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Supreme Court of India

Una Nagar Palika vs Kaliben Balubhai Makwana . on 20 September, 2018

Equivalent citations: AIRONLINE 2018 SC 1243, AIRONLINE 2018 SC 383

Author: Abhay Manohar Sapre

Bench: S. Abdul Nazeer, Abhay Manohar Sapre

                                                             REPORTABLE

                              IN THE SUPREME COURT OF INDIA

                              CIVIL APPELLATE JURISDICTION

                               CIVIL APPEAL No.5529 OF 2016


                         UNA NAGAR PALIKA                   ….Appellant(s)


                                              VERSUS


                         KALIBEN BALUBHAI 
                         MAKWANA & ANR.                         …Respondent(s)

                                                WITH

                                   CIVIL APPEAL No.5530/2016
                                   CIVIL APPEAL No.5531/2016 
                                   CIVIL APPEAL No.5532/2016 
                                   CIVIL APPEAL No.6490/2016 


                                       J U D G M E N T

                         Abhay Manohar Sapre, J.

1) These   appeals   are   directed   against   the common final judgment and order dated 06.10.2015 passed by the High Court of Gujarat at Ahmedabad Signature Not Verified Digitally signed by ANITA MALHOTRA Date: 2018.09.20 16:51:13 IST Reason: in Letters Patent Appeal No.1122 of 2015 in Special 1 Civil   Application   No.3699   of   2014   with   Letters Patent   Appeal   No.1065   of   2015   in   Special   Civil Application   No.30402   of   2007   with   Letters   Patent Appeal No.1066 of 2015 in Special Civil Application No.4757   of   2012   with   Letters   Patent   Appeal No.1067   of   2015   in   Special   Civil   Application No.6137 of 2012 and Letters Patent Appeal No.1124 of   2015   in   Special   Civil   Application   No.11100   of 2014 whereby the Division Bench of the High Court disposed of the Letters Patent Appeals filed by the appellant   herein   on   the   basis   of   the   judgment rendered by the Division Bench of the High Court in the   matter   of  Chief   Officers  vs.  Mohmad   Irshad Husenbhai Baloch & Ors. (2011 (1) GCD 569 (Guj) (D.B.).

2) In   order   to   appreciate   the   issues   involved   in these appeals, few relevant facts need mention infra.

3) The   appellant   herein   was   the   respondent whereas the five contesting respondents herein were 2 the   petitioners   in   the   special   civil applications(petitions) filed before the High Court.

4) The appellant is the “Municipality” also called Nagar Palika for the place called “Una” in the State of Gujarat. The five contesting respondents, out of them   four   have   expired   and   now   represented   by their   legal   representatives,   were   the   employees   of the appellant­Municipality.  One of the respondents was   appointed   in   the   year   1990   whereas   others were appointed in 1996 and 1998. 

5) On  their  attaining  the age of superannuation in the appellant’s services on different dates, all the five   respondents   requested   the   appellant   to   settle their claims for payment of pension and pensionery benefits.

6) The appellant declined to grant any pensionery benefits (pension) to all the five respondents stating that   they   were   neither   eligible   and   nor   entitled   to claim   the   pension   or/and   any   pensionery   benefits from the appellant. 

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7) This   gave   rise   to   filing   of   the   special   civil applications   (petitions)  by   the   respondents   against the   appellant   in   the   High   Court   of   Gujarat   being S.C.A.   No.   3699   of   2014   and   four   others.     The appellant as respondent contested the petitions. 

8) The Single Judge of the High Court by passing separate   orders   on   different   dates   allowed   the petitions and held that the petitioners (respondents herein)   are   eligible   and   thus   entitled   to   claim pension and pensionery benefits from the appellant being their employees and accordingly issued a writ of   mandamus   against   the   appellant­Municipality directing   payment of pension to all the petitioners therein (respondents herein) from the date of their retirement.

9) The appellant (Municipality) felt aggrieved and filed intra court appeals before the Division Bench in the High Court.  By common impugned order, the Division Bench dismissed the appeals giving rise to 4 filing of these appeals by way of special leave in this Court by the Una Nagar Palika(Municipality).

10) It   is   apposite   to   mention   that   the   very question,   namely,   whether   an   employee   of   a Municipality is entitled to claim pension/pensionery benefits   from   his   employer­Municipality   was   the subject   matter   of   one   litigation   in   Gujarat   High Court.   The   leading   judgment   was   passed   by   the Division Bench in LPA No. 214/2011 entitled  Chief Officer  vs.  Mohamed   Irshad   Husenbhai   Baloch and   Others  (supra)   along   with   other   connected matters on 31.01.2013. 

11) The   Division   Bench   held   that   the   employees are   eligible   and   thus   entitled   to   claim   the Pension/Pensionery   benefits   provided   they   render qualifying   service   while   in   the   employment   of   the Municipality in terms of the Rules.   The concerned Municipality   felt   aggrieved   by   the   said   order   and filed   special   leave   to   appeal   (SLP   Nos.15691   to 5 15700   of   2003)   in   this   Court.   It   was,   however, dismissed by this Court by order dated 16.09.2013. 

12) The   order   was   accordingly   given   effect   to   by sanctioning   the   pension   to   those   employees,   who were parties in the said litigation.

13) It is with this background, when the petitions out   of   which   these   appeals   arise   came   up   for hearing,   the   Single   Judge   (writ   court)   essentially placed reliance on the decision of Chief Officer vs. Mohamed Irshad Husenbhai Baloch and Others (supra) and allowed the petitions finding no material distinction in the case at hand and in the case of Chief   Officer  vs.  Mohamed   Irshad   Husenbhai Baloch and Others (supra).

14) When   the   matter   came   up   in   appeals,   the Division   Bench   also   placed   reliance   on   the   view taken   in  Chief   Officer  vs.  Mohamed   Irshad Husenbhai   Baloch   and   Others  (supra)   and dismissed the appeals. 

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15) The writ court and the Division Bench were of the   view   that   the   issue   in   question   has   attained finality by the decision rendered in the case of Chief Officer  vs.  Mohamed   Irshad   Husenbhai   Baloch and   Others  (supra)   and   affirmed   by   the   order   of this Court dated 16.09.2012. 

16) It is with this background facts, the question arises   for   consideration   in   this   appeal   is   whether the view taken by the writ court and the Appellate Court requires any interference.

17) Heard Mr. S.P. Hasurkar, learned counsel for the   appellant   and   Ms.   Anushree   Prashit   Kapadia, learned counsel for the respondents.

18) Having   heard   the   learned   counsel   for   the parties and on perusal of the record of the case, we find no case to interfere in the impugned order.

19) In our considered opinion, the High Court was right in holding that the question involved in these appeals   is   covered   by   the   earlier   decision   of   the 7 Gujarat High Court rendered in the case of  Chief Officer  vs.  Mohamed   Irshad   Husenbhai   Baloch and Others (supra) which was upheld by this Court by   order   dated   16.09.2013   and   thus   attained finality. 

20) We find that in order to show that the decision rendered in the case of Chief Officer vs. Mohamed Irshad Husenbhai Baloch and Others (supra) has no application  to the facts of the case and that it does not lay down the correct principle and be held as  per   curium,   the   appellant   (Municipality)   made attempts and contended before the Division Bench that there lies a distinction between the employees, who were originally working with the Panchayat and later   on   convergence   of   Panchayat   into   the Municipality   became   the   employees   of   the Municipality   by   virtue   of   its   merger   and   the employees,   who   were   directly   appointed   by   the Municipality. 

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21) It was contended that the employees, who fall in former category of case, were held entitled for the grant of pension but not those employees, who fall in the latter category of the case. It was pointed out that   since   the   employees   in   the   case   of  Chief Officer  vs.  Mohamed   Irshad   Husenbhai   Baloch and Others (supra) fell in the former category of the case and, therefore, they were held entitled to claim the   benefit  of  pension whereas the respondents of this   case   fall   in   the   latter   category   of   cases,   the benefit   of   decision   rendered   in   the   case   of  Chief Officer  vs.  Mohamed   Irshad   Husenbhai   Baloch and   Others  (supra)   could   not   be   granted   to   the respondents   because   they   were   appointed   directly by the appellant (Municipality).

22) The   Division   Bench   while   repelling   the aforementioned   submission   took   note   of   the following four undisputed facts arising in this case:

“1.   The   original   petitioners­respondent   No.1 herein   in   the   respective   appeals   were 9 appointed by the municipality and they were in service of the municipality.

2.   After   the   appointment,   the   employee concerned   continued   in   service   until   he reached to the age of superannuation, so far as   LPA   No.1066/15   is   concerned.     Whereas, in the rest of the Letters Patent Appeals, the services of the employees concerned came to an end on account of death of the employees.

3. It   is   an   undisputed   position   that   the total length of service in respect of all cases has exceeded 10 years which is the minimum requirement for eligibility of pension.

4. In   respect   of   all   employees,   which   is subject   matter   of   the   present   group   of appeals, they were member of GPF and GPF contributions   were   being   deducted   by   the municipality   from   their   salary   from   time   to time until their services came to an end.”

23) The Division Bench was of the view and, in our view, rightly that the distinction sought to be made between the two groups of employees, namely, one coming from the Panchayat and then becoming the Municipal   employees   and   the   other   directly becoming the Municipal employees was held to be of no   significance   because   the   appellant   made   the respondents members of the GPF contributions and 1 0 went   on   to   deduct   regular   contribution   from   their salary till the date of their retirement. 

24) In our view, the case at hand is covered by the earlier   decision   rendered   in   the   case   of  Chief Officer  vs.  Mohamed   Irshad   Husenbhai   Baloch and   Others  (supra)   which   stands   upheld   by   this Court by order dated 16.09.2013. We are also of the view that the aforementioned distinction pointed out by the appellant for coming out of the clutches of the decision of Chief Officer vs. Mohamed Irshad Husenbhai   Baloch   and   Others  (supra)   was   also rightly   found   untenable   by   the   High   Court   by assigning the proper reasons.

25) Keeping   in   view   the   aforementioned   four undisputed   facts   arising   in   the   case   coupled   with the decision rendered in the case of  Chief Officer vs.  Mohamed   Irshad   Husenbhai   Baloch   and Others (supra), which has attained finality, and was then   given   effect   to   in   relation   to   concerned 1 1 Municipal   employees   holding   them   eligible   and entitled   to   claim   the   pension   and   the   pensionery benefits, we find no good ground to take any other view than the one taken by the writ court and the Division Bench in the impugned order.

26) Learned   counsel   for   the   appellant (Municipality),   however,   placed   reliance   on   one State   Government’s   Circular   dated   28.11.1994 (Annexure   P­1)   and   contended   that   in   the  light  of this   circular,   the   respondents   are   neither   eligible and nor entitled to claim the benefit of pension. We find no merit in this submission. 

27) Firstly, we find that it was not filed before the High   Court   (writ   court/Division   Bench);   Secondly, the writ court and the Division Bench did not refer it to;  Thirdly,  in any event, it is of no significance to decide the present controversy. 

28) Its perusal shows that it applies to the cases of Panchayat   employees,   who   later   became   the Municipal employees. 

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29) In the light of the foregoing discussion, we find no merit in these appeals. The appeals thus fail and are accordingly dismissed. 

30) The   appellant   (Municipality)   is   directed   to finalize the pension cases of the respondents herein and   release   the   amount   of   pension   after   proper verification within four months from the date of this order.   

                         

…...……..................................J.          [ABHAY MANOHAR SAPRE] ………...................................J.     [S. ABDUL NAZEER] New Delhi;

September 20, 2018  1 3