Supreme Court Dismisses Appeal of DTC Employee Seeking Pension for Lack of Minimum Qualifying Service. Leave Without Pay Period Excluded from Pensionable Service Under Rule 21 of Central Civil Services Pension Rules, 1972.

  • 9
Judgement Image
Font size:
Print

Case Note & Summary

The appellant, Karan Singh, was a conductor with the Delhi Transport Corporation (DTC). He was appointed as a monthly rate conductor w.e.f. 27th November, 1983 after undergoing training from 15th March to 26th May, 1983. DTC introduced a pension scheme on 27th November, 1992, which was compulsory for new employees and deemed existing employees who did not opt out to have opted for pension. Subsequently, a Voluntary Retirement Scheme (VRS) was notified on 3rd March, 1993, requiring an employee to have completed 10 years of service or 40 years of age. The appellant, being over 40, applied for voluntary retirement, which was allowed on 30th April, 1993, but pension was not granted. The appellant claimed he had completed 10 years 1 month 19 days of qualifying service, including training and retainer crew period. DTC computed his service as 9 years 1 month 25 days, and even adding training, it was 9 years 4 months 6 days, short of 10 years. The Central Administrative Tribunal allowed his claim, but the High Court of Delhi set aside that order. The Supreme Court considered the issue of whether the appellant had 10 years of qualifying service. The Court noted that the training period of two months could be counted under Rule 22 of the Central Civil Services Pension Rules, 1972, but even then the total was 9 years 4 months 6 days. Additionally, the appellant had 98 days of leave without pay, which, following the three-judge bench decision in DTC v. Balwan Singh, must be excluded from pensionable service under Rule 21. Thus, the appellant failed to meet the minimum qualifying service of 10 years. The Supreme Court dismissed the appeal, upholding the High Court's judgment.

Headnote

A) Service Law - Pension - Qualifying Service - Minimum 10 years required for pension eligibility - Appellant's total service including training period computed as 9 years 4 months 6 days, falling short of 10 years - Held that appellant not entitled to pension (Paras 10-12).

B) Service Law - Leave Without Pay - Exclusion from Pensionable Service - Rule 21 of Central Civil Services Pension Rules, 1972 - Period of leave for which salary is not payable must be excluded from qualifying service - Three Judge Bench decision in DTC v. Balwan Singh applied - Held that 98 days leave without pay cannot be counted (Paras 11-12).

C) Service Law - Pension Scheme - Deemed Option - Office Order dated 27.11.1992 - Existing employees who did not submit option deemed to have opted for pension scheme - Appellant's silence treated as deemed option - However, eligibility depends on meeting qualifying service requirement (Paras 4, 12).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the appellant had completed 10 years of qualifying service to be entitled to pension under the pension scheme introduced by DTC vide Office Order dated 27th November, 1992 read with VRS, 1993.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Supreme Court dismissed the appeal, holding that the appellant did not have the minimum qualifying service of 10 years for pension. The period of leave without pay was excluded as per Rule 21 of the Central Civil Services Pension Rules, 1972, following the decision in DTC v. Balwan Singh.

Law Points

  • Qualifying service for pension
  • Leave without pay exclusion
  • Deemed option for pension scheme
  • Voluntary retirement scheme
  • Central Civil Services Pension Rules
  • 1972
Subscribe to unlock Law Points Subscribe Now

Case Details

2019 LawText (SC) (10) 54

Civil Appeal No(s). 12743 of 2017

2019-10-22

Rastogi, J.

Karan Singh

Delhi Transport Corporation & Anr

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil appeal against High Court judgment setting aside CAT order directing DTC to pay pension.

Remedy Sought

Appellant sought pension and other benefits under the pension scheme introduced by DTC.

Filing Reason

Appellant was denied pension despite claiming 10 years of qualifying service.

Previous Decisions

Central Administrative Tribunal allowed the appellant's claim; High Court of Delhi set aside that order.

Issues

Whether the appellant had completed 10 years of qualifying service for pension eligibility. Whether the period of leave without pay should be excluded from qualifying service.

Submissions/Arguments

Appellant argued that his total service including training and retainer crew period amounted to 10 years 1 month 19 days. Respondent Corporation contended that qualifying service was only 9 years 1 month 25 days, and even with training, it was 9 years 4 months 6 days, short of 10 years.

Ratio Decidendi

For entitlement to pension under the DTC pension scheme, an employee must have completed 10 years of qualifying service. Periods of leave without pay are excluded from qualifying service under Rule 21 of the Central Civil Services Pension Rules, 1972.

Judgment Excerpts

The period of leave for which salary is payable would be taken into account for determining the pensionable service, while the period for which leave salary is not payable would be excluded. The appellant failed to qualify with the minimum qualifying service of 10 years which could make him entitled to claim pension under the pension Scheme, 1993.

Procedural History

The appellant filed O.A. No. 43 of 2014 before the Central Administrative Tribunal, which allowed his claim on 19th February, 2015. The respondent Corporation challenged this in Writ Petition (Civil) No. 7662 of 2015 before the High Court of Delhi, which set aside the Tribunal's order on 15th March, 2016. The appellant then appealed to the Supreme Court in Civil Appeal No. 12743 of 2017.

Acts & Sections

  • Central Civil Services Pension Rules, 1972: Rule 3(1)(q), Rule 21, Rule 22
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Dismisses Appeal of DTC Employee Seeking Pension for Lack of Minimum Qualifying Service. Leave Without Pay Period Excluded from Pensionable Service Under Rule 21 of Central Civil Services Pension Rules, 1972.
Related Judgement
High Court Bombay High Court Acquits Accused in POCSO and IPC Case on Grounds of Insufficient Evidence. Conviction for sexual assault overturned due to inconsistencies in the prosecution’s evidence and credibility doubts.