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2026 Supreme(Online)(AP) 12411

HIGH COURT OF ANDHRA PRADESH
Challa Gunaranjan, J
K. Naveneetham – Appellant
Versus
Government Of Andhra Pradesh – Respondent
WRIT PETITION NO: 13045 of 2007



Advocates:
For the Appellants/Petitioners: Mr.K R PRABHAKAR
For the Respondents: Mr.T VENU GOPAL SC FOR ENDOWMENTS (RAYALASEEMA REGION), GP FOR ENDOWMENTS (AP), Mr.ARAVALA RAMA RAO (SC FOR APSRTC)

Pensionary benefits are not an inherent right but are governed by specific statutes or employment schemes; employees who voluntarily accept terms of absorption, which include substitute social security benefits like EPF and Gratuity in lieu of pension, are precluded from claiming pension benefits retrospectively.

Headnote:(A) A.P. Charitable and Hindu Religious Institutions and Endowments Act, 1966 - Section 31(3) - Industrial Disputes Act - Section 25FF - Employees Provident Fund Act, 1952 - Section 17-B - Transfer of transport wing employees to Corporation - Claim for pensionary benefits based on prior service - Employees absorbed into Corporation under specific tripartite agreement providing for Gratuity and EPF in lieu of other benefits - Employees accepted terms of transfer and received gratuity and EPF benefits - Whether employees can claim pensionary benefits retrospectively after retirement. (Paras 2, 9, 10, 13)

(B) Service Law - Pension - Entitlement to pension is not an inherent right but must be governed by specific statutory rules or schemes - Where employees accept absorption terms in a new organization that provide for alternative social security schemes like EPF and Gratuity, they cannot subsequently claim pensionary benefits for their past service in the parent organization unless there is a specific legal mandate for such conversion. (Paras 14, 15, 17, 18)

Facts of the case:
The petitioners were employees of the transport wing of a Devasthanam. In 1989, due to financial constraints of the Devasthanam, the transport wing was transferred to the APSRTC via a tripartite arrangement. The petitioners accepted the terms of transfer, which included pay protection and benefits under the Gratuity Act and EPF, but did not include pensionary benefits. After retiring, the petitioners filed the current writ petition claiming pensionary benefits for their past service with the Devasthanam, arguing parity with other employees who received such benefits.

Findings of Court:
The court held that the transfer was valid under Section 25FF of the Industrial Disputes Act and that the petitioners had accepted the terms of the transfer, which were meant to safeguard their financial interests through Gratuity and EPF. The court further clarified that the precedent relied upon by the petitioners involved different facts (right to repatriate) and is inapplicable here.

Issues: Whether the petitioners are entitled to pensionary benefits for their service rendered with the Devasthanam prior to their absorption into the Corporation.

Ratio Decidendi: Pensionary benefits are not automatic and depend on the existence of a specific scheme. Since the petitioners were participants in a negotiated transfer agreement that substituted pension with EPF and Gratuity, and they had already received those substitute benefits, they failed to demonstrate any legal right to claim pension for the period of their past service.

Result: Writ petition dismissed.

Table of Content
1. overview of the dispute regarding the denial of pensionary benefits to transferred transport employees. (Para 1 , 2 , 3)
2. summary of rival arguments concerning entitlement to pension versus substitute retirement benefits. (Para 4 , 5 , 6)
3. examination of the transfer agreement terms and the legal validity of the absorption process. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15)
4. distinguishing prior precedents and concluding that the claim for pension lacks legal basis. (Para 16 , 17 , 18 , 19)

ORDER:

Present writ petition is filed questioning the inaction of respondents in granting pensionary benefits to the petitioners for the service rendered with 3rd respondent – Devasthanam to be illegal, arbitrary and contrary to G.O.Ms.No.680, Revenue (Endts.III) Department, dated 15.07.1987 and consequently to direct the respondents to pay the pensionary benefits with all consequential benefits.

2. (a) Petitioners stated to have been initially joined in the transport wing maintained by 3rd respondent Devasthanam as drivers, conductors, mechanics, attenders etc. It is stated that they were extended revised pay scales, granting HRA and other increments. Initially, the employees of 3rd respondent Devasthanam were not covered by pensionary benefits. By virtue of G.O.Ms.No.201, dated 12.02.1982, the Government has issued orders, thereby, the employees working in eight temples, including 3rd respondent temple were directed to be extended the pay scales, HRA, TA, LTC, Family Planning Incentives, Surrender Leave, Medical Reimbursement, Promotions and Extension of Fundamental Rules as applicable to the Government employees and to that extent, Rules be framed under Section 31(3) of A.P. Charitable and Hindu Religious Institutions and Endowments Act, 1966 .

(b) Subsequently, the Government had issued G.O.Ms.No.680, Revenue (Endts.III) Department, dated 15.07.1987, to even extend the benefit of revised pension Rules, 1980, with effect from the year 1982 to the employees of various Devasthanams, also included the 3rd respondent Devasthanam. That being so, the transport wing of 3rd respondent Devasthanam was proposed to be merged with 4th respondent Corporation as it was felt that the Devasthanam was not in a position to handle the operations any further and therefore, vide G.O.Ms.No.977, dated 30.09.1989, the Government had ordered for transfer of the transport wing of the 3rd respondent Devasthanam to the 4th respondent Corporation w.e.f. 01.10.1989.

(c) All the petitioners eventually stated to have been transferred and got absorbed in the services of 4th respondent Corporation. Petitioners have joined the services of 4th respondent Corporation and majority of them have attained age of superannuation, and at that juncture, representation dated 13.06.2006 was made to the Secretary, Endowments Department, ventilating the grievance that they were deprived of pensionary benefits in lieu of their services being absorbed in 4th respondent Corporation and therefore, requested for grant of pension for the services rendered in 3rd respondent Devasthanam. As there was no response to the said representation, petitioners chose to file present writ petition.

3. (a) Initially, the writ petition was preferred against respondents 1 to 3, however, when the 3rd respondent Devasthanam has taken objection regarding non-joinder of necessary parties, 4th respondent Corporation was sought to be impleaded vide I.A. No.1 of 2024, which eventually came to be ordered on 19.06.2024. Both respondents 3 and 4 have filed counters opposing the prayer in the writ petition.

(b) In sum and substance, the stand of respondents has been that the transfer of petitioners was in pursuance to a tripartite arrangement between 3rd respondent and 4th respondent and the employees working in the transport department who were sought to be transferred and in pursuance to Minutes dated 29.05.1989, the terms and conditions of arrangement were agreed to, therefore, any claim m

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