The court’s thorough legal analysis in a recent case regarding the interpretation of pension schemes for government employees has resulted in a crucial decision. The case delves into the complex realm of pension entitlements, particularly in the context of transitioning from old pension rules to new contributory schemes. The court’s judgment sheds light on the intricacies of the law governing employee benefits, reflecting the evolving landscape of governmental pension provisions.
Facts
- The Bihar Research Society (Taking Over) Act, 2007 led to the government taking over the society where respondent No. 1’s husband worked.
- Employees of the said society were absorbed into government service according to an order dated 25.03.2014, with a corrigendum later replacing ‘appointed’ with ‘absorbed’.
- A clause was inserted that service prior to the acquisition date would not be considered as government service.
- Respondent No. 1 filed a writ petition seeking family pension and other benefits under the New Pension Scheme from 09.2005.
- The New Pension Scheme applies to employees appointed after 31.08.2005 and does not include entitlement to pension or family pension.
- The husband of respondent No. 1 passed away on 23.03.2013 while in service at the Bihar Research Society.
- The State abolished the old Pension Rules in 2005 and introduced a new scheme, leading to changes in pension entitlements.
- The husband of respondent No. 1 had joined the Bihar Research Society as a peon, which was an autonomous society registered under the Societies Act.
- The State of Bihar appealed against the judgment allowing family pension to respondent No 1, the widow of the deceased employee.
- The learned Single Judge directed the State to pay family pension to respondent No 1 from the date of her husband’s death.
- The State appealed to the Division Bench of the High Court through a Letters Patent Appeal.
- The Division Bench dismissed the State’s appeal and upheld the Single Judge’s decision of granting family pension to respondent No 1 from the date of her husband’s death.
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Arguments
- A corrigendum was issued by the Government on 22.06.2015 stating that government service will only be calculated from the cut-off date of 02.03.2009.
- The services of adjusted employees prior to the date of acquisition in Bihar Research Society will not be counted as government service.
- The High Court made an error by allowing family pension under the Old Pension Rules, 1950.
- The appellant argues that pension and family pension were available to employees governed by the Old Pension Rules of 1950.
- The husband of respondent No. 1 was absorbed into State Government service in 2014, after the abolition of the Old Pension Rules.
- The Old Pension Rules were abolished on 01.09.2005, and the New Pension Scheme was implemented for employees appointed or absorbed on or after that date.
- Respondent No 1’s husband died while in service
- As per clause 7(1) of the family pension scheme, respondent No 1 was entitled to family pension
- The family pension scheme is a beneficial scheme
- The learned Single Judge and Division Bench of the High Court correctly ruled that respondent No 1 is entitled to benefit from the family pension scheme
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Analysis
- The husband of respondent No. 1 was governed by the New Contributory Pension Scheme and not the Old Pension Rules.
- The High Court made an error by directing the appellant to pay family pension to respondent No. 1 under the Old Pension Rules.
- The husband of respondent No. 1 was absorbed into government service in 2014 w.e.f. 03.2009, falling under the New Contributory Pension Scheme.
- The New Contributory Pension Scheme, introduced in 2005, governs all employees appointed after 31.08.2005.
- The prior service of the concerned employee before his absorption in 2009 should not be treated as government service.
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Decision
- The husband of respondent No 1 was absorbed in government service from 02.03.2009 and will be governed by the New Pension Scheme (Bihar Government Servant Contributory Pension Scheme, 2005).
- The judgments and orders by the Single Judge and Division Bench of the High Court granting family pension under the Old Pension Rules to respondent No 1 are quashed and set aside.
- The present appeals are allowed with no costs.
Case Title: THE STATE OF BIHAR Vs. RAJMATI DEVI (2022 INSC 615)
Case Number: C.A. No.-003900-003901 / 2022
