Jharkhand High Court Upholds Old Pension Scheme for Pre-2004 Advertised Appointments

Court rules that employees appointed under advertisements issued before January 2004 are entitled to Old Pension Scheme benefits.

In a landmark judgment, the Jharkhand High Court has reinforced the entitlement of employees appointed under advertisements issued before January 1, 2004, to benefits under the Old Pension Scheme (OPS). The decision comes in response to a legal challenge by Dr. Praveen Kumar against the Indian Institute of Technology (Indian School of Mines), Dhanbad, which had sought to place him under the New Pension Scheme (NPS) following his appointment.

Dr. Kumar was appointed as a Senior Medical Officer based on an advertisement dated September 2, 2003, well before the introduction of the NPS on December 22, 2003. Despite the timing, Dr. Kumar's appointment was finalized on April 12, 2004, after the NPS had taken effect. However, the court emphasized that the terms of the advertisement, which promised OPS benefits, must be honored.

The court, led by Chief Justice Tarlok Singh Chauhan and Justice Rajesh Shankar, dismissed the appeal filed by the Indian Institute of Technology, affirming the decision of the writ court that upheld the OPS benefits for Dr. Kumar. The judges underscored the sacrosanct nature of the advertisement terms, which bind both parties involved.

This decision aligns with precedents set by various high courts, including Delhi and Allahabad, which have consistently ruled in favor of applying OPS to appointments originating from pre-2004 advertisements. The court noted that altering the pension scheme post-selection, based on the date of joining, would be unjust and discriminatory.

The judgment reiterated that the Old Pension Scheme must apply to all appointees recruited through advertisements issued before the cutoff date, regardless of their actual joining date. This ruling is expected to have significant implications for numerous government employees who have faced similar pension scheme disputes.

Bottom Line:

Employees appointed after 01.01.2004 pursuant to an advertisement issued before 01.01.2004 are entitled to be governed under the Old Pension Scheme (OPS), as per the terms of the advertisement, and cannot be subjected to the New Pension Scheme (NPS).

Statutory provision(s): Old Pension Scheme (OPS), New Pension Scheme (NPS)

Indian Institute of Technology (Indian School of Mines) v. Dr. Praveen Kumar, (Jharkhand)(DB) : Law Finder Doc id # 2797110