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2008 INSC 80
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  • Section 5 and incorporated under Section 12 of the Electricity (Supply) Act, 1948
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Cites
Cited by
Citation Codes
Neutral Citations
2008 INSC 80
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5 and incorporated under Section 12 of the Electricity (Supply) Act, 1948
Smart Summary

Factual and Procedural Background

Late Shri Krishan was appointed on a work-charged basis by the erstwhile Haryana State Electricity Board on 12 August 1974 and remained in the same capacity until his death on 11 August 1985. He was a member of the Contributory Provident Fund (a non-pensionable scheme) and his services were never regularised. After his death his widow, Smt. Surji Devi, was given employment on compassionate grounds under an ex-gratia scheme.

Notwithstanding her husband’s enrolment in the Contributory Provident Fund, Smt. Surji Devi applied for family pension under the Family Pension Scheme contained in Appendix 1 to the Punjab Civil Services Rules, Volume 2 (as applicable to Haryana). The electricity utility rejected her request, prompting her to file writ petitions (CWP Nos. 631 and 1110 of 2003) before the Punjab and Haryana High Court. Relying on its earlier decision in Kanta Devi v. State of Haryana, the High Court on 18 September 2003 directed the utility to grant family pension, subject to adjustment of amounts already drawn under the EPF scheme. A review application filed by the utility was dismissed on 5 March 2004.

The employer (now Uttar Haryana Bijli Vitran Nigam Ltd.) appealed to the Supreme Court. Leave to appeal was granted, resulting in the present decision.

Legal Issues Presented

  1. Whether the family of a deceased employee appointed solely on a work-charged basis, whose services were never regularised and who was a member of the Contributory Provident Fund, is entitled to family pension under the Punjab Civil Services Rules, Volume 2, and the associated Family Pension Scheme.

Arguments of the Parties

Appellants’ Arguments

  • The Punjab Civil Services Rules, Volume 2, require that service be “substantive and permanent” for pensionary benefits; a work-charged employee does not fulfil this criterion.
  • Membership in the Contributory Provident Fund excludes the employee and his family from the Family Pension Scheme; the two schemes are mutually exclusive.

Respondent’s Arguments

  • The employer never challenged the High Court’s earlier ruling in Kanta Devi; having acquiesced, it is estopped from denying applicability of the Family Pension Scheme.
  • Kanta Devi interpreted Paragraph 4 of the Family Pension Scheme to cover employees with more than one year of temporary service; that interpretation binds the appellants.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Kanta Devi v. State of Haryana, CWP No. 7506 of 1998 (P&H High Court) High Court interpretation that more than one year of temporary service entitles family to pension. Distinguished; Supreme Court held the case involved a temporary (not work-charged) employee and therefore was not controlling.
Maruti Udyog Ltd. v. Ram Lal (2005) 2 SCC 638 Sympathy cannot override statutory provisions. Cited to emphasise that equitable considerations cannot confer pensionary rights contrary to rules.
State of Bihar v. Amrendra Kumar Mishra (2006) 12 SCC 561 Same principle as above. Reinforced the court’s refusal to grant relief on sympathetic grounds.
Regional Manager, SBI v. Mahatma Mishra (2006) 13 SCC 727 Same principle as above. Used collectively with other cases to reject sympathy-based claims.
State of Karnataka v. Ameerbi (2007) 11 SCC 681 Same principle as above. Supported the view that statutory bars cannot be waived on equitable grounds.
State of M.P. v. Sanjay Kumar Pathak (2008) 1 SCC 456 Same principle as above. Part of the line of authority cited to uphold primacy of statutory conditions.

Court's Reasoning and Analysis

1. Statutory framework: The Court examined Rules 3.12, 3.17 and 3.17-A(g) of the Punjab Civil Services Rules, Volume 2, together with the Family Pension Scheme in Appendix 1. Rule 3.12 requires substantive and permanent government service for pension. Rule 3.17-A(g) allows work-charged service to count towards pension only if it is followed by regular appointment without interruption.

2. Status of the deceased: Shri Krishan was a work-charged employee whose services were never regularised. Consequently, his employment did not satisfy the “substantive and permanent” condition, nor were there “two spells of service” (work-charged followed by regular) envisaged in Rule 3.17-A(g).

3. Dual scheme exclusivity: The Court noted that the Contributory Provident Fund and the Pension Scheme are mutually exclusive, and there was no statutory option permitting an employee to switch schemes post-facto. Being part of a non-pensionable establishment, Shri Krishan (and therefore his family) could not claim pension benefits.

4. Inapplicability of Kanta Devi: The High Court had relied mechanically on Kanta Devi. The Supreme Court held that case involved a temporary but pensionable employee, unlike the present work-charged, non-pensionable situation. Thus, the High Court erred in extending that precedent.

5. Sympathy v. legality: Citing a series of Supreme Court authorities, the Bench reiterated that sympathy cannot be a ground to override clear statutory prohibitions.

Holding and Implications

Holding: The Supreme Court allowed the appeals, set aside the High Court’s direction to grant family pension, and ruled that Smt. Surji Devi is not entitled to family pension.

Implications: The decision affirms that members of the work-charged establishment who were never regularised, and who participated in the Contributory Provident Fund, cannot claim benefits under the Family Pension Scheme. The Court ordered that any pension already disbursed to the respondent should not be recovered, but otherwise no costs were awarded. No new legal principle was created; the judgment reinforces the strict application of existing statutory rules governing pension eligibility.

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    Uttar Haryana Bijli Vitran Nigam Ltd. And Others v. Surji Devi .

    S.B Sinha, J.— Leave granted.

    2. The short question involved in these appeals, arising out of the judgments and orders dated 18-9-2003 and 5-3-2004 passed by the High Court of Punjab and Haryana in CWPs Nos. 631 and 1110 of 2003 and Review Application No. 71 of 2004 respectively, is as to whether family members of a deceased employee who was appointed on a work-charge basis would be entitled to family pension.

    3. For the purpose of disposal of these appeals, we would note the factual matrix only from the civil appeal arising out of SLP (C) No. 4392 of 2004 titled Uttar Haryana Bijli Vitran Nigam Ltd. v. Surji Devi.

    4. Appellant 1 was the successor of the Haryana State Electricity Board which was constituted under Section 5 and incorporated under Section 12 of the Electricity (Supply) Act, 1948. The respondent (Surji Devi) is the widow of late Shri Krishan. He was appointed on a work-charge basis on or about 12-8-1974. Indisputably, he continued to serve Appellant 1 in the same capacity. While in service, he expired on 11-8-1985. The respondent was appointed on compassionate ground in the services of the appellant Corporation in terms of an ex gratia scheme.

    5. Concededly, the deceased was a member of a Contributory Provident Fund constituted under a scheme. Despite the same, the respondent filed an application for grant of family pension, which pertains to altogether a different scheme.

    6. Concededly, late Shri Krishan's services were never regularised. The scheme for regularisation also came into force in 1986.

    7. As the claim of Respondent 1 for grant of family pension was declined, she filed a writ petition before the High Court of Punjab and Haryana. The High Court by reason of the impugned judgment dated 18-9-2003, relying on or on the basis of its earlier decision rendered in Kanta Devi v. State of Haryana CWP No. 7506 of 1998 allowed the same directing:

    “… It is the conceded position that the petitioner had received the benefit of pension under the EPF Scheme, but it is also the admitted position that the amount which the petitioner would now receive on account of family pension will be higher than the amount received by her under the EPF Scheme.
    Mr Malik accordingly undertakes that the petitioner will refund/adjust the amount, which she had already received towards the amount, which she will now receive by way of family pension.”

    8. Mr Neeraj Kumar Jain, learned counsel appearing on behalf of the appellants, in support of the appeal would submit:

    (i) Having regard to the Punjab Civil Services Rules, Vol. 2 as applicable to the State of Haryana, the impugned judgment is wholly unsustainable.
    (ii) The respondent's husband having been a member of the Contributory Provident Fund, the Family Pension Scheme was not applicable in her case.

    9. Mr Jasbir Singh Malik, learned counsel appearing on behalf of the respondent, on the other hand, urged:

    (i) The appellants having not questioned the correctness of Kanta Devi CWP No. 7506 of 1998 now cannot turn round and contend that the Family Pension Scheme is not applicable.
    (ii) The High Court in Kanta Devi CWP No. 7506 of 1998 having interpreted Para 4 of the Family Pension Scheme, the appellants are bound thereby.

    10. The State of Punjab made the Punjab Civil Services Rules. The said Rules, subject to modifications, became applicable to the State of Haryana. Vol. 2 of the said Rules inter alia provide for service qualifying for pension. Rule 3.12 thereof reads as under:

    “3.12 The service of a government employee does not qualify for pension unless it conforms to the following three conditions:
    First.—The service must be under the Government.
    Second.—The employment must be substantive and permanent.
    Third.—The service must be paid by the Government.”

    11. Rule 3.17 of the Rules provides that in the case of an officer retiring on or after 5-1-1961, if he was holding substantively a permanent post on the date of his retirement, his temporary or officiating service under the State Government, followed without interruption by confirmation in the same or another post, shall count in full as qualifying service except in respect of the pension period of temporary or officiating service in non-pensionable establishment.

    12. Rule 3.17-A(g) of the Rules inter alia provides that the entire service rendered by an employee as work-charged shall be reckoned towards retirement benefits provided:

    “(i) such service is followed by regular employment;
    (ii) there is no interruption in the two or more spells of service or the interruptions fall within condonable limits; and
    (iii) such service is a whole-time employment and not part-time or portion of day.”
    (emphasis supplied)

    13. Indisputably, there exist two schemes; one in relation to Contributory Provident Fund and another in relation to pension. The Scheme for grant of family pension is contained in Appendix 1 of the said Rules. Relevant portion of Para 4 of the said Scheme reads as under:

    “4. This Scheme is administered as below:
    (i) The family pension is admissible in case of death while in service or after retirement on or after 1st July, 1964, if at the time of death, the retired officer was in receipt of a compensation, invalid, retiring or superannuation pension. The family pension will not be admissible in case of death after retirement if the retired employee at the time of death was in receipt of gratuity only. In case of death while in service a government employee should have completed a minimum period of one year of continuous service without break.
    Note 1.—The term one-year continuous service used in Para 4(i) above is inclusive of permanent/temporary service in a pensionable establishment but does not include periods of extraordinary leave, boy service and suspension period unless that is regularised by the competent authority or before completion of one-year continuous service, provided the deceased government employee concerned immediately prior to his recruitment to the service or post was examined by the appropriate medical authority and declared fit by that authority for government service.
    (iii) The pension is admissible:
    (a) in the case of widow/widower up to the date of death or remarriage, whichever is earlier; and
    (b) in the case of son/unmarried daughter until he/she attains the age of 25 years.”

    14. Para 11 of the said Scheme excludes the applicability of the Scheme inter alia in relation to the work-charged staff. We may notice that in Kanta Devi CWP No. 7506 of 1998 the husband of the appellant therein was in temporary service. Construing Para 4(i) as also Note 1 appended thereto, the High Court held that as the husband of Kanta Devi completed more than one year in temporary service, she was entitled to family pension.

    15. We have noticed hereinbefore that Shri Krishan was a member of the Contributory Provident Fund. It has furthermore been noticed by us that even before the High Court the said position stood conceded but she opted for the Pension Scheme only because thereby she considered herself to be entitled to a higher amount.

    16. The Scheme relating to grant of family pension was made under a statute. A person would be entitled to the benefit thereof subject to the statutory interdicts. From a bare perusal of the provisions contained in the Punjab Civil Services Rules, Vol. 2 vis-à-vis the Family Pension Scheme, it would be evident that the respondent was not entitled to the grant of any family pension. The husband of the respondent was a work-charged employee. His services had never been regularised. It may be unfortunate that he had worked for 11 years. He expired before he could get the benefit of the regularisation scheme but sentiments and sympathy alone cannot be a ground for taking a view different from what is permissible in law. (See Maruti Udyog Ltd. v. Ram Lal (2005) 2 SCC 638, State of Bihar v. Amrendra Kumar Mishra (2006) 12 SCC 561, (2006) 9 Scale 549, SBI v. Mahatma Mishra (2006) 13 SCC 727, (2006) 11 Scale 258, State of Karnataka v. Ameerbi (2007) 11 SCC 681, (2006) 13 Scale 319 and State of M.P v. Sanjay Kumar Pathak (2008) 1 SCC 456, (2007) 12 Scale 72.)

    17. The statutory provisions, as noticed hereinbefore, debar grant of family pension in favour of the family members as the deceased employee was a work-charged employee and not a permanent employee or temporary employee. The period during which an employee worked as a work-charged employee could be taken into consideration only when his services are regularised and he becomes permanent and not otherwise.

    18. Furthermore, there exists a distinction between a pensionable and non-pensionable establishment. Shri Krishan being a member of a non-pensionable establishment, family pension was not admissible. It is not a case where an employee had been given an option to opt for one or the other schemes. Once a person had opted for non-pensionable scheme, the question of his being entitled to pension or for that matter his family members becoming entitled to family pension did not and could not arise. The High Court only followed Kanta Devi CWP No. 7506 of 1998 without noticing the distinctive features thereof. As it is not necessary, we have not gone into the question as to whether Kanta Devi CWP No. 7506 of 1998 was correctly decided. Apart from the fact that the fact therein was different, evidently the questions which have been raised before us were not raised therein. The High Court, therefore, committed a serious error in applying Kanta Devi CWP No. 7506 of 1998 to the fact of the present case.

    19. Mr Malik contended that it has wrongly been stated in the list of dates that the appeal against Kanta Devi CWP No. 7506 of 1998 has remained pending before this Court and, thus, it being a misstatement, the leave granted should be revoked. It may be so but in a case of this nature this Court is required to lay down the law. We do not, thus, intend to revoke the leave. However, we direct that any benefit paid to the respondent should not be recovered.

    20. For the reasons aforementioned, the appeals are allowed with the aforementioned directions. However, in the facts and circumstances of this case, there shall be no order as to costs.

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    Uttar Haryana Bijli Vitran Nigam Ltd. And Others v. Surji Devi .
    (Jan 22, 2008)