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SUPREME COURT OF INDIA
JAGDISH SINGH KHEHAR, ARUN MISHRA, JJ.
State of Uttar Pradesh – Appellant
Versus
Preetam Singh and others – Respondents
CIVIL APPEAL NO. 6307 OF 2010
Decided on: 23-09-2014
For Appellant: Mr. P.N. Misra, Sr. Adv., Mr. Abhisth Kumar, Adv., Mr. Som Raj Choudhury, Adv.
For Respondents: Mr. Rakesh Dwivedi, Sr. Adv., Mr. Vishwajit Singh, Adv., Mr. Pankaj Singh, Adv., Mr. Abhindra Maheshwari, Adv., Mr. Jaideep Gupta, Sr. Adv., Mr. Ajit Sharma, Adv., Mr. Upander Mishra, Adv., M/s. Temple Law Firm, Adv.(Not present)
(a) Uttar Pradesh State Control Over Public Corporations Act, 1975 – Section 2(1) – open to the State Government to issue directions on questions of policy having a nexus to the “discharge of its functions” to all Public Corporations in the State – conditions of service of employees, in our considered view, do not constitute the functions of the Vikas Parishad – Impugned orders dated 13.9.2005 not covered by section 2(1). (Para 12)
(b) Uttar Pradesh Avas Evam Vikas Parishad Adhiniyam, 1965 – Section 93(1)(d) – Pension scheme for employees of Vikas Parishad – Financial liability on State in the vent of dissolution of Vikas Parishad – Under section 93(1)(d) on dissolution of Parishad State would only bear the responsibility of discharging liabilities to the extent of properties of the Parishad transferred to it – No financial liability would stand transferred to the State even in the event of the dissolution of the Vikas Parishad. (Para 13)
(c) Uttar Pradesh Avas Evam Vikas Parishad Adhiniyam, 1965 – Section 95(1)(f) r/w section 95(1)(I) – Vikas Parishad vested with right to make regulation for extending Pension/gratuity scheme to its employees – Scheme framed by Vikas Parishad on 19.5.2009 – No infirmity. (Para 14)
Facts of the case:
The Uttar Pradesh Avas Evam Vikas Parishad circulated a letter dated 9.7.1996 requiring its employees to submit their options, as to whether they were desirous of shifting to the Pension/Family Pension and Gratuity Scheme, in place of the existing Contribution Provident Fund Scheme.
All of a sudden, the State Government issued a letter dated 13.9.2005 staying the earlier Government order dated 7.5.2003. Thereupon, through a further communication dated 12.7.2007, the State government withdrew its approval altogether. Through the letter dated 12.7.2007, the State Government clearly informed the Vikas Parishad, that it could not implement the Pension/Family Pension and Gratuity Scheme. It further informed the Vikas Parishad, that employees of Public Enterprises, Statutory Corporations, Development Authorities and Nigams, who are covered by the Employees Provident Fund and Miscellaneous Pensions Act, 1952 of the Central Government, and those to whom different Contributory Provident Fund Schemes were already applicable, were liable to be governed by the said provisions and schemes.
The denial of permission by the State Government, as also, the incorporation of the conditions was sought to be assailed by the employees of the Vikas Parishad, before the High Court.
The aforesaid writ petition was allowed by the impugned judgment. The orders issued by the State Government dated 13.9.2005 and 12.7.2007 were expressly quashed. A writ in the nature of mandamus was issued by the High Court to the Vikas Parishad, requiring it to implement the Pension/Family Pension and Gratuity Scheme. In compliance with the aforesaid direction, the Vikas Parishad implemented the Pension/Family Pension and Gratuity Scheme, through a notification dated 19.5.2009.
Finding of the Court:
Appeal does not have merit.
Result: Appeal dismissed.
Judgment
J.S. KHEHAR, J.
1. The Uttar Pradesh Avas Evam Vikas Parishad (hereinafter referred to as the 'Vikas Parishad') is a corporate body. It came into existence, consequent upon the promulgation of the Uttar Pradesh Avas Evam Vikas Parishad Adhiniyam, 1965 (hereinafter referred to as the 1965 Act'). The employees of the Vikas Parishad were members of a Contributory Provident Fund Scheme. The Vikas Parishad desired to grant its employees better retiral benefits. A proposal was made, to extend pensionery benefits to the employees of the Vikas Parishad, in place of the existing Contributory Provident Fund Scheme. In furtherance of the aforesaid objective, a resolution dated 21.2.1995 was passed, proposing to replace the existing Contributory Provident Fund Scheme, to the Pension/Family Pension and Gratuity Scheme. Before implementation of the resolution dated 21.2.1995, the Vikas Parishad considered it expedient to consult the State Government. In response to the afore-mentioned consultation, the State Government through a communication dated 16.5.1996 approved the afore-stated substitution conditionally. The conditions depicted in the aforesaid approval dated 16.5.1996, are being extracted hereunder:
“Kindly refer to your letter no. 213/P-1 dated 24.4.1995 on the aforesaid subject. In this regard, I have been directed to say that State Government has no objection to the proposal of implementing Pension/Family Pension & Gratuity Scheme in place of C.P.F. Scheme in Uttar Pradesh Avas Evam Vikas Parishad. But subject to condition that no financial assistance will be given by the State Government for implementation of this Scheme and this Scheme will be run by the Board itself from the revolving funds created by it.” (emphasis is ours)
2. Consequent upon the receipt of the aforesaid approval from the State Government, the Vikas Parishad circulated a letter dated 9.7.1996 requiring its employees to submit their options, as to whether they were desirous of shifting to the Pension/Family Pension and Gratuity Scheme, in place of the existing Contribution Provident Fund Scheme.
3. At the instant juncture, a very vital letter came to be issued by the State Government on 30.09.1997. Relevant extract of the aforesaid letter is being reproduced hereunder:
“I have been directed to say that in order to implement the subject scheme, it is not necessary to initiate any proceedings required under Clause (c) of the Employees Provident Fund & Miscellaneous Provisions Act, 1952 of the Central Government. Because Avas Evam Vikas Parishad is governed by the provisions of Uttar Pradesh Avas Evam Vikas Parishad Act, 1965 and specific provisions to this effect have been laid down in Section 95 of the said Act, 1965 according to which necessary proceedings are to be initiated for obtaining option from the employees for accepting and/or not accepting the proposed Pension Scheme.” (emphasis is ours)
A perusal of the aforesaid letter reveals, that even though the State Government had granted conditional approval to the Pension/Family Pension and Gratuity Scheme, through its communication dated 16.5.1996, the State government expressed the opinion, that the Vikas Parishad did not need the approval of the State Government for the implementation of the Pension/Family Pension and Gratuity Scheme. Insofar as the instant aspect of the matter is concerned, the State Government in its letter dated 30.09.1997 clearly informed the Vikas Parishad, that it had the power to deal with the above issue of its own, under Section 95 of the 1965 Act.
4. Based on the conditional approval granted by the State Government through its communication dated 16.5.1996, and also the clarificatory letter issued by the State Government on 30.09.1997, the Vikas Parishad passed a resolution on 5.11.1997 approving the Pension/Family Pension and Gratuity Scheme. In granting the aforesaid ap
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