The State of Bihar & Ors. vs Rajmati Devi & Anr.

Civil Appeal · 2022 INSC 615Decided 20 May 2022
Civil Appeal Nos. 3900-3901 of 2022
M.R. Shah · B.V. Nagarathna

Background

The husband of the respondent worked as a peon in the Bihar Research Society, an autonomous society, which was later taken over by the Government of Bihar and its employees absorbed into government service with effect from 02.03.2009. He died in service in 2013, and his widow sought family pension under the State's Old Pension Rules, 1950. Both the Single Judge and a Division Bench of the Patna High Court ruled in her favour, holding she was entitled to family pension from the date of her husband's death. The State of Bihar appealed to the Supreme Court, arguing that the Old Pension Rules had already been abolished in 2005, before her husband was absorbed into government service.

Decision Breakdown

The Supreme Court held that the Old Pension Rules, 1950 were abolished with effect from 01.09.2005 and replaced by the New Contributory Pension Scheme, 2005, which does not provide for family pension. Since the husband was absorbed into government service only from 02.03.2009 (after the cut-off), and a corrigendum expressly stated his prior service with the Society would not count as government service, he was governed exclusively by the New Scheme. The High Court had failed to consider this timeline and wrongly applied the Old Pension Rules. The Court therefore set aside both the Single Judge's and Division Bench's orders and allowed the State's appeals, with no costs.

Lesson Learnt

Entitlement to a pension scheme depends on the specific date an employee is legally absorbed into government service, not merely on the fact that they died "in harness": beneficial welfare reasoning cannot override the clear cut-off dates fixed by a pension policy.

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