Gujarat High Court
Judgename :A.L.DAVE, J.M.Panchal
PREMJI KHANJI MASANI - Appellant
Versus
REGIONAL MANAGER,united INDIA INSURANCE COMPANY LIMITED - Respondent
L.P.A. 1422 of 1997
Decided On : 09/30/1999
Letters Patent Appeal – Clause 15 – General Insurance Business (Nationalisation) Act, 1972 – Section 17-A – General Insurance (Employees) Pension Scheme, 1995 – Regulations 2, 3 and 30 – Service matter – Claiming Retirement Benefits – Resignation – Seeking direction to the respondent to treat his resignation from service as voluntary retirement and fix his pension under Scheme, 1995, is rejected – Appellant was employed with United India Insurance Company as administrative Officer in Divisional Office he was not keeping good health and he tendered resignation from service by addressing letter to Regional Manager – By the said letter, appellant requested competent authority to accept his resignation and to treat period from 1/03/1987 to Marc 31/03/1987 as earned leave – Accepted the resignation of the appellant with effect from 1/04/1987 – Single Judge held that resignation by appellant from service has entailed forfeiture of his entire past services and consequently the appellant is not qualified for pensionary benefits and dismissed petition by judgment giving rise to present appeal – Appellant contended that resignation tendered by the appellant tantamounts to voluntary retirement, as voluntary retirement and resignation stand on same footing and, therefore, single Judge ought to have allowed the petition – Appellant had no alternative but to resign from service, the resignation tendered prior to coming into force of the pension scheme, ought to have been treated as voluntary retirement of the appellant from service – Held, Pension Scheme is not given retrospective effect and, therefore, resignation tendered by the appellant from service, cannot be treated as his voluntary retirement from service in terms of Regulation 30 of the Pension Scheme – It is not necessary to make detailed reference to all of them. In substance, what is laid down by the Supreme Court in those decisions is that pension or family pension is a condition of service of an employee and if the case of an employee does not fall within those conditions of service, he is not entitled to pension – We have already observed earlier that before coming into force of the Pension Scheme, the appellant had voluntarily resigned from service and had also obtained terminal benefits which were available to him at that point of time – Claim of the appellant that his resignation from service should be treated as his voluntary retirement from service, cannot be accepted because pension scheme does not envisage at all that resignation from service and voluntary retirement from service are one and the same thing and also because pension scheme is not retrospective in nature – Appeal dismissed. (Paras 10 and 11)
( 1 ) ). THIS appeal, which is filed under Clause 15 of the letters Patent, is directed against judgment dated 26/08/1997 rendered by the learned single Judge, in Special Civil Application No. 2551 of 1997, by which prayer made by the appellant to direct the respondent to treat his resignation from service as voluntary retirement and fix his pension under Paragraph 30 of the general Insurance (Employees) Pension Scheme, 1995, is rejected.
( 2 ) THE appellant was employed with United India Insurance Company as administrative Officer in Divisional Office at Junagadh. He was not keeping good health and, therefore, he tendered resignation from service by addressing letter dated 27/02/1987 to the Regional Manager, Regional Office, Ahmedabad. A copy of the said letter is produced at Annexure-A to the petition. By the said letter, appellant requested the competent authority to accept his resignation with effect from 1/04/1987 and to treat period from 1/03/1987 to Marc 31/03/1987 as earned leave. The said letter was forwarded to the Chairman-cum- managing Director of the United India Insurance Co. Ltd. , who accepted the resignation of the appellant with effect from 1/04/1987. The intimation given by the Regional Manager to the appellant is produced on the record of the case at annexure-B to the petition. In exercise of powers conferred by Sec. 17-A of the general Insurance Business (Nationalisation) Act, 1972, the Central Government has made a Scheme called "general Insurance (Employees) Pension Scheme, 1995 ("pension Scheme" for short ). The Pension Scheme has come into force on 1st day of November, 1993. As provided in Regulation 3 of the Pension Scheme, the Pension Scheme, inter alia, applies to employees who were in the service of the Corporation or a Company, as the case may be, on or after the 1st day of january, 1986, but had retired before the 1st day of November, 1993. According to the appellant, he was entitled to pension in terms of the Pension Scheme and, therefore, he addressed a letter dated 12/09/1995 opting for pension under the said scheme. The respondents were of the opinion that as the appellant had resigned from service, he was not entitled to opt for pension scheme, nor entitled to join pension scheme and, therefore, his request to permit him to opt for pension under the Pension Scheme of 1995 was turned down. Thereupon, the appellant instituted Special Civil Application No. 2551 of 1997 in the High Court and prayed to direct the respondents to fix his pension under Regulation 30 of the pension Scheme by treating his resignation as voluntary retirement. Another consequential relief was also claimed to the effect that action of the respondents in not extending the benefits of voluntary retirement to him should be declared as illegal, arbitrary and unjust.
( 3 ) ON service of notice, Mr. Vinay Kapur, Administrative Officer (Legal) filed affidavit-in-reply on behalf of respondent No. 1 controverting the averments made in the petition. In the reply, what was stressed was that the appellant had tendered resignation from service, but had not voluntarily retired under any voluntary retirement scheme and, therefore, he was not entitled to any pension under the Pension Scheme of 1995. After pointing out difference between resignation and voluntary retirement from service, what was emphasised in the reply was that the appellant having tendered resignation from service, he was not entitled to the reliefs claimed in the petition. The appellant had filed rejoinder controverting the statements made in the affidavit-in-reply and reiterating his claim which was advanced in the petition. The respondents had also filed affidavit-insur- rejoinder to the rejoinder filed by the appellant. However, we think that it is not necessary to refer to the averments made in rejoinder and affidavit-in-surrejoinder in detail while deciding the appeal.
( 4 ) AFTER hearing the learned Counsel for the parties, learned single Judge
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