HP High Court Restores Old Pension For Employee Transferred To Other Department Before Scheme Repeal

The Himachal Pradesh High Court recently gave a huge relief to a petitioner who filed a writ petition to get his full gratuity and pension amount under the old pension scheme. Justice Satyen Vaidya considered the petitioner’s continuous service, transfer, and the pension option he opted for, and said, “The petitioner is held entitled to the pensionary benefits under CCS (Pension) Rules, 1972 from the date immediately following the date of his retirement.” The court set aside the office order issued by the respondent in May 2018, denying the petitioner an old pension. According to the Live Law report, the court allowed the petition and directed the respondent to release pensionary benefits and the withheld gratuity to the petitioner within eight weeks. 

Case Background

The petitioner joined as a helper in an organisation under the Himachal Pradesh government in 1985. On November 15, 2002, he was transferred to another department (State Social Women Welfare Department). He worked there as a Junior Assistant and was absorbed permanently in the Department on February 26, 2013. On May 30, 2015, he retired as a Junior Assistant from the office of the Child Development Project Officer.

He was sanctioned a gratuity of Rs 5,36,940 and a per-month pension of Rs 8,845. There was no issue until then, but in May 2018, his pension was stopped. Further, he was paid only Rs 2,35,500 in gratuity. This is when the petitioner had to approach the high court because the department denied him full gratuity and also stopped his pension.

Arguments

The State department argued that the petitioner was absorbed permanently in 2013 in the department, and as per Himachal Pradesh Civil Services Contributory Pension Rules, 2006, which governs pension benefits of employees of the department, any employee who has joined after May 15, 2003, is covered under these rules. Thus, the petitioner cannot ask for the benefits of the old pension scheme.

However, the petitioner’s counsel argued that in November 1999, the petitioner had opted for the pension scheme introduced by the Himachal Pradesh government through a notification dated October 29, 1999. Notably, the scheme covered the provisions of CCS (Pension) Rules, 1972, and thus, the petitioner should be allowed to seek benefit under the 1972 Rules.

State’s counsel argued that the pension scheme launched in 1999 remained in force only from April 1, 1999, to December 2, 2004, and the petitioner superannuated in 2015; thus, he is not entitled to this scheme’s benefits.

Court’s Observation

The court observed that the petitioner had opted for the Himachal Pradesh Corporate Sector Employees (Pension, Family Pension, Commutation of Pension and Gratuity) Scheme, 1999, which applied the CCS (Pension) Rules 1972, for pension benefits. It was observed that the scheme was repealed on December 2, 2004, and when the petitioner was transferred to the State Social Women Welfare Department in November 20002, this scheme was still in force.  

It was observed that the petitioner was transferred with proper operational formalities, and there was a break in service. Even the department has issued an absorption letter for the petitioner, mentioning that the employees appointed on or before May 14, 2003, and who were governed by the CCS (Pension) Rules 1972, will continue to be covered under it for pension benefits.

The court held, “In light of what has been discussed above, the action of respondents denying the pensionary benefits to the petitioner under the 1972 Rules cannot be sustained.” The court allowed the petition and held that the petitioner is entitled to the pensionary benefits under the 1972 Rules, from the next date after his superannuation. It directed the respondent to release the pensionary benefits to the petitioner within eight weeks from the date of the judgment.