Contractual Service Period Can Be Counted Not Only For Pension But Also For Annual Increments: Himachal Pradesh HC

The Himachal Pradesh High Court held that the period of contractual service can be counted not only in the calculation of pensionary benefits but also for grant of annual increments.

The Single Bench of Justice Jyotsna Rewal Dua delivered the ruling in response to a petition filed by a Trained Graduate Teacher (TGT).

The Petitioner had served as a TGT on a contractual basis before his services were regularized. While the State government acknowledged his contractual tenure for calculating pension under the Central Civil Services (CCS) Pension Rules, 1972, it denied the inclusion of annual increments earned during the contractual period. Aggrieved by this exclusion, the Petitioner approached the High Court, seeking relief.

The Petitioner argued that his uninterrupted continuation in regular service following his contractual employment entitled him to annual increments for the contractual period. These increments, he claimed, should form part of his pension calculation.

The State opposed the claim, asserting that the petitioner's contractual tenure, being distinct from regular service, could not be considered for annual increments.

The Single Judge relied on several precedents, including:

i. Sheela Devi v. State of Himachal Pradesh & Ors.: The Supreme Court had recognized contractual service as qualifying for pension benefits upon regularization.

ii. Jagdish Chand v. State of Himachal Pradesh & Ors.: The Supreme Court had ruled that contractual service counts towards both pension eligibility and annual increments.

iii. Prabha Kanwar through LRs v. State of Himachal Pradesh & Ors.: Contractual service was deemed valid for pensionary benefits and annual increments, though financial benefits were limited to three years before filing the claim.

iv. Satish Kumar Banyal & Ors. v. State of Himachal Pradesh & Ors.: Contractual service followed by regular service on the same post without interruption must include annual increments for pension calculation.

v. Sunil Dutt & Ors. v. State of Himachal Pradesh & Ors.: The Supreme Court had directed that basic pay, including increments from contractual service, should be considered in pension calculations.

The High Court ruled in favour of the petitioner, stating that contractual service must be counted as qualifying service under the CCS Pension Rules, 1972. The Court further directed the inclusion of annual increments earned during the contractual period in pension calculations.

The respondent authorities were instructed to reassess the petitioner's case and grant the relevant increments within six weeks. "The respondents/competent authority is directed to consider the factual position of individual cases of the petitioners in accordance with above legal position. In case, the petitioners are found to be situated similarly as the petitioners in the aforesaid cases then they shall be granted benefits of contractual service not only for the purpose of pension under the CCS Pensions. Rules 1972 but also for the purpose of granting them annual increments on the same terms as in the aforesaid cases. This exercise shall be completed within a period of six weeks. The order so passed be communicated to the petitioners. The impugned order dated Nil September 2024 (Annexure P-5) shall stand modified to the above extent. This writ petition is disposed of in above terms. Pending miscellaneous application(s), if any, shall also stand disposed of," the Court ordered.

With these directives, the Writ Petition was disposed of.

Cause Title: Som Dutt & Ors. v. State of H.P. & Anr [Neutral Citation No. 2024:HHC:13921]

Appearance:-

Petitioner: Advocate Devender K. Sharma

Respondent: Additional Advocate General (AAG) Dalip Sharma

Click here to read/download the Judgment