NAGPUR MUNICIPAL CORPORATION, NAGPUR THR. ITS COMMISSIONER OF MUNICIPAL CORPORATION, NAGPUR v. BHIMRAO S/O TUKARAM MESHRAM AND OTHERS
Inclusion of Pre-Regularization Daily Wage and Contractual Service for Computation of Pensionable Service under the Old Pension Scheme.
Court: Bombay High Court
Citation: 2026:BHC-NAG:4818
Decision Date: 26-03-2026
List of Laws
Maharashtra Civil Services (Pension) Rules, 1982; Central Civil Services (Pension) Rules, 1972; Maharashtra Industrial Relations Act, 1946; Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971; Model Standing Orders
- Facts: The respondents were appointed as daily wagers by the Nagpur Municipal Corporation (NMC) between 1991 and 1996. Their services were subsequently regularized/granted permanency in 2006 and 2015. The employees filed complaints before the Industrial Court seeking that their services be regularized from the date they completed 240 days of service, and that such period be counted for pension and gratuity. While the Industrial Court refused to backdate the regularization, it directed the NMC to count the service from the completion of 240 days for the purpose of computing pension and gratuity. The NMC challenged this direction, arguing that since the initial appointments were not against sanctioned posts and regularization occurred after the introduction of the New Pension Scheme (01.11.2005), the employees were not entitled to the Old Pension Scheme.
- Procedural Posture: The Nagpur Municipal Corporation filed several Writ Petitions before the Bombay High Court challenging the common judgment and order dated 05.12.2022 passed by the Industrial Court No.1, Nagpur.
- Issue: Whether service rendered as a daily wager or contractual employee prior to regularization can be counted as pensionable service under the Maharashtra Civil Services (Pension) Rules, 1982, even if such service was not against a sanctioned post or if regularization occurred after the introduction of the New Pension Scheme?
- Holding: Yes, the petitions were dismissed. The Court held that the entire service rendered as daily wagers/contractual employees must be considered for computing pensionable service, provided the initial appointment preceded the New Pension Scheme.
- Reasoning: The Court relied on various precedents and Rule 57 of the MCS (Pension) Rules, 1982. It noted that if an employee is paid from a contingency fund, half of their previous continuous service is counted, and if not from a contingency fund, the entire service is counted. The Court rejected the NMC's argument regarding sanctioned posts, citing Supreme Court rulings in 'Sheela Devi' and 'S.D. Jayaprakash', which established that past contractual service must be counted upon regularization. Furthermore, the Court held that there is no estoppel against law; even if employees accepted regularization orders stating they wouldn't claim past service benefits, they cannot be deprived of statutory pensionary rights. Since the respondents' initial entry into service was prior to 01.11.2005, they are governed by the Old Pension Scheme.
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