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STATE OF PUNJAB versus DEV DUTT KAUSHAL ETC.

Citation: [1995] SUPP. 3 S.C.R. 96 · Decided: 28-08-1995 · Supreme Court of India · Bench: B.P. JEEVAN REDDY · Disposal: Appeal(s) allowed

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Judgment (excerpt)

A 
STATE OF PUNJAB 
v. 
DEV DUTT KAUSHAL ETC. 
AUGUST 28, 1995 
B 
[B.P. JEEVAN REDDY AND G.N. RAY, JJ.) 
Se1vice Law. 
Pension--Computation of Qualifying period fm~Plivate Educational 
C Institution-No pension only contlibutmy provident fund-Institute taken over 
by State Govemment-By way of Gift deed-Application of Govemment 
Rules, specifically stipulated in the deed-College Staff Absorbed on the con-
ditions specified in the deed-Neither the conditions of service in the College 
provides for pension nor the gift deed specifies the se1vice rendered in p1ivate 
college to be counted for the pwpose of pension-Under these circumstances, 
D 
E 
F 
G 
the respondent appointed in the p1ivate college-Continued in se1vice after 
Govemment take ove1~Retired, subsequently-Held, not entitled to pen-
sion-As the se1vice rendered by him under the private management cannot 
be computed as qualifying service for receiving pension from the Government. 
Retirement-Age of superannuation-Private Educational Institute 
taken over by Govemment--Gift Deed executed by the Management-Existing 
teachers on take over by Govemment to be treated as "New entrants''-Staff 
of college absorbed by Govemment subject to conditions stipulated in the gift 
deed-Age of retirement in plivate college is 60 years but, in Govemment 
college it is 58 years-No protective clause in the gift deed regarding age of 
superannuation under Plivate Management-Held, not entitled to continue in 
service after 58 years. 
The respondent was a Lecturer in a Private Educational Institution 
which was taken over by the Government under a Gift Deed. 
The Service Conditions in the private College did not entitle any 
pension but only contributory provident fund to the Teachers on their 
retirement from service. The Management had agreed to the stipulated 
condition in the Gift Deed that the Government shall not accept any 
responsibility for the period prior to taking over of the College and that 
H 
the Teachers appointed under the Government shall be treated as "New 
96 
-
STATE v. D.D. KAUSHAL 
97 
Entrants" and shall be governed by the rules and regulations of the A 
Government. 
The Respondent continued in service after such take over, and 
retired from service on attaining the age of 58 years, the prescribed age of 
superannuation under the Government rules. The Respondent was not 
granted any pension as his service under the Government was less than 10 
years. 
B 
A Writ Petition which was dismissed by Single Judge in view of the 
terms and conditions of the Gift Deed was allowed by a Division Bench 
following the decision of this Court in N.N. Swamy's, case [1977) 2 SCR C 
774 the correctness of which was questioned in these appeals. 
Allowing the Appeal, this Court 
HELD: 1. The age of retirement of the College Lecturers under the 
Government is 58 years. There is no clause or condition in the Gift Deed D 
preserving or saving the age of retirement prescribed in the Private 
College. The Lecturers had no right as such to be appointed under the 
Government. The Gift Deed repeatedly states that on such appointment 
they shall be treated as "new entrants" and shall be placed at the bottom 
of the seniority list, as on the date of absorption in the relevant grade or 
category and further in matters specifically provided, the Government 
rules and regulations and orders will apply and thus the claim for conΒ· 
tinuance till the attainment of 60 years is not acceptable. [101-E-G] 
2. According to Government rules, no Lecturer is entitled to pension 
unless he puts in ten years of service. Under the Private Management the 
Respondent was not entitled to pension but only to C.P.F. The Gift Deed 
does not specify that service rendered in the college while it was under the 
past private management shall also be counted, but instead states that the 
E 
F 
Government will not take any responsibility prior to take- over and the 
management will clear all liabilities. The Gift Deed expressly specifies the G 
only exemption to the rule of "new entrants" it recognised Β·for the purpose 
of fitment in the appropriate scale of pay, their service in the said grade 
under the private management shall be taken into account. The gift deed 
~ t 
provides expressly that in matters not expressly provided in the gift deed, 
the rules, regulations, instructions and orders issued by the Government 
shall apply. [101-H; 102-C; F-G; 103-A-B] 
H 
98 
SUPREME COURT REPORTS [1995) SUPP. 3 S.C.R. 
A

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