HP High Court Upholds Pension for Class-IV Employees with 8+ Years Service (Sunder Singh & Balo Devi); Class-III Claims Await SC Ruling on Roop Lal - 2025-05-19

Himachal Pradesh High Court Affirms Pension Rights for Class-IV Employees; Class-III Claims Pending SC Decision

Shimla , HP – January 03, 2025 – In a significant ruling impacting numerous retired government employees, the Himachal Pradesh High Court, presided over by Hon'ble Mr. Justice Ranjan Sharma , has affirmed the right to pension for Class-IV employees who have completed more than eight years of service, including weighted daily wage tenure. The decision, delivered on January 3, 2025, heavily relies on landmark Supreme Court judgments. However, similar claims by Class-III employees will be contingent upon the outcome of a Special Leave Petition (SLP) currently before the Supreme Court.

The High Court adjudicated a batch of 25 writ petitions, which were broadly categorized into three sets (Set 'A', 'B', and 'C') based on the specific reliefs sought and the class of employees.

Overview of the Cases

The petitioners, former Class-IV and Class-III employees of the Himachal Pradesh government, had approached the court after being denied pensionary benefits, primarily on the grounds that they had not completed the requisite 10 years of qualifying regular service as per the CCS (Pension) Rules, 1972. Many of these employees had rendered long years of service on a daily wage or work-charge basis before their services were regularized.

The core legal question revolved around the interpretation and application of previous Supreme Court and High Court rulings concerning the calculation of qualifying service for pension, particularly for those with significant periods of non-regular service.

Set 'A': Pension for Class-IV Employees based on Sunder Singh and Balo Devi

The first set of petitions, with Kansu Ram vs. The State of H.P. and others (CWPOA No.913 of 2020) as the lead case, involved Class-IV employees seeking pension from January 1, 2018. They relied on the Supreme Court's decisions in Sunder Singh (2018) and Balo Devi (2022) .

Arguments:

* Petitioners: Argued that their cases were squarely covered by the Sunder Singh and Balo Devi judgments, which established that for Class-IV employees, daily wage service should be given weightage (5 years daily wage = 1 year regular service). Crucially, if the total service (actual regular service + weighted daily wage service) exceeded 8 years but was less than 10, it should be reckoned as 10 years for pension eligibility.

* Respondents (State of HP): Contended that the petitioners had not completed 10 years of qualifying service under Rule 49(1) of the CCS (Pension) Rules, 1972. They also raised objections based on delay and laches.

Court's Analysis and Decision for Set 'A': Justice Ranjan Sharma , endorsing the petitioners' claims, held that the denial of pension was contrary to the Supreme Court's mandate. The Court emphasized the "doctrine of proportionate equality," consistent with Articles 14, 38, and 39 of the Constitution, as highlighted in Sunder Singh . The judgment stated: > "Denial of pension to the petitioners in case under Set-‘A’ [being Class-IV Retired Employees] w.e.f. 01.01.2018 is contrary to the mandate of law of the Hon’ble Supreme Court in Sunder Singh and Balo Devi [supra]." > "Rejection orders passed by respondents...denying pension due to non-completion of 10 years of qualifying service...is of no assistance to the State Authorities; when, the Hon’ble Supreme in cases of Sunder Singh and Balo Devi [supra] has held that the retired Class-IV Employees were eligible and entitled for pension w.e.f. 01.01.2018, if the length of service based on actual regular service and regular service arrived by giving weightage for daily waged service comes to a level of more than 8 years of regular service and by reckoning this 8 years as 10 years..."

The Court dismissed the plea of delay and laches, terming pension entitlement a "recurring cause every month."

Set 'B': Pension for Class-IV Employees with Added Benefit of Baldev Judgment

The second set, led by Ram Singh vs. State of H.P. and others (CWP No.9176 of 2024), also involved Class-IV employees. In addition to Sunder Singh and Balo Devi , these petitioners sought the benefit of the Himachal Pradesh High Court Full Bench judgment in Baldev vs. State of Himachal Pradesh (2022) . The Baldev judgment allowed for the notional extension of service up to 60 years (from 58 years) for Class-IV employees engaged before May 10, 2001, for the purpose of calculating pensionary benefits.

Arguments: * Petitioners: Claimed pension by combining the principles of Sunder Singh , Balo Devi , and the notional two-year service extension under Baldev .

* Respondents (State of HP): Argued that even with the Baldev benefit, some petitioners fell short of 10 years. They also contended that Sunder Singh benefits were only for those engaged before December 31, 1993.

Court's Analysis and Decision for Set 'B': The Court allowed these petitions, finding that the petitioners were entitled to the Baldev judgment's benefits. The Court rejected the State's attempt to limit the Sunder Singh ruling: > "The artificial distinction which is now sought to be carved out in Reply-Affidavit that pension is admissible to those daily wagers who were engaged before 31.12.1993 amounts to carving out a class within one homogenous class of Class-IV Employees, without any rationale and in these circumstances, this plea is declared, illegal."

The Court also took judicial notice of the State Government's restoration of the Old Pension Scheme and affirmed that pension is a property right under Article 300-A of the Constitution.

Set 'C': Pension Claims by Class-III Employees based on Roop Lal

The third set of cases, with Kasho Devi vs. State of H.P. and others (CWP No.8524 of 2023) as the lead, involved Class-III employees seeking pensionary benefits on an analogy with Class-IV employees, citing the Division Bench judgment of the HP High Court in Roop Lal vs. State of H.P. & Others (2023) .

Arguments:

* Petitioners: Sought extension of similar pensionary benefits as granted to Class-IV employees, based on the Roop Lal precedent.

* Respondents (State of HP): Pointed out that the Roop Lal judgment was currently stayed by the Supreme Court, with an SLP (No.1007 of 2024) pending. They argued that Sunder Singh was specific to Class-IV employees.

Court's Decision for Set 'C': Given the pending SLP and stay, the Court disposed of these petitions with a conditional direction: > "Respondents-State authorities shall abide by the claim of admissibility and entitlement for pension, in case of Class-III employees in terms of the mandate of the judgment, to be passed by the Hon’ble Supreme Court, in SLP No.1007 of 2024 in Roop Lal ’s case [supra]."

Final Directions

The High Court issued the following key directions:

* For Set 'A' and Set 'B' (Class-IV Employees): Petitions were allowed. The State Authorities were directed to release pension (or family pension) to the petitioners w.e.f. January 1, 2018, with all consequential benefits, calculated as per the principles laid down in Sunder Singh , Balo Devi , and Baldev (for Set 'B').

* For Set 'C' (Class-III Employees): Petitions were disposed of. The benefit of pension w.e.f. January 1, 2018, is subject to the final outcome of SLP No.1007 of 2024 ( State of Himachal Pradesh & Ors. vs. Roop Lal ) pending before the Supreme Court.

* Arrears: For both Set 'A' and Set 'B', while pension accrues from January 1, 2018, actual monetary benefits (arrears) are restricted to a period of three years preceding the filing of their respective petitions.

This judgment provides significant relief to many retired Class-IV government employees in Himachal Pradesh , reinforcing the principles of social justice and proportionate equality in pension matters. The fate of Class-III employees with similar grievances now rests on the upcoming Supreme Court decision in the Roop Lal case.