Roadways Employees Who Did Not Hold Any Pensionable Post Before Their Absorption Or Deputation In UPSRTC Are Not Entitled To Pension: SC

The Supreme Court has held that the employees of the Roadways who were not holding any pensionable post prior to their deputation or absorption in the U.P. State Roadways Transport Corporation are not entitled to pension.

In that context, the Bench of Justice Hrishikesh Roy and Justice Prashant Kumar Mishra observed that, "The employees of Roadways who were not holding any pensionable post prior to their deputation or absorption in the Corporation, are not entitled to pension, as their service conditions in the erstwhile Roadways did not provide that they are entitled to pension. Thus, they have not been put to any inferior service conditions on their joining the services in the Corporation."

In this civil appeal, the issue falling for consideration was whether the appellants, who are the former employees of Uttar Pradesh Roadways, a temporary department of the State Government, are holding any pensionable post before or after their absorption in the U.P. State Roadways Transport Corporation.

The appellants argued that they were entitled to a pension based on a Government Order dated September 16, 1960, as they were appointed before the establishment of the U.P. State Roadways Transport Corporation in 1972. They claimed that once made permanent, their posts should be considered pensionable. They also cited an amendment to Article 350 of the U.P. Civil Service Regulations in 1977, which they believed included their establishment under the pensionable category. Additionally, they argued that no new rules had been issued to exclude their establishment from pension benefits.

The Corporation's counsel countered that the appellants had already received post-retiral benefits under the Employees Provident Fund Scheme and that their claim was filed too late, ranging from 8 to 32 years after retirement. The counsel distinguished the appellants' case from previous judgments, arguing that the Roadways was a technical institution and that the appellants had not worked on pensionable posts as per the applicable Government Orders and Regulations.

The High Court held that only employees of the State Government who had opted for service with the U.P. State Roadways Transport Corporation (UPSRTC) and were transferred to it shall be entitled to pension and other retirement benefits as per the Government Order dated July 5, 1972.

For other employees of the UPSRTC who did not transfer from the State Government's Roadways, pension benefits were not applicable; instead, they were entitled to retirement benefits under sub-Regulations (1) and (2) of Regulation 39.

The Court noted that employees promoted to pensionable posts in the UPSRTC between 1972 and 1981 are eligible for pensions according to Government Order dated February 3, 1984. However, the Court clarified that members of the Union of RKSP who were promoted to pensionable posts after the cutoff date are not entitled to pensions.

Cause Title: UP Roadways Retired Officials and Officers Association vs State of UP & Anr.

Click here to read/download the Judgment