As per case facts employees of financially weak Co-operative Societies involved in electricity distribution were absorbed into the Madhya Pradesh State Electricity Board MPSEB under absorption terms stating their pension ... gratuity would be as per Society rules Subsequent litigation led to a final court decision that employees were entitled to pension at par with MPSEB employees from the date of absorption A Full Bench however later held they were not entitled to MPSEB pension The employees appealed the conflicting rulings arguing for functional integration and counting of prior service The question arose whether the absorbed employees were entitled to the pension benefits applicable to MPSEB employees and if so whether the period of service rendered in the defunct Society should be counted as 'qualifying service' for pension calculation Finally the Supreme Court invoking Article to ensure uniformity and prevent discrimination held that all absorbed employees are entitled to pension benefits at par with MPSEB employees due to full functional integration However the period of service rendered in the Society prior to absorption will not be counted as qualifying service as it was not service under the State Government or regulated by its rules Pension is payable from the respective dates of absorption

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