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2022 Supreme(Guj) 1012

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Biren Vaishnav, J.
Ramesh Ramcharan Upadhyay – Petitioner
Versus
The Ahmedabad Municipal Corporation – Respondent
R/Special Civil Application No. 1629 of 2022 With R/Special Civil Application No. 7769 of 2022 With R/Special Civil Application No. 1667 of 2022 With R/Special Civil Application No. 1664 of 2022 With R/Special Civil Application No. 1641 of 2022 With R/Special Civil Application No. 1640 of 2022 With R/Special Civil Application No. 1666 of 2022 With R/Special Civil Application No. 1668 of 2022 With R/Special Civil Application No. 1654 of 2022 With R/Special Civil Application No. 1637 of 2022 With Civil Application (For Bringing Heirs) NO. 1 of 2022 In R/Special Civil Application No. 1637 of 2022 With R/Special Civil Application No. 1638 of 2022 With R/Special Civil Application No. 1657 of 2022 With R/Special Civil Application No. 1670 of 2022 With R/Special Civil Application No. 1686 of 2022 With R/Special Civil Application No. 1642 of 2022 With R/Special Civil Application No. 1685 of 2022 With R/Special Civil Application No. 1630 of 2022 With R/Special Civil Application No. 1671 of 2022 With R/Special Civil Application No. 1639 of 2022 With R/Special Civil Application No. 1689 of 2022 With R/Special Civil Application No. 1687 of 2022 With R/Special Civil Application No. 1631 of 2022 With R/Special Civil Application No. 1635 of 2022 With R/Special Civil Application No. 1673 of 2022 With R/Special Civil Application No. 1636 of 2022 With R/Special Civil Application No. 1644 of 2022 With R/Special Civil Application No. 1682 of 2022 With R/Special Civil Application No. 1684 of 2022 With R/Special Civil Application No. 1645 of 2022 With R/Special Civil Application No. 1681 of 2022 With R/Special Civil Application No. 1650 of 2022 With R/Special Civil Application No. 1656 of 2022 With R/Special Civil Application No. 1633 of 2022 With R/Special Civil Application No. 1634 of 2022 With R/Special Civil Application No. 1661 of 2022 With R/Special Civil Application No. 1674 of 2022 With R/Special Civil Application No. 1660 of 2022 With R/Special Civil Application No. 1663 of 2022 With R/Special Civil Application No. 1659 of 2022 With R/Special Civil Application No. 1652 of 2022 With R/Special Civil Application No. 1678 of 2022 With R/Special Civil Application No. 1648 of 2022 With R/Special Civil Application No. 1680 of 2022 With R/Special Civil Application No. 1677 of 2022 With R/Special Civil Application No. 1655 of 2022 With R/Special Civil Application No. 1632 of 2022 With R/Special Civil Application No. 1675 of 2022
Decided On : 13-10-2022

Advocates Appeared:
For the Petitioner:Mr. Shalin Mehta, LD. Senior Advocate with Mr. Hemang Shah, Mr. Prabhakar Upadhyay with Mr. Aakash D. Modi.
For the Respondent:Mr. Kamal Trivedi, LD. Senior Advocate, with Mr. Anuj K. Trivedi with Mr. Vaibhav Goswami, Ms. E. Shailaja.

Headnote:

The petitioners, employees of the Central Workshop of the Ahmedabad Municipal Corporation, sought the benefits of the General Provident Fund Scheme (GPF) instead of the Contributory Provident Fund Scheme (CPF). The High Court dismissed their petitions, holding that they had not exercised their option to switch to the GPF scheme within the stipulated time and that the Corporation was not obligated to extend the benefits of the GPF scheme to them. The Supreme Court upheld the High Court's decision, ruling that the petitioners had no inherent right to demand an extension of the period for exercising the switch-over option or to claim a right to exercise the switch-over option at any time prior to their retirement.

Fact of the Case:

The petitioners were employees of the Central Workshop of the Ahmedabad Municipal Corporation. The Corporation had introduced the GPF scheme in 1983, and employees were given the option to switch from the CPF scheme to the GPF scheme. The petitioners did not exercise their option within the stipulated time. In 2014, the petitioners filed a petition in the High Court seeking a direction to the Corporation to extend the benefits of the GPF scheme to them. The High Court dismissed their petition.

Finding of the Court:

The Supreme Court upheld the High Court's decision. The Court held that the petitioners had no inherent right to demand an extension of the period for exercising the switch-over option or to claim a right to exercise the switch-over option at any time prior to their retirement. The Court further held that the Corporation was not obligated to extend the benefits of the GPF scheme to the petitioners.

Issues: 1. Whether the petitioners had a right to demand an extension of the period for exercising the switch-over option. 2. Whether the Corporation was obligated to extend the benefits of the GPF scheme to the petitioners.

Ratio Decidendi: 1. The Court held that the petitioners had no inherent right to demand an extension of the period for exercising the switch-over option. The Court reasoned that the GPF scheme was a voluntary scheme, and employees were given the option to switch from the CPF scheme to the GPF scheme within a stipulated time. The petitioners had not exercised their option within the stipulated time, and therefore, they had no right to demand an extension of the period. 2. The Court held that the Corporation was not obligated to extend the benefits of the GPF scheme to the petitioners. The Court reasoned that the Corporation had introduced the GPF scheme as a voluntary scheme, and employees were given the option to switch from the CPF scheme to the GPF scheme within a stipulated time. The petitioners had not exercised their option within the stipulated time, and therefore, the Corporation was not obligated to extend the benefits of the GPF scheme to them.

Final Decision: The Supreme Court dismissed the petitioners' appeal.

JUDGMENT :

1. All these petitions have been filed by the employees working in the Central Workshop of the Ahmedabad Municipal Corporation those who joined service with the Corporation after 01.01.1983. They have been or they are the employees of the Municipal Corporation.

2. Special Civil Application Nos.1629 of 2022 and Special Civil Application Nos.7769 of 2022 were argued as lead matters. The prayers in Special Civil Application Nos.1629 of 2022 read as under:

    “(A) Your Lordships may kindly be pleased to issue a Writ of Mandamus and/or any other appropriate writ, order or direction to direct the respondents to grant the benefits of General Provident Fund Scheme (Old Pension Scheme) of the Ahmedabad Municipal Corporation to the present petitioner, which is at Annexure-E (Colly.) to this petition.

(B) Your Lordships my kindly be pleased to direct the present respondent Corporation to complete all administrative formalities in pursuance to the judgment dated 17.10.2016 passed by this Hon'ble Court in Special Civil Application No.3711 of 2014 and other allied matters for completion of the process required as per the provisions of the EPF Act, 1952 and EPF Scheme, 1952, for exemption from applicability of the EPF Act, 1952.”

3. The prayers in Special Civil Application Nos.7769 of 2022 read as under:

    “(a) Your Lordships may be pleased to issue a writ of mandamus commanding respondent no. 1 to grant the benefit of the pension scheme as framed by for the petitioners;

(b) Your Lordships may be pleased to issue a writ of mandamus commanding respondents no. 1 and 2 to comply with the directions issued by this Hon’ble Court vide CAV judgment dated 17.10.2016 passed by this Hon’ble Court in Special Civil Application No.3711/14 and cognate matters.

(c) Your Lordships may be pleased to issue a writ of mandamus commanding respondent’s no. 1 and 2 to submit an application to respondent no. 3 for seeking exemption under section 16 or 17 of Employees Provident Fund & Miscellaneous Provisions Act, 1952 and thereby establish a “Trust” for managing the funds of the petitioners from which pension would be paid to them;”

4. Facts in brief indicate that a central workshop of the corporation existed under the Corporation which was an independent and a distinct establishment registered under the Factories Act, 1948, dealing with activities of purchase, repairs and maintenance of vehicles of the corporation. The employees of the workshop were governed by the Employees’ Provident Fund Scheme, 1952. The rest of the employees of the corporation were governed by the Contributory Provident Fund Scheme.

4.1 On 10.06.1983, a proposal was introduced relating to the General Provident Fund Scheme with effect from 01.01.1983 indicating that those employees covered by the CPF scheme and who are in employment with the Corporation with effect from 01.01.1983 then opt for GPF scheme. A resolution was passed by the Standing Committee accepting the proposal to frame regulations and implement the GPF scheme with effect from 01.01.1983 and to give an option to either avail the CPF scheme or the GPF scheme.

4.2 On 25.10.1983 the Commissioner of the Corporation issued a circular conveying a decision that with the introduction of the GPF scheme with effect from 01.01.1983 for the employees who are covered under the CPF scheme, those employees who do not want to join the GPF scheme but continue with the CPF scheme should give an undertaking to the concerned head clerk of the department latest by 02.11.1983.

4.3 On 02.02.1984, a circular was issued providing that the GPF scheme would be compulsory for those employees who have joined the corporation on 01.01.1983 and thereafter and those who have joined before 01.01.1983 and were in service were required to give an option latest by 29.02.1984 as to which of the two schemes i.e. the CPF and the GPF scheme they would like to con

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