Case Note & Summary
The case involved appeals by the State of Haryana regarding the denial of ACP Grade benefits to employees absorbed from the Municipal Committee, Panipat. The respondents had joined the Octroi Branch of the Municipal Committee and were later absorbed into the Education Department following the closure of the Octroi Branch. They claimed entitlement to ACP Grade benefits based on their service duration, which the State contested, arguing that they had not completed the requisite service period in the State. The Division Bench ruled in favor of the respondents, stating that their past service should be counted for ACP Grade benefits, although they would not receive seniority in the new department. The State appealed this decision, leading to the Supreme Court's examination of whether the past service should be considered for ACP Grade. The court noted that while the respondents lost seniority, their past service was acknowledged for pay and pension benefits, thus it would be unjust to deny them ACP Grade benefits. The court referenced previous judgments affirming that past service should be counted for benefits other than seniority. Ultimately, the Supreme Court upheld the Division Bench's decision, dismissing the appeals without costs.
Headnote
A) Service Law - ACP Grade Benefits - Counting Past Service - Haryana Government Employees Absorption - Court held that past service rendered in the Municipal Committee should be counted for the purpose of ACP Grade benefits, despite the denial of seniority. The court reasoned that since the government counted past service for pay and pension benefits, it would be unfair to deny ACP Grade benefits based on the same service (Paras 6-8).
Issue of Consideration
Whether the service rendered by employees in the Municipal Committee should be counted for the benefit of ACP Grade after their absorption into the State Government.
Final Decision
The Supreme Court dismissed the appeals, affirming that past service should be counted for ACP Grade benefits despite the denial of seniority.
Law Points
- Absorption of employees
- ACP Grade benefits
- past service consideration
- seniority denial
- transfer of service



