STATE OF BIHAR versus S.A. HASSAN AND ANR.

Citation: [2002] 2 S.C.R. 190 · Decided: 05-03-2002 · Supreme Court of India · Bench: S.N. PHUKAN · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
ST A TE OF BIHAR 
v. 
S.A. HASSAl'l AND ANR. 
MARCH 5, 2002 
B 
[S.N: PHUKAN AND P. VENKATARAMA REDDI, JJ.] 
Service Law 
Bihar Private Medical Colleges (Taking over) Act, 1977-S 3(1);:-
C Pensionary benefits-Grant of-Private Medical College-Taken over by State 
Government-Employees of Private College continued in the services of State 
Government on ad hoc basis-Retirement-Pensionary benefits granted from 
the date of taking over of the college-Claim for extension of benefit from the 
date of initial appointment-Entitlement of-Held, from the date of taking 
D · fiver of the college, the employees, ceased to be employees of erstwhile 
management-No specific provision for counting the previous service~Thus, 
employees not entitled to claim any benefit for the period of service rendered ' 
under the private management-Bihm· Pension Rules-Rule 58. 
Respondents were employees of a private Medical College. Subsequently, 
E 
th_e Management of the said College was taken over by the State Government 
under S. 3(1) of the Bihar Private Medical Colleges (Taking over) Act, 1977. 
Respondents were continued as employees of the College initially on ad hoc 
basis and thereafter their services were regularised. On retirement from 
service, respondents were granted pensionary benefits counting the period of 
F 
G 
H 
service from the date of taking over of the college till the date of retirement. 
Respondents filed writ petitions claiming that they were entitled to get the 
benefit for the period of service from the initial appointment in the college 
under the private management till their date of retirement. High court allowed 
the writ petitions. Hence the present appeals by State Government. 
Allowing the appeals, the Court 
HELD: 1.1. The respondents are not entitled to claim the benefit of the 
period of their service while they were under the emp!oyment of the erstwhile 
management for the purpose of calculation of their pension and pensionary . 
liabilities. (197-C] 
190 
• 
~· 
STATE v. S.A. HASSAN 
191 
1.2. Sub-section (I) of Section 6 of the Bihar Medical Colleges (faking A 
over) Act provides in clear and explicit terms that from the date of the 
notification issued under sub-section (1) all members of the staff employed in 
the college shall cease to be employees of the college body. The effect of this 
provision is that the respondents ceased to be employees of the erstwhile 
management of the college. At the same time, the proviso to the said sub- B 
section (1) declares that the staff employed in the college shall continue to 
serve in the college on ad hoc basis till a decision under sub-sections (3) and 
( 4) is taken by the State Government. Therefore, both the respondents 
continued to serve the college on an ad hoc basis and as a result, "\Vhatever 
the contract of employment which the employees had with the erstwhile 
Management, came to an end. Thus, from the date of taking over the college, C 
the respondents ceased to be employees of the erstwhile management and they 
became employees of the State Government on an ad hoc basis. This ad hoc 
appointment was subsequently regularized and, therefore, they became 
permanent employees of the State Government. As on the date of taking over 
the college, the terms of appointment between the erstwhile management and D 
the respondents ceased to exist and they became employees of the State 
Government on an ad hoc basis, they cannot claim any benefit for the service 
rendered by them in the college while it was under private management, there 
being no specific provision to count.the previous service by any extent. 
(194-G-H; 195-A-C) 
1.3. In the instant case, there is no material on record to show that tile 
erstwhile Management was liable for any pension or pensionary liabilities in 
relation to its employees. Moreover, Section 6 which deals specifically with 
E 
the subject of determination of terms and conditions of the teaching staff and 
other employees of the college, but it does not mention anything about giving 
weigbtage of past service for any purpose. There is also no order of State F 
Government in this regard in terms of sub-section (3) of Section 6. Thus, it 
cannot be accepted that the private management was liable to pay service 
benefits to the respondents such as pension etc. and as the college was taken 
over by the State Government, this liability has passed on to the State 
Government. (195-H; 196-A) 
G 
2. Rule 58 of the Bihar Pension Rule

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