Bombay High Court Dismisses Petition Seeking Counting of Prior Service for Pension Benefits Under ONGC Rules. Resignation from previous employment breaks continuity, and past service cannot be counted for rationalized promotion or pension under the Employees Pension Scheme 1995.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The petitioner, Mr. Seetaram s/o Ganpat Randale, filed a writ petition under Article 226 of the Constitution of India seeking directions to the respondents, including the Oil and Natural Gas Commission (ONGC), to count his prior service for rationalized promotion and pension benefits. The petitioner had worked with the Geological Survey of India, Mineral Exploration Corporation Limited, and Hindustan Antibiotics Ltd. before joining ONGC. He resigned from each previous employment before joining the next. The petitioner sought that his rationalized promotion be counted from 1.1.1988 and that his twenty years of service be counted for benefits under various office memoranda and the Employees Pension Scheme 1995. The court examined the factual matrix and found that the petitioner had resigned from his previous employments, which, under service law, breaks continuity of service. The court held that resignation results in forfeiture of past service, and such service cannot be counted for pension or other benefits. The court also held that the petitioner was not entitled to antedated promotion. Consequently, the petition was dismissed. The court did not find any merit in the petitioner's claims and upheld the respondents' position that the petitioner's prior service could not be counted.

Headnote

A) Service Law - Pension - Counting of Prior Service - Resignation breaks continuity - Petitioner resigned from Mineral Exploration Corporation Limited and Hindustan Antibiotics Ltd. before joining ONGC - Held that resignation results in forfeiture of past service, and such service cannot be counted for pension under the Employees Pension Scheme 1995 (Paras 1-10).

B) Service Law - Promotion - Rationalized Promotion - Antedating - Petitioner sought rationalized promotion from 1.1.1988 - Held that promotion cannot be antedated to a date prior to joining the organization, and the petitioner was not entitled to such relief (Paras 1-10).

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Issue of Consideration

Whether the petitioner is entitled to have his prior service with other organizations counted for the purposes of rationalized promotion and pension benefits under the Oil and Natural Gas Commission and the Employees Pension Scheme 1995.

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Final Decision

The petition is dismissed. The court held that resignation from previous employment breaks continuity of service, and the petitioner is not entitled to have his prior service counted for rationalized promotion or pension benefits.

Law Points

  • Resignation breaks continuity of service
  • past service cannot be counted for pension benefits
  • rationalized promotion cannot be antedated
  • Employees Pension Scheme 1995 requires continuous service
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Case Details

2010 LawText (BOM) (06) 42

WRIT PETITION NO.4098 OF 2002

2010-06-15

P.B. Majmudar, R.M. Savant

Mr. R.K. Mendadkar with Mr. Kuldip Pawar for petitioner; Mr. S.A. Bhalwal h/f M/s. Vyas & Bhalwal for respondent No.1; Mrs. Lata Patane for Union of India

Mr. Seetaram s/o Ganpat Randale

Oil and Natural Gas Commission, Government of India, Regional Director, ONGC

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Nature of Litigation

Writ petition under Article 226 seeking counting of prior service for promotion and pension benefits.

Remedy Sought

Directions to count rationalized promotion from 1.1.1988, count twenty years of service for benefits under O.M. dated 12.1.1989 etc., and release pension under Employees Pension Scheme 1995.

Filing Reason

Petitioner's prior service with other organizations was not counted for promotion and pension benefits by ONGC.

Issues

Whether the petitioner's prior service can be counted for rationalized promotion? Whether the petitioner's prior service can be counted for pension under the Employees Pension Scheme 1995?

Submissions/Arguments

Petitioner argued that his prior service should be counted for promotion and pension. Respondents argued that resignation breaks continuity and past service cannot be counted.

Ratio Decidendi

Resignation from employment results in forfeiture of past service and breaks continuity; such service cannot be counted for pension or promotion benefits under the rules of the subsequent employer.

Judgment Excerpts

The petitioner who was working in the Geological Survey of India was permanently absorbed in the Mineral Exploration Corporation of (India) Limited, by virtue of the order dated 17.12.1975... The petitioner accepted the said appointment, the terms and conditions of which were mentioned in the annexure to the said letter dated 06121978.

Procedural History

The petitioner filed Writ Petition No.4098 of 2002 under Article 226 of the Constitution of India before the Bombay High Court seeking reliefs regarding counting of prior service for promotion and pension. The petition was heard and dismissed on 15th June 2010.

Acts & Sections

  • Constitution of India: Article 226
  • Employees Pension Scheme, 1995:
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