Bhikhani Devi and Etc. v. Union of India and Others
Background
The appellants (Bhikhani Devi (widow of a deceased employee), Bahuru Sahu, and Pitamber Jha) were, or represented, former casual labourers (Night Guards) in the Department of Posts who had served for decades starting in the early 1970s-80s. Following the Supreme Court's 1991 direction in Jagrit Mazdoor Union v. MTNL, the Department framed a Scheme conferring "temporary status" on long-serving casual labourers, and a later 1992 circular said such workers, after three years of temporary status, would be treated at par with "temporary Group 'D' employees" for benefits. The Central Administrative Tribunal ruled in the appellants' favour on pension entitlement, but the Patna High Court set that aside, prompting this appeal.
Decision Breakdown
The Supreme Court traced each appellant's service history through three phases (casual labourer, temporary-status casual labourer, and temporary-status casual labourer entitled to Group 'D' benefits) and found that each had, after being conferred temporary status and completing three years under the 1992 circular, accumulated well over the ten years' qualifying service required under Rule 10(1-B) of the CCS (Temporary Service) Rules, 1965 for pension. The Court held the High Court had misread the Scheme and the 1992 circular in denying them pensionary status. It ruled that pension claims are a "continuing cause of action" not defeated by delay, though arrears were limited to the three years and two months preceding the filing of their applications, consistent with settled service-law principles on limitation. The Court set aside the High Court's judgments and directed release of pensionary and retiral benefits within three months, with 6% annual interest on default.
Lesson Learnt
Long-serving casual/temporary government employees who are formally conferred "temporary status" under a departmental scheme, and who go on to complete the qualifying period of service under applicable rules, are entitled to pension as a matter of right, and a pension claim, being a continuing cause of action, cannot be denied merely because it was raised years after retirement, though back-arrears may still be capped by limitation principles.