P. BANDOPADHYA & ORS. versus UNION OF INDIA & ORS.

Citation: [2019] 4 S.C.R. 254 · Decided: 15-03-2019 · Supreme Court of India · Bench: UDAY UMESH LALIT

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Judgment (excerpt)

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SUPREME COURT REPORTS
[2019] 4 S.C.R.
P. BANDOPADHYA & ORS.
v.
UNION OF INDIA & ORS.
(Civil Appeal No. 3149 of  2019)
MARCH 15, 2019
[UDAY UMESH LALIT AND INDU MALHOTRA, JJ.]
Service Law:
Pension – Entitlement to – Conversion of a Government
Department into Central Public Sector Undertaking/Autonomous
body – En-masse transfer of the employees of the Government
Department to the Public Sector Undertaking – Department of
Pension and Pension Welfare of the Government issued Office
Memorandum specifying terms and condition governing pensionary
benefits of the transferred employees giving the employees option
either to retain pensionary benefits under Government Rules or be
governed by the rules of the Public Sector Undertaking – Appellants
(transferred employees) opted to be absorbed in the Public Sector
Undertaking – Further they opted to retain pensionary benefits
under the rules of Central Government – They were informed by
the Public Sector Undertaking (employer) that they were not eligible
for Government pension but were eligible to only an amount equal
to Provident Fund Contribution (as per clause (c) in the Office
Memorandum) – Writ petition seeking direction to consider their
cases for grant of Government pension – High Court dismissing
the petition held that the appellants were not eligible to avail
pensionary benefits – On appeal, held: In view of r. 37 r/w. r. 49 of
CCS (Pension) Rules, appellants were not entitled to pensionary
benefits as they did not have minimum qualifying service of 10 years
to make their service pensionable with Central Government – As
per Office Memorandum also the option of retaining the pensionary
benefits was available to only those who were in the first place
entitled to receive pension at the time of their retirement under the
Central Government Rules – Central Civil Services (Pension) Rules,
1972 – rr. 37, 3(q) and 49.
[2019] 4 S.C.R. 254
254
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Dismissing the appeal, the Court
HELD: 1. Rule 37 of the CCS (Pension) Rules, 1972
provides that a Government servant who is absorbed in a
Corporation or Government Company is deemed to have retired
from government service on the date of his/her absorption. The
Appellants having voluntarily exercised the option to get
absorbed in the regular service of VSNL, were deemed to have
retired from the service of the Central Government on the date
of their absorption i.e. January 2, 1990 as per Rule 37(1) of the
CCS (Pension) Rules, 1972. [Para 8.1][265-B; 266-A, B]
2. It is the admitted position that the Appellants had not
completed 10 years of service on the date of their absorption
into VSNL, i.e. when they were deemed to have retired from the
service of the Central Government. To receive pensionary
benefits from the Government, a Government servant is required
to put in a minimum ‘qualifying service’ as defined by Rule 3(q)
of the CCS (Pension) Rules, 1972. According to Rule 3(q),
‘qualifying service’ means the service rendered while on duty or
otherwise which shall be taken into account for the purpose of
Pensions and Gratuities admissible under the CCS (Pension)
Rules, 1972. [Para 8.2][266-B, C]
3.   Rule 49(2) of the CCS (Pension) Rules, 1972 provides
that a Government servant is entitled to receive pension on
retirement only after the completion of the qualifying service of
10 years. On the other hand, a Government servant who retires
before completing the qualifying service of 10 years is entitled to
service gratuity under Rule 49(1) of the CCS (Pension) Rules,
1972. [Para 8.3][266-D, E]
4.A conjoint reading of the statutory rules, i.e. Rule 37 with
Rule 49 of the CCS (Pension) Rules, 1972, would make it
abundantly clear that the appellants were not entitled to
pensionary benefits since admittedly they did not have the
minimum qualifying service of 10 years, to make their service
pensionable with the Central Government. On absorption in VSNL
on January 2, 1990 there was a severance of their service with
the Central Government. The appellants would be entitled to
the retiral benefits under VSNL. [Para 8.3][267-C, D]
P. BANDOPADHYA & ORS. v. UNION OF INDIA & ORS.
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SUPREME COURT REPORTS
[2019] 4 S.C.R.
5.  After exercising the option to be absorbed in VSNL, the
appellants are now estopped from seeking pensionary benefits
from the Central Government.  The Office Memorandum dated
July 5, 1989 was issued by the Department of Pension and Pension
Welfare, Government of India to settle the pe

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