IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.Y. KOGJE, J.
Sudhaben Williambhai Baraiya & Others - Petitioners
Versus
State of Gujarat & Others - Respondents
R/Special Civil Application No. 8844 of 2017 With R/Special Civil Application No. 11129 of 2017
Decided On : 19-09-2022
Pension Scheme - Employee Entitlement - Circular No.52 dated 02-02-1984, Circular No.36 dated 25-10-183, Circular No.71 dated 28-03-1984, Circular No.10 dated 31-05-1984, Circular No.65 dated 25-01-1985, Circular N.72 dated 25-01-1991, Circular No.13 dated 12/05/2000, Circular No.13 dated 29/05/2001 - The court considered the employee's entitlement to the pension scheme based on various circulars issued by the Corporation, the requirement to exercise option, and the extended time limits for submitting the option form. The court also referenced previous decisions and legal provisions to determine the employee's eligibility for the pension scheme.
Fact of the Case:
The petitioner, a former employee of the Corporation, sought entitlement to the pension scheme based on the Circular dated 02-02-1984. The Corporation argued that the petitioner failed to exercise the option for the pension scheme within the stipulated period and had enjoyed the benefits of the Contributory Provident Fund Scheme upon retirement.
Finding of the Court:
The court found that the petitioner did not exercise the option for the pension scheme within the stipulated period and had received substantial benefits from the Contributory Provident Fund Scheme upon retirement. The court also noted the extended time limits for submitting the option form and previous decisions upholding the Corporation's stand in similar cases.
Issues: The key issue was whether the petitioner was entitled to the pension scheme without having exercised the option within the stipulated period, considering the circulars issued by the Corporation and the employee's actions.
Ratio Decidendi: The court held that the petitioner's failure to exercise the option for the pension scheme within the stipulated period, coupled with the enjoyment of benefits from the Contributory Provident Fund Scheme upon retirement, precluded the petitioner from claiming entitlement to the pension scheme.
Final Decision: Both petitions were dismissed, ruling in favor of the Corporation, and the rule was discharged with no order as to costs.
JUDGMENT :
1. This two petitions are arising out of the identical facts and are raising the same issues and hence, at the request of both the sides, the same are taken up for joint hearing and final disposal. With consent, the facts are recorded from Special Civil Application No.11129 of 2017, where the respondent on behalf the Corporation has already filed the reply. At request, learned Advocate appearing for the Corporation and with consent of the learned Advocate for the petitioner on principle, the reply filed in this petition be treated as reply to both the petitions.
2. This petition under Article-226 of the Constitution of India is filed with following prayers :
(B) YOUR LORDSHIPS be pleased to issue a writ of mandamus or any other appropriate writ, order or direction in the nature of mandamus directing the Respondents to extend pension and other benefits to the petitioners arising out of Circular dated 02.02.1984 at Annexure B, in the interest of justice.”
3. Essentially, the case of the petitioner is to hold that the petitioner is entitled to benefit of Pension scheme and not be treated as member of the Contributory Provident Fund Scheme.
4. Learned Advocate for the petitioner submitted that the petitioner was working as Staff Nurse in the Medical Hospital managed by the respondent-Corporation and were therefore, thoroughly engaged in their own work and were not aware of the Scheme, which was floated for the purpose of benefit of pension and therefore, the petitioner had not exercised option. It is submitted that in fact the tenor of the Scheme for pension adopted by the respondent-Corporation does not require exercise of option, as the Scheme itself provided by in case, the employee fails to exercise the option of continuing in the Contributory Provident Fund Scheme, then such employee be treated to be beneficiary of the pension scheme and as the petitioners had not exercised such option, automatically, the petitioner will have to be treated as beneficiary of the pension scheme.
5. Learned Advocate for the petitioner has immediately drawn attention of this Court to the Circular No.52 dated 02-02-1984 and submitted that Circular itself suggested the employee, who was in employment prior to 01-01-1983 and was in the Contributory Provident Fund Scheme, had to exercise option, if he had to continue in the Contributory Provident Fund Scheme or else, such employee treated to be beneficiary of newly introduced Pension Scheme. The petitioners therefore, were entitled to believe that as per the parent Circular, they are required to exercise option only if they wanted to continue in the Contributory Provident Fund Scheme and as the petitioners were desirous to receive benefit from newly introduced Pension Scheme, they were not require to exercise any option, as newly introduced Pension Scheme will automatically apply to the petitioners.
6. He thereafter draws attention of this Court the subsequent Circulars and submitted that Office instructions were issued specifically for undertaking exercise of deduction towards the GPF from the salary accounts of employees and therefore also, the petitioners were under bonafide impression that their case is being considered to be beneficiary for Pension Scheme.
7. Learned Advocate for the petitioner has relied upon the decision of the Supreme Court in case of Union of India and another v/s. S. L. Verma and others reported in (2006) 12 SCC 53 to submit that in case of giving option for the purpose of Scheme, those employees who specifically elect to be governed by the Contributory Provident Fund Scheme, only they were required to give option to continue.
8. Learned Advocate for the petitione
Union of India and another v/s. S. L. Verma and others
Pepsu Road Transport Corporation, Patiala v/s. Amandeep Singh and others
The main legal point established in the judgment is that an employee's failure to exercise the option for a pension scheme within the stipulated period, coupled with the enjoyment of benefits from an....
The main legal point established in the judgment is that the failure to exercise the option to join a Pension Scheme, despite multiple opportunities, constitutes waiver of the right to claim benefits....
The court established that once an employee opts for the CPF scheme, that choice is irrevocable, barring any future claims for pension benefits under the Pension Scheme.
The main legal point established in the judgment is that the interpretation of the directions of the Hon’ble Supreme Court must be in accordance with the intent of the Court, and any confusion should....
Failure to opt for the Contributory Provident Fund by the cut-off date leads to automatic inclusion in the Pension Scheme, creating a legal fiction preventing claims against this transition.
The main legal point established in the judgment is the binding nature of previous court decisions, particularly when confirmed by the Supreme Court, and their influence on similar cases.
Option to retain CPF exercised within departmentally extended deadline valid; deeming switch to pension applies only absent affirmative choice; belated claims barred by delay, laches, acquiescence, e....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.