Allahabad High Court Stays Verdict Granting Old Pension Scheme to Regularized Employees
The Lucknow bench of the Allahabad High Court issued a significant interim order on Thursday, staying a previous verdict that had extended the benefits of the Old Pension Scheme (OPS) to numerous temporary and work-charged employees. These employees had been regularized after the implementation of the New Pension Scheme (NPS), which took effect on April 1, 2005.
Bench Halts Single Judge's Decision Amid Legal Challenges
A two-judge bench, comprising Justice Rajan Roy and Justice AK Chaudhary, passed the interim order while hearing approximately 40 special appeals. These appeals were filed by the public works department, challenging the November 4, 2025, verdict of a single judge bench.
In that earlier decision, the single judge bench had ordered the state government to provide OPS benefits to temporary and work-charged employees by combining all their services, even if their regular appointments occurred after the NPS introduction date. This ruling had raised concerns about imposing a substantial financial burden on the state exchequer.
Government's Arguments Against the Verdict
Representing the state government, it was pleaded that the single judge's decision contradicted previous rulings by two-judge benches. Specifically, the government cited the decision in the Ashok Tiwari case as a key precedent. It argued that the single judge bench lacked the authority to declare the two-judge bench decision invalid.
Furthermore, the government pointed out that some of the other decisions relied upon by the single judge bench had been subsequently overturned by a two-judge bench. This highlighted inconsistencies in the legal framework surrounding pension schemes.
Pending Supreme Court Case and Legal Complexities
The court also noted that the validity of the Uttar Pradesh Pension Amendment Act, 2021, is currently pending before the Supreme Court. This adds another layer of complexity to the ongoing legal disputes over pension benefits.
After hearing the special appeals, the bench prima-facie held that these appeals raised serious legal questions. It emphasized that a detailed hearing on all aspects is necessary before a final decision can be made. Consequently, the matter has been scheduled for further proceedings on April 27.
This development underscores the ongoing legal battles over pension schemes in Uttar Pradesh, with significant implications for both employees and state finances. The interim stay reflects the judiciary's cautious approach in addressing these complex and financially impactful issues.
