livelawpk.com - Contractual or Temporary Service, if followed by Regularizat

Contractual or Temporary Service, if followed by Regularization without any gap, must be included for the Calculation of Pension --- Supreme Court of Pakistan

2 months, 2 weeks
83

Contractual or Temporary Service, if followed by Regularization without any gap, must be included for the Calculation of Pension --- Supreme Court of Pakistan

Islamabad 07-10-2024: The Supreme Court of Pakistan, in a significant ruling, dismissed [Civil Petition No. 1353-L of 2023] filed by the Chairman/Dean of Sheikh Zayed Hospital, Lahore, challenging a judgment of the Federal Service Tribunal. The petition sought to exclude the contractual service period of the respondent, Dr. Amjad Mehmood Khan, from the calculation of his pensionary benefits.

The three-judge bench, comprising Mr. Justice Munib Akhtar, Mr. Justice Athar Minallah, and Mr. Justice Syed Hasan Azhar Rizvi, ruled that contractual or temporary service, if followed by regularization without any gap, must be included for the purpose of pension calculation under Article 371-A of the Civil Service Regulations (CSR).

The respondent, Dr. Amjad Mehmood Khan, had initially been appointed as an Anaesthetist (BS-18) on a contract basis and later regularized. Upon his retirement in 2007, the hospital administration excluded his 4.5 years of contractual service from the calculation of his pension. Dr. Khan’s appeal was initially dismissed by the Punjab Service Tribunal on grounds of jurisdiction, but the Federal Service Tribunal later ruled in his favor, prompting the hospital administration to file a petition before the Supreme Court.

The Court examined whether the contractual period could be included in the pension calculation and whether the claim was time-barred. The petitioners argued that the claim, filed several years after the respondent’s retirement, was time-barred. However, the Supreme Court noted that pensionary benefits are considered a “recurring cause of action” and cited the case of “Abdul Jabbar vs. Pakistan Railways” [2018 PLC (CS) 375], affirming that delay does not automatically invalidate such a claim.

Additionally, the bench referenced “Chairman, Pakistan Railway vs. Shah Jehan Shah” (PLD 2016 SC 534) and M/o Finance through Secretary vs. Syed Afroz Akhtar Rizvi & others (2021 SCMR 1546), which held that temporary service followed by regularization is recognized under Article 371-A for pension inclusion, provided it meets certain conditions.

The Supreme Court upheld the principles laid out in previous cases, affirming that the respondent’s contractual service should be counted towards his pension benefits. It further observed that Article 371-A of the CSR permits the inclusion of temporary or contractual service for pension calculation if it is immediately followed by regularization, as was the case with Dr. Khan.

The Court concluded that the Federal Service Tribunal had appropriately applied the law, and the petitioner’s arguments were not sufficient to warrant a reversal of the Tribunal’s decision. As a result, the petition was dismissed, and leave was refused.

This ruling clarifies the legal position on including contractual service periods in pension calculations, providing guidance for similar disputes in the future. The decision reinforces the view that pension benefits constitute a recurring cause of action, ensuring that retired employees can seek redress for exclusion or miscalculation of their pension, even after significant time has elapsed since their retirement.

The judgment marks a crucial precedent for government servants and employees in contractual positions, ensuring that their temporary service is duly recognized for pension purposes, provided it meets the conditions set forth under the applicable service laws.