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2024 Supreme(Cal) 508

IN THE HIGH COURT AT CALCUTTA
RAJA BASU CHOWDHURY, J.
Bhanu Guha - Petitioner
Versus
The State of West Bengal & Ors. - Respondents
WPA No. 384 of 2018
Decided On : 02-02-2024

Advocates Appeared:
For the Petitioner: Mr. Manas Kumar Ghosh, Ms. Susmita Dey (Basu).
For the Respondent: Mr. Amal Kumar Sen, Mr. Sabyasachi Mondal.

The recognized right of an employee to receive pension immediately after retirement and the obligation of the Corporation to give effect to the employee's option under the (Death-cum-Retirement) Benefit Regulations, 1990.

Headnote:

Pension Disbursement - Employee Rights - (Death-cum-Retirement) Benefit Regulations, 1990 - Regulation 1990, Employees’ Pension Scheme, 1995 - [Regulation 1990, Employees’ Pension Scheme, 1995] - The court discussed the petitioner's exercise of option under the (Death-cum-Retirement) Benefit Regulations, 1990 and the obligation of the Corporation to disburse pension in favor of the petitioner. The court highlighted that the Corporation's failure to give effect to the employee's option and the wrongful deductions from the employee's salary cannot be used to defeat the rightful claim for pension. The judgment emphasized the recognized right of an employee to receive pension immediately after retirement and directed the Corporation to release pension in favor of the petitioner.

Fact of the Case:

The petitioner, a former employee of Calcutta State Transport Corporation, sought disbursement of pension under the (Death-cum-Retirement) Benefit Regulations, 1990 after exercising the option for pension cum gratuity. The Corporation failed to disburse the pension, leading to the filing of the writ petition.

Finding of the Court:

The court found that the Corporation was obligated to disburse pension in favor of the petitioner after the petitioner had duly exercised the option under the (Death-cum-Retirement) Benefit Regulations, 1990. The court emphasized the recognized right of an employee to receive pension immediately after retirement and directed the Corporation to release pension in favor of the petitioner.

Issues: The issues revolved around the petitioner's exercise of option under the (Death-cum-Retirement) Benefit Regulations, 1990, the Corporation's failure to disburse pension, and the dispute regarding the employer's share of contribution to the provident fund.

Ratio Decidendi: The court held that the Corporation was obligated to give effect to the employee's option under the (Death-cum-Retirement) Benefit Regulations, 1990, and that the wrongful deductions from the employee's salary could not be used to defeat the rightful claim for pension. The recognized right of an employee to receive pension immediately after retirement was emphasized.

Final Decision: The court directed the petitioner to refund the employer's share of contribution on provident fund and any excess gratuity already paid, if any, to the Corporation. It also ordered the Corporation to release pension in favor of the petitioner and disburse arrear pension with 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 31st July, 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 15th February 2018, CSTC had filed a report in the form of an affidavit on 8th May, 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 30th July, 1991.

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 v. The State of West Bengal & Ors. on 17th August, 2018 in WP 6808 (W) of 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 shows that the Corporation was at fault in implementing the 1990 Regulations in the c

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