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2024 Supreme(Cal) 609

IN THE HIGH COURT AT CALCUTTA
Raja Basu Chowdhury, J.
Shyamal Chandra Dey – Petitioner
Versus
The State of West Bengal & Ors. – Respondents
WPA 21407 of 2019
Decided On : 10-01-2024

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

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 disburse the entitled benefits, and any fault on the part of the employer cannot be used to defeat the rightful claim of the employee.

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 found that the Corporation was obligated to disburse pension to the petitioner as he had duly exercised the option in terms of the Regulation 1990. The court also noted that the Corporation's failure to give effect to the option and the depositing of provident fund contributions by ignoring the option could not be attributed to the petitioner. 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 with arrear pension and interest.

Fact of the Case:

The petitioner, a former employee of Calcutta State Transport Corporation, filed a writ petition seeking disbursement of his monthly pension as per the (Death-cum-Retirement) Benefit Regulations, 1990, which he had opted for and relinquished his claim to the employer's contribution to his provident fund account.

Finding of the Court:

The court found that the Corporation was obligated to disburse pension to the petitioner as he had duly exercised the option in terms of the Regulation 1990. The court also noted that the Corporation's failure to give effect to the option and the depositing of provident fund contributions by ignoring the option could not be attributed to the petitioner.

Issues: The main issue was whether the Corporation was obligated to disburse pension to the petitioner in accordance with the (Death-cum-Retirement) Benefit Regulations, 1990, despite the Corporation's contention regarding the depositing of provident fund contributions.

Ratio Decidendi: The court held that the Corporation was obligated to give effect to the option once it was exercised by the employee, and the petitioner could not be held responsible for any wrong deductions from his salary or the depositing of provident fund contributions by 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 with arrear pension and interest.

JUDGMENT :

Raja Basu Chowdhury, J.

1. Although, this matter was heard on 4th January 2024 and an order was passed, yet while tallying the records since, the original affidavit-in-opposition was not found in the file, the matter has come up under the heading “to be mentioned”.

2. Today, the learned advocate appearing for the respondents files the original affidavit-in-opposition on behalf of the respondent nos. 3 to 5 before this Court. Let the same be retained with the record.

3. In view of the aforesaid, the unsigned order dated 4th January 2023 is recalled and the matter is accordingly heard afresh.

4. The petitioner was an employee of Calcutta State Transport Corporation (hereinafter referred to as the “said Corporation”). The petitioner was superannuated on 31st January, 2018.

5. 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, 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.

6. Records reveal that notwithstanding the direction passed by a Coordinate Bench of this Court on 16th December, 2019, Corporation did not file the affidavit-in-opposition, until today. From such affidavit it would be apparent and clear that the petitioner during his service tenure in terms of the said Regulation had exercised his option in the year 1991.

7. 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.

8. 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

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