Pension Rights of Government Employees: Supreme Court Judgment Explained

The case of Vinod Kanjibhai Bhagora vs. State of Gujarat deals with the pensionary rights of a government employee who had served in both central and state government services. The Supreme Court ruled on whether the appellant’s tenure in the central government should be counted for pensionary benefits after joining the state government.

Background of the Case

The appellant, Vinod Kanjibhai Bhagora, served as a Postal Assistant in the Gandhinagar Postal Division from 1983 to 1993. Later, he applied for and was selected for the post of Senior Assistant in the Ministry of Health and Medical Services, Gujarat. After obtaining a No Objection Certificate (NoC), he tendered his resignation from the central government service and joined the state government in 1993. He served the state government for 23 years before retirement.

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However, upon retirement, the state government provided pensionary benefits only for the service years spent under it, excluding the years served in the central government. The appellant challenged this decision, seeking inclusion of his central government service period for pensionary calculations.

Legal Arguments

The appellant argued that under Rule 25(ix) of the Gujarat Civil Services (Pension) Rules, 2022, his previous service in the central government should be counted as part of his qualifying service for pension. This rule provides that services rendered under the central government, where a pension scheme exists, should be considered when an employee is absorbed into the state government.

The state government contended that the appellant was not ‘absorbed’ into the state government but was selected through a fresh recruitment process. Therefore, it was argued that his previous service in the central government should not be counted for pensionary benefits.

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Supreme Court’s Ruling

The Supreme Court ruled in favor of the appellant, holding that:

• The purpose of pension is to support government servants in old age for services rendered.
• The appellant had served in a pensionable post in the central government and then joined the state government, fulfilling the conditions under Rule 25(ix).
• The appellant obtained an NoC before joining the state government and resigned technically, which implies continuity in service.
• The restrictive interpretation of the rule by the state government was not justified.

The court directed the state government to include the appellant’s service from the central government as qualifying service for pensionary benefits.

Impact of the Judgment

This ruling clarifies the application of pension rules for employees who transition from central to state government services. It ensures fair pensionary benefits and protects the rights of government employees.

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Petitioner Name: Vinod Kanjibhai Bhagora.
Respondent Name: State of Gujarat & Anr..
Judgment By: Justice Vikram Nath, Justice Satish Chandra Sharma.
Place Of Incident: Gujarat.
Judgment Date: 02-02-2024.

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