Interpretation of circulars and resolutions related to GPF and the continuity of GPF benefit upon transition from Ad-Hoc to regular employee.

JUDGMENT :

1. RULE returnable forthwith. Mr.Krutik Parikh learned AGP waives service of notice of Rule on behalf of the respondent State.

2. With the consent of learned advocates for the respective parties, the petition is taken up for final hearing.

3. By way of this petition under Article 226 of the Constitution of India, the petitioners have prayed for quashing and settings aside the orders dated 20.11.2018, 09.10.2019, 10.07.2020 and 19.08.2020, holding that the discontinuance of the benefit of GPF is bad.

4. At the outset, it is pointed out that the issue is covered by a decision of this Court in Special Civil Application No.7522 of 2020.

5. The above order passed was confirmed by the Division Bench of this Court in Letters Patent Appeal No.147 of 2022 dated 22.03.2022.

6. Reading the decision of the coordinate bench of this Court dated 16.06.2021 rendered in Special Civil Application No.7522 of 2020, for the purposes of disposal of the present petition, it will be apt to reproduce the relevant portion of the order of the coordinate bench, which reads as under:

“[7] The facts which are relevant and not in dispute are that the petitioner was appointed as Ad-Hoc Lecturer in Computer Engineering Department on 25.03.1997. During his employment as Ad-Hoc employee, the GPF Account of the petitioner was opened as per the prevailing rules pertaining to the GPF under Circular dated 20.09.1975 issued by the Finance Department as well as Circular dated 29.05.1988 again issued by the Finance Department. Both these provide for opening of GPF Account compulsory for those Government servants/officers who though may not be permanent, but have put in three years of continuous service. The petitioner thereafter, faced selection procedure and after successfully cleared the selection procedure by the GPSC was appointed against the regular post of the very Department as the Head of the Department w.e.f. 25.09.2006. The relevant portion of the Government Resolution dated 18.03.2005 and Clause-3 read as under:- “Announcement was made in the budget of the year 2003- 04 in the parliament to insert new structure known as Defined Pension Scheme for the new candidates recruited in the service of central government and towards the first step of its implementation, the Government of India introduced a New Defined Contribution Pension Scheme for its employees (Except armed forces) w.e.f. 01/01/2004. The Government of India has formed interim scheme for implementation of the said scheme as detailed rules and regulations are yet to be formed. At the end of careful consideration, as it was decided to implement the said new defined pension scheme (NEW DEFINED CONTRIBUTION PENSION SCHEME) w.e.f. 01st April, 2005, New Defined Pension Scheme shall be applicable to the employees appointed on or after 01st April, 2005 as mentioned hereunder

“Clause-3 The employees who have been appointed with respect to the Monthly Lump Sum Pay Policy implemented by the State Government and the employees who shall be appointed on or after 01/04/2005 in the regular pay scale.”

[8] The amendment to the Government Resolution dated 18.03.2005 issued by the Finance Department on 06.09.2005 would read as under:-.

“New Pension Scheme becomes applicable vide 18/03/2005 cited at Preamble (1) to the employees of the State Government recruited on or after 01/04/2005. But as per the Orders of the Government of India cited at Sr.(2) of the preamble, the employees who have been in the service of the state government prior to the date of implementation of new pension scheme i.e. 01/04/2005 and are entitled to the benefit of the pension scheme pursuant to their original appointment / service, if such employees/officers get selected and appointed on new post in the government on or after 01/04/2005 by direct recruitment from their original appointment/service by recognized process and if they required to tender resignation for technical reasons to join new appointment, present scheme (Pensions Scheme of