"Himachal Pradesh High Court Upholds Pension Eligibility: 'Service of More Than Six Months to be Rounded Off as One Complete Year'"

In a landmark ruling, the Himachal Pradesh High Court has set a precedent in the interpretation of pension regulations, particularly impacting the cases where the computation of the service period is pivotal for pension eligibility. The Division Bench, comprising Chief Justice M.S. Ramachandra Rao and Justice Jyotsna Rewal Dua, delivered the judgment on 20th March 2024, in the case of UCO Bank and Others Vs. Chaman Singh (LPA No. 96 of 2021).

The case revolved around the interpretation of Regulation No.18 of UCO Bank (Employees') Pension Regulations, 1995. The Court upheld the earlier judgment that acknowledged the respondent, Chaman Singh’s service period of 9 years, 10 months, and 5 days as equivalent to 10 years, thus qualifying him for pension under Regulation No.14. The Court noted, “In terms whereof service of less than a year but more than 6 months is to be rounded off as one completed year. This benefit of computation of service accorded to an employee under substantive provision of Regulation No.18 cannot be watered down by the proviso to Regulation No.18."

This decision underscores the Court’s stance on the importance of fair interpretation of pension regulations, ensuring that employees’ rights are not diminished by technicalities. The judgment referenced the precedent set by the Supreme Court in Indian Bank and Another Vs. N. Venkatramani, and similar provisions in Rule 49(3) of the CCS (Pension) Rules, which state that a fraction of a year equal to three months and above shall be treated as a completed half-year for qualifying service.

The Court dismissed the appeal filed by UCO Bank, affirming the rights of the respondent to his pension. This ruling is seen as a significant step towards safeguarding the interests of employees in matters of pension and service computation. It is expected to influence similar cases, providing a clear interpretation of the pension regulations and ensuring that employees are not unfairly deprived of their pension rights due to the interpretation of service periods.

Date of Decision: 18th March 2024

EKENE GODWIN & ANR. VS STATE OF TAMIL NADU