The Rajasthan High Court has affirmed that service rendered in a state-linked utility like Ajmer Vidyut Vitran Nigam Limited (AVVNL) must be counted for pay protection and service continuity when an employee transitions to a state government department. This ruling reinforces the principle that entities performing public functions under state oversight cannot be treated as entirely separate for service benefits.
Background & Facts
The Dispute
The petitioner, Amol Ahari, was initially appointed as a Commercial Assistant-II in Ajmer Vidyut Vitran Nigam Limited (AVVNL) on 07.02.2019. He served in this capacity for over six years, earning successive promotions: to Commercial Assistant-I effective 01.04.2022 (order dated 31.03.2023), and subsequently to Assistant Administrative Officer effective 01.04.2025 (order dated 30.07.2025). While in service, he appeared in and cleared the recruitment examination for Informatics Assistant conducted by the Rajasthan Staff Selection Board in 2023. Upon selection, he received an appointment order from the Department of Information Technology and Communication dated 13.08.2025. He resigned from AVVNL on 03.09.2025, obtaining a No Objection Certificate and formal acceptance of resignation from the Zonal Chief Engineer (O&M-UZ), AVVNL, Udaipur, on 03.10.2025.
Key Facts
- Appointed in AVVNL: 07.02.2019
- Promoted to Commercial Assistant-I: effective 01.04.2022 (order dated 31.03.2023)
- Promoted to Assistant Administrative Officer: effective 01.04.2025 (order dated 30.07.2025)
- Selected for Informatics Assistant: 2023 recruitment
- Appointed by State IT Department: 13.08.2025
- Submitted resignation: 03.09.2025
- Resignation accepted by AVVNL: 03.10.2025
- Representation for pay protection and service continuity: 19.01.2026
- No response received from respondents
Procedural History
- 13.08.2025: Appointment order issued by Department of Information Technology and Communication
- 03.09.2025: Petitioner submitted resignation from AVVNL
- 03.10.2025: Resignation formally accepted by AVVNL
- 19.01.2026: Petitioner submitted representation seeking pay protection and service credit for prior AVVNL service
- 15.07.2026: Writ Petition No. 10085/2026 filed before the High Court of Judicature for Rajasthan at Jodhpur
Relief Sought
The petitioner sought: (a) grant of regular pay scale and benefits of service rendered in AVVNL for pay fixation and continuity; and (b) any other appropriate relief.
The Legal Issue
The central question was whether service rendered by a government employee in a state-linked entity like AVVNL qualifies for pay protection and service continuity upon transfer to a state government department under the Rajasthan Service Rules.
Arguments Presented
For the Petitioner
Learned counsel relied on Pooja Bhati v. State of Rajasthan (S.B. Civil Writ Petition No. 10732/2017, decided on 18.12.2017), arguing that AVVNL, though a separate legal entity, functions as an instrumentality of the state for public utility purposes. The judgment in Pooja Bhati held that employees of such entities are entitled to service credit when moving to state departments, as legislative intent under Rule 6(3) of the Rajasthan Service Rules of 1963 treats them as part of the state machinery. The petitioner’s resignation was duly processed with NOC, indicating mutual recognition of service continuity.
For the Respondent
The respondents did not contest the applicability of Pooja Bhati and conceded that no legal basis existed to distinguish the present case from the precedent. No counter-arguments were advanced to refute the petitioner’s claim.
The Court's Analysis
The Court examined the precedent in Pooja Bhati v. State of Rajasthan and found the factual and legal matrix identical. In that case, the Court held that Nigams like AVVNL are not independent bodies with separate service identities but are integral to the state’s administrative framework. The judgment emphasized that the legislative intent behind Rule 6(3) of the Rajasthan Service Rules, 1963, was to ensure continuity of service for employees moving between state departments and its instrumentalities.
"Thus, this Court finds that the Nigam is not a body so separate or so independent so as to have individual impact on its employees altogether. Rather the legislative intention is clearly for providing the preference to the ministerial staff of the Department of Government of Rajasthan to include such employees who are discharging the duties of Jodhpur Vidyut Vitaran Nigam Ltd."
The Court rejected the respondents’ implicit argument that AVVNL’s corporate structure negates service continuity, noting that such a view contradicts the functional reality of state-linked utilities. The petitioner’s promotions, tenure, and formal resignation with NOC demonstrated a seamless transition under state oversight. No statutory provision or rule excluded AVVNL service from being counted for pay fixation in state departments.
The Verdict
The writ petition is allowed. The respondents are directed to grant the petitioner the regular pay scale and the benefit of service rendered in AVVNL from 07.02.2019 to 03.10.2025 for the purpose of pay fixation and service continuity. All pending applications are disposed of. The Department of Information Technology and Communication shall implement this direction within four weeks from the date of this order.
What This Means For Similar Cases
Service in State Utilities Qualifies for Pay Protection
- Practitioners representing employees transferring from state-owned utilities (e.g., Vidyut Nigams, Water Boards, Housing Boards) to state departments must cite Pooja Bhati to claim service continuity
- Pay fixation must include prior service duration, even if the prior employer is a statutory corporation
Corporate Structure Does Not Override Legislative Intent
- The legal form of an entity (e.g., limited company) is irrelevant if it performs public functions under state control
- Courts will look to functional integration, funding, and administrative oversight to determine service continuity
Procedural Compliance Is Key
- Employees must obtain formal NOC and resignation acceptance to establish voluntary and recognized transition
- Failure to process representations within reasonable time invites writ jurisdiction
