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2025 DIGILAW 1893 (KAR)

State Of Karnataka, Represented By The Principal Secretary, Department Of Education (Higher Education) v. Mahadevaswamy, S/o. Late Goravasetti

2025-12-16

ANU SIVARAMAN, VIJAYKUMAR A.PATIL

body2025
JUDGMENT : ANU SIVARAMAN, J. The captioned writ appeals are filed against the judgment dated 03.10.2023 of the learned Single Judge in Writ Petition No.13001/2020 (S-RES). Writ Appeal No.984/2024 is filed by the respondents No.1, 2, 4 and 5/(State) while Writ Appeal No.1549/2023 is filed by the petitioners No.1 to 5 in the Writ Petition seeking higher rate of interest on the delayed payment of pension from 18.09.2020 till date of payment. The Contempt of Court Case is filed alleging willful disobedience of the judgment of the learned Single Judge. 2. We have heard Shri. P.P. Hegde, learned Senior Advocate as instructed by Shri. Venkatesh Somareddy, learned Advocate appearing for the appellants/complainants, Smt. Mamatha Shetty, learned Additional Government Advocate appearing for the State and Shri T. P. Rajendra Kumar Sungay, learned counsel for accused No.4/University. 3. The substantial prayers in the writ petition were seeking a declaration that the employees of respondent No.19-Tumkur University are entitled to pension and other benefits under the Old Pension Scheme. A prayer was also sought to calculate the benefits under the Old Pension Scheme and to disperse the interest at 12% per annum. Further, a prayer was also sought to quash the Notification dated 24.01.2023 and the statute for Absorption of Opted in Teaching and Non Teaching Staff of erstwhile Government Science College, Tumkur and Government Arts College, Tumkur into University Service framed by the Commissioner of a Collegiate Education. 4. The petitioners were persons, who had been appointed as teaching and non-teaching staff in the service of the Karnataka State in different Government Colleges under the State Government. They entered service prior to 01.04.2006. They were transferred to the Government Arts and Science College, Tumkur. While so, the Karnataka State Universities Act, 2000 was amended by Karnataka Act No.10 of 2004, providing for the establishment of a Tumkur University with headquarters at Tumkur having jurisdiction over the Districts of Tumkur, Kolar and Bangalore Rural excluding Kanakapura and Hoskote Taluks by Annexure A. In exercise of the powers under Section 82 of the Karnataka State Universities Act, 2000, the Government Science College and the Government Arts College, Tumkur were transferred to the Tumkur University as per Annexure B - Notification dated 21.01.2010. The transferred Colleges became constituent colleges of the Tumkur University. The transferred Colleges became constituent colleges of the Tumkur University. All benefits of their prior service was extended to them and they were being paid the revised pay scale under the University Grants Commission (UGC) Regulations. On 01.04.2006, the new defined contributory pension scheme was brought into effect in Karnataka by Annexure D - Order dated 31.03.2006. By Annexure E - Official Memorandum dated 12.07.2007, it was clearly provided that persons who are already in regular Government service prior to 01.04.2006 and who apply for posts in the same or other Departments through proper channel or tender technical resignation and subsequently join new posts on or after 01.04.2006 will not be treated as new entrants and will be governed by the Old Pension Scheme. 5. It is contended that the Tumkur University proposed to introduce a statute by name ‘Statutes Governing Settlement of Seniority and Pensionary Benefits of Teaching and Non-Teaching Employees of the Government Science College and Government Arts College, Tumkur’ and sent the proposed statute to the Government on 15.09.2016. The statute was returned by the Government stating that the employees were to be treated as new entrants and new entrants in the Tumkur University and the National Pension Scheme must be made applicable to them. The writ petitioners challenged the said statutes and sought the benefits under the Old Pension Scheme. 6. The learned Single Judge found that the employees who joined Government Art and Science Colleges before 01.04.2006, and were later absorbed into Tumkur University should continue to receive Pension benefits under Old Pension Scheme, as was the rule when they started their service. The University and State Government must calculate and pay these benefits within 2 months from receiving the Court order with interest at 6% per annum from 18.09.2020 until payment is made. Family Pension and other benefits of the spouses of the deceased employees must also be paid with interest from the date of death/retirement of the respective staff. It was held that absorption of employees into the University cannot be considered as a fresh appointment and their service conditions including Pension cannot be changed to their disadvantage. 7. Family Pension and other benefits of the spouses of the deceased employees must also be paid with interest from the date of death/retirement of the respective staff. It was held that absorption of employees into the University cannot be considered as a fresh appointment and their service conditions including Pension cannot be changed to their disadvantage. 7. It is contended by Smt. Mamatha Shetty, learned Additional Government Advocate appearing for the appellant in WA No.984/2024 that the respondents or the respective employees who had joined the Tumkur University after 01.04.2006, were liable to be covered by the New Pension Scheme and not by the Old Pension Scheme. It is submitted that the employees having given their consent to be absorbed in the new University had impliedly accepted the new terms of employment and are not entitled to the Old Pension Scheme. 8. However, Shri. P.P. Hegde, learned senior counsel appearing for the employees contends that the Tumkur University has no powers to modify / change the service conditions including the pensionary benefits of the employees who were transferred pursuant to the Notification dated 21.01.2010 to their detriment. It is further contended that there is a concerted effort by the State Government to defeat and take away the important pensionary right guaranteed in Article 300 of the Constitution of India. Since their representations to the Government have not been fruitful, the respondents claim that they were highly aggrieved and approached this Court for redressal of their grievances. 9. It is further contended by the learned senior counsel appearing for the employees, that the employees were admittedly appointed as teaching or non-teaching staff in Government Colleges. It is submitted that it is due to the vesting of the colleges in the University that their employment came to be transferred to the University. Their option to continue in the University cannot be seen as consent to be treated as fresh recruits, since there was no such provision in the option provided to them or in Annexure-B. It is contended that their earlier service cannot be wiped out on their absorption to the Tumkur University by transfer of the Institutions they worked in to that University. 10. We have considered the contentions advanced. It is an admitted fact that the Employees concerned were teaching or non-teaching staff initially regularly appointed in the Government Arts and Science College, Tumkuru. 10. We have considered the contentions advanced. It is an admitted fact that the Employees concerned were teaching or non-teaching staff initially regularly appointed in the Government Arts and Science College, Tumkuru. Their appointment was well before the introduction of New Pension Scheme and they were entitled to the benefits of the statutory Old Pension Scheme. The Tumkur University was set up by the Karnataka State University's Amendment Act, 2004, thereafter, by Government Order dated 21.01.2010, the Government Science College and the Government Arts College, Tumkur were transferred to the Tumkur University. The Government Order specifically provided that adequate opportunities provided as follows:- "1. Tumkur Government Science College and Government Arts College shall be maintained as constituent colleges after being handed over to Tumkur University; 2. Adequate opportunities should be provided to the teaching and non-teaching employees currently working in the said colleges to stay under the college education department or to join the university service. 3. The seniority of the teaching and non-teaching employees of Tumkur University under the jurisdiction of the Department of College Education shall be considered in accordance with Rule 6 of the Karnataka Government Employees (Seniority Rules), 1957; 4. The expenditure estimates made for the two Government Colleges of Tumkur namely Government Science College and Government Arts College in the budget for the year 2009-10 shall be included in the non-plan grants of Tumkur University. 5. If any guidance or clarification is required in the process of handing over the assets and liabilities of the said two colleges to Tumkur University, a final report should be approached to the Government; 6. The College Education Department shall have the right to acquire the land required for the use of the said colleges with the approval of the Government in case of further need in the land belonging to the two Government Colleges i.e. Government Science College and Government Arts College. 7. Regarding the land of the said two colleges, according to survey No. 316 to 326 and account number: 3436; 3840 and 3437: 3841, the total area of the college is 110.10 acres and the building and other immovable property and heirlooms on the said land and male student dormitory and Tumkur related to the said colleges. The female student hostels near the railway station have been handed over to Tumkur University. 8. The female student hostels near the railway station have been handed over to Tumkur University. 8. Rs.73,21,313.28 in the bank account of Government Arts College and Rs.5,198.00 related to treasury account and Rs.5,198.00 in the bank account of Government Science College. Rs.64,67,296.94 and Rs.1,09,194.00 pertaining to treasury account is hereby handed over to Tumkur University immediately." 11. The provisions with regard to pension applicable in the Tumkur University, at the time of its formation by the enactment of 01.10.2004 were the Bangalore University Pension Statutes, 1979, which continued to be applicable in terms of Section 7 of the 2004 Amendment Act. The learned Single Judge considered the provisions of the Amendment Act, the Government Orders implementing the National Pension Scheme, the conditions in Annexure-B and the consent was not a part of Annexure-B Notification dated 21.01.2010 given by the employees for being absorbed in the Tumkur University, the provisions of the Karnataka Government Servants' (Seniority) Regulations, 1957, as well as the pension regulations applicable to employees of the University. It was also found that the University had framed a draft statute regarding absorption of teaching and non- teaching staff, who had opted to be absorbed in the University. The Government sought for an Amendment to clause 10 and the Amendment was carried out by the Syndicate of the University, providing that the absorbed employees would be governed by New Pension Scheme and would be entitled to pro-rata pensionary benefits for the service rendered by them under the Government till the date of absorption and thereafter they would be governed by the pension rules applicable as on their date of absorption in the university. 12. Considering the fact that the employees were initially Government servants who had entered service before the National Pension Scheme was implemented in the State, and the fact that they were absorbed into the University on account of its creation, the learned Single Judge found that the admitted absorption cannot be construed as a fresh appointment under any circumstances. 13. The learned Single Judge has considered the contentions advanced both by the University and the State in coming to this conclusion. 13. The learned Single Judge has considered the contentions advanced both by the University and the State in coming to this conclusion. Further, we also notice that the condition that they would not be entitled to pension under the Old Pension Scheme and would be entitled only for pro- rata pension for their Government service and would be treated as fresh entrants in service as on the date of their absorption was not a part of Annexure-B Notification dated 21.01.2010. The said condition was never put to them when they were required to make their option to continue in Government service or to be absorbed in the University. 14. The appellant - State had filed statement of objections in the Writ Petition and produced documents and also additional statement of objections and Affidavit, and contested the case. The learned Single Judge allowed the Writ Petition by declaring that the respondents cannot be construed as new recruits and they have to be considered as Government servants who have been appointed prior to 01.04.2006 and therefore they are governed by the Old Pension Scheme and not by New Pension Scheme. The learned Single Judge also opined that the Government could not have issued directions to the University to revise its draft statute and insist upon a pro rata pension being paid to the employees till the date of absorption, depriving them of the pension for the period during which they were absorbed as the employees of the University on the ground that New Pension Scheme was applicable to them and they had not contributed to the same. The learned Single Judge also directed the Government to settle the pensionary benefits of the employees by treating them as existing Government employees and by applying the Old Pension Scheme. 15. We are of the opinion that the finding of the learned Single Judge that the employees who had been absorbed pursuant to the Government Order dated 21.01.2010 cannot be equated to fresh appointees as on the date of their absorption does not require any interference. We see no grounds made out to interfere with the findings of the learned Single Judge. 16. Having considered the contentions advanced, since the learned Single Judge has awarded interest at the rate of 6% per annum exercising his discretion, we find no material to interfere with the said exercise of discretion. We see no grounds made out to interfere with the findings of the learned Single Judge. 16. Having considered the contentions advanced, since the learned Single Judge has awarded interest at the rate of 6% per annum exercising his discretion, we find no material to interfere with the said exercise of discretion. Accordingly, Writ Appeal No.1549/2023 also fails and the same stands dismissed. 17. In the result, (i) Writ Appeal No.984/2024 and Writ Appeal No.1549/2023, are dismissed. (ii) Contempt of Court Case No.218/2024 is closed granting three months further time to comply with the directions issued in the judgment. In case, the amounts with interest are not paid within three months, it will be open to the complainants to seek reopening of the contempt on that ground. Pending interlocutory applications shall also stand disposed of in all the cases.