STATE OF ODISHA & ORS.versusSUDHANSU SEKHAR JENA
- Citation
- 2025 INSC 259
- Decided
- 21 February 2025
- Disposal
- Appeal(s) allowed
- Bench
- SUDHANSHU DHULIA
Holding
Under Rule 18(6) of the Odisha Civil Services (Pension) Rules, 1992, only the portion of a job‑contract employee's service that is necessary to render him eligible for pension may be counted, and the High Court's order counting the entire job‑contract service is not sustainable.
Summary
The case concerned the computation of pension benefits for employees who had served as 'Job Contractors' under the Odisha Civil Services (Pension) Rules, 1992. The State of Odisha appealed against a High Court order that had dismissed its writ appeals on the ground of inordinate delay and had earlier directed that the entire period of job‑contract service be counted for pension. The Supreme Court examined the statutory distinction between work‑charged employees and job‑contract employees, noting that Rule 18(6) of the 1992 Rules limits the pensionable service of job‑contract employees to only that portion of their contract service necessary to make them eligible for pension. The Court held that the High Court’s order counting the entire job‑contract service was unsustainable and that the statutory scheme must be followed. Consequently, the appeals were allowed, the State was ordered to pay costs of Rs 1,50,000 to each employee, and the earlier interim orders were vacated.
Issues considered
- The proper method of computing pension benefits for job‑contract employees under the Odisha Civil Services (Pension) Rules, 1992.
- Whether the entire period of job‑contract service can be counted towards pension eligibility, contrary to Rule 18(6).
- The effect of the High Court's order dismissing the State's writ appeals on the ground of delay.
- The applicability of Article 14 of the Constitution to the classification of work‑charged versus job‑contract employees.
Legislation cited
Headnote
Issue for Consideration Issue arose as regards the computation of pensionary benefits of Job contract employees, only such period of their service as ‘Job Contractors’ to be counted for pensionary benefits as was sufficient to entitle them for pension or the entire period of Job order of the Division Bench of the High Court dismissing the writ appeals filed by the State due to inordinate delay. Headnotes† Service law – Odisha Civil Services (Pension) Rules, 1992 – r.18 (6) – Pensionary benefits – Computation, of employees employed as a
Subjects
Judgment
[2025] 2 S.C.R. 1295 : 2025 INSC 259
State of Odisha & Ors.
v.
Sudhansu Sekhar Jena
(Civil Appeal No. 2803 of 2025)
21 February 2025
[Sudhanshu Dhulia* and Ahsanuddin Amanullah, JJ.]
Issue for Consideration
Issue arose as regards the computation of pensionary benefits
of Job contract employees, only such period of their service as
‘Job Contractors’ to be counted for pensionary benefits as was
sufficient to entitle them for pension or the entire period of Job
Contract Employment; and the order of the Division Bench of the
High Court dismissing the writ appeals filed by the State due to
inordinate delay.
Headnotes†
Service law – Odisha Civil Services (Pension) Rules, 1992 –
r.18 (6) – Pensionary benefits – Computation, of employees
employed as a ‘Job Contractor’ – Only such period of their
service as ‘Job Contractors’ to be counted for pensionary
benefits as was sufficient to entitle them for pension or the
entire period of Job Contract Employment – Order passed
by the Single Judge of the High Court that the entire service
period be counted for calculation of pension of Job Contract
employees – Writ appeals thereagainst by the State – Dismissed
due to inordinate delay in filing the appeals – Challenge to:
Held: Order of the Single Judge of the High Court not sustainable –
Unable to grant relief to respondents-Job Contract employees
that has been granted by the Court to work-charged employees –
Under the 1992 Rules, clear distinction between the work-charged
establishment and job contract establishment, however, the 1992
Rules and the distinction under the law not challenged before any
Court – Thus, not in a position to give a finding as to whether the
distinction between the two is artificial, being only a difference of
nomenclature, and also whether effectively, they both are performing
* Author
1296 [2025] 2 S.C.R.
Supreme Court Reports
regular work – Nevertheless, the State has been pursuing these
cases in extreme careless and lethargic manner – Delay caused
by them is inexcusable – Thus, the State to pay cost of Rupees
One Lakh Fifty Thousand to the employees concerned in cases
belatedly filed. [Paras 10, 14, 16, 18, 20]
Odisha Civil Services (Pension) Rules, 1992 – r.18 sub rule 3
and 6 – Work charged employees and job contractors –
Distinction between:
Held: Work-charged employees are those who have worked in the
establishment for a period of five years or more without interruption
and are subsequently appointed to the same or another post in
temporary or substantive capacity in a pensionable establishment,
the period of service rendered by him/her in a work-charged
establishment to qualify for pension under the Rules – As regards
the job contract employee, after he/she is brought in pensionable
establishment, only that much period as job contract service to
be added to regular service as would make him qualify or eligible
for pensionary benefits. [Para 15]
Deprecation – Inordinate delay – Procedural lapses by State
authorities and Land Records office Surveys Office – Matters
handled in a careless, casual and lethargic manner both in the
High Court and before this Court, causing inordinate delay,
which was never explained in any satisfactory manner – Thus,
the State to pay Rupees One Lakh Fifty Thousand, to the
employee concerned. [Paras 3, 20]
Case Law Cited
Settlement Class-IV Job Contract Employees Union, Balasore v.
State of Orissa & Ors., O.J.C No. 2147/1991; Bhagaban Pattnaik v.
State of Orissa, T.A No. 11/1993; Nityanand Biswal v. State of
Orissa & Ors., O.A No. 3020(C)/2003; All Orissa Settlement and
Land Consolidation Non-Gazetted Technical Officers Association v.
State of Orissa & Ors., O.A No. 3665(C) of 2001; State of Orissa v.
Nityanand Das & Ors., W.P(C) No. 11503/2008; Judhistir Padhy v.
State of Odisha & Ors., WPC (OAC) No. 2276/2012; Chintamani
Panda v. State of Odisha & Ors., W.P.C (OAC) No. 3741/2015;
Pitambar Hota v. State of Odisha, W.P.C (OAC) No. 2622/2015;
Prem Singh v. State of Uttar Pradesh and Others [2019] 11 SCR
1075 : (2019) 10 SCC 516; Uday Pratap Thakur and Another v.
[2025] 2 S.C.R. 1297
State of Odisha & Ors. v. Sudhansu Sekhar Jena
The State of Bihar and Others [2023] 4 SCR 530 : (2023) SCC
OnLine SC 527 – referred to.
List of Acts
Constitution of India; Odisha Civil Services (Pension) Rules, 1992;
Orissa Work Charged Employees (Appointment and Conditions of
Service) Instructions, 1974; Orissa Consolidation of Holdings and
Prevention of Fragmentation of Land Act, 1972.
List of Keywords
Pension; Work charged employees; Work-charged establishment;
Job contractors; Inordinate delay; Courts do not rescue those
who sleep over their rights; Calculation of pension; Service to
be counted for pension; Carelessness by State; Cost of Rupees
One Lakh Fifty Thousand to the employees; Pensionary benefits.
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2803 of 2025
From the Judgment and Order dated 20.11.2023 of the High Court
of Orissa at Cuttack in WA No. 1134 of 2023
With
Civil Appeal Nos. 2815, 2816, 2809, 2810, 2811, 2818, 2819,
2812, 2813, 2814, 2820, 2826, 2827, 2828, 2830, 2831, 2832,
2833, 2835, 2836, 2837, 2839, 2841, 2842, 2843, 2844, 2846,
2847, 2852, 2856, 2860, 2861, 2865, 2871, 2872, 2874, 2880,
2884, 2817, 2821, 2822, 2823, 2824, 2825, 2834, 2838, 2840,
2845, 2848, 2849, 2850, 2851, 2853, 2854, 2855, 2857, 2858,
2859, 2862, 2863, 2864, 2866, 2867, 2868, 2869, 2870, 2873,
2875, 2876, 2877, 2878, 2879, 2881, 2882, 2883, 2885, 2886,
2887, 2888, 2889, 2890, 2891, 2892, 2893, 2894, 2895, 2896,
2897, 2899, 2900, 2901, 2903, 2904, 2906, 2915, 2916, 2917,
2936, 2829, 2944, 2945, 2898, 2902, 2905, 2949, 2907, 2908,
2909, 2910, 2911, 2912, 2913, 2914, 2918, 2919, 2920, 2921,
2922, 2923, 2951, 2924, 2925, 2926, 2927, 2928, 2929, 2930
2931, 2956, 2932, 2959, 2960, 2961, 2933, 2965, 2934, 2935,
2974, 2982, 2987, 2992, 2938, 2939, 2940, 2942, 2943, 2946,
2948, 2950, 2953, 2955, 2962, 2963, 2964, 2966, 2967, 2968,
2975, 2976, 2978, 2979, 2980, 983, 2984, 2985, 2986 2989, 2990,
2991, 2993, 2994, 2995, 2996, 2997, 2998, 2999, 3000, 3001,
3002, 3004, 3005, 3006, 3007, 3008, 3009, 3010, 3011, 3012,
1298 [2025] 2 S.C.R.
Supreme Court Reports
3013, 3015, 3017, 3019, 3020, 3021, 3022, 3023, 3025, 3026,
3029, 3030, 3031, 3033, 3034, 3035, 3042, 3046, 3052, 2957,
2977, 2981, 3014, 3041, 3045, 3051, 2970, 3040, 3048, 3049,
3050, 3060, 2969, 2972, 3027, 3039, 2937, 2952, 2988, 3003,
3016, 3018, 3024, 3028, 3032, 3036, 3037, 3038, 3047, 3053,
3054, 3055, 3056, 3057, 2954, 2973, 3067, 3063-3064, 2971,
3082, 3086, 3103, 3061, 3062, 3077, 3080, 3087, 3090, 3099,
3058, 3106, 3065, 3091, 3100, 3105, 3094, 3097, 3098, 3101,
3069, 3071, 3088, 3108, 3070, 3074, 3089, 3109, 3107, 3085,
3093, 3104, 3072, 3079, 3068, 3073, 3075, 3076, 3078, 3096,
3066, 2941, 2947, 2958, 3043, 3044, 3059, 3083, 3111, 3102,
3110, 3092, 3084, 3113, 3095, 3112, 3114, 3115, 3081, 3116 and
3117 of 2025.
Appearances for Parties
Dr. Sandeep Singh, Amicus Curiae.
Advs. for the appearing parties:
Pitambar Acharya, Advocate General, Paramjit Singh Patwalia,
Rakesh Kumar Khanna, Ashok Kumar Panigrahi, Sr.Advs.,
Ankit Agarwal, Ms. Viyushti Rawat, Shibashish Misra, Niranjan
Sahu, Prasenjeet Mohapatra, Kiran Kumar Patra, Preetish Sahu,
Dhananjaya Mishra, Nikhil Bhatia, Ayan Rai, Som Raj Choudhury,
Ms. Shrutee Aradhana, Prashant Kumar, Prakash Ranjan Nayak,
Debasis Jena, Animesh Dubey, Gaurav Khanna, Ms. Natasha
Sahrawat, Ms. Deepali Bhanot, Gautam Barnwal, Rudraksh Pandey,
Ms. Alisha Roy, Ms. Samapika Biswal, Aman Kumar Yadav, Rohit
Amit Sthalekar, Shashank Singh, Purnendu Bajpai, Ms. Sharmila
Upadhyay, Ramendra Mohan Patnaik, Subhasish Mohanty, Mata
Prasad Singh, Vishvanath Agarwal, Pritam Singh, Amit Srivastava,
Ms. Ranjita Sahu, Ms. Pritama, Manaj Sarkar, Srisatya Mohanty,
Naveen Kumar, Ms. Aprajita Bhardwaj, Shourajeet Chakravarty,
Nitesh Bhandari, Ms. Stuti Bisht, Prabhat Kumar Rai, Maitreya,
Aditya Goyal, Aditya Kumar Singh, Bhaskar Bhushan, Ms. Esha
Kumar, Utkarsh Chandra, Esha Kumar, Ujjawal Rai, Joby P.
Varghese, Shubhranshu Padhi, Jay Nirupam, D. Girish Kumar,
Pranav Giri, Ekansh Sisodia, Anjuman Tripathy, Chandra Vardhan
Singh, Ardhendu Pratap Swain, Som Raj Choudhury, Ms. Shrutee
Aradhana, Ms. Samapika Biswal, Ms. Soumya Sannidhanam,
Aman Kumar Yadav, Niranjan Sahu, Pabitra Kumar Biswal, Mrs.
Durga Devi Panda, Harisha S.R., Thomas Oommeen, Sanjeev
Kumar, Gautam Kumar Laha, Subhransh Dash, Aldanish Rein,
[2025] 2 S.C.R. 1299
State of Odisha & Ors. v. Sudhansu Sekhar Jena
Anshuman Siddharth Nayak, Devesh Pratap Singh, Rahul Kulhare,
Gagan Singh Parmar, Pabitra Kumar Biswal, Thomas Oommen,
Mrs. Durga Devi Panda, Sachin Kumar Verma, Ms. Bhanu Kapoor,
Ms. Arushi Jindal, Krishna, Amit Kr.Singh, Ms. K.Enatoli Sema,
Ms. Chubalemla Chang, Prang Newmai, A Deb Kumar, Binod Ch.
Sabat, K C Kaushik, Tapas Das, Ms. Jay Jaimini Pandey, Satish
Pandey, Merusagar Samantaray, Ruturaj Satapathy, Abinash Barik,
Ms. Lhingneivah, Ms. Ayushi Upadhyay, Avneesh Arputham, Ankit
Sharma, Kedar Nath Tripathy, Aditya Narayan Tripathy, Gyanadutta
Chouhan, Raghunath Pathak, Sachin Yadav, Suresh Chandra
Tripathy, Merusagar Samantaray, Ruturaj Satapathy, Abinash Barik,
Ms. Lhingneivah, Ms. Ayushi Upadhyay.
Judgment / Order of the Supreme Court
Judgment
Sudhanshu Dhulia, J.
1. Delay condoned. Leave granted.
2. In all these appeals which are before this Court, the State of Odisha
has challenged the order of the Division Bench of the Orissa High
Court by which their Writ Appeals were dismissed due to inordinate
delay in filing of Writ Appeals. Even this Court had earlier dismissed
a few Special Leave Petitions on the same dispute, which were
belatedly filed even before this Court. All the same, we are now
examining the cases on its merits considering the importance of
the matter(s). Nevertheless, the casual manner in which the State
authorities, particularly the concerned department of the State and
the Land Records office Surveys Office have handled the matters
is a matter of concern.
3. It is not a case concerning a few employees, rather it affects a large
number, and in turn, the State Exchequer. It is for this reason that
we were persuaded to look into these matter(s), although initially,
we were not inclined to interfere, considering the lethargic approach
of the State in pursuing these matters, and the inordinate delay
caused, which was never explained in any satisfactory manner. The
State though kept filing one Special Leave Petition after another
before this Court, not in one go but one after another, most of them
belatedly, to complete a mere formality. For this reason, many of
1300 [2025] 2 S.C.R.
Supreme Court Reports
these petitions have been dismissed on the ground of delay itself as
stated earlier, as Courts do not come to rescue those who sleep over
their rights. Be it the State. The liability of the State on this issue will
be addressed towards the end. Now, since we are taking up these
matters, what will be the fate of the already dismissed petitions after
our determination, we will address at the end.
4. In the State of Odisha, apart from regular employees who are working
on sanctioned posts in various departments of the State, there
are also a large number of employees, who were working as ‘Job
Contractors’, who are mainly engaged for purposes of survey and
preparation of maps and for the purposes of consolidation of land
holdings etc. Their services were not pensionary services and thus
even when they had put in long years of service as Job Contractors
their services were not counted for pensionary benefits, and they
were not given any pension post their retirement. The Rules which
were applicable in the State of Odisha at the relevant point of time
with which we are concerned are known as Odisha Civil Services
(Pension) Rules, 1992 (hereinafter referred to as “Odisha Pension
Rules, 1992”).
5. Then a case came up before the Division Bench of the Orissa
High Court, i.e. Settlement Class-IV Job Contract Employees
Union, Balasore v. State of Orissa & Ors. (O.J.C No.2147/1991)
(hereinafter “Job Contract Employees Union”), which was decided
on 24.03.1992. The High Court considered the non-payment of
pension to Job Contractors as an unfair practice and even violative
of Article 14 of the Constitution of India. Many of the Job Contractors
were subsequently regularised in service but in most cases, this
happened towards the end of their service where these employees
had not completed the mandatory period of pensionable service
which was 10 years. Hence, the Job Contractors though regularised
in service before their retirement, were still not entitled for pension.
The High Court in the said judgment said as under:
“13. … This apart, for the purpose of calculating the
pensionary benefit, so much of their earlier service period
shall be reckoned, even if there had been breaks in their
employment, so as to make them eligible for pension. The
necessity of giving this direction has been felt because, if
service rendered after regularisation alone shall be counted
[2025] 2 S.C.R. 1301
State of Odisha & Ors. v. Sudhansu Sekhar Jena
for pensionary benefit, most of the present incumbents
would be denied the same, because to earn pension, ten
years minimum service is necessary, which most of the
incumbents at hand would not put in after regularisation
as they would retire before completing this period having
been appointed two decades back.”
The State of Odisha subsequently published an Office Memorandum
dated 12th December, 1997 where it repeated what has been said
by the High Court in its Division Bench Judgment, while counting a
part of the service of Job Contractors for grant of pension:
“2. According to Finance Department Resolution No.
22764-F, dated the 15 th May 1997, the job contract
employees appointed prior to the 12th April 1993 (after
which there is a ban for engagement of such employees)
under the administrative control of different Departments
can be brought over to the posts created under regular/
pension establishment after completion of 10 years, service
as job-contract employees subject to fulfilment of certain
conditions and stipulations outlined therein. According to
the provisions contained in the said Office Memorandum,
the date of regularisation shall be reckoned as the first
appointment to the service for pension and other benefits.
It has come to the notice of the Government that some of
the job-contract employees are absorbed under the regular
establishment almost towards the end of their service and
become ineligible to get the pensionary benefits due to length
of regular Government service in pensionable establishment.
This has caused hardship to such type of employees.
3. The Hon’ble High Court of Orissa in their judgment dated
the 24th January, 1992 in O.J.C. No. 2147/91 directed that
‘for the purpose of calculating the pensionary benefit, so
much of their service period shall be reckoned, even if there
had been breaks in their employment, so as to make them
eligible for pension’. The Hon’ble Orissa Administrative
Tribunal have also in their judgment in O.A. No. 1545
(C)/96 have categorically directed to count that much
period of job-contract service of the employees which will
make them eligible for pensionary benefits.
1302 [2025] 2 S.C.R.
Supreme Court Reports
4. After careful consideration of the matter, State Government
have been pleased to decide that for the purpose of
pensionary benefits only, so much of their job-contract
service period shall be added to the period of qualifying
service in regular establishment as would render them
eligible for pension. Addition of that portion of job-contract
service shall not be counted for calculation of gratuity.”
Thereafter, in the year 2001, an amendment was finally brought in
the Odisha Pension Rules, 1992 wherein sub-Rule 6 was added to
Rule 18 of the said Rules, which reads as under:
“(6) Notwithstanding anything contained in clause (i) & (iii)
of sub-rule (2), a person who is initially appointed in a job
contract establishment, and is subsequently brought over to
the post created under regular/pensionable establishment,
so much of his job contract service period shall be added to
the period of his qualifying service in regular establishment
and would render him eligible for pensionary benefits.”1
The judgment of Orissa High Court, the subsequent Circular of the
Government and then the amended Rules, all three gave pensionary
benefit to employees who were Job Contractors earlier, but provided
that only such period of their service as ‘Job Contractors’ will be
counted for pensionary benefits as was sufficient to entitle them
for pension. The claim of Job Contractors for considering the entire
period of their service for calculation of their pension was negated
and only limited years of service was to be counted in terms of the
above, which would suffice for their entitlement for pension. These
provisions were never challenged before any court.
6. All the same, on 21.10.1994, the Orissa Administrative Tribunal in
Bhagaban Pattnaik v. State of Orissa (T.A No.11/1993), on a total
misinterpretation and reading of Job Contract Employees Union
(Supra) case, held that the entire period of Job Contract Employment
should be considered for calculation of pension. This ruling was
followed by the Tribunal when it ordered inclusion of entire period
of Job Contract Employment in calculation of pension in Nityanand
Biswal v. State of Orissa & Ors. [O.A No.3020(C)/2003].
1 Vide Finance Department Notification No.45856/F., dt.01.09.2001.
[2025] 2 S.C.R. 1303
State of Odisha & Ors. v. Sudhansu Sekhar Jena
The State of Odisha unsuccessfully tried to challenge these decisions
of the Tribunal before the High Court and this Court. Clearly, the
Tribunal had misinterpreted the ratio of Job Contract Employees
Union case. We will deal this aspect later.
7. All the same, the same Tribunal in its later decisions such as in
All Orissa Settlement and Land Consolidation Non-Gazetted
Technical Officers Association v. State of Orissa & Ors. [O.A
No.3665(C) of 2001] and connected cases on 25.03.2011, considered
the amended Sub-Rule 6 of Rule 18 of Odisha Pension Rules, 1992
along with the judgment of the Orissa High Court in Job Contract
Employees Union (Supra) and dismissed the claim of the Association
for inclusion of the entire Job Contract employment period while
calculating pension.
8. Following the principle laid down in Job Contract Employees
Union (Supra), another Division Bench of the Orissa High Court in
State of Orissa v. Nityanand Das & Ors. [W.P(C) No.11503/2008]
upheld the view of the State and dismissed other such similar claims.
Thereafter, learned Single Judge of Orissa High Court in Judhistir
Padhy v. State of Odisha & Ors. [WPC (OAC) No. 2276/2012]
again dismissed the claim of similarly situated persons, although the
State Government was directed to consider if any further concession
can be made to the employees.
In compliance with the said direction, the State Government once
again considered the question whether the entire service can
be counted towards calculation of pensionary benefit and it was
again turned down by a speaking order, dated 02.07.2022. This
order has never been challenged by any employee before any
Court. Thereafter, in Chintamani Panda v. State of Odisha &
Ors. [W.P.C (OAC) No.3741/2015] and Pitambar Hota v. State
of Odisha [W.P.C (OAC) No.2622/2015], the Orissa High Court
again rejected a similar claim of the employees relying on Judhistir
Padhy (Supra).
9. In the present batch of cases, the learned Single Judge of the High
Court relied upon the judgment of the Tribunal in Nityanand Biswal
(Supra) and ordered that the entire service period be counted for
calculation of pension of Job Contract employees. The writ appeals
were filed belatedly by the State and were dismissed on the grounds
of laches.
1304 [2025] 2 S.C.R.
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10. We are totally in agreement with the submissions made by learned
Senior Advocate, Shri P.S. Patwalia, that the order of the learned
Single Judge cannot be sustained. Moreover, as stated at the outset,
the Division Bench Judgment dismissed the Writ Appeals of the
State on the first day itself, undoubtedly on the grounds of delay.
Had the Division Bench given them an opportunity, the State would
have explained the entire legal position and the ex-facie anomaly
in the order of the Single Judge.
11. At this stage, we must put on record the distinction between work-
charged employees and job contractors. Although, this point was
never argued before this Court by any of the two parties, we must
nevertheless in all fairness state the law as it stands today for work-
charged employees, as distinct from job contractors.
12. There are judgments of this Court which have directed that the entire
service of a work-charged employee has to be counted for pensionary
benefits, once such an employee is regularised in service. The
reference here would primarily be to a three Judge Bench decision
of this Court in Prem Singh vs. State of Uttar Pradesh and Others
(2019) 10 SCC 516 which has relied on two earlier decisions of
this Court and has held that once work-charged employees are
regularised in service, their entire period of service in a work-charged
establishment has to be counted for pensionary benefits. But then,
that was said by this Court in context of service rules and regulations
relating to Punjab, Uttarakhand and finally, Uttar Pradesh [in Prem
Singh (Supra)]. The Rules though did not provide for pensions to
such employees. Although, in a recent two Judge Bench decision,
this Court in Uday Pratap Thakur and Another vs. The State of
Bihar and Others (2023) SCC OnLine SC 527, while denying the
benefit of entire period of service (as work-charged employees) to
these employees for calculation of pension, this Court had held that
the ruling of the three Judge Bench is in an entirely different context
and stated as under:
“22. Insofar as the submission on behalf of the appellants
that their entire services rendered as work charged should
be considered and/or counted for the purpose of pension/
quantum of pension is concerned, the same cannot be
accepted. If the same is accepted, in that case, it would
tantamount to regularizing their services from the initial
appointment as work charged. As per the catena of
[2025] 2 S.C.R. 1305
State of Odisha & Ors. v. Sudhansu Sekhar Jena
decisions of this Court, there is always a difference and
distinction between a regular employee appointed on a
substantive post and a work charged employee working
under work charged establishment. The work charged
employees are not appointed on a substantive post.
They are not appointed after due process of selection
and as per the recruitment rules. Therefore, the services
rendered as work charged cannot be counted for the
purpose of pension/quantum of pension. However, at the
same time, after rendering of service as work charged for
number of years and thereafter when their services have
been regularized, they cannot be denied the pension on
the ground that they have not completed the qualifying
service for pension. That is why, the service rendered as
work charged is to be counted and/or considered for the
purpose of qualifying service for pension, which is provided
under Rule 5(v) of the Rules, 2013.
23. Now, insofar as the reliance placed upon the decision of
this Court in the case of Prem Singh (supra) by the learned
counsel appearing on behalf of the appellants is concerned,
the reliance placed upon the said decision is absolutely
misplaced. In the said case, this Court was considering
the validity of Rule 3(8) of the U.P. Retirement Benefit
Rules, 1961, under which the entire service rendered as
work charged was not to be counted for qualifying service
for pension. To that, this Court has observed and held
that after rendering service as work charged for number
of years in the Government establishment/department,
denying them the pension on the ground that they have
not completed the qualifying service for pension would
be unjust, arbitrary and illegal. Therefore, this Court has
observed and held that their services rendered as work
charged shall be considered/counted for qualifying service.
This Court has not observed and held that the entire service
rendered as work charged shall be considered/counted
for the quantum of pension/pension. The decision of this
Court in the case of Prem Singh (supra), therefore, would
be restricted to the counting of service rendered as work
charged for qualifying service for pension.”
1306 [2025] 2 S.C.R.
Supreme Court Reports
13. In our respectful opinion, the above interpretation by the two Judge
Bench of this Court regarding the three Judge Bench decision in
Prem Singh (supra) does not appear to be correct as the three
Judge Bench has been quite unambiguous in asserting that the
entire period of service of the work-charged employees has to be
counted for pension.
14. Be that as it may, we are still unable to grant the same relief to the
respondent(s) as has been given to the work-charged employees
by this court and as indeed was their prayer before the High Court
and also before this Court. The reason being that in the Odisha
Pension Rules 1992, a clear distinction has been made between
the work-charged establishment and job contract establishment. In
order to keep a proper perspective, we need to refer to Rule 18 of
the above rules which is as follows:
“18. Conditions subject to which service qualifies-
(1) Service does not qualify for pension unless it is rendered
in a pensionable establishment /post.
(2) The entire continuous temporary or officiating service
under Government without interruption in the same post
or any other post, shall count for the purpose of pension
in respect of all categories of Government servants except
in the following cases, namely:-
(i) Period of service in a non-pensionable establishment;
(ii) Period of service in the work-charged establishment;
(iii) Period of service paid from contingencies;
(iv) Where the employee concerned resigns and is
not again appointed to service under Government or
is removed/dismissed from public service;
(v) A probationer who is discharged from service for
failure to pass the prescribed test or examination;
(vi) Re-employed pensioner, Government servants
engaged on contract and Government servants not
in whole time employment of Government;
(vii) Service paid from Local Fund or Trust Fund;
[2025] 2 S.C.R. 1307
State of Odisha & Ors. v. Sudhansu Sekhar Jena
(viii) Service in an office paid by fees whether levied
by law or under authority of the Government or by
Commission; and
(ix) Service paid out of the grant in accordance with
Law or Custom.
(3) Notwithstanding anything contained in clauses
(i) and (ii) of sub-rule (2) a person who is initially
appointed by the Government in a work-charged
establishment for a period of five years or more and is
subsequently appointed to the same or another post in
a temporary or substantive capacity in a pensionable
establishment without interruption of duty, the period
of service so rendered in work-charged establishment
shall qualify for pension under this rule.
(4) Notwithstanding anything contained in sub-rule (1)
Government, may, by general or special order, prescribe
any class of service or post which were previously
born under work-charged establishment or paid from
contingencies to be pensionable.
(5) Notwithstanding anything contained in sub-rules (1)
and (2) in case of a Government servant belonging to
Government of India or other State Government on his
permanent transfer to the State Government the continuous
service rendered by him under pensionable establishment of
Government of India or any other State Government, as the
case may be, shall count as qualifying service for pension.
(6) Notwithstanding anything contained in clause (i) &
(iii) of sub-rule (2), a person who is initially appointed in a
job contract establishment and is subsequently brought
over to the post created under regular/ pensionable
establishment, so much of his job contract service
period shall be added to the period of his qualifying
service in regular establishment and would render
him eligible for pensionary benefits. (Vide Finance
Department Notification No.45865/F., dt.01.09.2001)”
(Emphasis provided)
1308 [2025] 2 S.C.R.
Supreme Court Reports
15. As stated earlier, there is a clear distinction between the employees
who are in work-charged establishment vis-à-vis those who are in
job contract establishment. The distinction becomes obvious from a
bare perusal of sub-Rules 3 and 6 of Rule 18 of the Odisha Pension
Rules, 1992 where it is given that work-charged employees who
have worked in the establishment for a period of five years or more
without interruption and are subsequently appointed to the same or
another post in temporary or substantive capacity in a pensionable
establishment, the period of service rendered by him/her in a work-
charged establishment shall qualify for pension under the Odisha
Pension Rules, 19922. Compare this with the provision relating to
job contract establishment3 for whom it has been specifically stated
that in case of a job contract employee, after he/she is brought in
pensionable establishment, only that much period as job contract
service shall be added to regular service as would make him qualify
or eligible for pensionary benefits.
16. Again, as we have already stated in the preceding paragraphs,
these Odisha Pension Rules, 1992 or the distinction under the law
have not been challenged before any Court. As we have already
stated, this was also the point which was never even mentioned
before this Court, leave aside any argument being made by any of
the parties in this regard. We are, therefore, at a loss to examine
as to whether the work the two are actually performing is similar or
not? Therefore, we are not in a position to determine whether the
classification itself between the work-charged establishment and
job contract establishment is artificial or an unequal classification to
make it violative of the Article 14 of the Constitution of India. Though,
we may, however, mention at this stage that the work charged
employees are governed by the Orissa Work Charged Employees
(Appointment and Conditions of Service) Instructions, 1974 which
are issued by the General Administration Department of the State
Government which defines such work-charged establishment as
follows:
“2(1)(q) “Work-charged establishment” means an
establishment where the pay and allowances of the
2 Sub-Rule (3) of Rule 18
3 Sub-Rule (6) of Rule 18
[2025] 2 S.C.R. 1309
State of Odisha & Ors. v. Sudhansu Sekhar Jena
employees are charged to the item of work for which they
are employed.”
(Emphasis provided)
17. On the other hand, employees in the job contract establishment
are associated with survey and settlement and map publication
as well as consolidation operations in the State and their service
conditions are governed by the Consolidation Manual issued under
Orissa Consolidation of Holdings and Prevention of Fragmentation
of Land Act, 1972.
18. As we have already stated above, we are not in a position to give a
finding as to whether the distinction between the two is artificial, being
only a difference of nomenclature, and also whether effectively, they
both are performing regular work, for the reason that no arguments
have been made by any side on this aspect. We, therefore, leave
this aspect open.
19. Presently, in the cases before us, and for reasons which have already
given above, considering the facts and circumstances of the case,
these appeals are hereby allowed.
20. Having made the above determination, we also feel that it is our
duty to bring on record the extreme carelessness and lethargic
manner in which the State has been pursuing these cases, both in
the High Court and before this Court. The delay caused by them is
inexcusable. Nevertheless, we have heard these matters for reasons
we have already stated in the preceding paragraphs in the earlier
part of this judgment. All such cases, which were belatedly filed,
both before the High Court in Appeal and then before this Court as
Special Leave Petitions, are hereby set apart from the rest, only for
the purpose of payment of costs. Consequently, in all such cases
the State shall pay an amount of Rupees One Lakh Fifty Thousand,
to the employee concerned. This amount shall be deposited in the
account of the employees, or as the case might be, within a period
of four weeks from today. This order shall not be made effective
till the above amount is deposited in the account of each of such
employees.
21. Due to the delay in filing of Special Leave Petitions some petitions
were dismissed earlier as we have stated in the preceding paragraphs.
1310 [2025] 2 S.C.R.
Supreme Court Reports
Now, in terms of our order here, the State may file its review, within
four weeks from today.
22. Interim orders, if any, stand vacated.
23. All pending application(s), if any, is/are disposed of.
Result of the case: Appeals allowed.
†
Headnotes prepared by: Nidhi Jain
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