IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
UNITA AGARWAL, N.V. ANJARIA, JJ.
Vinod N. Joshi S/o Natwarlal Joshi – Appellant
Versus
State of Gujarat – Respondent
Letters Patent Appeal No. 278 of 2023, Special Civil Application No. 4473 of 2011, Civil Application (For Stay) No. 2 of 2022
Decided On : 01-08-2023
CPF Scheme - Applicability of Government Resolution dated 5.2.1980 - Clauses 1 and 2
Fact of the Case:
The petitioner, an in-charge principal of an institution, was found to not be a member of the CPF scheme, a pre-condition for grant of benefits under the Government Resolution dated 5.2.1980. The petitioner had deposited money in a GPF account, but the employer's contribution was never deposited, and the GPF account was not wholly operational.
Finding of the Court:
The court found that the petitioner did not fulfill the conditions of the Government Resolution dated 5.2.1980 as the contribution from the employee and employer was not deposited, and the services of the petitioner were not pensionable as per the appointment letter.
Issues: Applicability of Government Resolution dated 5.2.1980, Fraud committed by the petitioner in filling up the form for GPF account, and the legality of the petitioner's entitlement to benefits.
Ratio Decidendi: The court held that the petitioner's non-membership in the CPF scheme and failure to fulfill the conditions of the Government Resolution dated 5.2.1980 led to the dismissal of the appeal. The court also allowed the petitioner to move an application for refund of the deposits made in the GPF account.
Final Decision: The appeal was dismissed, and the petitioner was allowed to apply for a refund of the deposits made in the GPF account.
JUDGMENT :
UNITA AGARWAL, J.
1. Heard Ms. Harshal N. Pandya, learned counsel for the appellant, Mr. Jinesh H. Kapadia, learned counsel for the respondent Institution, as also Ms. Shruti Dhruve, learned Assistant Government Pleader for respondent-State.
2. This Letters Patent Appeal arises out of the judgment and order dated 12.10.2022 passed by the learned Single Judge in Special Civil Application No. 4473 of 2011, wherein a categorical finding has been returned that the petitioner-appellant herein, who was in-charge principal of the institution concerned, was never a member of CPF scheme, which is one of the pre-conditions for grant of benefits of the Government Resolution dated 5.2.1980.
3. Clauses 1 and 2 of the Government Resolution dated 5.2.1980 have been extracted in the judgment impugned which are to be noted hereunder:
2. If the employees of the recognized non-granted secondary schools have joined the C.P.F. scheme, then the contribution of the Government in that regard is to be deposited in the government treasury. However, the cases falling within the clarifications/provisions made vide Government circular dated 29/05/1974 and resolution dated 31/08/1979 are to be regularized accordingly.”
4. The learned Single Judge has further recorded a finding that the petitioner on his own has deposited certain money by opening a GPF account, whereas contribution of the employer side was never deposited in the GPF account. The GPF account was thus not wholly operational. Further, at some point of time, the petitioner-appellant herein had deposited the employer’s contribution on his own and by realising the mistake later, the amount was withdrawn and GPF account was closed in the year 2008. With regard to the applicability of the Government Resolution dated 5.2.1980, it is recorded in the judgment impugned that in view of clauses 1 and 2 of the Government Resolution dated 5.2.1980, teachers of unaided school would be entitled to pension in case they are members of the CPF scheme or the like schemes, wherein contribution from the salary of the employee and that of the employer is refunded to the State Government to make pension scheme applicable to such individual employee.
5. As in the instant case, neither the contribution of the employee was deducted from its salary by the school for deposit the same in the CPF scheme or any other scheme nor the school itself has deposited its part of the contribution. In the said eventuality, there was no question of deposit of such contributions with the State Government and since the conditions of the Government Resolution dated 5.2.1980 as contained in clauses 1 and 2 are not fulfilled, the petitioner-appellant herein cannot be said to be covered by the same.
6. This finding returned by the learned Single Judge could not be assailed by the learned counsel for the appellant. It is, however, sought to be argued that it was the duty of the school to deduct the contribution towards the CPF scheme from the employee’s salary, as also to deposit its contribution. For the failure of the school management to comply with the conditions of clauses 1 and 2 of the Government Resolution dated 5.2.1980, the petitioner-appellant herein cannot be made to suffer. On further finding about the fraud committed by the petitioner-appellant herein in filling up the form for deposits in the GPF account, which was meant for the employees/staff of the recognised and aided Institution, it is submitted by the learned counsel for the appellant that it was simply a format and there was no clarity nor there was any indication that the said form was meant only for the teachers of recognised and aided Institution. It, therefore, cannot be sa
Non-fulfillment of conditions under the Government Resolution dated 5.2.1980, specifically related to the CPF scheme membership and employer's contribution, led to the dismissal of the appeal.
Fraud vitiates entitlement to pensionary benefits under the Government Resolution dated 05.02.1980.
The legal fiction created by the Office Memorandum automatically migrated existing employees to the GPF scheme, and the burden was on the employee to exercise the option to remain under the CPF schem....
Circumstantial evidence of CPF account, deductions, and acceptance without protest proves option retention despite no original form; acquiescence bars switch to pension scheme post-retirement.
Employees cannot switch pension schemes post-retirement if their historical choices contradict current claims, and procedural lapses invalidate their appeals.
Pension is a right and not a bounty; delay in opting for pension benefits due to ignorance or miscommunication does not bar entitlement.
Interpretation of circulars and resolutions related to GPF and the continuity of GPF benefit upon transition from Ad-Hoc to regular employee.
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