Supreme Court Dismisses Pension Claims of Former U.P. Roadways Employees Absorbed in Corporation - Employees Not Holding Pensionable Posts Under U.P. Civil Service Regulations. The Court held that employees of a temporary department of the State Government, absorbed in a statutory corporation, are not entitled to pension as they did not hold pensionable posts under the U.P. Civil Service Regulations.

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Case Note & Summary

The Supreme Court dismissed a batch of civil appeals filed by former employees of Uttar Pradesh Roadways (a temporary department of the State Government) who were later absorbed in the U.P. State Roadways Transport Corporation (the Corporation). The appellants sought pension, claiming they held pensionable posts. The Court held that the Roadways was created as a temporary department in 1947, and its employees were appointed temporarily and were not members of regular service. A Government Order dated 28.10.1960 provided pension only to permanent employees of the erstwhile Roadways, while non-permanent employees were entitled to Employees Provident Fund benefits. The Corporation was created on 01.06.1972 under the Road Transport Corporation Act, 1950, and employees were initially treated on deputation and later absorbed w.e.f. 28.07.1982 under the Roadways (Abolition of Post and Absorption of Employees) Rules, 1982. The Court noted that the appellants had already received their entire post-retiral benefits decades ago without any protest. They started claiming pension only after the High Court's judgment in U.P.S.R.T.C. vs. Mirza Athar Beg (2011). The Court found that the appellants did not hold pensionable posts under the U.P. Civil Service Regulations, as Note 3 of Article 350 excludes non-gazetted posts in Government Technical Industrial Institutions from pension. The appeals were dismissed, and the impugned orders of the High Court were upheld.

Headnote

A) Service Law - Pension - Pensionable Post - Employees of temporary department of State Government absorbed in statutory corporation are not entitled to pension unless they held a pensionable post under U.P. Civil Service Regulations - The court held that the appellants were not holding pensionable posts as the Roadways was a temporary department and its employees were not members of regular service; Note 3 of Article 350 of U.P. Civil Service Regulations excludes non-gazetted posts in Government Technical Industrial Institutions from pension (Paras 5-7).

B) Service Law - Absorption - Deputation - Employees of Roadways treated on deputation with Corporation without specifying period, service conditions not inferior - The court noted that the employees were absorbed in the Corporation w.e.f. 28.07.1982 under the Roadways (Abolition of Post and Absorption of Employees) Rules, 1982, and their service conditions were protected (Paras 7.4-7.7).

C) Service Law - Pension - Delay and Laches - Retired employees receiving post-retiral benefits decades ago without protest cannot claim pension belatedly - The court observed that the appellants started claiming pension only after the High Court judgment in U.P.S.R.T.C. vs. Mirza Athar Beg (2011) and that such belated claims are not maintainable (Para 9).

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Issue of Consideration

Whether the appellants, former employees of Uttar Pradesh Roadways (a temporary department of the State Government), are holding any pensionable post before or after their absorption in the U.P. State Roadways Transport Corporation.

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Final Decision

The Supreme Court dismissed the appeals, upholding the impugned orders of the High Court. The Court held that the appellants did not hold pensionable posts and were not entitled to pension.

Law Points

  • Pension entitlement
  • pensionable post
  • temporary department
  • absorption
  • U.P. Civil Service Regulations
  • Road Transport Corporation Act
  • 1950
  • retrospective amendment
  • non-gazetted post
  • Government Technical Industrial Institution
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Case Details

2024 LawText (SC) (7) 261

Civil Appeal No. 894 of 2020 and batch

2024-07-26

Prashant Kumar Mishra, J.

UP Roadways Retired Officials and Officers Association and others

State of Uttar Pradesh and others

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Nature of Litigation

Civil appeals against the common order of the High Court of Judicature at Allahabad dismissing writ applications and special appeals seeking pension by former employees of Uttar Pradesh Roadways absorbed in U.P. State Roadways Transport Corporation.

Remedy Sought

The appellants sought pension from the State Government on the ground that they held pensionable posts.

Filing Reason

The appellants claimed pension after the High Court judgment in U.P.S.R.T.C. vs. Mirza Athar Beg (2011) and other judgments, despite having received post-retiral benefits decades ago.

Previous Decisions

The learned Single Judge and Division Bench of the High Court dismissed the writ applications and special appeals holding that the appellants did not hold pensionable posts and were not entitled to pension.

Issues

Whether the appellants held pensionable posts under the U.P. Civil Service Regulations before or after absorption in the Corporation. Whether the appellants are entitled to pension despite having received post-retiral benefits without protest decades ago.

Submissions/Arguments

Appellants argued that they were employees of the State Government and thus entitled to pension under the U.P. Civil Service Regulations. Respondents argued that the Roadways was a temporary department, employees were not in regular service, and they were not holding pensionable posts; also, the claim was barred by delay and laches.

Ratio Decidendi

Employees of a temporary department of the State Government, absorbed in a statutory corporation, are not entitled to pension unless they held a pensionable post under the U.P. Civil Service Regulations. Note 3 of Article 350 of the Regulations excludes non-gazetted posts in Government Technical Industrial Institutions from pension. Additionally, belated claims for pension after decades of receiving post-retiral benefits without protest are not maintainable.

Judgment Excerpts

The issue falling for consideration is whether the appellants who are the former employees of Uttar Pradesh Roadways, a temporary department of the State Government, are holding any pensionable post before or after their absorption in the U.P. State Roadways Transport Corporation. Admittedly, the appellants employees have already received their entire post-retiral benefits immediately after their retirement decades ago without any protest or claim that they hold a pensionable post.

Procedural History

The appellants filed writ applications before the High Court of Judicature at Allahabad, which were dismissed by the learned Single Judge on 07.07.2014. Special appeals against that order were also dismissed by the Division Bench on 24.11.2016. The appellants then filed special leave petitions before the Supreme Court, which were converted into civil appeals. The Supreme Court heard the batch of appeals together and dismissed them.

Acts & Sections

  • Road Transport Corporation Act, 1950: Section 3, Section 45(2)(c)
  • U.P. Civil Service Regulations: Article 350, Note 3 of Article 350
  • Roadways (Abolition of Post and Absorption of Employees) Rules, 1982:
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