Supreme Court Directs Resolution of Pension and Salary Arrears in University Absorption Case image for SC Judgment dated 08-01-2025 in the case of Haldhar Prasad Gupta vs Deepak Kumar & Ors.
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Supreme Court Directs Resolution of Pension and Salary Arrears in University Absorption Case

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The Supreme Court of India, in Haldhar Prasad Gupta v. Deepak Kumar & Ors., issued a crucial ruling addressing pending salary arrears, pension entitlements, and procedural lapses in university absorption cases. The judgment clarifies that factual disputes over employment history, salary entitlements, and pension payments require thorough verification before disbursal. The Court directed the university authorities to adjudicate these claims in a time-bound manner.

Background of the Case

The petitioner, Haldhar Prasad Gupta, had been appointed as a Lab In-charge in Parvati Science College, under B.N. Mandal University, on September 27, 1978, and was confirmed in service on February 22, 1979. His claim for absorption into regular service was allowed by the J. Sinha Commission, which was set up to examine university employment regularization issues. The Supreme Court had confirmed this order on August 31, 2017, in the case of Krishna Nand Yadav & others v. Magadh University & others.

Key Legal Issues

  • Despite Supreme Court orders, the petitioner’s salary arrears and pension payments were withheld.
  • He filed a contempt petition, leading to an order on February 27, 2019, directing arrears verification and payment within four weeks.
  • The university authorities failed to comply, prompting a fresh miscellaneous application seeking directions for enforcement.

Supreme Court’s Observations

Non-Compliance with Previous Orders

The Court noted that despite repeated directives, the petitioner’s dues had not been settled:

  • “The Court observed that absorption has been ordered and the payment of the admitted claim has also been made to the petitioner. If there are any remaining arrears, it be paid after verification within four weeks.”
  • Yet, even after service of notice, the university had not filed any counter in response to the application.

Pension and Salary Arrears Require Verification

The Court identified key pending issues:

  • The petitioner’s absorption was officially notified only on September 18, 2018, despite his retirement on November 30, 2016.
  • The petitioner’s pension was withheld based on previous orders in Baidya Nath Choudhary v. Dr. Sree Surendra Kumar Singh, which involved alleged overpayments to absorbed employees.
  • The question of actual working days before absorption and entitlement to arrears required detailed fact-finding.

Supreme Court’s Directions

The Court issued the following structured directions to resolve the issue:

1. Submission of Claims

The petitioner must submit a detailed claim with relevant documents to the Registrar/Vice Chancellor of the university, specifying:

  • Actual working days before absorption.
  • Salary and arrears entitlements.
  • Pension calculations post-absorption.

2. Fact-Finding Inquiry on Salary Arrears

The university must conduct a discreet inquiry within three months, ensuring:

  • Due opportunity to the petitioner, college administration, and state representatives.
  • Verification of attendance records and actual service rendered.
  • Issuance of a reasoned order on salary payments.

3. Pension Entitlement Resolution

The Court ruled that pension claims should be uninfluenced by past orders related to withheld salaries:

  • “The issue regarding payment of pension was not an issue in orders dated 11.07.2019, 07.08.2019, and 12.02.2021.”
  • Pension should be computed notionally from the date of absorption and must be resolved within two months.

4. Recovery of Excess Payments

If, upon verification, it is found that excess amounts were paid under salary or pension heads:

  • The university, college, or state government may recover such amounts following prescribed procedures.
  • The petitioner will be duly informed, and lawful deductions shall be made.

5. Right to Challenge Adjudication

If the petitioner is dissatisfied with the university’s final determination, he may:

  • File a challenge before the High Court under appropriate legal provisions.
  • Seek judicial review on fairness and legality.

Final Judgment

The Supreme Court disposed of the application, directing expedited resolution while holding that:

  • Fact-finding on salary arrears and pension entitlements is the university’s responsibility.
  • The petitioner’s legitimate claims must be processed fairly.
  • Legal recourse remains open if grievances persist after university adjudication.

Implications of the Judgment

This ruling reinforces key principles for addressing financial entitlements in public sector employment:

1. Institutional Accountability

Universities must ensure compliance with court orders and avoid arbitrary delays in processing employee entitlements.

2. Judicial Restraint in Fact-Finding

The Court avoided direct fact-finding, instead directing institutions to resolve disputes within administrative frameworks.

3. Protection of Pension Rights

Pension entitlements cannot be arbitrarily withheld based on unrelated litigation concerning salary overpayments.

4. Legal Recourse for Employees

Employees retain the right to challenge institutional determinations before the High Court.

This judgment sets a precedent ensuring fair treatment of absorbed employees in universities while preventing misuse of financial entitlements.


Petitioner Name: Haldhar Prasad Gupta.
Respondent Name: Deepak Kumar & Ors..
Judgment By: Justice J.K. Maheshwari, Justice Rajesh Bindal.
Place Of Incident: Bihar.
Judgment Date: 08-01-2025.

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