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1988 Supreme(AP) 334

Andhra Pradesh High Court
Judges : S.S.M.QUADRI
T.RGDHA BAI - Appellant
Versus
FOOD CORPORATION OF INDIA, REPRESENTED BY THE MANAGING DIRECTOR, NEW DELHI - Respondent
Decided On : 07-22-88

A Central Government employee transferred to the FCI under Section 12A of the Food Corporation Act, 1964, who opts for the terminal benefits admissible to FCI employees under the regulations made by the FCI, is not entitled to continue in service till the age of superannuation applicable to Class IV Central Government employees.

Headnote:

FOOD CORPORATION OF INDIA - TRANSFER OF EMPLOYEES - AGE OF SUPERANNUATION - OPTION FOR TERMINAL BENEFITS - INTERPRETATION OF SECTION 12A OF THE FOOD CORPORATION ACT, 1964.

Fact of the Case:

A Central Government employee transferred to the Food Corporation of India (FCI) under Section 12A of the Food Corporation Act, 1964, exercised an option to be governed by the leave, provident fund, and other terminal benefits admissible to FCI employees under the regulations made by the FCI. The employee challenged the FCI's order retiring her at the age of 58, arguing that she was entitled to continue in service till the age of 60, which was the age of superannuation for Class IV Central Government employees.

Finding of the Court:

The court held that the employee was not entitled to continue in service till the age of 60 because she had opted for the terminal benefits admissible to FCI employees under the regulations made by the FCI. The court interpreted Section 12A(4) of the Food Corporation Act, 1964, and Regulation 22 of the Staff Regulations, 1971, to conclude that only those transferred employees who opted to be governed by the leave, retirement, and pensionary benefits applicable to Central Government employees were entitled to continue in service till the age of superannuation applicable to Class IV Central Government employees.

Issues: Whether a Central Government employee transferred to the FCI under Section 12A of the Food Corporation Act, 1964, who opted for the terminal benefits admissible to FCI employees under the regulations made by the FCI, is entitled to continue in service till the age of superannuation applicable to Class IV Central Government employees.

Ratio Decidendi: The court interpreted Section 12A(4) of the Food Corporation Act, 1964, and Regulation 22 of the Staff Regulations, 1971, to conclude that only those transferred employees who opted to be governed by the leave, retirement, and pensionary benefits applicable to Central Government employees were entitled to continue in service till the age of superannuation applicable to Class IV Central Government employees. The court held that the employee in this case had opted for the terminal benefits admissible to FCI employees under the regulations made by the FCI, and therefore, she was not entitled to continue in service till the age of 60.

Final Decision: The court dismissed the employee's writ petition, upholding the FCI's order retiring her at the age of 58.

S. S. M. QUADRI, J.

( 1 ) THE question which arises for determination in this writ petition, is whether a Central Government employee who after statutory transfer of his services to Food Corporation of India; having opted for the leave, provident fund or other terminal benefits admissible to its employees under the regulations made by it under the Act, will be entitled to the benefit of age of superannuation applicable to Class IV employees of the Central government.

( 2 ) THE circumstances in which the above question arises may briefly be stated thus :

( 3 ) CONSEQUENT upon the establishment of Food Corporation of India (for short fci ) under Section 3 of the Food Corporation Act, 1964 (for short that Act ) the employees of the Central Government in food department were transferred to the FCI under Section 12-A of the Act with effect from April 1, 1965 and thenceforth they became the employees of the f. C. I.

( 4 ) ON 1-4-1959 the petitioner was appointed as Sweeper in food department of the Central Government and was governed by the Rules applicable to the Central Government employees including pension, G. P. F. and DCRG and was entitled to continue in service till she attains the age of superannuation of sixty years. Her services were transferred to the FCI along with the services of the other employees on 1-4-1965. She was promoted as Dusting operator with effect from 24-16-1977. On 30-3-1977, under section 12a of the Act, she opted for the scales payable to the posts under fci and for leave, provident fund and other terminal benefits admissible to its employees. "the employees of the FCI are governed by the Contributory provident Fund Scheme which carries 8% interest. It is stated that inspite of exercise of the option, the FCI took no steps to convert the GPF into Contributory provident Fund, thus option was not acted upon by it. While so by Memo dated 6-8-1986 she was directed to submit forms relating to pension, dcrg on retirement which she complied with. But on 5-11-1986 the fci addressed a letter directing her to submit another set of forms relating to CPF to which she replied stating that as the option exercised by her was not acted upon for about ten years she would, therefore, be governed by the gpf Rules and the pension scheme applicable to the Central Government employees, which is also in conformity with the memo dated 6-8-1966. It is stated that due to lapse of time and the conduct of the respondent in not converting the GPF into CPF contributions, the option will be deemed to have been cancelled. By office order No. Estt. 39 (1)/86-PC dated 11-11-1986, the third respondent retired the petitioner from service on attaining the age of superannuation on the afternoon of November 30, 1986. It is the validity of this order that is assailed in this writ petition by praying for a writ of mandamus or any other appropriate writ or direction declaring the impugned order as illegal and invalid and for a direction to the respondent to continue the petitioner in service till she attains sixty years with pensionary and GPF benefits applicable to the Central Government employees.

( 5 ) THE respondent filed a common counter affidavit stating that with effect from 1-4-1965 the services of the petitioner were transferred to the FCI from the Food Department of the Government of India. As the date of birth of the petitioner as per the service register is 16-11-1928, by the impugned order she was informed that she stands relieved of her duties on the afternoon of 30-11-1986. It is stated that the petitioner has no legal or vested right to continue in service beyond the age of 58 years. It is admitted that according to the service rules of the Central Government, Class IV employees retire on attaining the age of sixty years, but it is stated that this rule applies only to such of those Class IV transferred employees who opted for Central Government terminal benefits. The petitioner who opted for terminal benefits admissible to the













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