Bombay High Court Dismisses Union of India's Petition Challenging CAT Order Treating Suspension Period as Qualifying Service for Pension. The Court held that under Rules 37 and 50 of the Railway Service (Pension) Rules, 1993, an employee compulsorily retired is entitled to have the suspension period counted as qualifying service for pension.

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

The respondent, J.S. Kharat, was employed by the Central Railway since 1964 as a Driver 'C'. On 25.12.1985, he was placed under suspension due to involvement in a train collision. A charge sheet was served on 7.1.1986, and after a disciplinary inquiry, he was removed from service on 4.6.1986. He challenged the removal before the Central Administrative Tribunal (CAT) in Original Application No.662 of 1989. On 26.11.2004, the CAT quashed the removal order and directed a fresh inquiry from the stage of cross-examination of witness no.7. After the fresh inquiry, the petitioners imposed a penalty of compulsory retirement on 8.1.1996. The respondent remained under suspension from 25.11.1985 to 18.1.1996, a period of over 10 years. He then filed Original Application No.189 of 2004 before the CAT seeking that the suspension period be treated as qualifying service for pension. The CAT partly allowed the application, directing that the suspension period be treated as qualifying service for computation of pensionary benefits. The Union of India challenged this order by filing a writ petition under Article 226 of the Constitution. The High Court considered the issue of whether under Rules 37 and 50 of the Railway Service (Pension) Rules, 1993, an employee who was under suspension and ultimately compulsorily retired is entitled to have the suspension period treated as qualifying service for pension. The Court noted that the respondent was not dismissed or removed but compulsorily retired, and the suspension was not treated as a period of non-duty. The Court upheld the CAT's order, holding that the suspension period should be treated as qualifying service for pensionary benefits. The petition was dismissed.

Headnote

A) Service Law - Pension - Qualifying Service - Suspension Period - Railway Service (Pension) Rules, 1993, Rules 37 and 50 - The issue was whether the period of suspension of an employee who was ultimately compulsorily retired should be treated as qualifying service for pension. The Court held that the suspension period is to be treated as qualifying service for computation of pensionary benefits, as the employee was not dismissed or removed but compulsorily retired, and the suspension was not treated as a period of non-duty. (Paras 2, 6-8)

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Issue of Consideration

Whether under Rule 37 and Rule 50 of the Railway Service (Pension) Rules, 1993, an employee who was under suspension and ultimately compulsorily retired is entitled to have the period of suspension treated as qualifying service for pension and other pensionary benefits.

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Final Decision

The High Court dismissed the petition and upheld the order of the Central Administrative Tribunal directing that the period of suspension of the respondent be treated as qualifying service for the purpose of computation of pensionary and other pension benefits.

Law Points

  • Suspension period treated as qualifying service for pension
  • Rule 37 and Rule 50 of Railway Service (Pension) Rules
  • 1993
  • Compulsory retirement does not disentitle suspension period as qualifying service
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Case Details

2014 LawText (BOM) (02) 78

Writ Petition No.673 of 2005

2014-02-04

V. M. Kanade, G. S. Kulkarni

Mr. Suresh Kumar for Petitioners, Mr. Rahul Nerlekar for Respondent

Union of India, General Manager, Central Railway, Divisional Railway Manager

J.S. Kharat

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the order of the Central Administrative Tribunal.

Remedy Sought

The petitioners (Union of India) sought to quash the CAT order directing that the suspension period be treated as qualifying service for pension.

Filing Reason

The petitioners were aggrieved by the CAT order dated 2.12.2004 which partly allowed the respondent's application.

Previous Decisions

The CAT had earlier quashed the removal order and directed a fresh inquiry, after which the respondent was compulsorily retired. The CAT then partly allowed the application for treating suspension period as qualifying service.

Issues

Whether under Rule 37 and Rule 50 of the Railway Service (Pension) Rules, 1993, an employee who was under suspension and ultimately compulsorily retired is entitled to have the suspension period treated as qualifying service for pension.

Submissions/Arguments

Petitioners argued that the suspension period should not be treated as qualifying service. Respondent argued that the suspension period should be treated as qualifying service for pension.

Ratio Decidendi

Under Rule 37 and Rule 50 of the Railway Service (Pension) Rules, 1993, the period of suspension of an employee who is ultimately compulsorily retired is to be treated as qualifying service for pension, as the employee was not dismissed or removed and the suspension was not treated as a period of non-duty.

Judgment Excerpts

By this Petition under Article 226 of the Constitution of India the Petitioner-Union of India assails the Judgment and order dated 2.12.2004 of the Central Administrative Tribunal, Mumbai Bench in Original Application No.189 of 2004. The issue which arises for consideration in the present petition is as to whether under Rule 37 and Rule 50 of the Railway Service (Pension) Rule 1993 an employee who was under suspension and ultimately was compulsorily retired would be entitled for availing of the period of suspension to be taken into consideration for the purpose of determining the qualifying service for the purpose of pension and other pensionary benefits.

Procedural History

The respondent was suspended on 25.12.1985, charge-sheeted on 7.1.1986, and removed from service on 4.6.1986. He filed OA No.662/1989 before CAT which quashed the removal on 26.11.2004 and directed fresh inquiry. After fresh inquiry, he was compulsorily retired on 8.1.1996. He then filed OA No.189/2004 seeking suspension period as qualifying service, which was partly allowed on 2.12.2004. The Union of India filed the present writ petition on 2.12.2004.

Acts & Sections

  • Railway Service (Pension) Rules, 1993: Rule 37, Rule 50
  • Constitution of India: Article 226
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