Bombay High Court Allows Pension Claim of Daily Wager Converted to Temporary Employee — Half of Pre-Regularization Service Counted as Qualifying Service Under Office Memorandum Dated 1st May, 1987. The court held that the petitioner, who served as a daily wager for 18 years and then as a temporary employee for 15 years, is entitled to pension with half of the daily wage period counted as qualifying service, as he was deemed to have opted for the pension scheme under the 4th Central Pay Commission recommendations.

High Court: Bombay High Court In Favour of Accused
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Case Note & Summary

The petitioner, Raman Ganda, was appointed as a daily wager in the Water Supply Department of the Union Territory of Daman and Diu in 1969. He worked in that capacity for eighteen years until 28th September, 1987. On 29th September, 1987, the authorities conferred upon him the status of a temporary employee, and he worked as such for another fifteen years until 28th February, 2002, when he attained the age of superannuation. The petitioner claimed that he was entitled to regularization and to pension upon superannuation. However, he was paid an amount of Rs.65,498/- under the Contributory Provident Fund (CPF) Scheme. The petitioner contended that half of the 18 years of service from 1969 to 1987 was liable to be counted as qualifying service towards pensionary benefits, and that the 15 years of service rendered between 1987 and 2002 must similarly be counted. He relied upon an Office Memorandum dated 1st May, 1987 of the Government of India, which, in view of the recommendations of the 4th Central Pay Commission, decided that all CPF beneficiaries in service as on 1st January, 1986 should be deemed to have come over to the pension scheme unless they had specifically opted to continue under the CPF scheme. The court, after hearing the parties, held that the petitioner was entitled to have half of his daily wage service counted as qualifying service and that he was deemed to have come over to the pension scheme. The court directed the respondents to compute the petitioner's pension accordingly and to pay the arrears within three months.

Headnote

A) Service Law - Pension - Qualifying Service - Daily Wager - Half of service rendered as daily wager prior to regularization is liable to be counted as qualifying service for pension under Office Memorandum dated 1st May, 1987 - The petitioner worked as a daily wager from 1969 to 1987 and as a temporary employee from 1987 to 2002 - The court held that half of the daily wage period (9 years) and the entire temporary period (15 years) should count towards pension, as the petitioner was deemed to have come over to the pension scheme under the 4th Central Pay Commission recommendations (Paras 2-3).

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Issue of Consideration

Whether the petitioner, who served as a daily wager for 18 years and then as a temporary employee for 15 years, is entitled to have half of his daily wage service counted as qualifying service for pension, and whether he is deemed to have opted for the pension scheme under the Office Memorandum dated 1st May, 1987.

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Final Decision

The court allowed the writ petition, directing the respondents to compute the petitioner's pension by counting half of the daily wage service (9 years) and the entire temporary service (15 years) as qualifying service, and to pay arrears within three months.

Law Points

  • Pension entitlement
  • daily wager
  • temporary employee
  • qualifying service
  • CPF scheme
  • Office Memorandum 1st May 1987
  • 4th Central Pay Commission
  • regularization
  • superannuation
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Case Details

2005 LawText (BOM) (07) 198

WRIT PETITION NO.651 OF 2005

2005-07-15

A.P. Shah, Dr. D.Y. Chandrachud

Mr. S.P. Inamdar for the Petitioner, Mr. Ashokan for the Respondents

Raman Ganda

Executive Engineer, Public Works Dept. & Ors.

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Nature of Litigation

Writ petition seeking pensionary benefits for a daily wager who was later made temporary employee.

Remedy Sought

Petitioner sought counting of half of his daily wage service and entire temporary service as qualifying service for pension, and payment of pension upon superannuation.

Filing Reason

Petitioner was denied pension and instead paid CPF benefits; he claimed entitlement under Office Memorandum dated 1st May, 1987.

Issues

Whether the petitioner is entitled to have half of his daily wage service counted as qualifying service for pension. Whether the petitioner is deemed to have come over to the pension scheme under the Office Memorandum dated 1st May, 1987.

Submissions/Arguments

Petitioner argued that half of the 18 years of daily wage service and the entire 15 years of temporary service should count towards pension, relying on Office Memorandum dated 1st May, 1987. Respondents opposed the claim, but the judgment does not detail their arguments.

Ratio Decidendi

Under the Office Memorandum dated 1st May, 1987, based on the 4th Central Pay Commission recommendations, all CPF beneficiaries in service as on 1st January, 1986 are deemed to have come over to the pension scheme unless they specifically opted out. Half of the service rendered as a daily wager prior to regularization is liable to be counted as qualifying service for pension.

Judgment Excerpts

The Petitioner was appointed as a daily wager in the Water Supply Department of the Union Territory of Daman and Diu in 1969. The authorities conferred upon the Petitioner the status of a temporary employee on 29th September, 1987. In view of the recommendations of the 4th Central Pay Commission it was decided that all CPF beneficiaries in service as on 1st January, 1986 should be deemed to have come over to the pension scheme unless they had specifically opted to continue under the CPF scheme.

Procedural History

The petitioner filed Writ Petition No.651 of 2005 before the Bombay High Court. Rule was issued by consent and the petition was taken up for final disposal.

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