IN THE HIGH COURT AT CALCUTTA
RAJA BASU CHOWDHURY, J.
Ramprasad Sengupta – Petitioner
Versus
The State of West Bengal and Others – Respondents
WPA No. 4686 of 2018
Decided On : 08-02-2024
Pension Regulations - Employee Pension Rights - (Death-cum-Retirement) Benefit Regulations, 1990 - Regulation 1990, Employees’ Pension Scheme, 1995 - [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, emphasizing that technical objections raised by the Corporation were not tenable. The court also highlighted the duty of the Corporation to give effect to the employee's option once exercised, and that the employee cannot be treated as a member of CPF Scheme to defeat the rightful claim for pension. The judgment emphasized the recognized right of an employee to receive pension immediately after retirement.
Fact of the Case:
The petitioner, a retired employee, claimed pension benefits under the (Death-cum-Retirement) Benefit Regulations, 1990. The Corporation failed to disburse the pension despite the petitioner's exercise of the option for pension-cum-gratuity and relinquishment of claim to the employer's contribution to the provident fund account. The petitioner filed a writ petition seeking release of monthly pension.
Finding of the Court:
The court found that the petitioner had duly exercised the option for pension-cum-gratuity and that the Corporation was obligated to disburse the pension. It also noted that technical objections raised by the Corporation were not tenable and affirmed the employee's right to receive pension under the 1990 Regulations.
Issues: The key issues involved the petitioner's exercise of the pension option, the Corporation's failure to disburse the pension, and the validity of technical objections raised by the Corporation.
Ratio Decidendi: The court emphasized the duty of the Corporation to give effect to the employee's option once exercised, and that technical objections raised by the Corporation were not tenable. It also highlighted the recognized right of an employee to receive pension immediately after retirement.
Final Decision: The court directed the petitioner to refund the employer’s share of contribution on provident fund and any excess gratuity paid, if any, to the Corporation. It also ordered the Corporation to release the monthly pension and arrear pension with interest, and directed the petitioner to provide bank account details for pension disbursement.
JUDGMENT :
RAJA BASU CHOWDHURY, J.
1. The petitioner was an employee of Calcutta State Transport Corporation (hereinafter referred to as the “said Corporation”). He was superannuated on 31st December, 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 claims to have 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. Mr. Ghosh, learned advocate representing the petitioner by placing reliance on the statements made in the rejoinder affirmed by the petitioner on 20th August 2018 submits that the petitioner had opted for pension on 23rd September 1991. By further placing reliance on the copy of the option form which is taken on record, it is submitted that the petitioner had already made over a copy of such option form to the learned advocate representing the respondents. From the aforesaid document it would be apparent and clear that the petitioner had opted for pension-cum-gratuity and had thereby relinquished his claim to the authority’s contribution to the petitioner’s CPF. It is submitted that there is no denial to the statements made in the rejoinder. The respondents did not question the said document. The respondents only contend that the said document may be defective. It is submitted 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.
4. 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:
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 Regula....
The main legal point established is the obligation of the Corporation to disburse pension in accordance with the employee's option exercised under the (Death-cum-Retirement) Benefit Regulations, 1990....
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) Bene....
The main legal point established in the judgment is that the Corporation is obligated to disburse pension to employees who have exercised their option under the (Death-cum-Retirement) Benefit Regulat....
The court affirmed the employee's right to receive pension under the 1990 Regulations and emphasized the Corporation's obligation to disburse the pension once the employee had exercised the option.
The obligation of the Corporation to disburse pension upon the employee's retirement and exercise of option under the 1990 Regulations, and the rightful claim of the employee under the 1990 Regulatio....
The judgment establishes the principle that once an employee exercises the option under the Regulation, it becomes the duty of the Corporation to disburse the pension, and technical objections raised....
The main legal point established in the judgment is that once an employee exercises an option in accordance with the applicable regulations, the employer is obligated to give effect to the option and....
The Corporation is obligated to disburse pension in accordance with the employee's option under the (Death-cum-Retirement) Benefit Regulations, 1990, and cannot use technical objections to defeat the....
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....
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