# UNION OF INDIA & ORS v. RAKESH KUMAR & ORS

- **Citation:** [2017] 3 S.C.R. 783
- **Court:** Supreme Court of India
- **Decided:** 2017-03-24
- **Case number:** Civil Appeal No. 3938 of 2017
- **Bench:** A. K. Sikri, Ashok Bhushan
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/union-of-india-ors-v-rakesh-kumar-ors-31918
- **Pages:** 25

## Headnote

Service Law - Pensionary benefits - Whether the entire service
of a casual worker after obtaining temporary status till his regular
absorption on a post is entitled to be reckoned for pensionary benefit
or only 50 per cent period of such service can be reckoned for
pensionary benefit - Held: Casual worker after obtaining temporary
status is entitled to reckon 50% of his services till he is regularised
on a regular/temporary post for the purposes of calculation of
pension - The casw'i worker before obtaining the temporary status
A
B
c
is also entitled to reckon 50% of casual service for purposes of D
pension - Those casual workers who are appointed to any post
either substantively or in officiating or in temporary capacity are
entitled to reckon the entir.e period from date of taking charge to
such post as per r.20 of Rules, 1993 - In deserving case, it is open
to Pension Sanctioning Authority to recommend for relaxation to
E
the Railway Board for dispensing with or relaxing requirement of
any rule with regard to those casual workers who have been
subsequently absorbed against the post and do not fulfill the
requirement of existing rule for grant of pension - Railway Service
(Pension) Rules, 1993 - r.20.
Railway Service (Pension) Rules, 1993 - r.20 -Applicability
of - Held: r.20 is not attracted in a case where only a temporary
status is granted to casual worker and no appointment is made in
any capacity against any post.
Allowing the appeals, the Court
F
G
HELD: 1. A perusal of para 20 of the Master Circular no.54
indicates that only half of the period of service of a casual labour
after attainment of temporary status on completion of 120 days
continuous service if it is followed by absorption in service as a_,_.
regular Railway employee, counts for pensionary benefits. Para
H
783
784
SUPREME COURT REPORTS
[2017) 3 S.C.R.
A 2005 of Indian Railway Establishment Manual also contains the
same scheme for reckoning the period for pensionary benefit.
The heading of Para 2005 enumerates the privileges admissible
to casual labour who are treated as temporary. [Paras 28-30) (796C-F)
B
2. Rule 20 of Railway Services (Pension) Rules, 1993
provides that qualifying service shall commence from the date
the employee takes charge of the post to which he is first
appointed either substantively or in an officiating or temporary
capacity. Rule 20 is attracted when a person is appointed to the
post in any of the above capacities. Rule 20 has no application
C when appointment is not against any post. When a casual labour
is granted a temporary status, grant of a status confers various
privileges as enumerated in para 2005 of IREM. One of the
benefits enumerated in para 2005 sub clause(a) is also to make
him eligible to count only half of the services rendered by him
D after attaining temporary status. Rule 20 is thus clearly not
attracted in a case where only a temporary status is granted to
casual worker and no appointment is made in any capacity against
any post.[Para 40)[802-A-C)
3. The Proviso to Rule 20 has to be read along with the
E
main Rule 20, when main Rule 20 contemplates commencement
of qualifying service from the date he takes charge of the post,
the appointment to a post is implicit and a condition precedent.
The proviso puts another different condition that officiating or
temporary service is followed, without interruption, by
substantive appointment in the same or another service or post.
F
The proviso cannot be read independent to the main provision
nor it can mean that by only grant of temporary status a casual
employee is entitled to reckon his service of temporary status
for purpose of pensionary benefit. [Para 42)[802-G-H; 803-A-B]
4. The grant of temporary status of casual labour is not akin
G to appointment against a post and such contingency is not covered
by Rule 20 and the same is expressly covered by Rule 31 which
provides for "half the service paid from contingencies shall be
taken into account for calculating pension

## Text

_Characters 0–39,838 of 54,651. This is a partial read: ask again with offset=39838 for what follows._

[2017] 3 S.C.R. 783
UNION OF INDIA & ORS.
v.
RAKESH KUMAR & ORS.
(Civil Appeal No. 3938 of 2017)
MARCH 24, 2017
[A. K. SIKRI AND ASHOK BHUSHAN, JJ.)
Service Law - Pensionary benefits - Whether the entire service
of a casual worker after obtaining temporary status till his regular
absorption on a post is entitled to be reckoned for pensionary benefit
or only 50 per cent period of such service can be reckoned for
pensionary benefit - Held: Casual worker after obtaining temporary
status is entitled to reckon 50% of his services till he is regularised
on a regular/temporary post for the purposes of calculation of
pension - The casw'i worker before obtaining the temporary status
A
B
c
is also entitled to reckon 50% of casual service for purposes of D
pension - Those casual workers who are appointed to any post
either substantively or in officiating or in temporary capacity are
entitled to reckon the entir.e period from date of taking charge to
such post as per r.20 of Rules, 1993 - In deserving case, it is open
to Pension Sanctioning Authority to recommend for relaxation to
E
the Railway Board for dispensing with or relaxing requirement of
any rule with regard to those casual workers who have been
subsequently absorbed against the post and do not fulfill the
requirement of existing rule for grant of pension - Railway Service
(Pension) Rules, 1993 - r.20.
Railway Service (Pension) Rules, 1993 - r.20 -Applicability
of - Held: r.20 is not attracted in a case where only a temporary
status is granted to casual worker and no appointment is made in
any capacity against any post.
Allowing the appeals, the Court
F
G
HELD: 1. A perusal of para 20 of the Master Circular no.54
indicates that only half of the period of service of a casual labour
after attainment of temporary status on completion of 120 days
continuous service if it is followed by absorption in service as a_,_.
regular Railway employee, counts for pensionary benefits. Para
H
783
784
SUPREME COURT REPORTS
[2017) 3 S.C.R.
A 2005 of Indian Railway Establishment Manual also contains the
same scheme for reckoning the period for pensionary benefit.
The heading of Para 2005 enumerates the privileges admissible
to casual labour who are treated as temporary. [Paras 28-30) (796C-F)
B
2. Rule 20 of Railway Services (Pension) Rules, 1993
provides that qualifying service shall commence from the date
the employee takes charge of the post to which he is first
appointed either substantively or in an officiating or temporary
capacity. Rule 20 is attracted when a person is appointed to the
post in any of the above capacities. Rule 20 has no application
C when appointment is not against any post. When a casual labour
is granted a temporary status, grant of a status confers various
privileges as enumerated in para 2005 of IREM. One of the
benefits enumerated in para 2005 sub clause(a) is also to make
him eligible to count only half of the services rendered by him
D after attaining temporary status. Rule 20 is thus clearly not
attracted in a case where only a temporary status is granted to
casual worker and no appointment is made in any capacity against
any post.[Para 40)[802-A-C)
3. The Proviso to Rule 20 has to be read along with the
E
main Rule 20, when main Rule 20 contemplates commencement
of qualifying service from the date he takes charge of the post,
the appointment to a post is implicit and a condition precedent.
The proviso puts another different condition that officiating or
temporary service is followed, without interruption, by
substantive appointment in the same or another service or post.
F
The proviso cannot be read independent to the main provision
nor it can mean that by only grant of temporary status a casual
employee is entitled to reckon his service of temporary status
for purpose of pensionary benefit. [Para 42)[802-G-H; 803-A-B]
4. The grant of temporary status of casual labour is not akin
G to appointment against a post and such contingency is not covered
by Rule 20 and the same is expressly covered by Rule 31 which
provides for "half the service paid from contingencies shall be
taken into account for calculating pensionary benefits on
absorption in regular employment subject to certain conditions
H enumerated there in." Thus Rule 31 is clearly applicable while
UNION OF INDIA v. RAKESH KUMAR & ORS.
785
computing the eligible services for calculating pensionary benefits A
on granting of !emporary status. [Para 46)[804-C-D]
5. In the impugned judgment of the Delhi High Court, it is
held that entire services of casual labour after obtaining temporary
status who was subsequently regularised is entitled to reckon.
Casual labour who has been granted temporary status can reckon
B
half of services for pensionary benefits as per Rule 31. The
reasons given by the Delhi High Court in the impugned judgment
in para 6, 7 and 8 having been found not to be correct reasons,
judgment of Delhi High Court is unsustaiitable and deserved to
be set aside. However, the period of c11sual labour prior to grant c
of temporary status by virtue of Note-1Rule31 has to be counted
to the extent of 50% for pensionary benefits. [Paras 47, 48)(804E-F)
6. There is one more aspect of the matter to be noted.
There is spech.~ rule in Rules, 1993 i..e. Rule 107, which
empowers Pension Sanctioning Authority to approach the Ministry D
of Railways(Railway Board) for dispensing with or relaxing the
requirement of any Rule operation of which causes hardship in
any particular case. Thus, in cases of those railway servants who
are not eligible as per existing rules for grant of pension and
there are certain mitigating circumstances which require
E
consideration for relaxation the proposals can be forwarded by
Pension Sanctioning Authority to Railway Board in an individual
or group of cases. Thus, it is left open to the Pension Sanctioning
Authority to recommend for grant of relaxation under Rule 107
in deserving cases. [Paras 49, 50)(804-G; 805-D-E]
Kesar Chand v. State of Punjab (1988) 5 SLR 27(P &
H) - held inapplicable.
General
Manager,
South
Central
Railway,
Secunderabad & Am: v. Shaik (lbdul Khader 2004 (1)
F
SLR 2014; General Manager, North West Railway &
G
Ors. v. Chanda Devi 2008 (2) SCC 108 : [2007] 13
SCR 403; Inderpal Yadav v. Union of India 1985 (2)
SCC 648 : [1985] 3 SCR 837; Punjab State Electricity
Board & Another v. Narata Singh & Another 2004 (3)
sec 317 - referred to.
H
786
A
B
c
SUPREME COURT REPORTS
[2017) 3 S.C.R.
General
Manager,
South
Central
Railway,
Secunderabad & Anr. v. A. Ramanamma decid~d by
Andhra Pradesh High Court on 1.5.2009 in Writ petition
no. 10838 of2001- Partly incorrect law.
Case Law Reference
2004 (1) SLR 2014
referred to
Para 6
[2007] 13 SCR 403
referred to
Para 19
[1985] 3 SCR !137
referred to
Para 35
2004 (3) sec 311
referred to
Para 51
(1988) 5 SLR 27(P & H)
held inapplicable Para 52
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 3938
of2017.
From the Judgment and Order dated 14.11.2014 of the High Court
D of Delhi at New Delhi in W.P.(C) No. 7783 of2014
WITH
C. A. Nos. 3939, 3940, 3941, 4384, 3943, 3944 of2017.
Maninder Singh, ASG, R. Balasubramanian, Nalin Kohli, Amarj eet
E Singh, Raj Bah11dur Yadav, Prabhas Bajaj, Akshay A., Ms. Aarti Sharma,
Mukesh Kumar Maroria, Ad vs. for the Appellants. ·
R. K. Sukla, Dinesh S. Badiar, Ramesh Kumar Sukla, Raj Kishore
Chowdhary, Ravi Kumar Tomar, M. C. Dhingr~, Rajeev Kumar Bansal,
Akshay K. Ghai, Maneesh Pathak, Ms. Gauri N. R., P. S. Khare, H. P.
F Chakravorti, Advs. for the Respondents.
The Judgment of the Court was delivered by
ASHOK BHUSHAN, J. l. These appeals have been filed by
the Union of India, Divisional Railway Manager, Northern Railway
alongwith few other Railway Authorities challenging judgments of Delhi
G High Court by which judgments writ petitions filed by the appellants
have been dismissed. All the appeals raise similar questions oflaw and
are based on almost identical facts. It shall be sufficient to note the facts
of C.A. No.3938 of201 ?arising out of SLP (C) No. 23723 of2015 in
detail for appreciating the issues raised in this batch of appeals.
H
UNION OF INDIA v. RAK.ESH KUMAR & ORS.
787
[ASHOK BHUSHAN, J.]
CA NO. 3938 2017(ARISING OUT OF SLP(C) N0.23723 A
OF 2015)
2. The respondents to the appeal were initially appointed as casual
labour in the Northern Railway, after working for one or more years,
they were granted temporary status and subsequently regularised against
regular posts. For example, the Respondent No. 1 was engaged on casual
B
basis from 27.06.1984 and w.e.f. 22.06.1985 he was granted temporary
status. Subsequently, w.e.f. 31.12. 1996 he was regularised against a
post and has been working in such capacity at New Delhi Railway Station.
Respondent No. I raised a grievance regarding granting him full service
benefit from 22.06.1985 to 31.12.1996 instead of 50 per cent service
benefit. Similarly, Respondent Nos.2 - 24 were engaged initially on
C
casual basis and after one or two years were granted the temporary
status and thereafter were regularised w.e.f. 31.12 .1996. All the
respondents raised the same grievance i.e. giving full service benefit for
the period during which they were working, having temporary status.
Respondent Nos. I to 24 filed 0.A.No.2389 of2014 before the Central
D
Administrative Tribunal Principal Bench, New Delhi.
3. Before the Tribunal the applicants claimed for following reliefs:-
" (a) To direct the respondents to count the services rendered
by the applicants in the capacity of casual labour as 50%
after counting 120 days and 100% from the date of temporary
E
status till their regularisation for the purpose of pension and
pensionary benefits and other benefits as a qualifying service.
(b) To direct the respondents to extend the benefits of judgment
and order passed in Shyam Pyare & Ors. vs. UO/ & Ors.
which is on the basis of Shaikh Abdul Khadar s Judgment
F
for the purpose of pension and pensionary benefits as well
as other consequential benefits, accordingly the respondents
be directed to examine the cases of the applicants in
accordance with law.
(c) Any other relief which this Hon'ble Tribunal deemfit and G
proper may also· be passed in the facts and circumstances of
the case in favour of the applicants. "
4. The Tribunal relying on its earlier order dated 29.05.2014 in a
similar case being O.A.No.1921 of 2014, Shri Prem Pal vs Union of
H
788
SUPREME COURT REPORTS
[2017] 3 S.C.R.
A India and Ors. allowed the Original Application filed by the respondent.
Tribunal in its order dated 18.07 .2014 referred to various orders passed
by it wherein Tribunal had held that a casual labour after having been
granted temporary status is entitled to reckon 100 per cent period of
service with temporary status for the pensionary benefit.
B
5. Tribunal disposed of the Original Application by issuing following
directions:-
"In view of the above position, we dispose of this OA at the
admission stage itself with the direction to the respondents to
examine the cases of the applicants in the light of the aforesaid
c
Orders of this Tribunal. If applicants' cases are also covered
by the said Orders, they shall also be accorded the same
benefits. In any case, the respondents shall pass appropriate
order in this case within a period of two months from the date
of receipt of a copy of this Order. There shall be_ no order as
to cost."
D
-6. The Union oflndia and Railway Authorities aggrieved by the
aforesaid directions of the Tribunal filed writ petition before Delhi High
Court being Writ Petition No. 7783 of2014. The case of the appellants
before the High Court was that only 50 per cent of the temporary status
of service can be counted for the purpose of the pensionary benefit. It
E was pleaded in the writ petition that the judgment of Andhra Pradesh
Higli Court in General Manager, South Central Railway,
·r
Secunderabad & Anr. vs. Shaik Abdul Khader reported in 2004 (1)
SLR 2014 had been dissented by the Andhra Pradesh High Court itself
in a subsequent judgment dated 01.05.2009 in Writ Petition(C) No. 10838
F of 2001, General Manager, South Central Railway, Secunderabad
vs. A. Ramanamma. It was further pleaded that Para 2005 of IREM
permjts only 50 per cent of temporary status service to be counted for
purposes of pensionary benefit.
7. Delhi High Court vide its judgment and order dated 14.11.2014
G dismissed the writ petition following its earlier judgment dated I 0.11.2014
in W.P.(c) 7618 of 2014 in Union of India vs. Prem Pal Singh. It is
useful to extract the entire judgment of the Delhi High Court dated
14.11.2014:
"The dispute in this case is as to the manner in which the
H
respondents/applicants' period of service to be counted for
UNION OF INDIA v. RAKESH KUMAR & ORS.
789
[ASHOK BHUSHAN, J.]
the purpose of terminal and pensionary benefits.
A
The petitioner Union of India is aggrieved by an order of the
Central Administrative Tribunal dated 18.07.2014. At the
outset, it was pointed out that this Court in W.P.(C)7618/2014
and connected case (Union of India & Ors. vs. Prem Pal
Singh), decided on 10.11.2014 had occasion to deal with an
B
identical matter. The only difference was that the -orders of
the CAT in those cases was made on 06.02.2014 and
29.05.2014. The Court had on that occasion taken into
consideration the Railway Service (Pension) Rules, specifically
Rule 20 as well as the Master Circular no.54 (paragraph 20)
C
and paragraph 2005 /REM. in addition, the Court had
considered various rulings including those of the. Supreme
Court and held that 50% of the period spent by casual employee
subject to his being conferred temporary status and eventual
regularisation was entitled to reckon for the purposes of
pensionary and.terminal benefits and likewise the entireperiod D
of temporary service - subject to regularisation - was eligible
to be counted/or the purposes of pension and terminal benefits.
Following the said decision in W.P. (C) 761812014 decided
on 10.11.2014, this petition is accordingly dismissed."
C. A. NO. 3939 2017 (ARISING OUT OF SLP CC) 23725
E
OF 2015)
8. This appeal has been filed against the judgment of the Delhi
High Court dated 10.11.2014 in W.P. (C) No. 7627 of2014 Union of
India & ors. vs. Shyam Pyare Yadav & Ors. by which judgment
d~ted 10.11.2014 two writ petitions being W.P. (C) No. 7618 of2014,
F
Union of India vs. Prem Pal Singh and W.P. (C) No. 7627 of 2014,
Union of India & Ors. vs. Shyam Pyare Yadav & Ors. had .been
decided.
9. The respondents to the writ petition were also casual employees
in a construction organisation, who were granted temporary status
G
subsequently and were regularised against permanent posts. They also
claimed benefit of 100 per cent service after grant of temporary status
for the purpose of pension. They filed O.A.No.3745 of2012, which was
allowed by Central Administrative Tribunal by its judgment dated
H
790
SUPREME COURT REPORTS
[2017] 3 S.C.R.
A 06.02.2014 against which W. P. (C) No. 7627 of 2014 was filed by
Union of India, which was dismissed by Delhi High Court on 10. 11.2014
C.A. NO. 3940 OF 2017(ARISING OUT OF SLP(C) NO.
3382 OF 2016)
10. The appeal had been filed against the judgment of the Delhi
B High Court dated 18.11.2014 in W. P. (C) No. 7913 of2014. The W.
P.(C) No. 7913 of 2014, following the judgment dated 10.11.2014 in
Union of India & Ors. vs. Prem Pal Singh (Supra), has been dismissed.
The respondents were also appointed as casual labourers who were
subsequently granted temporary status and were thereafter, regularised
c against permanent posts. They also claimed entire period of temporary
status to be considered for pensionary benefit. An O.A.No.2221 of2013
was filed which was allowed on 23.05.2014 against which W.P.(C) No.
7913 of2014 was filed, which was dismissed on 18.11.2014.
C.A. NO. 3941 OF 2017(ARISING OUT OF SLP(C) NO.
D 28597 OF 2016)
11. The appeal has been filed against judgment of Delhi High
Court dated 18.01.2016 in W.P. (C) No. 10202 of 2015 and other
connected writ petitions. The High Court following its earlier judgment
dated 10.11.2014 in Union of India & Ors. vs. Prem Pal Singh (Supra)
E had dismissed the writ petitions. The respondents were also casual
employees, who were granted temporary status and thereafter,
regularised. They claimed reckoning of the 100 per cent service period
performed by them after obtaining temporary status for the purpose of
pensionary benefit. Original Application was filed before the tribunal
F
which was allowed against which the writ petition was filed.
C.A.NO. 4384 OF 2017(ARISING OUT OF SLP(C) N0.821
OF 2017)
12. The appeal had been filed against the judgment and order dated
18.01.2016 passed by Delhi High Court in W.P.(C) No.10706 of2015.
G The High Court relying on its earlier judgment dated I 0.11.2014 in Union
of India & Ors. vs. Prem Pal Singh (Surpa) dismissed the writ petition.
The respondents were also casual labourers, who were granted
temporary status and thereafter, regularised against the permanent posts.
Original Application was filed before the Tribunal which was allowed
against which judgment, the writ petition was filed, which got dismissed.
H
UNION OF INDIA v. RAKESH KUMAR & ORS.
791
[ASHOK BHUSHAN, J.]
C.A. No. 3943 OF 2017!ARISING OUT OF SLP(C) No.
A
8365 OF 2017 CCC NO. 1516))
13. The appeal has been filed against the judgment of the Delhi
High Court dated 31.03.2016 in W.P.(C)No. 9286 of2015. The High
Court relying on its earlier judgment dated 10.11.2014 in Union of India
& Ors. vs. Prem Pal Singh (Supra) had dismissed the writ petition.
B
The respondents were also engaged as casual labourers, who were
accorded temporary status and thereafter were regularised. Original
Application filed by the respondents were allowed holding that they Were
entitled to reckon the entire period of temporary service for pensionary
benefit, which order was affirmed by the High Court.
C.A. No. 3944 OF 2017(ARISING OUT OF SLP(C) No.
3719 OF 2017)
14. This appeal has been filed against the judgment and order
dated 18.01.2016 in W.P.(C) No.11521 of2015. The High Court relying
c
on its earlier judgment dated 10.11.2014 in Union of India & Ors. vs.
D
Prem Pal Singh (Supra) dismissed the writ petition. The respondents
were also initially appointed as casual labourers and thereafter, granted
.temporary status and subsequently, were regularised for the permanent
posts. They filed an 0.A. before the Central Administrative Tribunal,
claiming reckoning of entire period of temporary service for pensionary
benefit, which application was allowed, aggrieved by which order Union
E
oflndia had filed an application, which had been dismissed.
15. From the facts, as noted above, it is clear that all the writ
petitions filed by the Union oflndia giving rise to the above appeals have
been dismissed relying on the judgment of the High Court dated
10.11.2014 in W. P.(C) No. 7618 of2014 and W. P.(C) No. 7627 of F
2014. Against the judgment dated 10.11.2014 in W. P.(C) No. 7618 of
2014, an SLP (C) No. 23720 of2015 had been filed, which was heard
on 08.03.2017. SLP (C) No. 23720 of2015 had been disposed of in
view of the statement made by the learned counsel for the respondents
as noticed in the order dated 08.03.2017. However, against the same
G
judgment dated 10.11.2014 rendered in W.P(C)No. 7618 of2014 and
W.P.(C) No. 7627 of 2014 the Unioq of India has filed SLP(C) No.
23725 of2015 arising out ofW.P.(C)No. 7627 of2014 which is also
taken up for consideration in this batch of appeals.
16. Judgment of Delhi High Court dated 10.11.2014 had been
H
792
SUPREME COURT REPORTS
[2017] 3 S.C.R.
A followed in all other cases. We shall refer to.the judgment of the High
Court dated 10.11.2014 as the impugneajudgment while considering all
these appeals.
·
17. We have heard, Mr. Maninder Singh, learned Additional
Solicitor General on behalf of the appellants. We have also heard Mr.
B M.C. Dhingra, and other learned counsel appearing for the respondents
in support of the judgment of the Delhi High Court.
,,
18. Learned Additional Solicitor General in support of the appeal
contended that the High Court committed error in holding that a casual
erriployee is entitled to reckon the I 00 per cent period after getting
c temporary status for computation. of pension. He submitted that the
computation of pension is governed by statutory rules, namely, Railway
S~rvices (Pension) Rules, 1993 (hereinafter referred to as 'Rules,1993 '),
under which only 50 per cent period can be c;ounted of a casual labour,
who attains a temporary status as per Rule 31 of Rules, 1993. He contended
that the judgment of Andhra Pradesh High Court in General Manager,
I) South Central Railway, Secunderabad & Anr. vs. Shaik Abdul
Khader reported in 2004 (1) SLR 2014 which is the basis of the
judgment of the High Court, had itself been dissented and not followed
by the Andhra Pradesh High Court in Genera/Manager, South Central
Railway vs. A. Ramanamma(Supra) decided on 01.05.2009. It is
E contended that casual labourer who is granted temporary status is paid
out of contingency and is governed by Rule, 31 of Rules, 1993 ..
. 19. He further contended that the issue is completely covered by
the judgment of the Apex Court reported in General Manager, North
West J!..ailway & Ors. vs. Chanda Devi, 2008 (2) SCC 108 and High
F Court as well as Tribunal had committed error in holding that casual
worker after obtaining temporary status is entitled to reckon 100 per
cent period of service. He submitted that the Delhi High Court has
committed error by not following the judgment of this Court in Chanda
Devi case (Supra) and inappropriately distinguished the same by saying
G
H
that it did not consider Rule, 20 of Rules, 1993.
20. Learned counsel for the respondents refuting the submission
, of counsel for the appellants contended that the High Court has not
committed any error in dismissing the writ petition of the appellants. It is
contended that after obtaining the temporary status entire service is to
be reckoned for computation of pension. It is further contended that
UNION OF INDIA v. RAKESH KUMAR & ORS.
.793
[ASHOK BHUSHAN, J.]
under Rule, 20 of Rules, 1993 qualifying service to a Railway Servant A
commences from the date he takes charge of the post either substantially ,
or in officiating or in temporary capacity of employment. The respondents
were granted temporary status, their ~orking is in temporary capacity
and they are entitled. for the benefit under Rule, 20 of Rules, 1993. It is
contended that the judgment of the Andhra Pradesh High Court ~n B
General Manager, South Central Railway vs. Shaik Abdul
Khader(Supra) had rightly been relied by the High Court.
,~·
-
21. Mr. M.C. Dhingra contended that there is no difference
between Railway Servants; one who is paid out of Contingency or one
:~ ;~~:~:i!~: ~!;~~~~~:~;~~;~~n~e submitted that no distinction ' C
22. From the above submissions of the learned counsel for the
parties and materials on record, the only issue which arises for
consideration in these appeals is:
Whether the entire services of a casual worker after obtaining D
temporary status till his regular absorption on a post is entitled to
be reckoned for pensionary benefit or only 50 per cent period of
such service can be reckoned for pensionary benefit?
23. In so far as reckoning of 50 per cent casual period, there is no
challenge and it is clear that the said reckoning is in accordance with · E
Rule 31 of Rules, 1993 and the benefit of said 50 per cent services of
casual period had already been extended to the respondents. Thus, we
need to answer in these appeals the only question as noted above.
24. The Tribunal as well as High Court has referred to Para 20 of
the Master Circular No. 54, Para 2005 oflndian Railway Establishment
Manual (IREM) as well as Rules, 1993.
25. Para 20 of the Master Circular No. 54 is quoted as below:-'
F
"20. Counting of the period of service of Casual Labour for
pensionary benefits: - Half of the period of service of casual
labour (other than casual labour employed on_ Projects) after
G
attainment of temporary status on completion of 120 days
continuous service if it is followed by absorption in ;ervice
.
as regular railway employee, counts for pensionary benefits.
With effect from 1-1-1981, the benefit has also been extended
to Project Casual Labour."
H
-(
794
SUPREME COURT REPORTS
[2017] 3 S.C.R.
A
26. Next Provision need to be noted is Para 2005 ofIREM, which
B
c
D
E
F
G
H
is as follows:-
"2005 /REM:
2005. Entitlements and privileges admissible to Casual Labour
who are treated as temporary (i.e. given temporary status)
after the completion of 120 day or 360 days of continuous
employment (as the case may be).
(a) Casual labour treated as temporary are entitled to the
rights and benefits admissible to temporary railway servants
as laid dow11 i11 Chapter XXIII of this Manual. The rights
and privileges admissible to such labour also include the be11efit
of D & A rules. However, their service prior to absorption in
temporary/ permanent/ regular cadre after the required
selection/ screening will not count for the purpose of seniority
vis-a-vis other regular/ temporary employees. This is however,
subject to the provisions that if the se11iority of certain
· individual employees has already bee11 determined i11 any
other ma1111er, either in pursuance of judicial decisions of
otherwise, the se11iority so determi11ed shall 11ot be altered.
Casual labour includi11g Project casual labour shall be
eligible to count only half the period of service re11dered by
them after attai11ing temporary status on completio11 of
prescribed days of co11tinuous employment and before regular
absorption, as qualifying service for the purpose of pe11sionary
benefits. This benefit will be admissible only after their
absorption in regular employment. Such casual labour, who
have attained temporary status, will also be entitled to carry
forward the leave at their creditto new post on absorption in
regular service. Daily rated casual labour will not be entitled
to these benefits.
"
27. Railway Services (Pension) Rules, 1993 have been framed
under proviso to Article 309 of the Constitution oflndia. Rule 20 and
Rule 31 of Rules, 1993 which are relevant for our purpose, are extracted
as below: -
UNION OF INDIA v. RAKESH KUMAR & ORS.
[ASHOK BHUSHAN, J.)
795
"20. Commencement of qualifying service- Subject to the A
provisions of these rules, qualifying service of a railway
servant shall commence from the date he takes charge of the
post to which he is first appointed either substantively or in
an officiating or temporary capacity:
Provided that officiating or temporary service is
B
followed, without interruption, by substantive appointment
in the same or another service or post:
Provided ji1rther that -
(a) in the case of a railway servant in a Group 'D' service or
post who held a lien or a suspended lien on a permanent C
pensionable post prior to the 17th April, 1950, service
rendered before attaining the age of sixteen years shall not
count for any purpose; and.
(b) in the case of a railway servant not covered by clause (a),
service rendered before attaining the age of eighteen years D
shall not count, except for compensation gratuity."
"31. Counting of service paid from Contingencies- Jn respect
of a railway servant, in service on or after the 22nd day of
August, 1968, half the service paid from contingencies shall
be taken into account fur calculating pensionary benefits on
E
absorption in regular employment, subject to the following
condition namely: -
(a) the service paid from contingencies has been in a job
involving whole-time employment;
F
(b) the service paid from contingencies should be in a type of
work or job for which regular posts could have been
sanctioned such as posts of ma/is, chowkidars and khalasis;
(l~ the service should have been such for which payment has
been made either on monthly rate basis or on daily rates
computed and paid on a monthly .basis and which, though
not analogous to the regular scales of pay, borne some relation
in the matter of pay to those being paid for similar jobs being
performed at the relevant period by staff in regular
establishments;
G
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SUPREME COURT REPORTS
[2017] 3 S.C.R.
A
(d) the service paid from contingencies has been continuous
and followed by absorption in regular employment without d
break; ·
Provided that the weightage for past service paid
from contingencies shall be limited to the period after I st
B
January, 1961 subject to the condition that authentic records
of service such as pay bill, leave record or service-book is
available.
NOTE - (I) the provisions of this rule shall also appZv to casual
labour paid from contingencies.
C
(2) The expression '.'absorption in regular employment;, means
absorption against a regular post."
28. The perusal of para 20 of the Master Circular indicates that
only half of the period of service of a casual labo~r after attainment of
temporary status on completion of 120 days continuous service if it is
D followed by absorption in service as a regular Railway employee, counts
· for pensionary benefits.
29. Para 2005 of Indian Railway Establishment Manual also
contains the same scheme for reckoning the period for pensionary benefit.
Para 2005 contains the heading:
E
"2005. Entitlements and Privileget admissible to Casual
Labour who are treated as temporary (i.e. given temporary
status) after the completion of 120 days or 360 days of
continuous employment (as the case may be). "
30. The above heading enumerates the privileges aimissible to
F casual labour who are treated as temporary. Clause(a) cf para 2005
provides:
" ... Casual labour including Project casual labour shall be
eligible to count on(v half the period of service rendered by
them after attaining temporary status on completion of
G
prescribed days of continuous employment and before regular
absorption, as qualifying service for the purpose of
pensionary benefits. "
. 31. Let us now look into the judgment of High Court dated
10.11.2014 to find out the reasons.for holding that the casual labour after
obtaining temporary status is entitled to reckon entire period of service
H
UNION OF INDIA v. RAKESH KUMAR. & ORS.
797
[ASHOK BHUSHAN, J.]
for pensionary benefits. In Para 7 of the judgment the High Court refers A
to para 20 of the Master Circular and para 2005 of !REM as
administrative instructions clarifying that half the period spent as casual
labourers· would be eligible to reckon for the purpose of pension. In Para
6 of the judgment following was stated by the High Court:
"6. It would be immediately apparent that the Master Circular B
No. 54 and para 2005 of the /REM deal with a situation where
casual labourers/workers are eventually regularised after
, attainment of temporary status. The combined effect of these
is to entitle the individuals who work as casual workers for a
period, to reckon half of that period for the purpose of
pension ...
32. The High Court in the impugned judgment has relied on Rule
c
20 ofRules, 1993 and judgment of Andhra Pradesh High Court in General
Manager, South Central Railway, Secunderahad & Anr. Vs. Shaikh
Abdul Khader(Supra). Andhra PradeshHigh Court in the above case
after referring to Rule 31 of Rules, 1993, para 20 of Master Circular D
No.54 of 94 and para 2005 of IREM as well as Rule 20 laid down
following:
" ... If this sub-para is read with para-20 and also with Rule31, there remains no doubt that on absorption whole of the
period for which a casual labour worked after getting E
temporary status would have· to be counted and half of the
period has to be counted of the period for which a casual
labour worked without being absorbed.. Once he is given
temporary status that means that he has been absorbed in the
department. Even para 2005(a) has been drafted in the same
F
way because of the fact that even such casual labour who
'have attained temporary status are allowed to carry forward
the leave at their credit in full to the new post on absorption
in regular service. Therefore, we have no doubt in our mind
that once temporary status is granted to a person who is
absorbed later on in regular service carries forward not only G
the leave to his credit but also carries forward the service in
full. Half on the service rendered by him as casual labour
before getting the temporary status has to be counted.
Therefore, we do not feel that the Tribunal was wrong in coming
to the conclusion it has, although we may not agree with the H
798
SUPREME COURT REPORTS
[2017] 3 S.C.R.
A
reasons given by the Tribunal. The view taken by us is further
strengthened by mandate of Rule-20 of Railway
Services(Pension) Rules which lays down:
"20. Commencement of QualifYing service: Subject to the
provisions of these rules, qualifying service of a railway
B
servant shall commence from the date he takes charge of
the post to which he is jirst appointed either substantive(v
or in an officiating or temporary capacity.
Provided that officiating or temporary service is followed,
without interruption, by substantive appointment in the
c
same or another service or post.
D
E
F
G
H
Provided further that
(a) ...... (b) ..... "
Therefore, we hold that the respondent was entitled to get the
service counted in full from January 1, 1983. He was also
entitled to get half of the service counted before January 1,
1983 from the date he had joined in the railways as casual
labour.,.
33. The above judgment of Andhra Pradesh High Court was
subsequently considered by the Andhra Pradesh High Court itself in
Writ Petition No. I 0838 of2001, the General Manager, South Central
Railway, Secunderabad & another Vs. A.Ramanamma decided on
01.05.2009 wherein earlier judgment of Andhra Pradesh High Court in
Shaikh Abdul Khader(Supra) was not followed after referring to
judgment of this High Court in General Manager, North We.sl Railway
& others Vs. Chanda Devi, 2008 (2) SCC 108.
34. Following are reasons given in subsequent judgment for nor
following Shaik Abdul Khader(Supra):
" Similarly, Sltaik Abdul Khader(supra) directing counting
of the entire service rendered by a casual labour after getting
temporary status even before absorption for purposes of
qualifying service for pension/family pension, runs contrary
to the distinction between 'casual labour with temporary
status' and 'temporary railway servants' recognized by
Chanda Devi(.rnpra) and other decisions of the Supreme
UNION OF INDIA v. RAKESH KUMAR & ORS.
[ASHOK BHUSHAN, J.]
799
Court. The conclusion in Shaik Abdul Khader(supra) that once
A
a casual labour is given temporary status. that means that he
has been absorbed in the department, does not appear to fit
in with the interpretation of the rules and the legal position
by the Apex Court. "
35. The Judgment of this Court in Chanda Devi's case(Supra)
B
considered the nature of employment of casual labour who was granted
temporary status. In the above case, Smt. Santosh, the respondent was
widow of Sh. Ram Niwas who was a project casual labour. Under the
scheme framed by Union of India in pursuance of order of this court in
Inderpal Yadav Vs. Union of India, 1985 (2) SCC 648, Ram Niwas c
was treated as temporary employee w.e.f 01.01.1986. After the death
of Ram Niwas, her widow filed the claim for grant of family pension
which was rejected by the Railway against which the widow approach
the Central Administration Tribunal. The Tribunal allowed the claim, Writ
Petition filed by Union oflndia was dismissed by the Rajasthan High
Court against which the appeal was filed. After referring to Rule 2001,
D
Rule2002 and Rule 2005 ofIREM, this Court held that Rule 2005 clearly
lays down the entitlement and privileges admissible to casual labour who
are treated as temporary i.e. given temporary status.
36. This Co mi further held that there is a distinction between the
casual labour having a temporary status and temporary servant, para 24
E
of the judgment is relevant which is quoted as below:
"24. The contrast between a casual labour having a temporary
status and a temporary servant may immediately be noticed
from the definition of a temporary railway servant contained
in Rule 1501 occurring in Chapter XV of the Manual:
F
"1501.(i) Temporary railway servants
Definition- A 'temporary railway servant· means a
railway servant without a lien on a permanent post on a
railway or any other administration or ojjice under the
Railway Board. The term does not include 'casual labour',
G
including 'casual labour' with temporary status', a
'contract' or 'part time' employee or an 'apprentice'."
3 7. This Court in the above case has also disapproved the judgment
of Gujarat High Court wherein it was held that casual labour after
H
800
SUPREME COURT REPORTS
[2017] 3 S.C.R.
A obtaining temporary status becomes a temporary railway servant. The
reasons given by Gujarat High Court werl! extracted by this Court in
para.27 of the Judgment, and in para 31 of the judgment Gujarat High
Court's judgment was disapproved. Para 27 and para 31 are extracted
as below:·
B
c
D
E
F
G .
H
"27. The Gujarat High Court in Rukhiben Rupabhai Vs. Union
of India no doubt on analysing the scheme filed before this
Court,' opined:
·
"32. This change has beei1 made by the Railways
after the Apex Courts decision in Inder Pal Yadav case.
The original defi;1ition of 'temporary railway servant' is
clear, but in the abovequoted definition in Rule(J 501), the
Railways have included the 'casual labour with temporary
status', thereby, taking them out from the category of
'temporary railway servant'. How and why this change
has been made, what procedures were adopted for making
the change, there is no whisper, although, this change has
grievously affected the casual labour becoming temporary
on completion of 360 days' continuous employment, and
committed breach of the Apex Courts decision in 1nder
Pal Yadav case followed by Dakshin Railway Employees
Unio~n Vs. GM, Southern Railway, (1987) 1SCC677, 1987
SCC (L&S) 73, making casual labour 'temporary railway
servant'. Since there exists only four categories, nam!y,
(1) permanent, (2) temporary, (3) casual labour, and (4)
substitutes, casual labolll; under the original scheme
approved in cases referred to hereinbefore, becomes
'temporary railway servant', after completion of 360 days'
continuous employment, therefore, he cannot be rilade
'casual laboiJr with temporar.v status' by subsequent
gerrymandering by the Railways by its circular dated
11.09.1986, which was not brought to the notice of the
Apex Court in Dakshin Railway Employees case. Therefore,
this circular has no legal sanction against the Apex Courts
decision in Inder Pal Yadav case, contrary to original
scheme and as such, hit by Articles 14, 16, 21, 41142 of
the Constitution of India. "
UNION OF INDIA v. RAKESH KUMAR & ORS.
[ASHOK BHUSHAN, J.]
801
But evidently the provisions of the Railway Manual were not A
considered in their proper perspective.
'~
31. The Gujarat High Court in our opinion, therefore,
committed a fundamental error tn opining otherwise. It failed
to notice that when casual labour has been excluded from
the definition of permanent or temporary employee, he with
B
temp01;ary status could not have become so and there is no
legal sanction therefore. It is for the legislature to put the
employef!s to (sic) an establishment in different categories. It
may create a new category to confer certain benefits to a .
particular class of employees. Such a power can be exercised C
also by the executive for making rules under the proviso
appended to Article 309 of the Constitution of India. Dakshin
Railway employees Union Vs. GM, Southern Railway
whereupon reliance has been placed by the Gujarat High
Court in Rukltihen Rupabhai does not lead to. the said
conclusion as was sought to be inferred by it.