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2016 Supreme(Online)(All) 72

ALLAHABAD HIGH COURT
Full Bench, J
Babu @ Babu Ram v. State of U. P. and 3 Others
W. A. No. 60352 of 2015



Work charged service does not qualify for pension under Regulation 370, affirming distinct status of work charged employees.

Headnote:(A) Civil Services Regulations - Regulation 370 - Work charged employees - Period of service in a work charged establishment cannot be counted towards qualifying service for pension purposes - This has been affirmed through multiple judgments including Jai Prakash and Narata Singh. (Paras 2, 5, 23).

(B) Legal status of work charged employees - They constitute a distinct class, differentiated from regular employees, thus not entitled to same service benefits or inclusion in qualifying service. (Paras 18, 22).

Facts of the case:
The Full Bench was convened to address a perceived conflict between Division Bench decisions regarding work charged employees' eligibility for pension based on their service type.

Findings of Court:
It was concluded that Regulation 370 expressly excludes work charged service from qualifying service calculations for pensions.

Issues: The core issue was whether service as a work charged employee qualifies towards pension calculations under Regulation 370.

Ratio Decidendi: The court resolved that work charged employees are distinct, with their service explicitly excluded under current regulations, thus relying on established precedents confirming this differentiation.

Result: The court upheld the established rule that work charged service does not qualify for pension benefits.

Table of Content
1. conflict in definitions of work charged employee status (Para 1 , 2)
2. judicial clarification on distinctions between service types (Para 3 , 4)
3. pension eligibility criteria set by specific regulations (Para 5 , 6)
4. legal exclusion of work charged service from qualifying for pension (Para 10 , 18)
5. final ruling on service qualification for pension under regulation (Para 23 , 24)

1. This reference has been placed before the Full Bench consequent to a learned Single Judge forming the opinion that a "serious conflict" existed between three Division Bench decisions of the Court. The issue arises with reference to the provisions of Regulation 370 of the Civil Services Regulations as applicable in the State of U.P. The issue is whether the period of service rendered as a work charged or a daily wage employee is liable to be counted for the purposes of computing “qualifying service” as required by Regulation 370 for the grant of pension. The judgments rendered by the Division Benches of the Court, which were noticed by the learned Single Judge, were: (a) State of U.P. And Others Vs. Panchu [Special Appeal Defective No. 842 of 2013 decided on 2.12.2013]; (b) State of U.P. And Others Vs. Ram Nagina Lal Srivastava, 2015 (8) ADJ 405 (DB); and (c) Navrang Lal Srivastava Vs. State of U.P. And Others , 2015 (7) ADJ 655 (DB). We note that the judgment rendered by the Division Bench in Panchu was duly noticed and explained in Jai Prakash Vs. State of U.P., 2014 (2) ADJ 169(DB) Ram Nagina Lal Srivastava and in Navrang Lal Srivastava and after noticing the entire body of precedent on the subject including the subsequent judgments rendered by the Supreme Court on the subject, the Division Benches held that the services rendered by an employee in a work charged establishment cannot be added for the purposes of computing qualifying service under Regulation 370. There was thus no conflict, let alone a "serious conflict”, which may have justified the reference being made to this Full Bench. We would have hoped that the subsequent judgments would have rendered a quietus to the entire controversy. However since the issue has been referred to the Full Bench we consider it appropriate to reiterate and reaffirm the principles enunciated in the subsequent judgments of the Court. A brief history and the background in which the issue itself arises.

2. A. STATUS OF A WORK CHARGED EMPLOYEE
The concept of a work charged employee, of service rendered in a work charged establishment and the distinction between regular service and service rendered in a work charge establishment has never really been in doubt in service jurisprudence. A Bench of three learned Judges of the Supreme Court in Jaswant Singh And Others v. Union of India And Others, 1979 (4) SCC 440 . The Supreme Court explained the service rendered in a work charged establishment and its status in the following terms:
"A workcharged establishment broadly means an establishment of which the expenses, including the wages and allowances of the staff, are chargeable to "works". The pay and allowances of employees who are borne on a workcharged establishment are generally shown as a separate subhead of the estimated cost of the work.
The entire strength of labour employed for the purposes of the Beas Project was workcharged. The workcharged employees are engaged on a temporary basis and their appointments are made for the execution of a specified work. From the very nature of their employment, their services automatically come to an end on the completion of the works for the sole purpose of which they are employed. They do not get any relief under the Payment of Gratuity Act nor do they receive any retrenchment benefits or any benefits under the Employees State Insurance Schemes."



3. Jaswant Singh and the principles laid down therein came to be reiterated by the Supreme Court in State of Rajasthan v. Kunji Raman, 1997 (2) SCC 517. Their Lordships held:
"6. A workcharged establishment

























































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