Case: Union Of India And Ors Vs. Keshab Lal Roy And Ors

the respondents hereinwere originally employees of Arrah Sasaram Light Railways (hereinafter referred to as `ASL Railways) which was owned by a private party. This company closed down its operation with effect from 15th February, 1978. Termination notices were issued to the employees including the respondents, and the company paid the termination benefits as admissible in law.2. With a view to mitigate the hardship to the retrenched employees of the ASL Railways it was decided that these employees may be appointed as fresh entrants in the Indian Railways. This decision was contained in the letter dated 17th March, 1978 written by the Ministry of Railways to the General Manager, Eastern Railways. The said letter contained the terms and conditions on which these erstwhile employees of ASL Railways were to be given appointment.3. The respondents were thereupon appointed in the Eastern Railways pursuant to the aforesaid decision dated 17th March, 1978. According to the prevalent rules at that time an employee in the Indian Railways became eligible for pensionary benefits only after the employee had put in ten years of service. The respondents made a representation to the appellants to the effect that the service rendered by them in the erstwhile ASL Railways should be taken into consideration for the purpose of granting them pensionary benefits. This representation was rejected. Thereupon the respondents filed O.A. No. 113 of 1989 before the Central Administrative Tribunal, Patna Bench, Patna, praying that they should be paid pensionary benefits by counting the entire service or at least some percentage or some years service rendered by them in ASL Railways so as to entitle them to get the minimum pension. In support of this plea the respondents contended that the Railway Board had allowed counting of previous service rendered by the erstwhile Kalighat Falta Railways (hereinafter referred to as `K.F. Railways) for the purpose of pensionary benefits. It was submitted that by not extending the same benefits to the respondents they were being discriminated. The appellants contention before the Tribunal was that the status of the ex-employees of the erstwhile private company namely, ASL Railways and K.F. Railways was different. It was submitted that the assets of the K.F. Railways were taken over by the Government of India by making an outright purchase whereas ASL Railways had gone into voluntary liquidation and had not been taken over by the Government of India.4. Vide order dated 16th September, 1993, the application filed by the respondents was allowed. While noticing that there was some difference between the status of the K.F. Railways which had been taken over and the status of the employees of the ASL Railways, which was not taken over, the Tribunal nevertheless held that the employees of ASL Railways had worked with a private company for long period and, therefore, they should have been given the same treatment as the employees of the K.F. Railways and other companies which had been taken over.

Court's reasoning:
It was not in dispute that on their appointment in the Indian Railways the employees of K.F. Railways were given the benefit of their past service and, it was contended, that there was no valid reason as to why the same benefits should not have been extended to the respondents. In short the submission was that all the ex-employees of different private railways were similarly situate and on their appointment in the Eastern Railways the earlier service rendered by them, in the erstwhile private companies should be taken into consideration for the purpose of pension.From the aforesaid letter it clearly follows that the railway authorities did not intend to give any benefit of past service to the newly recruited erstwhile employees of the ASL Railways. It is for this reason that on their selection they were to be regarded as ``appointed and not ``absorbed and their pay was also to be fixed at the minimum of the relevant scales.The facts stated in the aforesaid note clearly bring out the reason as to why the erstwhile employees of K.F. Railways were given the benefit of counting their past service in the Indian Railways for the purpose of pensionary benefits. This also shows that the respondents and the employees of the erstwhile K.F. Railways were not similarly situated and, therefore, there is no merit in the contention that the respondents had beencontention was not raised before the Tribunal. No facts in this behalf are stated even in the application which was filed before the Tribunal. Had this contention been raised in the application filed before the Tribunal then the appellants herein would have had an opportunity of giving a reply. There has been no adjudication by the Tribunal as to whether the facts so alleged are correct or not. This contention cannot be allowed to be raised in this court for the first time.