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Service & Administrative LawSupreme Court of India

Shakti Prasad Bhatt Etc. Etc. v. The State of Uttarakhand and Ors. Etc.

Civil Appeal · 2018 INSC 420Decided 26 Apr 2018
Civil Appeal Nos. 4519-4530 of 2018
Justice Arun Mishra · Justice Uday Umesh Lalit

Background

The appellants were "Kurk Amins" (cooperative-dues recovery officials) in Uttar Pradesh whose status as government servants, entitled to pension and other benefits, had been settled by earlier Supreme Court and Allahabad High Court rulings dating back to 1985. When the State of Uttar Pradesh was bifurcated in 2000 and the appellants were absorbed into the new State of Uttarakhand, a dispute arose over whether their pre-2000 service in U.P. would count towards selection grade, promotion, and pension. A Single Judge of the Uttarakhand High Court ruled in the appellants' favour, but the Division Bench reversed this, holding that only service from 9 November 2000 (the date Uttarakhand was created) could be counted.

Decision Breakdown

The Supreme Court held that the reorganisation of the State could not be used to wipe out the appellants' pre-2000 service, which had already been judicially recognised as government service. It held that denying credit for pre-2000 service "for no good reason" was against basic principles of service jurisprudence, and that employees should not lose accrued service benefits merely because of an administrative act (state bifurcation) over which they had no control. The Division Bench's order was set aside, the appeals were allowed, full past service was ordered to be counted for selection grade, promotional scale, and pensionary benefits, the benefit was extended to all similarly situated employees, and costs of Rs. 1,00,000 were imposed on the State of Uttarakhand for its untenable stance.

Lesson Learnt

When a state is reorganised, employees transferred to the new state do not lose the benefit of service rendered before the split: prior judicially-settled rights (like being recognised as government servants) continue to apply, and courts will not let an administrative reorganisation erase accrued pension and promotion entitlements.

Shakti Prasad Bhatt Etc. Etc. v. The State of Uttarakhand and Ors. Etc. – Legal Case Shots | LegalAware