Old Pension Scheme | Single Judge cannot override Division Bench Precedents to grant OPS benefits Post-NPS Cut off, rules HC

On Thursday, the Lucknow Bench of the Allahabad High Court stayed a single-judge decision that had granted Old Pension Scheme (OPS) benefits to certain temporary and work-charged employees. The interim intervention effectively suspends the rollout of a verdict carrying substantial fiscal consequences, reflecting the Court’s cautious approach in a matter with far-reaching implications for the state exchequer.

The controversy stems from a November 2025 decision that directed the state to grant OPS benefits by clubbing past service of employees, even where their regularisation occurred after the New Pension Scheme (NPS) came into force on April 1, 2005. Challenging this, the state, through multiple appeals led by the Public Works Department, argued that the ruling ran contrary to binding precedents set by coordinate benches, including in the Ashok Tiwari case. It was further contended that a single-judge bench could not override or disregard earlier division bench rulings, especially when some of the judgments relied upon had already been set aside in subsequent decisions. The state also highlighted that the constitutional validity of the Uttar Pradesh Pension Amendment Act, 2021, is currently under consideration before the Supreme Court.

The Division Bench of Justice Rajan Roy and Justice A.K. Chaudhary noted that the appeals raise substantial legal issues warranting deeper scrutiny. Emphasising the need for a comprehensive hearing, the Court observed that the matter involves “serious legal questions” that cannot be conclusively addressed at a preliminary stage. Taking note of the conflicting judicial views and pending issues before the Apex Court, the bench stayed the operation of the single-judge verdict and scheduled further hearing for April 27.

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