Patna High Court
Social Security and PensionsAdministrative and Public Law

Old Pension Scheme claims must be determined by the competent authority under the 2023 Finance Department circular.

Yugal Paswan vs The State of Bihar

Patna High CourtJUDGMENT: September 17, 20263 MIN READSOURCE JUDGMENT
Old Pension Scheme claims must be determined by the competent authority under the 2023 Finance Department circular.. Yugal Paswan vs The State of Bihar. Patna High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioners, employees serving in various offices in Aurangabad District, had applied pursuant to an advertisement dated 30 August 1995.

Source reference: paras. 2–3; pp. 2–3

A selection panel was prepared on 22 April 1999, before the Bihar Government Karmchari Anshdayi Pension Yojna, 2005—known as the New Pension Scheme—came into effect on 1 September 2005.

Source reference: paras. 2–3; pp. 2–3

The petitioners claimed that, because their selection process had been completed before the introduction of the New Pension Scheme, they were entitled to coverage under the Bihar Pension Rules, 1961 and the General Provident Fund rather than the contributory pension scheme.

Source reference: paras. 2–4; pp. 2–3

They relied on the Finance Department’s circular bearing Memo No. 1206 (Pension), dated 28 November 2023, concerning employees whose selection process had concluded before the New Pension Scheme came into force.

Source reference: para. 4; p. 3

The petitioners sought deletion of their names from the New Pension Scheme and the Contributory Provident Fund and their inclusion under the Old Pension Scheme and General Provident Fund.

Source reference: para. 2; p. 2
02

Issues

Whether the petitioners, whose selection process allegedly concluded before the New Pension Scheme came into force, are eligible to be governed by the Bihar Pension Rules, 1961 and the General Provident Fund instead of the New Pension Scheme?

Source reference: paras. 2–4; pp. 2–3

Whether the petitioners’ claim should be considered in accordance with the Finance Department’s circular bearing Memo No. 1206 (Pension), dated 28 November 2023?

Source reference: paras. 4–5, 8; pp. 3–4

Whether the petitioners should first approach the competent authority by way of individual representations for determination of their eligibility?

Source reference: paras. 5–9; pp. 3–4
03

Law Applied

The Court considered the distinction between the Bihar Pension Rules, 1961 and the Bihar Government Karmchari Anshdayi Pension Yojna, 2005, the latter having been made effective from 1 September 2005.

Source reference: paras. 2–3; pp. 2–3

It also applied the administrative directions contained in the Finance Department’s Memo No. 1206 (Pension), dated 28 November 2023, concerning employees whose selection process was completed before the New Pension Scheme commenced.

Source reference: paras. 4, 8; pp. 3–4

The Court followed the procedural approach adopted in CWJC No. 5868 of 2022, where similarly situated employees were granted liberty to submit individual representations to the competent authority for determination of their eligibility.

Source reference: para. 5; p. 3

No final determination of entitlement under either pension scheme was made in the present case.

Source reference: no citation
04

Reasoning

The Court noted that the petitioners’ advertisement and panel predated the commencement of the New Pension Scheme and that they relied on the 2023 Finance Department circular to establish their eligibility for the Old Pension Scheme.

Source reference: paras. 3–4; p. 3

However, rather than adjudicating their substantive entitlement directly, the Court adopted the course followed in the analogous proceedings in CWJC No. 5868 of 2022.

Source reference: para. 5; p. 3

To ensure uniformity and permit verification of the petitioners’ individual service and selection records, the Court directed each petitioner to submit an individual representation to the District Magistrate, Aurangabad, demonstrating eligibility under the circular.

Source reference: para. 8; p. 4

The competent authority was then required to examine the claim and issue a reasoned and speaking order.

Source reference: para. 9; p. 4
05

Holding

The writ petition was disposed of without deciding the petitioners’ final entitlement to the Old Pension Scheme or General Provident Fund.

Each petitioner was granted liberty and directed to file an individual representation before the District Magistrate, Aurangabad, within four weeks from 17 September 2026, showing eligibility under Finance Department Memo No. 1206 (Pension), dated 28 November 2023.

Source reference: para. 8; p. 4

Upon receipt of such representation, the District Magistrate was directed to pass a reasoned and speaking order within a further period of 90 days.

Source reference: para. 9; p. 4
Patna High Court

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Yugal PaswanvsThe State of Bihar

Patna High Court · September 17, 2026

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