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2009 Supreme(AP) 628

High Court of Andhra Pradesh
THE HONOURABLE MR. JUSTICE NOOTY RAMAMOHANA RAO
Battula Veeraswamy -Appellant
Versus
The Regional Provident Fund Commissioner, Barkathpura, Hyderabad & Others
-Respondent
Writ Petition No.3731 of 2009
Decided on: 11-09-2009

Advocates Appeared
Party-in-person.
A. Rajasekhar Reddy, B. Narasimha Sarma, Advocates.

Headnote:Employees Provident Fund and Miscellaneous Provisions Act, 1952-Section 17(1-C)-Employee Family Pension Scheme, 1971-Employees Pension Scheme, 1995, Paragraphs 6 and 7-Central Civil Services (Pension) Rules, 1972, Rule 37-When a social piece of legislation is intended to confer benefits, as part of obligations enshrined in Part IV of Constitution, no attempt should be made to deny such benefits-All employees of MIDHANI and other such Public Sector Undertakings who came on deputation from service of Central Government and got absorbed therein have a right to opt for Employees Pension Scheme, 1995 if their date of retirement falls in between 1-4-1993 and 15-11-1995-When a class interest is frustrated by a public authority, entire class of citizens need not be forced to seek individual reliefs by approaching constitutional Courts. (Para 23)

       

Judgment :-

This writ petition has been instituted essentially for securing the benefit of coverage under the Employees Pension Scheme, 1995 framed under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (for short `the Act'). The material facts which are necessary for deciding the controversy in the writ petition are thus:


The writ petitioner initially joined the services of Accounts Department on 6.11.1959. While he was working as a Section Officer (Accounts), he came on deputation to Mishra Dhatu Nigam Ltd, Hyderabad, a Government of India Undertaking (hereinafter referred to as `Midhani') on 27.1.1995. He came to be permanently absorbed later on in the service of Midhani with effect from 1.8.1976. The Deputy Controller General of Defence Accounts (AN) conveyed through his proceedings No. 29011(85)/74/AN/E, dated 18.1.1977 the sanction of the President to the permanent absorption of the writ petitioner in Midhani. It was made clear in the said order that on his permanent absorption in Midhani, the petitioner shall be eligible for pro rata pension and death cum retirement gratuity based on the length of qualifying service rendered by him under the Government of India, till the date of permanent absorption in Midhani, as admissible to the Officers of the Central Civil Services in force as at that time. The pro rata pension and the death cum retirement gratuity will be calculated, assured the aforementioned order, based on average emoluments which he would have drawn as a permanent Section Officer (Accounts) in the Defence Accounts Department, as of 1.8.1976, but for his deputation to Midhani. It was further made clear that the pro rata pension and the death cum retirement gratuity would be disbursable to the officer in addition to his pay in Midhani from the date of his absorption, provided he gives an undertaking that in the event of his services being terminated at the instance of either Midhani or on his own, within the period of two years from the date of retirement from the Government of India service and permanent absorption in Midhani, the approval of Government of India would be obtained by the officer before he takes up any private employment. It was further indicated that the amount of subscriptions together with interest standing thereon in the General Provident Fund account of the petitioner, if he so desires will be transferred to his new provident fund account under Midhani. Thus, the relationship of `Master and Servant' between the Ministry of Defence and the writ petitioner has been brought to an end with the sanction of the President for the permanent absorption of the writ petitioner in the service of Midhani with effect from 1.8.1976. The writ petitioner had nearly completed 17 years of service in the Ministry of Defence by then and hence he was granted `pension’ and `Gratuity’ under the Central Civil Services (Pension) Rules, 1972. After getting absorbed in the service of Midhani, the writ petitioner became a Member of the Provident Fund Scheme, 1952 under the Employees Provident Fund and Miscellaneous Provisions Act, 1952. He started making contributions with effect from 1.1.1977 to the aforesaid fund.


However, the Ministry of Personnel, Public Grievances and Pensions, Department of Pensions and Pensioners’ Welfare through Office Memorandum dated 22.1.1990 directed all the former employees of the central government who got absorbed in public sector undertakings, like the petitioner, to opt for either being governed by the family pension scheme of the central government or to opt for continuing under the Employees Family Pension Scheme, 1971, brought forth under the Act. This option came to be accorded after due consideration of the request of the staff side at the 29th ordinary meeting of the National Council (Joint Consultative Machinery – JCM) to provide a chance of option to the absorbed employees between the family pension scheme of the central government or the Employees Family Pens










































































































































































































































































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