Karnataka HC Keeps 2003 Contract Engineers Under NPS, Limiting Old-Pension Eligibility To Gangmen Absorbed As Junior Linemen Before April 1, 2006

Assistant Engineers and Junior Engineers were engaged by the Karnataka Electricity Board (now KPTCL) on contract in 2003 and appointed on a permanent basis, prospectively, from 30 April 2007.

Their appointment terms excluded the contractual period from pension reckoning and specified coverage under a contributory pension scheme.

KPTCL had adopted the New Defined Contributory Pension Scheme (NPS) for new entrants joining on or after 1 April 2006.

The employees challenged their NPS coverage, contending that their service began in 2003; the Single Judge allowed their petitions.

In a separate petition, an employees’ union sought old-pension coverage for 7,528 Gangmen converted to Probationary Mazdoors and later absorbed as Junior Linemen.

The Corporation appealed the three orders

The Corporation’s 5 July 2007 decision made the NPS applicable to new recruits joining KPTCL/ESCOMs on or after 1 April 2006; for this purpose, the relevant entry into service was permanent appointment with the pay scale attached to the post, not prior contractual engagement.

The Court applied the principle that regularisation does not ordinarily relate back to the date of contractual or casual entry.

It also applied the rule in Union of India v. Tarsem Singh that continuing service wrongs may sometimes overcome delay, subject to the stated exceptions, but distinguished it on the facts.

It considered Regulations 181(1) and 181(A) of the KEB Employees Service Regulations inapplicable to the Engineers’ contract appointments.

For Gangmen, the Government approval and settlement governing conversion and absorption were read together: conversion to Probationary Mazdoor status alone did not amount to absorption as Junior Lineman; the relevant event was absorption into that post with its pay scale.

The Engineers’ 2003 engagements were contractual, for consolidated remuneration, and carried no permanent status.

Their permanent appointments, pay scales and pension terms took effect on 30 April 2007; they had accepted those terms and made no timely challenge despite NPS deductions from the outset.

The Court therefore rejected their claim to treat 2003 as their entry into permanent service and found no basis to invalidate the 1 April 2006 cut-off or grant relief after the prolonged delay.

The Gangmen’s cases required individual identification: conversion to Probationary Mazdoor did not itself constitute absorption into the Junior Lineman cadre.

Only those absorbed as Junior Linemen, with the applicable pay scale, before 1 April 2006 qualified for consideration under the old scheme; later absorptions fell under the NPS.

W.A. No. 1254 of 2023 was disposed of by modifying the order below: only Gangmen absorbed as Junior Linemen with the relevant pay scale before 1 April 2006 were to be considered under the old pension scheme; those absorbed on or after that date were subject to the NPS.

KPTCL was directed to identify the employees covered by each scheme and provide the resulting benefits within three months, including to former employees who had retired or died.