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Supreme Court of India

KARAN SINGHversusDELHI TRANSPORT CORPORATION & ANR.

Citation
2017 INSC 902
Decided
13 September 2017
Disposal
Hearing Adjourned

Holding

The appeal is to be listed after the decision in DTC v. Balwan Singh, pending the larger bench's ruling on the treatment of leave without pay for pension qualification.

Summary

Karan Singh, a former conductor with Delhi Transport Corporation (DTC), opted for the corporation's Voluntary Retirement Scheme in 1993 after completing ten years of service, but was denied a pension. He challenged the denial before the Central Administrative Tribunal, which held that his service, including a training period and after deducting 98 days of leave without pay, amounted to the requisite ten years, and ordered DTC to pay pension. The Delhi High Court reversed this decision, contending that the leave without pay should not be counted and that his qualifying service fell short of ten years. On appeal, the Supreme Court examined whether the training period and leave without pay could be counted towards qualifying service, noting that the question of leave without pay had been referred to a larger bench in DTC v. Balwan Singh. In the interest of justice, the Court directed that the appeal be listed after the larger bench decides the pending issue, effectively staying further orders pending that decision.

Issues considered

  • Whether the training period (15 March 1983 to 26 May 1983) should be counted towards qualifying service for pension under DTC's pension rules.
  • Whether leave without pay (98 days) should be counted as qualifying service for pension.
  • Whether DTC's refusal to grant pension despite the employee meeting the Voluntary Retirement Scheme criteria is legally justified.
  • Whether the Central Administrative Tribunal's order granting pension can be set aside by the High Court.

Legislation cited

Subjects

pensionqualifying serviceleave without payvoluntary retirement schemeservice rulesCentral Administrative TribunalDelhi Transport Corporationtraining periodSupreme Courtpending reference

Judgment

                     [2017) 8 S.C.R. 675


                         KARAN SINGH                                   A
                                v.
         DELHI TRANSPORT CORPORATION & ANR.
                 (Civil Appeal No. 12743 of 2017)
                      SEPTEMBER 13, 2017                               B

          (A.K. SIKRI AND ASHOK BHUSHAN, JJ.I
      · Service law - Pension and other benefits - Voluntary
Retirement Scheme - Scheme floated by the respondent-corporation
whereby employees who had 10 years of service and 40 years of C
age were granted option for voluntary retirement - Appellant
submitted his application for voluntary retirement which was allowed
- He was made various payments as per the scheme but no order
for pension was passed on the ground that he did not qualify for
pension - Held: The qualifying service after adding the training
period and deducting 98 days on account of leave without pay, D
 came to 9 years, 10 months and 11 days - The appellant placed the
photocopy of Jhe savice-book which contained the details of his
 leave - There was no mention in the leave account that leave without
pay shall be treated as disruption in service - The question whether
period of leave without pay is to be counted as qualij)'ing service E
for pension, is pending before the larger bench in Balwan Singh
 case - In the interest of justice, it is held appropriate to await the
·decision in Balwan Singh case - Appeal to be listed after disposal
 of Balwan Singh case.
      DTC v. Ba/wan Singh in CA. No.7159 of 2014 dated
                                                                       F
      19.11.2016; DTC v. Lillu Ram 2017 (11) SCALE 588-
      referred to.
                       Case Law Reference
      2017 (11) SCALE 588            referred to      Para4
     CIVIL APPELLATE JURISDICTION : Civil Appeal No.12743              G
of2017.
      From the Impugned Order dated 15.03.2016 passed by the High
Court of Delhi at New Delhi in Writ Petition (Civil) No.7662 of2015.

                                                                       H
                               675
676            SUPREME COURT REPORTS                           [2017] 8 S.C.R.


A           Karan Singh (Petitioner-in-person).
             AvnishAhlawat, Ms. Asha Gopalan Nair, Ms. Nivedha Nair, Advs.
      for the Respondents.
            The Judgment of the Court was delivered by
 B         ASH OK BHUSHAN, J. 1. The appellant who appears in person
    has come up in the appeal against judgment dated 15.03.2016 in Writ
    Petition (C) No.7662 of2015 of Delhi High Court by which judgment
    Delhi High Court allowed the writ petition of Delhi Transport Corporation
    by setting aside the order dated 19.02.2015 passed by the Central
. C Administrative Tribunal, Principal Bench, New Delhi whereby the Tribunal
    has directed the Delhi Transport Corporation to pay the appellant pension
    and other benefits in accordance with the Pension Scheme issued by the
    DTC vide their Office Order dated 27.11.1992 read with YRS, 1993.
          2. By Memo dated 09.02.1983, the appellant was directed to report
   T.S. Training School, IPD for training on 10.02.1983 for the post of
 D Retainer Crew or Conductor. The appellant underwent training from
   15.03.1983 to 26.05.1983. The appellant was offered appointment by
   order dated 24.05 .1983 after qualifying the written test held on 13 .05 .1983
   for the post of Conductor with effect from27.05.1983. The appointment
   letter dated 25.05.1983 was issued appointing the appellant as Retainer
 E Crew with effect from27.05.1983. On 27.11.1983 he was given regular
   appointment as monthly rate Conductor w.e.f. 27.11.1983. The Delhi
   Transport Corporation floated voluntary retirement scheme by circular
   dated 03 .03 .1993. Those employees who had IO years of service and 40
   years of age were entitled to opt for voluntary retirement. The appellant
   submitted his application for voluntary retirement which was allowed by
 F letter dated 30.04.1993. The appellant was made various payments as
   per scheme but no order for pension was passed.
         3. A writ petition was filed by the appellant in the Delhi High
   Court seeking a direction to make payment of pension. The writ petition
   was transferred to Central Administrative Tribunal and was allowed by
 G order dated 09.08.2011 by the Tribunal. The Tribunal held that the
   respondent having accepted voluntary retirement of the appellant on the
   ground that he has completed 10 years of service, now, this is too late to
   say for the Corporation not to make payment of pension on the ground
   that he has not completed 10 years of qualifying service. Against the
 H
    KARAN SINGH v. DELHI TRANSPORT CORPORATION                                677
                [ASHOK BHUSHAN, J.]

 order of the Tribunal a writ petition was filed in the High Court by the     A
 Corporation. The writ petition was allowed by the Delhi High Court by
judgment and order dated 29.05.2013. The High Court held that ifthe
 service of the appellant is reckoned from 27.05.1983 and the period of
 98 days on which he was on leave without pay, total period of service
 comes to 9 years, 7 months and 8 days which does not qualify for pension.    B
 Review application was filed by the appellant praying for adding period
 from 15.03.1983 to26.05.1983 under which he had undergone for training.
 Review Application was rejected that since no such plea was raised
 before the Tribunal the same cannot be considered. After rejection of
 the review, appellant again requested the DTC to re-appreciate the
.qualifying service and reconsider for grant of pension. In the application   C
 apart.from requesting for adding training period, he also claimed that he
 was not paid employee's share of the contribution to Provident Fund,
 putting a cross against the said claim clearly meant that Corporation
 itself was considering the case of the appellant as a pension case. He
 further stated that similarly situated persons have been granted benefit     D
 of pension.
        4. The appellant was informed by the Corporation vide letter dated
 03.10.2013 that his qualifying service was less than 10 years and all
 employee's due share is being released. An original application was filed
 being OA No.43 of2014 before the Tribunal where the appellant prayed
 for quashing the order dated 03.10.2013 of the Corporation and sought E
 direction to make payment of pension with interest. The Tribunal vide
 order dated 19.02.2015 allowed the application holding that the appellant
 had completed the minimum qualifying service of l 0 years for the purpose
 of pension, hence, the appellant should be granted pension and all other
.benefits with interest at the rate of9%. The Tribunal accepted the case F
 of the appellant that by adding his period of training he shall complete 9
 years l 0 months and 11 days which can be rounded of to 10 years. The
 judgment of the Tribunal 19.02.2015 was assailed by the DTC by filing a
 Writ Petition No.7662of2015 which writ petition has been allowed by
 the Division Bench of the Delhi High Court on 15 .03.2016. The Division
 Bench of the High Court by its earlier judgment dated 29.05.2013 having G
 reversed the order of the Tribunal in favour of the appellant which cannot
  be reopened on the principle of constructive res judicata. The Division
  Bench of Delhi High court in its judgment dated 29.05.2013 has also
  relied on this Court's judgment in DTC vs. Lillu Ram in (:'.A. No.11440
                                                                            H
678               SUPREME COURT REPORTS                    (2017] 8 S.C.R.


A 9of2011 decided on 14.12.2011 wherein this Court has held that the
  period of leave without pay cannot be counted as qualifying service for
  pension.
            5. This appeal was heard by us on 01.05.2017 on which date we
      passed the following order:
 B               "After hearing the petitioner who appears in-person and
           the counsel for the respondent for some time, we feel that the
           following documents would be necessary in order to decide
           the controversy:
            (1)     Rule regarding counting of service towards pension.
 c
                  This is necessary having regard to the fact that the
            petitioner herein had undergone training for the period from
            15.03.1983 to 26.05.1983. Whereas, the petitioner wants this
            period to be counted for calculating the qualifying service
            for the purposes of pension but the respondent has come out
 D           with the plea that such a period cannot be counted.
            (2) According to the respondent, the petitioner had remained
            on leave without pay for 98 days and that period is excluded
            for counting the qualifying service by the respondent.
                 The petitioner, on the other hand, has drawn our attention
 E
            to Rules 21, 27, 28 of the Pension Rules and submits that
            reading of the aforesaid Rules would show that the aforesaid
            period is to be counted unless there is a specific order for not
            counting the sai1 service towards pension.
               The respondent shall, therefore, place on record any
 F
            document or order which was passed in this behalf in the
            petitioner's case.
            (3) The petitioner has u:J. drawn our attention to letter
            dated 21.10.2013 written by the respondent to him which is
            an information provided under the provisions of Right to
 G          Information Act, 2005. That letter shows that many employees
            who had not completed 10 years of qualifying service and
            who had opted for VRS, are given pension. It further shows
            that this is as per the orders of the High Court or this Court.
            The respondent shall also produce the copies of all those
 H          orders."
    KARAN SINGH v. DELHI TRANSPORT CORPORATION                                   679
                [ASHOK BHUSHAN, J.]

        6. In pursuance of our order dated 'ol.05.2017, an additional            A
affidavit has been filed by the respondent. In the additional affidavit the
respondent has pleaded that the period from 15.03.1983 to 26.05.1983
i.e. training period cannot be added. It is stated in the affidavit that since
the appellant was appointed as conductor on regular basis w.e.f.
27.11.1983, the counting of his service period commences from                    B
27.11.1983, till 30.04.1993 (date of YRS) which comes to 9 years 5
months and 3 days. Further, the period ofleave without pay of 98 days
for which no salary was paid cannot be counted as qualifying service,
thus, the qualifying service of the appellant comes to only 9 years 1
month and 25 days. Rule 21 of CCS Pension Rules has been referred
for the purpose. The training period cannot be added as during the said          C
period neither salary nor any stipend is paid. After training written test is
conducted, on passing the same the conductor is offered appointment.
_The respondent has also brought on record an order of this Court dated
 19.11.2016 in C.A.No.7159 of2014 (D.T.C. vs: Balwan Singh & Ors.)
wherein this Court had referred the judgment of two-Judge Bench in
Lillu Ram (supra) for consideration by a larger Bench. It is useful to           D
extract herewith reason given by the two-Judge Bench for making
reference which is to the following effect:
           "The judgment in the case of Lillu Ram (supra) rendered
       by a Division Bench does not show any consideration or
       reasons as to why when factually the employee had been                    E
       sanctioned leave without pay, such period was treated by this
       Court to be a period of unauthorised absence. Even the
       relevant rules such as Rules 27 & 28 of the Central Civil
       Service (Pension) Rules, 1972 or F.R.17-A of the Fundamental
       Rules on which reliance has been placed by the respondents                F
       was not noticed or considered.
             Prima facie, we are of the view that no adverse effect can
      . be permitted upon the right of the employee to receive pension
        unless he was given notice by appropriate entry in the service
        book or through other notice that his absence will be treated            G
        as unauthorised absence and will not be counted towards
        qualifying service for pension. In absence of such notice,
        after the respondent-employee has taken voluntary retirement
        under VRS and that too on the ground that he has completed

                                                                                 H
680           SUPREME COURT REPORTS                       [2017] 8 S.C.R.


A         ten years of service. it may be unjust and very harsh to inflict
          him with such adverse consequences. No doubt in sub rule
          (2) of Rule 28 of the Pension Rules which relates to
          condonation of interruption of service, an opportunity of
          representation is required to be given to the employee before
          making entry in service book regarding forfeiture of past
B
          service only, but there appears to be some substance in the
          submission that Rules of Natural Justice may be attracted even
          in other similar situation where the entry is regarding
          unauthorised absence, if it is to have the effect of break in
          service adversely affecting the length of qua/ifYing service
c         for pension.
                Jn our considered view, the judgment rendered by the
           Division Bench in case of Li/lu Ram (supra) requires re-
           consideration by a larger Bench. For that purpose, the matter
           may be brought to the notice of the Hon 'b/e the Chief Justice
D          of India.
                Since the respondents-employees, as per interim orders
           are getting only 50% of the pension, we are of the view that
           hearing of this matter needs to be expedited. "
          7. As noted above, one of the issues which is noted in our order
 E dated 01.05.2017 and on which the respondent was asked to submit a
   response is the appellant's plea for adding the period of98 days to be
   counted in qualifying service. We have no doubt that the appellant is
   entitled to count his period from27.05.1983 on which date he was first
   appointed followed by regular appointment w.e.f. 27.11.1983.
 F        8. The Tribunal after computing the appellant's appointment from
   27.05.1983 has accepted the case of the appellant which comes to 9
   years 11 months and 6 days. After adding the training period and deducted
   98 days it comes to 9 years, 10 mor.:t- and 11 days. The appellant who
   appears in person has also placed before us the photocopy of the service-
 G book of the appellant which also contains the details of his leave. There
   is no mention in the leave account that leave without pay granted shall
   be treated as disruption in service. The effect of Rule 27 and 28 has to
   be considered which matter has been referred for consideration by a
   larger Bench as noted above. We are of the view that in the interest of
   justice it shall be appropriate to await the decision on reference dated
 H
   KARAN SINGH v. DELHI TRANSPORT CORPORATION                            681
               [ASHOK BHUSHAN, J.]

09.11.2016 as made in C.A.No. 7159 of 2014 (D.T.C. vs. Balwan A
Singh & Ors.). List this appeal after the decision in reference made in
C.A No.7159 of2014.



Devika Gujral                                          Matter pending.


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