IN THE HIGH COURT AT CALCUTTA
RAJA BASU CHOWDHURY, J.
Tamal Kumar Dutta, since deceased, represented by Smt. Kakali Dutta & Anr. - Petitioners
Versus
The State of West Bengal & Ors. - Respondents
WPA No. 27665 of 2017
Decided On : 04-01-2024
Pension Disbursement - Employee Rights - (Death-cum-Retirement) Benefit Regulations, 1990 - Regulation 1991, Regulation 1984, Regulation 1995
Fact of the Case:
The original petitioner, an employee of Calcutta State Transport Corporation, superannuated and opted for pension cum gratuity under the (Death-cum-Retirement) Benefit Regulations, 1990. The Corporation failed to disburse the pension, leading to the writ petition.
Finding of the Court:
The court found that the Corporation was obligated to disburse pension upon the employee's retirement and that technical objections raised by the Corporation were not tenable. The court directed the Corporation to release family pension and arrear pension with interest to the legal heirs of the original petitioner.
Issues: Disbursement of pension under the (Death-cum-Retirement) Benefit Regulations, 1990 and the Corporation's failure to adhere to the employee's option.
Ratio Decidendi: The court held that the Corporation must give effect to the employee's option under the Regulations and cannot use wrong deductions or technical objections to defeat the rightful claim for pension.
Final Decision: The court directed the legal heirs to refund the employer's share of contribution on provident fund and excess gratuity, if any, to the Corporation. It also ordered the Corporation to release family pension and arrear pension with interest to the legal heirs.
JUDGMENT :
Raja Basu Chowdhury, J.
1. The original petitioner was an employee of Calcutta State Transport Corporation (hereinafter referred to as the “said Corporation”). The petitioner was superannuated on 31st March, 2017. Consequent upon the death of the original petitioner, during the pendency of the writ petition his legal heirs have been substituted.
2. It is the petitioners’ 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 petitioners contend that in terms of the said Regulation the original petitioner 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 petitioners’ case that notwithstanding exercising such option pension was not disbursed in favour of the original petitioner in terms of the said Regulation. In such circumstances, the original petitioner had made a representation for release of his monthly pension. Since his representation was not adhered to, the original 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 7th December, 2017, CSTC had filed a report in the form of an affidavit on 2nd January, 2020. From such report it would be apparent and clear that the original petitioner during his service tenure in terms of the said Regulation had exercised his option on 13th September, 1991.
4. Mr. Ghosh, learned advocate representing the petitioners submit that once the respondents had recognized that the original 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 original 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:-
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 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 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 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 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 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 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 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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