Contempt Case (Civil) No. 272 of 2011 (Annexure-9), their dues were fully paid vide letter dated 26.06.2007.

(iii) Despite multiple representations, no action was taken on the Petitioners’ claims, leading to filing of W.P.(S) No. 7516 of 2012, which was disposed of on 06.01.2014 (Annexure-10) directing the Secretary, HRD Department, to decide the matter. Pursuant to the Petitioners’ representation (Annexure-11), the DEO, Simdega, submitted a report dated 05.07.2014 (Annexure-12) confirming that similarly situated employees had received arrears pursuant to the LPA orders and detailing the dues payable to the Petitioners, who had continuously served until superannuation.

However, the Secretary, HRD Department, vide order dated 11.11.2014 under Memo No. 2083 (Annexure-13), rejected the Petitioners’ claim relying solely on W.P.(S) No. 215 of 2010 concerning GEL High School, Kochidigha—despite the facts being entirely distinct. The Petitioners, unlike that case, had been receiving salary regularly since permanent recognition, and only the period February 2003–September 2007 reflects non-payment due to post-reorganization objections.

4. The 4th Respondent has filed it’s Counter-Affidavit stating about the Impugned order dated

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