IN THE HIGH COURT OF CALCUTTA
Soumen Sen, Siddhartha Roy Chowdhury, JJ.
Jnan Ranjan Das And Others - Appellant
Versus
South Bengal State Transport Corporation And Others - Respondent
FMA 868 of 2017 & CAN 3 of 2019 (Old CAN 6479 of 2019)
Decided On : 28-06-2022
Pension Regulations - Employee Benefits - Regulation 2002, Section 47B(1)(f) of the Road Transport Corporations (West Bengal Amendment) Act, 1959 - The court held that the appellants, who were employees of the South Bengal State Transport Corporation, were entitled to the benefits of the Pension Regulations of 2002. The court found that the appellants fell within the purview of Regulation 3 of the Pension Regulations and that the denial of rights to the appellants was not based on their failure to exercise the option within the stipulated time. The court also emphasized that the judgment in the case was intended to benefit all similarly situated persons, irrespective of whether they had approached the court or not. The court directed the Corporation to release the pension and other death-cum-retirement benefits to the appellants in accordance with the Pension Regulations, 2002.
Fact of the Case:
The appellants, employees of the South Bengal State Transport Corporation, sought similar benefits as those extended to employees in a previous writ petition. The Corporation had cancelled the Pension Regulations and decided not to pursue the pension scheme, leading to a legal challenge. The learned Single Judge refused to extend similar benefits to the appellants, citing their failure to demonstrate the exercise of the option within the stipulated time. The Appellate Court dismissed the appeal, but the Supreme Court upheld the payment of benefits within three months.
Finding of the Court:
The court found that the appellants were entitled to the benefits of the Pension Regulations of 2002, as they fell within the purview of Regulation 3 and the denial of rights was not based on their failure to exercise the option within the stipulated time. The court also emphasized that the judgment in the case was intended to benefit all similarly situated persons, irrespective of whether they had approached the court or not. The court directed the Corporation to release the pension and other death-cum-retirement benefits to the appellants in accordance with the Pension Regulations, 2002.
Issues: The main issue was whether the appellants were entitled to the benefits of the Pension Regulations of 2002 and whether the denial of rights was based on their failure to exercise the option within the stipulated time.
Ratio Decidendi: The court held that the appellants were entitled to the benefits of the Pension Regulations of 2002, as they fell within the purview of Regulation 3 and the denial of rights was not based on their failure to exercise the option within the stipulated time. The court also emphasized that the judgment in the case was intended to benefit all similarly situated persons, irrespective of whether they had approached the court or not.
Final Decision: The court set aside the judgment and order dated 2nd February, 2015, and allowed the appeal, directing the Corporation to release the pension and other death-cum-retirement benefits to the appellants in accordance with the Pension Regulations, 2002. There was no order as to costs.
JUDGMENT
Soumen Sen, J. - The appeal is arising out of a judgment and order dated 2nd February, 2015 in connection with a writ petition filed by several of the employees of the South Bengal State Transport Corporation. In the writ petition the writ petitioners sought for similar benefits as that of the writ petitioners who had instituted another writ petition being WP 13475(W) of 2003.
2. The case of the appellants/writ petitioners is that the Pension Regulations were formulated by the South Bengal State Transport Corporation (hereinafter referred to as the 'Corporation') and several of the employees of the Corporation opted pension under the Regulations (to obtain pension). Upon the Corporation cancelling the Regulation and deciding not to pursue the pension scheme, the said decision was challenged in Court and the challenge was upheld. According to the appellants, they are similarly placed as that of the writ petitioners in WP No. 13475(W) of 2003 and are, accordingly, entitled to the same benefits as were extended to them under the order passed in the said writ petition on 25th April, 2008.
3. The learned Single Judge refused to extend similar benefit to the present appellants on the ground that the writ petitioners in the earlier proceeding had exercised their option within the time permitted under the Pension Regulations, 2002 and the present appellants having failed to demonstrate as to the exercise of such option within the stipulated time. As such, similar benefit cannot be extended to the appellants. However, the learned Single Judge has recorded the submission of the Corporation that the Corporation would extend the benefit of pension to such of the present appellants who may have exercised the option within the time permitted to exercise the option.
4. The writ petition was, accordingly, disposed of by extending the benefits in terms of the order passed in WP 13475(W) of 2003 (Sri Sudarshanmoy Ghosh v. South Bengal State Transport Corporation) to such of the appellants who had actually opted within the permitted time to receive the benefit under the Pension Regulations of 2002. The learned Single Judge in deciding the said issue has taken note of the fact that in the order dated 25th April, 2008 while deciding of the writ petition the benefit was extended to 'the writ petitioners and the other employees who opted (for) such Pension Regulations, 2002 .....'. This order was challenged in appeal.
5. The Appellate Court dismissed the appeal on July 18, 2008 by observing, inter alia, that since the petitioners had 'legally opted' to come within the purview of the relevant Pension Regulations 'the appellate Corporation is bound to give effect to the same.' The Special Leave Petition carried from the appellate order was dismissed by the Supreme Court with only an observation that the payment ought to be made within three months from the date of the Supreme Court order.
6. Mr. Bikash Ranjan Bhattacharyya, the learned Senior Advocate appearing on behalf of the appellants submits that all the writ petitioners were the employees of the West Bengal government working in the directorate of transportation, which, under the Home Transport Department of the Government of West Bengal which had come into existence on and with effect from 31st July, 1948. All the writ petitioners were brought from the Home Transport Department of the West Bengal Government into the Durgapur State Transport Corporation since renamed as the South Bengal State Transport Corporation (in short 'Corporation'). All the writ petitioners were permanent and confirmed employees of the said directorate of transportation under the Home Department of the Government of West Bengal and accordingly became permanent and confirmed employees of the respondent/corporation. Before transferring them to the respondent/corporation and treating them employees of the said corporation the government of West Bengal by an amendment inserted in Section 47B (1) (f) in the Road Transport C
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The main legal point established in the judgment is that the appellants were entitled to the benefits of the Pension Regulations of 2002, and the denial of rights was not based on their failure to ex....
The main legal point established in the judgment is that the Corporation cannot use financial burden as a ground for refusal to grant pensionary benefits, and that the Corporation's failure to implem....
The main legal point established in the judgment is that once an employee exercises the option under the (Death-cum-Retirement) Benefit Regulations, 1990, the Corporation is obligated to disburse pen....
The main legal point established is that once an employee lawfully exercises the pension option, the employer is obligated to disburse the pension benefits, and withdrawal of the option after lawful ....
Employees directly recruited by a corporation under non-pensionable regulations are not entitled to pensionary benefits, even if they claim parity with employees of a predecessor government entity wh....
A statutory corporation cannot withhold the post-retirement benefits of its retired employees without providing them with an opportunity of hearing.
The main legal point established in the judgment is that the entire length of service from the date of initial appointment should be considered for the purposes of fixation of pensionary benefits.
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