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Supreme Court of India

PUNJAB SCHOOL EDUCATION BOARDversusDALIP CHAND AND OTHERS

Citation
2013 INSC 594
Decided
6 September 2013
Disposal
Dismissed

Holding

The Supreme Court held that the 17 March 2011 notification applies to the respondent, allowing his prior service in the Education Department to be counted as qualifying service for pension under Regulation 6.

Summary

The respondent, Dalip Chand, worked in the Punjab Department of Education from 1965 to 1979 and then joined the Punjab School Education Board as Superintendent, serving there until his retirement in 2000. Upon superannuation he claimed pension under Regulation 6 of the Punjab School Education Board (Employees Pension, Provident Fund and Gratuity) Regulations, 1991, seeking to have his earlier service in the Education Department counted as qualifying service. The Board rejected the claim, contending that only employees transferred or deputed to the Board could have prior service counted and that his direct recruitment precluded such inclusion. The High Court allowed his writ petition, directing the Board to reckon his earlier service as qualifying. On appeal, the Supreme Court examined whether the Board’s notification dated 17 March 2011, which permits adding prior qualifying service up to eight years, applied to the respondent. Finding that the respondent had more than eight years of service in the Board and fell within the category covered by the notification, the Court dismissed the Board’s appeal and upheld the respondent’s entitlement to pension.

Issues considered

  • Whether service rendered by the respondent in the Punjab Department of Education can be treated as qualifying service for superannuation pension under the Punjab School Education Board (Employees Pension, Provident Fund and Gratuity) Regulations, 1991.
  • Whether the Board’s notification dated 17 March 2011, which allows addition of prior qualifying service, is applicable retrospectively to employees appointed before 1 January 2004 and not falling within the prohibited category.

Legislation cited

Subjects

pensionqualifying servicesuperannuationservice lawRegulation 6direct recruitmenttransferdeputationnotificationretrospective effect

Judgment

                      (2013) 9 S.C.R. 688


A           PUNJAB SCHOOL EDUCATION BOARD
                               v.
                DALIP CHAND AND OTHERS
                (Civil Appeal No.7820 of 2013)
                    SEPTEMBER 06, 2013
B
        [K.S. RADHAKRISHNAN AND A.K. SIKRI, JJ.)

       SERVICE LAW:

c     Service qualifying for pension - Service in Punjab
  Education Department - Reckoning of for pension on
  superannuation from Punjab School Education Board - Held:
  Employee is entitled to get benefit of Notification dated
  17.03.2011 issued by Punjab School Education Board and
D shall be eligible to add his service qualifying for
  superannuation pension -- Punjab School Education Board
  (Employees Pension, Provident Fund and Gratuity)
  Regulations, 1991 --Regulation 6.

      The respondent prior to his selection as
E Superintendant in Punjab School Education Board on
  08.08.1979, had worked in Department of Education,
  Punjab from 7 .4.1965 upto 08.08.1979. On his
  superannuation w.e.f. 31.10.2000 from the School
  Education Board, he claimed pension by reckoning his
F both the services, i.e. service in Education Department
  and that in School Education Board. His claim was
  rejected on the ground that since he was appointed
  neither on transfer nor on deputation but was appointed
  through direct recruitment, the service rendered by him
G in Education Department could not be treated as
  qualifying service for pension. However, his writ petition
  was allowed by the High Court.

       Dismissing the appeal filed by the Board, the Court
H                            688
  PUNJAB SCHOOL EDUCATION BOARD v. DALIP                   689
                 CHAND
     HELD: The respondent had already put in more than            A
eight years of service in the Board, consequently, he is
also entitled to get the benefit of Notification dated
17 .03.2011, which prescribe that an employee shall be
eligible to add his service qualifying for superannuation
pension. [Para 8 and 9) [691-C-G]                                 B
    CIVIL APPELLATE JURISDICTION : Civil Appeal No.
7820 of 2013.
    From the Judgment and Order dated 03.05.2007 of the
High Court of Punjab & Haryana at Chandigarh in C.W.P. No.        c
6259 of 2006.
    S.K. Sabharwal, Nishtha Chawla, Prahlad Kumar for the
Appellant.
    Subhash Chander Pathala, Jagjit singh Chhabra, Yash Pal
Dhingra for the Respondents.                                      D
    The Judgment of the Court was delivered by
    K.S. RADHAKRISHNAN, J. 1. Leave granted.
     2. The question that has come up for consideration in this
appeal is whether the service rendered by the respondent in       E
the Department of Education, Punjab be treated as qualifying
service for the purpose of pension under the Punjab School
Education Board (Employees Pension, Provident Fund and
Gratuity) Regulations, 1991 (for short "the Regulations 1991").
    3. The respondent-herein was recruited as clerk by the        F
Punjab Subordinate Service Selection Board on 07.04.1965
and he was posted in the Department of Education, Punjab.
Later he was appointed as a lecturer in Political Science in
Government Senior Secondary School, Valtoha, District
Amritsar where he served upto 1970. He had worked as an           G
assistant in Education Department from June 1970 to
08.08.1979.
    4. Punjab School Education Board on 03.05.1979
advertised for the post of Superintendent. The respondent         H
    690     SUPREME COURT REPORTS                 [2013] 9 S.C.R.


A  applied for the said post and was selected. Appointment order
   dated 03.08.1979 was sent to him and he joined on 08.08.1979
   in the service of the Board. For the purpose of joining service
   of the Board he was relieved from the Education Department
   in the forenoon of 08.08.1979. After joining the service in the
B Board, the respondent was contributing CPF under the Punjab
   School Education Board (Provident Fund) Regulations, 1970,
 · since at that time service in the Board was not pensionable.
   Service in the Board was later made pensionable under the
   1991 Regulations w.e.f. 01.04.1991. All the employees who
c were employed after the inception of the Board were asked to
   give option to be governed either by the Pension Regulations
   or by the Provident Fund Regulations. The respondent opted
   to be governed by the Pension Regulations.
      5. The respondent retired from the service after serving the
D Board from 08.08.1979 to 31.10.2000. Previously, he had
  served the Education Department for 14 years 1 moAth and 21
  days. The respondent had put in a total service ~f 35 years 4
  months and 14 days, reckoning both the services of the
  Education as well as the Board and respondent claimed
E pension under Regulation 6 of the 1991 Regulations.
       6. The claim of the respondent was rejected by the Board
  on the ground that the benefit of Regulation 6 would apply only
  to those employees who had joined the service of the Board
  either on transfer or on deputation and were subsequently
F absorbed in the Board. Further it was pointed out that since
  the respondent was appointed neither on transfer nor on
  deputation but through direct recruitment, the service rendered
  by him in the Education Department could not be treated as
  qualifying service for the purpose of pension for his eligibility
G to get pension under the 1991 Regulations.
       7. The High Court did not find any merit in the contention
  of the Board, allowed the writ petition and quashed the
  impugned orders passed by the Board on 06.07.2005 and
  29.09.2005 and directed the Board to reckon the service of the
H respondent in the Education Department as qualifying service
  PUNJAB SCHOOL EDUCATION BOARD v. DALIP                          691
       CHAND [K.S. RADHAKRISHNAN, J.]
for the purpose of pension. Aggrieved by the same, the Board              A
has come up with this appeal
      8. We notice that a similar issue came for consideration
before this Court in SLP(C) No.11837 of 2008, wherein a
notification issued by the Board on 17 .03.2011 was produced
and this Court granted the benefit to a similarly placed                  B
pensioner. The order of this Court dated 14.03.2012 passed
in SLP(C) No.11837 of 2008 reads as follows:
       "I.A. No.4 of 2012 has been filed by the respondents with
       a prayer to take on record Notification dated 17.03.2011
       issued by the Punjab School Education Board (for short,            C
       'the Board') under which an employee shall be eligible to
       add his service qualifying for superannuation pension, but
       not for any other pension. It further shows that benefit can
       be for a maximum period of 8 years only and not for more
       than 8 years. The respondents fall within this category.           D
              Thus, in the light of the subsequent Notification dated
       17 .03.2011 issued by the Board, which has been given
       retrospective effect and would be applicable to all those
       who have been appointed before 1.1.2004 and do not fall
       within the prohibited category as per the proviso would be         E
       entitled for getting the necessary benefit thereof. In the light
       of this, there is no substance in this special leave petition,
       which is accordingly hereby dismissed.
             The learned counsel appearing for the respondents
                                                                          F
       informed that in fact they are already been paid pensionary
       benefits."
     9. We are of the view that the said notification would
equally apply to the respondent in this case as well. The
respondent had already put in more than eight years of service            G
in the Board, consequently, he is also entitled to get the benefit
of notification dated 17.03.2011. In the circumstances, the
appeal lacks merit and the same is dismissed, however, with
no order as to costs.
R.P.                                             Appeal dismissed.        H


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