Regularised Staff’s Past Service Counts for Pension: SC
The Supreme Court has emphasised that under the Central Civil Services (Pension) Rules, 1972, though Rule 2(g) excludes contractual employees from their application, Rule 17 applies once such contractual employee is regularised on a later date and the effect is that upon regularisation, the past service as a contractual employee is to be taken into account for calculating pension.
A bench of Justices P S Narasimha and Joymalya Bagchi partly allowed a plea by S D Jayaprakash and others, who were appointed as Data Entry Operators under the Plan Scheme called ‘Rationalisation of Data Processing Facilities’ on temporary and contractual basis between 1996 and 1999.
"In light of the clear language of Rule 17 of the Pension Rules as well as its interpretation in State of HP Vs Sheela Devi (2023), the contractual service period rendered prior to the appellants’ regularisation in 2015 must be counted towards the payment of their pensionary benefits in accordance with the mechanism set out in Rule 17," the bench said.
The court directed the respondent, Union of India, to take immediate steps and indicate the mode and manner for the appellants to exercise the option provided under Rule 17 of the Pension Rules as well as to notify the amounts that they would have to remit in case they opt for grant of pension under the Rules.
Brief Background
The appellants challenged the Karnataka High Court’s order of March 23, 2021 by which it was held those, who were initially appointed on contractual basis and subsequently regularised, will not be entitled to seniority, service benefits, and pension for the period of their contractual service.
Pursuant to an order of the Central Administrative Tribunal in 2013, the respondents Union government issued an Office Memorandum in 2015 to regularise the appellants’ service from a prospective date, i.e., from the date of issuance of that order.
Subsequently, the appellants were appointed on a regular basis by order w.e.f. January 05, 2015.
The appellants preferred an original application before the CAT to regularise their services from the date of initial appointment or at least from the date of completing 10 years of service, and to protect their pay and grant seniority, service benefits and pension by counting their period of contractual service.
The Central Administrative Tribunal allowed the Original Application by Appellants in 2016.
Later on, the High Court set aside CAT’s directions to the extent of counting the period of contractual service for grant of seniority, service benefits, and pension on the ground that the initial appointment was on a contractual basis and not pursuant to the recommendation of the Staff Selection Commission.
It held that the appellants will be entitled to regularisation and its consequential benefits only from April 01, 2015.
The appellants relied upon State of HP Vs Sheela Devi (2023) to contend that as per Rule 17 of the Central Civil Services (Pension) Rules, 1972, they would be entitled to pensionary benefits by including the period of contractual service.
Case Title: SD Jayaprakash and Ors. v. Union of India & Ors.