IMPORTANT POINT
Employees of NWDA and JNVS cannot claim parity with Central Government employees.

Headnote:CIVIL APPEAL NOS. 714-715 OF 2014
       (a) Service law – Pension – NWDA framing its own CPF Rules, 1982 – Duly approved by Governing Body – Appellants governed by these Rules – O.M. applicable to Central Government employees not applicable to them. (Para 14)
       (2006) 14 SCALE 56; (1984) UJ SC 986; AIR 1962 SC 505; (2011) 2 SLR 243 – Referred
       (b) Interpretation of Rules – Framed by autonomous institutions – There should be no-interference or minimal interference by Courts. (Para 14)
       (2007) 8 SCC 231 – Relied upon
       (c) Constitution of India – Article 12 – NWDA receiving grant in aid from Central Government – It cannot be treated as an instrumentality of the State on that basis – Its employees cannot be treated at par with Central government employees. (Para 15)
       (2005) 4 SCC 649 – Relied upon
       (d) Service law – Parity – Employees of NWDA claiming parity with their counterparts in Central government – Parity can be claimed within a class – Employees of NWDA and Central Government are on similarly situated – Cannot be said to be Central Government employees – O.M. dated 01.05.1987 not applicable to NWDA employees. (Para 16, 17)
       (1996) 11 SCC 348 – Relied upon
       WRIT PETITION (CIVIL) NOS. 556 & 518 OF 2012 and Civil Appeal no. 716 of 2014
       (e) Service law – Pension –Employees of Jawahar Navodaya Vidyalaya Samiti – Claiming benefits of CCS (Pension) Rules 1972 and OM dated 01.05.1987 – OM applicable to Central Government servants who were in service on 1.1.1986 – Petitioners employees of the Samiti and not Central Government – Samiti registered on 28-02-1986 – Petitioners not fulfilling two pre-conditions – Not entitled to relief claimed. (Para 26)
       (1992) Suppl. (1) SCC 664 – Referred
       (f) Service law – Pension – JVNS introducing Pension Scheme 2004 applicable from 2009 – Benefits not up to expectation of employees – Interference by Court – Any such scheme requires consideration of many factors including financial viability – Further, cut-off date is domain of the employer – Courts should not interfere. (Para 38)
       (1980) 4 SCC 162; (1993) 3 SCC 584; (2003) 6 SCC 1; (1998) 1 SCC 428; (2003) 5 SCC 163; 1988 (1) Supp SCC 205; (2007) 8 SCC 279; (1985) 1 SCC 429; (1971) 2 SCC 330 – Referred
       Facts of the case:
       Appellants herein are the employees of National Water Development Agency ("NWDA") was established as a Society in July 1982, falls under the aegis and control, both administrative and financial, of the Ministry of Water Resources, is fully funded by the Government of India, and headed by the Union Minister for Water Resources as the President.
       Whatever emoluments have been prescribed for the Government servants by the Central Government Office Memorandum the same apply mutatis mutandis to the employees of NWDA. By-law 28 of the NWDA also mandates that the rules and orders applicable to the Central Government employees shall apply mutatis mutandis to the employees of the NWDA subject to modification by the Governing Body concerning service conditions and only in case of any doubt, the matter has to be referred to the Governing Body for a decision. Bye-law 26(a) provides for the emoluments structure for all employees that will be adopted by NWDA, with the approval of Ministry of Finance (Department of Expenditure). Bye-law 28 provides that till such time the NWDA frames its rules governing service conditions of the employees, rules and orders applicable to Central Government Employees shall apply mutatis mutandis, subject to such modifications as made by NWDA from time to time.
       NWDA had implemented all the recommendations of the Fourth Central Pay Commission from 22.10.1986.
       Pursuant to the recommendation of the Fourth Central Pay Commission, Office Memorandum dated 01-05-1987 was issued by the Ministry of Personnel, Public Grievance and Pension, Department of Pensions and Pensioners' Welfare, for switch-over of employees from Contributory Provident Scheme to Pension Scheme, according to which all Contributory Provident Fund (CPF) Scheme beneficiaries, who were in service of the Central Government on 1.1.1986, were deemed to have come over to the Pension Scheme unless they specifically opted out to continue under CPF Scheme. This Pension Scheme was formulated by the Government under the 1972 Pension Rules.
       The appellants filed O.A. before the Central Administrative Tribunal assailing the decision of the Governing Body dated 30.03.2000 rejecting their request to switch-over to the Pension Scheme and letter dated 16.3.2000 issued by the Finance Ministry whereby the request of the appellants to switch-over to the Pension Scheme pursuant to the O.M. dated 1.5.1987, had been turned down.
       The Tribunal held that there was nothing in the language of clause 6.1 of the O.M. dated 01.05.1987, to suggest that the said O.M. does not apply to the employees of autonomous bodies controlled by Central Government and the said view finds no support from clause 7.2 of the O.M. The Tribunal set aside the orders dated 16.03.2000 and 30.03.2000 impugned before it, allowed the O.A. and directed the respondents to implement O.M. dated 01.05.1987 and treat the employees of NWDA as covered under Pension Scheme in terms of Central Civil Services (Pension) Rules, 1972 w.e.f. 01.01.1986 with all benefits.
       The High Court set aside the Order dated 08.02.2010 passed by Central Administrative Tribunal in Original Application No.2037 of 2008 filed by the appellants herein.
       WRIT PETITION (CIVIL) NOS. 556 & 518 OF 2012
       Writ Petition (Civil) Nos. 556/2012 and 518/2012 and Special Leave Petition (C) No.19102/2012 have been filed by the Principals and other officials of Jawahar Navodaya Vidyalaya and the employees of the Navodaya Vidyalaya Samiti, for issuance of an appropriate writ in the nature of mandamus or any other direction/s to the respondents to introduce and implement CCS Pension Scheme, 1972 to all the employees of the Navodaya Vidyalaya Samiti.
       The Jawahar Navodaya Vidayala Samiti was established under the Registration of Societies Act, 1960 on 28-02-1986 under the aegis of the Ministry of Human Resource Development, Government of India.
       The employees of Jawahar Navodaya Vidyalaya Samiti demanded that they be brought under the GPF-cum-Pension Scheme like their counterparts in other educational institutions, like Kendriya Vidyalaya Samity, IITs, Sainik Schools, NCERT etc. However, they have continued to be governed only by CPF Scheme and were excluded from the Pension Scheme till 2004.
       The Central Government formulated New Pension Scheme, 2004 for the employees of the JNVS in response to their repeated demands. This New Pension Scheme was implemented from 01.01.2009. All the employees who had joined prior to the date of implementation were given an option to either continue under the CPF Scheme or to switch over to the New Pension Scheme. The cut-off date for this New Pension Scheme was 01.01.2004; therefore, it was not available to the employees who had joined the service prior to cut-off date. However, the employees claim that New Pension Scheme was also discriminatory as it is not at par with the Pension Scheme under 1972 Rules. The existing employees were put under Tier-II of the New Pension Scheme and the employer's contribution was not available to them. Further, the New Pension Scheme did not include any family pension, medical benefits and death gratuity.
       Finding of the Court:
       The appellants/petitioners cannot claim parity with Central Government employees.
       Result: All appeals and writ petitions dismissed.

JUDGMENT

PINAKI CHANDRA GHOSE, J.

1. Leave granted in all the SLPs.

CIVIL APPEALS @ SLP(C) NOS.3106-3107 of 2012 AND SLP(C) NOS.20425-20426 of 2011)

2. These appeals, by special leave, have been filed against the judgment and order dated 06.01.2011 passed by the High Court of Delhi at New Delhi in Writ Petition (Civil) No.3197 of 2010 and order dated 18.03.2011 in Review Petition No.90/2011, by which the High Court set aside the Order dated 08.02.2010 passed by Central Administrative Tribunal in Original Application No.2037 of 2008 filed by the appellants herein.

3. The facts of these appeals are briefly stated hereinafter. Appellants herein are the employees of National Water Development Agency ("NWDA") which was established as a Society in July 1982 and was registered under the Societies Registration Act, 1860. The Society NWDA, which falls under the aegis and control, both administrative and financial, of the Ministry of Water Resources, is fully funded by the Government of India, headed by the Union Minister for Water Resources as the President. The NWDA framed Rules and Regulations for its smooth functioning. Whatever emoluments have been prescribed for the Government servants by the Central Government Office Memorandum ("O.M.", for short) the same apply mutatis mutandis to the employees of NWDA. By-law 28 of the NWDA also mandates that the rules and orders applicable to the Central Government employees shall apply mutatis mutandis to the employees of the NWDA subject to modification by the Governing Body concerning service conditions and only in case of any doubt, the matter has to be referred to the Governing Body for a decision. Bye-law 26(a) provides for the emoluments structure for all employees that will be adopted by NWDA, with the approval of Ministry of Finance (Department of Expenditure). Bye-law 28 provides that till such time the NWDA frames its rules governing service conditions of the employees, rules and orders applicable to Central Government Employees shall apply mutatis mutandis, subject to such modifications as made by NWDA from time to time.

4. As per the appellants, NWDA had implemented all the recommendations of the Fourth Central Pay Commission from 22.10.1986. The pay scales of the employees of NWDA were revised as made applicable to Central Government employees. Pursuant to the recommendation of the Fourth Central Pay Commission, Office Memorandum dated 01-05-1987 was issued by the Ministry of Personnel, Public Grievance and Pension, Department of Pensions and Pensioners' Welfare, for switch-over of employees from Contributory Provident Scheme to Pension Scheme, according to which all Contributory Provident Fund (CPF) Scheme beneficiaries, who were in service of the Central Government on 1.1.1986, were deemed to have come over to the Pension Scheme unless they specifically opted out to continue under CPF Scheme. This Pension Scheme was formulated by the Government under the 1972 Pension Rules. The Office Memorandum dated 01-05-1987 reads as under:

"Change-over of employees from Contributory Provident fund Scheme to Pension Scheme

(G.I., Dept. of Pensions & Pensioners Welfare, O.M. No.4/1/87-P.I.C.I., dated the 1st May, 1987.)

The Central Government employees who are governed by the Contributory Provident Fund Scheme (CPF Scheme) have been given repeated options in the past to come over to the pension scheme. The last such option was given in the Department of Personnel and Training O.M. No. F.3 (1)-Pension Unit/85, dated 6th June, 1985. However, some Central Government employees still continue under the CPF Scheme. The Fourth Central pay Commission has recommended that all CPF beneficiaries in service on January, 1, 1986, should be deemed to have come over to the Pension Scheme on that date unless they specifically opt out to continue under the CPF Scheme.

2. After careful consideration, it has been decided that the said recommendation shall be accepted and implemented in the manner hereinafter indicated.

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2015 Supreme(SC) 50

IMPORTANT POINTEmployees of NWDA and JNVS cannot claim parity with Central Government employees.

Cases Referred (13)

IMPORTANT POINT
Employees of NWDA and JNVS cannot claim parity with Central Government employees.