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Supreme Court of India· 21 February 2025

Does a Tribunal ruling that rests on a total misinterpretation of a High Court judgment, directing that the entire period of job contract employment be counted for pension, govern later claims?

STATE OF ODISHA & ORS. v. SUDHANSU SEKHAR JENA
2025 INSC 259 · SPECIAL LEAVE PETITION (CIVIL) NO.2146 OF 2024
Coram: Sudhanshu Dhulia; Ahsanuddin Amanullah
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Answer

No. The Tribunal's direction proceeded on a total misinterpretation and reading of the Job Contract Employees Union case, and the same Tribunal later, considering the amended Sub-Rule 6 of Rule 18 along with that judgment, dismissed the claim for inclusion of the entire job contract employment period.

Headnote

Odisha Civil Services (Pension) Rules, 1992 — r.18(3) — r.18(6) — Job contract establishment — Work-charged establishment — Qualifying service — Pensionary benefits — Constitution of India — Art. 14 — Odisha Civil Services (Pension) Rules, 1992 — r.18(6) — Job contract service — Only so much as makes eligible — Held: Where a job contract employee is brought over to a regular pensionable establishment, only so much of his job contract service as would render him eligible for pensionary benefits is added to his qualifying service. The entire period cannot be counted. (¶14, 15) Odisha Civil Services (Pension) Rules, 1992 — r.18(3) — Work-charged service — Prem Singh reading — Held further: Work-charged service of five years or more without interruption, followed by appointment to a pensionable establishment, qualifies for pension in full. The two Judge Bench reading confining Prem Singh to qualifying service does not appear to be correct, the three Judge Bench being quite unambiguous. (¶12, 13) Constitution of India — Art. 14 — Classification between the two establishments — Left open — Held further: Whether the classification between work-charged establishment and job contract establishment is artificial or an unequal classification violative of Article 14 cannot be determined where the Rules were never challenged and the point was never even mentioned. That aspect is left open. (¶16, 18) Odisha Civil Services (Pension) Rules, 1992 — Belated appeals by the State — Costs — Held further: Inexcusable delay does not bar examination on merits where a large number of employees and the State Exchequer are affected, but every belatedly filed case is set apart for costs of Rupees One Lakh Fifty Thousand to the employee concerned. Appeals allowed. (¶3, 20)

In the Court's own words
Paragraph 6All 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]. 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.
Paragraph 7All 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.
Acts & Sections
r.18(6) Odisha Civil Services (Pension) Rules, 1992r.18(3) Odisha Civil Services (Pension) Rules, 1992Art. 14 Constitution of India

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Also decided in this judgment
Under the Odisha Civil Services (Pension) Rules, 1992, when a job contract employee is brought over to a post created under a regular pensionable establishment, is his entire job contract service counted for pension?Under the Odisha Civil Services (Pension) Rules, 1992, how does Rule 18(3) treat work-charged service differently from Rule 18(6)'s treatment of job contract service?Where a three Judge Bench has held that the entire period of work-charged service must be counted for pension, may a later two Judge Bench confine that ruling to counting the service only for qualifying service?Under Article 14 of the Constitution of India, can a court determine whether the classification between work-charged establishment and job contract establishment is artificial where the Rules were never challenged and no party argued the point?Where the State has filed its appeals belatedly and the delay was never explained in any satisfactory manner, may the Court still examine the matter on merits, and with what consequence to the State?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Supreme Court of India. Corrections