SC Quashes Order Granting Pension Benefits From State Govt To Employees Appointed In Rajasthan Dairy Development Corporation

The Supreme Court has set aside the High Court’s Order declaring the employees appointed in Rajasthan Co-operative Dairy Federations entitled to receive pensionary benefits from the state government.

The bench of Justice MR Shah and Justice CT Ravikumar noted that once the employees, earlier working with the state government, became an employee of the Dairy Development Corporation / Milk Federation Unions, they ceased to have the lien with the State Government, hence they shall not be entitled to the pensionary benefits as State Government employees.

“…once the respondents were permanently absorbed and became an employee of the Dairy Development Corporation / Milk Federation Unions, they ceased to have the lien with the State Government and therefore, they shall not be entitled to the pensionary benefits as State Government employees and that too after having received the retirement benefits from the Dairy Development Corporation / Milk Federation Unions.”, the Court observed.

Advocate Ruchi Kohli appeared for appellants whereas Advocate Uday Gupta appeared for the employees.

The Court noted that all the respondent-employees were initially appointed on the post of Animal Husbandry Extension Officer or Veterinary Assistant Surgeon in the Animal Husbandry Department of the state of Rajasthan. However, thereafter, all of them were appointed in the respective Milk Unions under the Dairy Federations between 1976 to 1978.

The Court also noted that right from very beginning, the respective respondents were told that their lien will be kept for a period of two years or until their confirmation in the Corporation / Union, whichever is earlier.

“once the respective respondents were appointed after selection and interview in the Rajasthan Dairy Development Corporation / Milk Federation Unions, they ceased to have the lien in the Government.”, the Court observed.

The Court asserted that there cannot be two liens on two substantive posts. Accordingly the Court set aside the HC’s Order.

“It is observed and held that the respective respondents shall not be entitled to the pensionary benefits from the State Government as directed by the learned Single Judge and the Division Bench.”, the Court held.

Cause Title- State of Rajasthan & Ors. v. Dr. Hamir Singh Chouhan (Dead) by LRs & Ors.

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