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AMICUS AI
Citation Codes
Neutral Citations
2022 INSC 980
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Articles 14 to 16 of the Constitution of India
  • Article of the Constitution of India (no specific section/subsection/year mentioned)
  • Article 226 of the Constitution of India
  • Section 5, Subsection 2 of the 1983 Income Tax Act is not mentioned in this excerpt.
  • Article 136 of the Constitution of India
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Cites
Cited by
Citation Codes
Neutral Citations
2022 INSC 980
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Articles 14 to 16 of the Constitution of India
  • Article of the Constitution of India (no specific section/subsection/year mentioned)
  • Article 226 of the Constitution of India
  • Section 5, Subsection 2 of the 1983 Income Tax Act is not mentioned in this excerpt.
  • Article 136 of the Constitution of India
Smart Summary

Factual and Procedural Background

The respondent began his career on 13 January 1967 as an Assistant Charge Man in the Rajasthan Agriculture Engineering Board. After the Board merged into the Rajasthan State Agro-Industry Corporation, his services were transferred (8 July 1970) and he continued there until 12 April 1977. Following a 16 June 1976 advertisement by the Rajasthan Public Service Commission (RPSC), he was selected and appointed as Assistant Director (Agro-Industries) in the State’s Department of Industries, joining on 16 April 1977.

Upon superannuation on 30 April 2003 as Additional Director of Industries, the State declined to reckon his 1967-1977 tenure for pensionary benefits. Representations failed, prompting S.B. Civil Writ Petition No. 5879/2009. On 5 May 2017 the Single Judge directed the State to include the earlier service and pay arrears with 9% interest. A contempt petition followed when the order was not implemented.

The State’s D.B. Special Appeal Writ No. 443/2018 was dismissed by a Division Bench on 28 November 2019, upholding the Single Judge. The present Special Leave Petition (SLP) before the Supreme Court challenged that concurrent High Court view. Delay in filing the SLP was condoned.

Legal Issues Presented

  1. Whether, under Rule 25(2) of the Rajasthan Civil Services (Pension) Rules, 1996, the respondent’s resignation from the Rajasthan State Agro-Industry Corporation to accept a Government post through RPSC prevented forfeiture of his prior pensionable service.
  2. Whether the Supreme Court should exercise its discretionary jurisdiction under Article 136 of the Constitution to interfere with concurrent factual and legal findings of the High Court, particularly given the delay in the respondent seeking relief.

Arguments of the Parties

Petitioners (State of Rajasthan)

  • Rule 25(2) was misconstrued; resignation necessarily entails forfeiture of past service, making the earlier tenure non-countable for pension.
  • The writ petition was filed six years after retirement, warranting refusal of relief.
  • The respondent gained a higher post; therefore past service was “inconsequential.”
  • No documentary proof existed that “proper permission” was obtained before resignation.

Respondent

  • Resignation fell within Rule 25(2)’s exception because it was to take up another Government appointment obtained through RPSC, implying permission and service continuity.
  • Pension is a continuing benefit; delay cannot defeat a claim for a continuing wrong.
  • Under Article 136, the Supreme Court’s review is discretionary and should not unsettle concurrent, reasonable findings of the High Court.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
N. Suriyakala v. A. Mohandoss (2007) 9 SCC 196 Nature of Article 136 jurisdiction as a residual, discretionary power, not a regular appellate forum. Cited by respondent to argue that the Supreme Court need not interfere when the High Court’s view is plausible and just.
Bengal Chemical & Pharmaceutical Works Ltd. v. Employees, AIR 1959 SC 633 Even if an order is legally questionable, the Supreme Court is not bound to set it aside under Article 136. Used to reinforce the discretionary character of Article 136 and support non-interference with the High Court’s order.

Court's Reasoning and Analysis

The Court noted the concurrent findings of both Single and Division Benches that the respondent resigned with “proper permission” to accept a Government post for which he had been duly selected by the RPSC. That factual determination triggered Rule 25(2), exempting him from forfeiture of past service.

While acknowledging that resignation generally leads to forfeiture (Rule 25(1)), the Court emphasized the explicit statutory exception in Rule 25(2). It observed that the respondent’s earlier service under State-controlled entities was pensionable and that the State had produced no evidence rebutting the presumption of permission.

The Court dismissed the contention that a six-year delay barred relief, reasoning that pension is a continuing right and denial constitutes a continuing wrong. Limitation principles therefore did not automatically preclude the writ petition.

Applying established interpretive canons, the Bench reiterated that ambiguities in service-benefit rules should be resolved in favour of employees. Finding the High Court’s purposive reading of Rule 25(2) “plausible” and just, the Supreme Court held that no ground existed for interference under Article 136.

Holding and Implications

Special Leave Petition DISMISSED.

The High Court’s direction to count the respondent’s 1967-1977 service for pension and to release arrears with interest stands affirmed. The ruling reinforces that, under Rule 25(2) of the Rajasthan Pension Rules, resignation to assume another Government post with proper permission preserves past pensionable service. Although confined to the specific rule, the judgment signals a pro-employee interpretive stance and may guide similar disputes but does not establish a new constitutional precedent.

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    THE STATE OF RAJASTHAN v. O.P. GUPTA

    Indira Banerjee, J.:— Delay Condoned.

    2. This Special Leave Petition has been filed challenging the final judgment and order dated 28 November 2019, in D.B. Special Appeal Writ No. 443 of 2018 passed by the High Court of Judicature for Rajasthan Bench at Jaipur, whereby the High Court dismissed the Writ Appeal filed by the Petitioners and upheld the judgment of the Single Bench dated 5 May 2017 in S.B. Civil Writ Petition No. 5879 of 2009, whereby the Single Judge had allowed the Writ Petition filed by the Respondent.

    3. The Respondent was initially appointed as an Assistant Charge Man in the Rajasthan Agriculture Engineering Board, Department of Agriculture, Government of Rajasthan w.e.f. 13 January 1967.

    4. The Engineering Board was subsequently merged with the Rajasthan State Agro Industry Corporation. Accordingly, the services of the Respondent were transferred to the Rajasthan State Agro Industry Corporation vide transfer order dated 8 July 1970, on the same pay scale. He worked with Rajasthan State Agro Industry Corporation continuously till 12 April 1977.

    5. Pursuant to an advertisement dated 16 June 1976 issued by the Rajasthan Public Service Commission (hereinafter referred to as “RPSC”), the Respondent applied for the post of Assistant Director (Agro-Industries). The Respondent was selected for the post of Assistant Director (Agro-Industries), Department of Industries, State of Rajasthan.

    6. The Respondent was appointed as Assistant Director (Agro-Industries), Department of Industries, State of Rajasthan by an order dated 7 April 1977. According to the Respondent, he joined service in the Department of Industries on 16 April 1977.

    7. The Respondent while serving in the Department of Industries, attained the age of superannuation and retired on 30 April 2003 from the post of Additional Director of Industries, Headquarter, Jaipur. However, while counting the length of service of the Respondent for the purpose of calculating pension and other retiral benefits, the Petitioners did not count the tenure from 13 January 1967 to 12 April 1977 (i.e. the period for which the Respondent worked for the Rajasthan Agriculture Engineering Board and the Rajasthan State Agro Industry Corporation).

    8. The Respondent submitted representations to the Department of Industries requesting that his service tenure from 13 January 1967 to 12 April 1977 be counted for the purposes of his pension and retiral benefits. However, the request for counting the service tenure from 13 January 1967 to 12 April 1977, was not granted.

    9. Aggrieved, the Respondent filed S.B. Civil Writ Petition No. 5879 of 2009 before the Single Judge, Rajasthan High Court on or about 20 March 2009. The moot point for consideration before the Single Judge was, whether service rendered by the Respondent/Writ Petitioner prior to resignation from the Rajasthan State Agro Industry Corporation, should be counted for the purpose of pension.

    10. By a Judgment and Order dated 5 May 2017, the Single Bench allowed S.B. Civil Writ Petition No. 5879 of 2009 and held that the service rendered by the Respondent with the Rajasthan Agriculture Engineering Board and the Rajasthan State Agro Industry Corporation, was liable to be counted, while computing pension/other pensionary benefits of the Respondent.

    11. The Writ Petition was disposed of with a direction to the Petitioners to count the earlier period of service rendered by the Respondent with the Rajasthan Agriculture Engineering Board and the Rajasthan State Agro Industry Corporation to compute the total pensionable service of the Respondent and release his pension and retiral benefits including arrears of pension with interest @ 9% p.a. within a period of three months from the date of the submission of the certified copy of the order. According to the Respondent, a copy of the judgment and order dated 5 May 2017 was submitted to the Petitioners on 15 May 2017 by registered post. However, the Petitioners did not comply with the Judgment and order.

    12. The Petitioner-State filed an appeal being D.B. Special Appeal Writ No. 443 of 2018 against the judgment and order dated 5 May 2017 before the Division Bench. The Respondent filed a Contempt Petition, being S.B. Civil Contempt Petition No. 265 of 2018 alleging non-compliance of the Judgment and order dated 5 May 2017 in spite of knowledge thereof. It was submitted that a copy of the judgment and order had been served on the Petitioners on 15 May 2017 by registered post.

    13. By an order dated 14 March 2018 in S.B. Civil Contempt Petition No. 265 of 2018, the High Court directed the Petitioners to comply with the judgment and order dated 5 May 2017 within 15 days, failing which the Additional Chief Secretary, Department of Industries, Government of Rajasthan would have to be present in Court and explain the reasons/circumstances for non-compliance.

    14. By the impugned Judgment and Order dated 28 November 2019, the Division Bench of the High Court dismissed the Writ Appeal being D. B. Special Appeal Writ No. 443 of 2018 with the following observations:

    “…Admittedly, service of the respondent under the Rajasthan Agriculture Engineering Board was pensionable. As per Rule 25(2) of the Rajasthan Civil Services (Pension) Rules, 1996, resignation shall not entail forfeiture of past service if it has been submitted to take up, with proper permission, another appointment whether temporary or permanent, under the Government where service qualifies. Hence, learned Single Judge has rightly held service rendered by the respondent with Rajasthan Agriculture Engineering Board and Rajasthan Agro Industry Corporation was liable to be counted while computing pension/other pensionary benefits of the respondent.”

    15. Rule 25 of the Rajasthan Civil Services (Pension) Rules, 1996 hereinafter referred to as “the Rules” reads as follows:

    “25. Forfeiture of Service on resignation

    (1) Resignation from a service or a post, entails forfeiture of past service.

    (2) A resignation shall not entail forfeiture of past service if it has been submitted to take up, with proper permission, another appointment, whether temporary or permanent, under the Government where service qualifies.

    (3) Interruption in service in a case falling under sub-rule (2), due to the two appointments being at different stations, not exceeding the joining time admissible under the rules of transfer, shall be covered by grant of leave of any kind due to the Government servant on the date of relief or by formal condonation to the extent to which the period is not covered by leave due to him.”

    16. Admittedly, the Respondent was initially appointed as Assistant Charge Man in the Rajasthan Agriculture Engineering Board from where his services were transferred to the Rajasthan State Agro Industry Corporation, where he worked till 12 April 1977. Thereafter he was appointed Assistant Director (Agro-Industries) in the Industry Department and submitted his resignation from the Rajasthan State Agro Industry Corporation. Admittedly, the service of the Respondent under the Rajasthan Agriculture Engineering Board and the Rajasthan State Agro Industry Corporation was pensionable, as found by the High Court.

    17. Dr. Manish Singhvi, learned Senior Counsel, appearing on behalf of the Petitioners argued that the High Court had misconstrued Rule 25(2) of the Rules. He argued that resignation entails forfeiture of past service with the Rajasthan State Agro Industry Corporation, for the purpose of pension.

    18. The Respondent resigned from Rajasthan State Agro Industry Corporation to take up appointment as Assistant Director (Agro-Industries) in the Department of Industries in the State of Rajasthan, after being selected through the RPSC.

    19. The Division Bench and the Single Bench of the High Court have concurred. The effective and concurrent factual finding of the Division Bench and the Single Bench of the High Court, that the Respondent had resigned with proper permission to take up another appointment, under the Government, for which he was qualified, does not call for interference under Article 136 of the Constitution of India.

    20. Dr. Singhvi, emphatically argued that:

    i. the Writ Petition was filed by the Respondent after six years.

    ii. the Respondent was appointed to a higher post in the Industry Department. As such his past employment was inconsequential.

    iii. There was no proof of prior permission before resignation from Rajasthan State Agro Industry Corporation.

    21. Dr. Singhvi submitted that the appointment was a fresh appointment for which past service was inconsequential. Dr. Singhvi, emphatically argued that, in service jurisprudence, resignation necessarily leads to cessation from service and entails forfeiture of past service. The stand taken by the State is arbitrary, unreasonable and misconceived.

    22. The State is bound by the fundamental rights of its employees under Articles 14 to 16 of the Constitution of India. It is now well settled that arbitrariness violates the right to equality under Articles 14 to 16 of the Constitution of India.

    23. There can be no doubt that resignation from service may entail forfeiture of past service. However, sub-rule (2) of Rule 25 of the Rules carves out an exception. The said sub-rule clarifies that a resignation with proper permission to take up another appointment, whether temporary or permanent, under the Government shall not entail forfeiture of past service.

    24. At the cost of repetition, it is reiterated that the Respondent was selected through the RPSC. He applied for the post of Assistant Director (Agro-Industries), while he was still in service of the Rajasthan State Agro Industry Corporation, which is also an entity fully controlled by the State of Rajasthan.

    25. The Respondent having retired after working for about 26 years, the Petitioner - State cannot raise the question of proof of prior permission before resignation, more so when the appointment had been made through the RPSC to a Government post. It is to be deemed that there has been disclosure of past service and the application has been made through proper channel by obtaining the requisite approvals.

    26. It is to be presumed that prior permission had been taken unless the contrary could be established by the State. May be there was a delay of six years in filing the Writ Petition, however, it is well settled that the laws of limitation do not apply to exercise of jurisdiction under Article 226 of the Constitution of India. Relief under Article 226 of the Constitution of India being discretionary, the Courts might in their discretion refuse to entertain the Writ Petition, where there is gross delay on the part of the Writ Petitioner, particularly, where the relief sought would, if granted, unsettle things, which are already settled.

    27. In this case, the Respondent-Writ Petitioner is claiming pension, which is a life long benefit. Denial of pension is a continuing wrong. This Court cannot also be oblivious to the difficulties of a retired employee in approaching the Court, which could include financial constraints.

    28. It is settled law that when financial rules framed by the Government such as Pension Rules are capable of more interpretations than one, the Courts should lean towards that interpretation which goes in favour of the employee.

    29. Ms. Archana Pathak Dave, counsel appearing on behalf of the Respondent argued that Article 136 of the Constitution of India does not create a regular forum of Appeal. It is only a residual provision which enables this Court to interfere with the judgment and order of any Court or Tribunal in India, in its discretion, as observed by this Court in N. Suriyakala v. A. Mohandoss (2007) 9 SCC 196.

    30. Citing Bengal Chemical and Pharmaceutical Works Ltd. v. Employees AIR 1959 SC 633 (at 635), Ms. Dave argued that since power under Article 136 of the Constitution of India was discretionary, this Court is not bound to set aside an order under Article 136, even if it was not in conformity with law.

    31. The High Court has rendered a just decision based on a purposive interpretation of Rule 25(2) of the Rules applied to the admitted facts on record. The interpretation given by the High Court to Rule 25(2) of the Rules is a plausible interpretation.

    32. We, therefore, find no grounds to interfere with the impugned judgment and order passed by the High Court.

    33. The Special Leave Petition is, accordingly, dismissed.

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    THE STATE OF RAJASTHAN v. O.P. GUPTA
    (Sep 19, 2022)