Mukut Das vs. The Assam Power Generation Corporation Ltd.
Background
The appellants, employees of the Assam Power Generation Corporation, attained the age of superannuation (60 years) in March 2016 but, under Fundamental Rule 56(a), their retirement date was extended to 31.03.2016: the last day of that month. A pay revision, the "Assam State Electricity Board and its Successor Companies Revised Pay Rules, 2017," applied to employees "in service on 31.03.2016." The employer denied them the revised pay/pension, arguing they had effectively retired earlier and the revision only benefited those continuing in service on or after 01.04.2016. A Single Judge ruled in the employees' favour, but a Division Bench of the Gauhati High Court reversed this, prompting the appeal to the Supreme Court.
Decision Breakdown
The Supreme Court held that FR 56(a) is not merely a technical extension for pay and allowances alone: an employee attaining superannuation age during a month legally continues in service until the last day of that month. Relying on Rule 5(2) of the CCS (Pension) Rules, 1972 and a three-judge bench precedent (S. Banerjee v. Union of India), the Court held the appellants were genuinely "in service" on 31.03.2016 and thus squarely covered by the 2017 Rules. The Court declined to follow an earlier two-judge decision (K.J. George) that had taken a contrary, narrower view, distinguishing it on facts and citing the unnoticed three-judge precedent. The Division Bench's judgment was set aside and the Single Judge's order restored.
Lesson Learnt
When a retirement rule extends an employee's service to the last day of the month in which they turn the qualifying age, that employee is legally treated as being "in service" on that date for all purposes, including entitlement to benefits like pay revisions, not merely for computing salary.