THE STATE OF BIHAR vs. RAJMATI DEVI

Case Type: Civil Appeal

Date of Judgment: 20-05-2022

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Full Judgment Text

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOS. 3900­3901 OF 2022 The State of Bihar & Ors.             ..Appellant (S) Versus Rajmati Devi & Anr.                        ..Respondent (S) J U D G M E N T  M. R. Shah, J. 1. Feeling   aggrieved   and   dissatisfied   with   the   impugned judgment   and   order   dated   11.04.2017   passed   by   the Division Bench of the High Court of Judicature at Patna in Letters   Patent   Appeal   No.   1099/2016,   by   which,   the Division Bench of the High Court has dismissed the said appeal   preferred   by   the   State   and   has   confirmed   the judgment   and   order   dated   02.09.2015   passed   by   the learned Single Judge holding that respondent No. 1 being widow of the deceased employee would be entitled for grant Signature Not Verified Digitally signed by Jatinder Kaur Date: 2022.07.15 17:14:53 IST Reason: 1 of family pension from the date of death of her husband, the State of Bihar has preferred the present appeals. 2. The husband of respondent No. 1 herein joined the Bihar Research Society, an autonomous society registered under Societies Act, as a peon. The said society was taken over by the Government of Bihar vide Bihar Research Society (Taking Over) Act, 2007. By resolution dated 31.08.2005, the   State   abolished   the   Old   Pension   Rules   i.e.,   Bihar Pension   Rules,   1950   and   replaced   the   same   with   New Pension   Scheme   i.e.,   Bihar   Government   Servant Contributory Pension Scheme, 2005, w.e.f. 01.09.2005. As per   the   New   Pension   Scheme,   the   employees   appointed after   31.08.2005   shall   be   governed   by   the   new contributary pension scheme under which the government employees appointed after 31.08.2005 shall not be entitled to the pension/family pension. The Bihar Research Society (Taking Over) Act, 2007 (hereinafter referred to as the Act, 2007) came into force on 02.03.2009 resulting in taking over   of   the   Institute/Society   where   the   husband   of respondent No. 1 was working. The husband of respondent 2 No. 1 died on 23.03.2013 while in service. The employees of the aforesaid Society were taken into government service vide   order   dated   25.03.2014   w.e.f.   02.03.2009.   A corrigendum   came   to   be   issued   by   the   State   of   Bihar amending   the   employment   order   dated   25.03.2014 substituting   the   word   “appointed”   with   the   word “absorbed”.   Clause   6   was   inserted   by   the   corrigendum stating that prior to date of acquisition, the service would not be calculated as government service. That respondent No. 1 filed the writ petition before the High Court praying for family pension and other retiral benefits. By judgment and   order   dated   02.09.2015,   the   learned   Single   Judge allowed the said writ petition and directed the State to pay the family pension to respondent No. 1 from the date of her husband’s death i.e., 23.03.2013.   2.1 Feeling aggrieved and dissatisfied with the judgment and order   passed   by   the   learned   Single   Judge   allowing   the family   pension,   the   State   preferred   the   Letters   Patent Appeal before the Division Bench of the High Court. By the impugned   judgment   and   order,   the   High   Court   has 3 dismissed the said appeal and has confirmed the judgment and order passed by the learned Single Judge, which has given rise to the present appeals.    3. Learned counsel appearing on behalf of the appellant has vehemently   submitted   that   pension   and   family   pension was available to the employees of the State Government who   were   governed   by   the   Old   Pension   Rules.   It   is submitted that when the husband of respondent No. 1 was absorbed   in   the   year   2014   w.e.f.   02.03.2009,   the   Old Pension Rules were abolished and the New Contributory Pension   Scheme   was   replaced.   It   is   submitted   that therefore, the Old Pension Rules were not applicable to the husband of respondent No. 1 and therefore, respondent No. 1 shall not be entitled to the family pension under the Old Pension Rules.  3.1 It is submitted that the Old Pension Rules were abolished on 01.09.2005 and thereafter, the New Pension Scheme came   into   force,   therefore,   New   Pension   Scheme   was applicable to all the employees of the State Government, who were appointed/absorbed on or after 01.09.2005. 4 3.2 It is submitted that a corrigendum dated 22.06.2015 was also issued by the Government making it abundantly clear that the term of Government service will be calculated only from the cut­off date i.e., 02.03.2009 and the services of the   adjusted   employees,   prior   to   date   of   acquisition   in Bihar   Research   Society   shall   not   be   calculated   as   a government service. It is submitted that in that view of the matter, the High Court has committed a grave error in allowing   the   family   pension   applying   the   Old   Pension Rules, 1950. 3.3 Making the above submissions, it is prayed to allow the present appeals.     4. The   present   appeals   are   vehemently   opposed   by   Ms. Rachitta   Rai,   learned   counsel   appearing   on   behalf   of respondent   No.   1.   It   is   vehemently   submitted   that   the husband of respondent No. 1 was absorbed in the State Government   service   w.e.f.   02.03.2009   by   way   of adjustment vide Section 5 of the Act, 2007. It is submitted 5 that  it  was   not  a  fresh  appointment  and   therefore,   his services were to be treated as continuous.  4.1 It is submitted that the husband of respondent No. 1 died in   harness   and   while   in   service   and   therefore,   as   per clause 7(1) to the family pension scheme, on the death of her husband who died while in service, respondent No. 1 was entitled to the family pension and the family pension scheme being beneficial scheme, both, the learned Single Judge as well as the Division Bench of the High Court have rightly held that respondent No. 1 is entitled to the benefit of the family pension scheme.    5. We   have   heard   learned   counsel   appearing   on   behalf   of both the parties at length.  6. At the outset, it is required to be noted that the husband of   respondent   No.   1   came   to   be   absorbed   in   the government service in the year 2014 w.e.f. 02.03.2009. Till 02.03.2009,   he   remained   the   employee   of   the   Bihar Research   Society,   of   which   he   was   an   employee   and working.   The   Old   Pension   Rules,   1950   came   to   be 6 abolished and the New Contributory Pension Scheme came to   be   introduced   w.e.f.   01.09.2005.   Under   the   New Contributory   Pension  Scheme,   there   is   no   provision   for pension/family pension. As per the Scheme, all those who are appointed after 31.08.2005 shall be governed by the New Contributory Pension Scheme. Therefore, at the time when the husband of respondent No. 1, who died in the year   2013,   was   absorbed,   the   Old   Pension   Rules   were abolished and the New Contributory Pension Scheme was in   existence.   As   per   the   corrigendum   issued   in   the appointment order and as per clause 6, the prior service rendered   by   the   concerned   employee   prior   to   his absorption shall not be treated as a government service. Therefore, the husband of respondent No. 1 can be said to be a government servant and in government service w.e.f. 02.03.2009   only.   Therefore,   the   husband   of   respondent No.   1   was   governed   by   the   New   Contributory   Pension Scheme   under   which   there   is   no   provision   for   the pension/family   pension.   Therefore,   the   High   Court   has committed a grave error in directing the appellant to pay the family pension to respondent No. 1 applying the Old 7 Pension Rules, which were applicable prior to 31.08.2005. The aforesaid aspect has not been considered by the High Court   at   all   and   the   learned   Single   Judge   simply considered that on the death of the husband of respondent No. 1, who died in harness while in service, respondent No. 1 is entitled to the family pension under family pension scheme. However, the High Court has not at all considered that on coming into force the New Contributory Pension Scheme,   no   government   employee   appointed   after 31.08.2005 shall be entitled to any other benefit except under the New Contributory Pension Scheme. In that view of the matter, respondent No. 1 shall not be entitled to the family pension under the Old Pension Rules, which were not applicable at the time when the husband of respondent No. 1 came to be absorbed in the government service w.e.f. 02.03.2009.  7. In view of the above discussion and for the reasons stated above, the impugned judgment(s) and order(s) passed by the High Court deserve(s) to be quashed and set aside. Accordingly,   the   judgments   and   orders   passed   by   the 8 learned Single Judge as well as the Division Bench of the High Court holding that respondent No. 1 shall be entitled to the family pension under the Old Pension Rules are hereby quashed and set aside. It is observed and held that as the husband of respondent No. 1 was absorbed in the government   service   only   w.e.f.   02.03.2009,   he   shall   be governed   by   the   New   Pension   Scheme   i.e.,   Bihar Government Servant Contributory Pension Scheme, 2005. The present appeals are allowed, accordingly. No costs.                               …………………………………J.                (M. R. SHAH) ………………………………J.     (B.V. NAGARATHNA) New Delhi,  May 20, 2022  9