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2024 Supreme(Cal) 449

IN THE HIGH COURT AT CALCUTTA
RAJA BASU CHOWDHURY, J.
Shyamal Kumar Sengupta – Petitioner
Versus
The State of West Bengal and Others – Respondents
WPA No. 3104 of 2018
Decided On : 27-03-2024

Advocates:
Advocate Appeared:
For the Petitioners: Manas Kumar Ghosh, Susmita Dey (Basu).
For the Respondents: Amal Kumar Sen, Sabyasachi Mondal.

The central legal point established in the judgment is that the Corporation is obligated to disburse pension to employees who have exercised the option under the (Death-cum-Retirement) Benefit Regulations, 1990, and technical objections raised by the Corporation are not tenable.

Headnote:

Pension Disbursement - Employee Rights - (Death-cum-Retirement) Benefit Regulations, 1990 - [Regulation 1990, Employees’ Pension Scheme, 1995] - The court affirmed the employee's right to receive pension under the 1990 Regulations and directed the Corporation to disburse the monthly pension, arrears of pension, and interest. The court emphasized that technical objections raised by the Corporation were not tenable and that the employees cannot be made to suffer for any fault on the part of the Corporation.

Fact of the Case:

The petitioner, a retired employee, claimed pension under the (Death-cum-Retirement) Benefit Regulations, 1990. The Corporation failed to disburse the pension, leading to the filing of the writ petition.

Finding of the Court:

The court found that the petitioner had duly exercised the option in terms of the Regulation, and it was the obligation of the Corporation to give effect to the same. The court also noted that the Hon’ble Supreme Court had directed the Corporation to release pension in favor of an employee in a similar case.

Issues: Disbursement of pension under the (Death-cum-Retirement) Benefit Regulations, 1990, failure of the Corporation to give effect to the employee's option, and the obligation of the Corporation to release pension to the petitioner.

Ratio Decidendi: The court held that the Corporation was obligated to disburse the pension once the employee had exercised the option under the Regulation. It emphasized that technical objections raised by the Corporation were not tenable, and the employees cannot be made to suffer for any fault on the part of the Corporation.

Final Decision: The court directed the petitioner to refund the employer’s share of contribution on provident fund and any excess gratuity paid, and ordered the Corporation to release pension in favor of the petitioner, along with arrear pension and interest. The writ petition was disposed of with no order as to costs.

JUDGMENT :

RAJA BASU CHOWDHURY, J.

1. The petitioner was an employee of Calcutta State Transport Corporation (hereinafter referred to as the “said Corporation”). The petitioner was superannuated on 28th February 2017.

2. It is the petitioner’s case that the (Death-cum-Retirement) Benefit Regulations, 1990 (hereinafter referred to as the “said Regulation) which came into force with retrospective effect from 1st April, 1984 is applicable to the employees of the said Corporation. The petitioner contends that in terms of the said Regulation, which was subsequently amended in the year 2002, whereby the time to exercise the option was extended till 4th June, 2002. The petitioner had duly exercised the option and had opted for pension cum gratuity and had relinquished his claim to the employer’s contribution to his contributory provident fund account. It is the petitioner’s case that notwithstanding exercising such option pension was not disbursed in favour of the petitioner in terms of the said Regulation. In such circumstances, the petitioner had made a representation for release of his monthly pension. Since, his representation was not adhered to, the petitioner had filed the instant writ petition.

3. Records reveal that in terms of the direction passed by a Coordinate Bench of this Court on 10th May 2018, CSTC had filed a report in the form of an affidavit on 6th August, 2018. From such report it would be apparent and clear that the petitioner during his service tenure in terms of the said Regulation had exercised his option on 31st July 1991. However, such option was recorded in the service book only on 27th March 2017.

4. Mr. Ghosh, learned advocate representing the petitioner submit that once the respondents had recognized that the petitioner had exercised his option in terms of the said Regulation it was the obligation of the respondents to disburse pension in favour of the petitioner consequent upon his retirement. By placing reliance on a judgment delivered by a Coordinate Bench of this Court in the case of Ashit Chakraborty vs. State of West Bengal and Others in WP No. 6808 (W) of 2018, on 17th August, 2018, it is submitted that in identical set of facts, the Coordinate Bench having found that the Corporation could not hold back the legitimate claim of the employee who had exercised similar option, had directed the Corporation to disburse the monthly pension in favour of such ex-employee of the Corporation, including arrears of pension along with interest @ 6% per annum.

5. It is submitted that although, an Intra-Court Appeal was preferred, the Division Bench of this Court by a judgment and order dated 5th March, 2021, in FMA 692 of 2019 was, inter alia, pleased to affirm the said order. Mr. Ghosh further submits that challenging the aforesaid direction passed by the Hon’ble Division Bench, the Corporation had applied before the Hon’ble Supreme Court by filing a Special Leave Petition, being Special Leave to Appeal (C) No. 11991 of 2021. By a judgment and order dated 8th May, 2023 the Hon’ble Supreme Court after granting leave to appeal had dismissed the same by, inter-alia, observing as follows:

    “It is not in dispute that the respondent no. 1 had exercised his right to receive pension under the 1990 Regulations in the year 1991. Thereafter, it was the duty of the Corporation to have given effect to the same. Merely, because thee were some wrong deductions from his salary and he was treated as member of the CPF Scheme, cannot be permitted to be raised as a ground to defeat his rightful claim. The pension was to start after retirement of the respondent. When the same was not released to him, immediately representation was made by him. As no response was received from the appellant, the writ petition was filed. The argument that there are number of similarly situated employees who will also state their claims, will not deter this Court in granting the relief to the respondent, which is legitimately due to him. Rather this argument

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