S.D. Jayaprakash and Ors. v. Union of India
Background
The appellants were engaged as Data Entry Operators on a temporary, contractual basis between 1996 and 1999 under a government data-processing scheme. Following tribunal proceedings, they were formally regularised only from January 2015. They sought to have their earlier contractual years counted for seniority, service benefits, and pension. The Central Administrative Tribunal ruled largely in their favour, but the Karnataka High Court set aside the parts of that ruling relating to seniority, service benefits, and pension, holding they could only count service from their 2015 regularisation.
Decision Breakdown
Before the Supreme Court, the appellants confined their argument to pension alone, relying on a recent decision (State of H.P. v. Sheela Devi) interpreting Rule 17 of the Central Civil Services (Pension) Rules, 1972. The Court held that once a contractual employee is later regularised, Rule 17 applies and requires the earlier contractual service period to be counted toward pension, subject to the employee exercising an option about any provident-fund contributions already received during that period. It directed the Union of India to notify the appellants of how to exercise that option and to process their pension accordingly, partly allowing the appeals only on the pension issue (seniority and other service benefits were not argued and remained unaffected).
Lesson Learnt
Time spent working on a temporary contract before being made a permanent government employee is not automatically wasted for pension purposes. Once regularised, an employee can have that earlier service counted toward pension by exercising the option available under the Pension Rules.