Period Prior To Regularisation Date Should be Factored Into Calculation Of Pension And Other Retirement Benefits: Gujarat High Court

Brief Facts:

The period of service rendered by the Petitioner's husband (“Deceased Workman”) before his regularization under the Government Resolution of 17.10.1988 was not accounted for in the calculation of his pension and other retirement benefits. Consequently, the Petitioner filed a Special Civil Application in the High Court.

Firstly, she requested the issuance of a writ of mandamus or any other suitable order, declaring the Management's inaction in releasing her husband's pension and retirement benefits as illegal, unjust, arbitrary, and violative of Article 14 of the Constitution of India. She further urged for the direction to the Management to disburse the pension and retirement benefits retroactively with a 12% interest rate. Additionally, the Petitioner urged the court to declare the Management's withholding of the benefits as unlawful and to instruct them to release all due amounts with a 12% interest rate.

Observations by the High Court:

The High Court note that the Deceased Workman commenced as a daily wager with the department on 18.04.1993 and served until 28.02.2014, accumulating 15 years of service with 240 days worked per year during this period. While the tenure from 01.04.2009 to 28.02.2014 was acknowledged for pension calculation, the Deceased Workman fell short of the requisite qualifying service period for pension benefits due to regulations stipulated in the Gujarat Civil Service (Pension) Rules, 2002.

The High Court held that the Management's contention that prior to the date of regularization the period is not to be counted is no more an issue which is res integra. It referred to the decision of the Supreme Court in Samudabhai Jyotibhai Bhedi vs. Executive Engineer 2017 (4) GLR 2952, where the SC held that the period prior to regularization, during which an employee fulfilled the condition of working 240 days for a minimum of 10 years, must be factored into the calculation of pension and other retirement benefits.

Therefore, the High Court held that the Management's stance was erroneous and was contrary to settled legal principles. The High Court ordered that the period of service prior to 01.04.2009, during which the Petitioner's husband worked 240 days per year, should be counted towards his total service for the purpose of calculating dues. Furthermore, the Management were instructed to compute and disburse all outstanding dues, including pensionary and terminal benefits, within eight weeks.

Case Title: Naran Devashi Meheshwari & Anr. Versus State Of Gujarat & Ors.

LL Citation: 2024 LiveLaw (Guj) 62

Case Number: R/Special Civil Application No. 15908 Of 2018 With Civil Application (For Bringing Heirs) No. 1 Of 2023 In R/Special Civil Application No. 15908 Of 2018

Advocate for the Petitioner: Deceased Litigant For The Petitioner(S) No. 1

Advocate for the Respondent: Mr Ph Pathak(665) For The Petitioner(S) No. 1.1 Mr Sahil Trivedi, Asst. Government Pleader For The Respondent(S) No. 1,2,3 Mr Hs Munshaw(495) For The Respondent(S) No. 3

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