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2007 Supreme(Raj) 1495
2008 (2) WLN 337 (Raj.)
Rajasthan High Court (Jaipur Bench)
HON’BLE MR. JUSTICE R.M. LODHA
HON’BLE MR. JUSTICE MOHAMMAD RAFIQ
Jaipur Vidhyut Vitran Nigam Ltd., Through its Chairman, Jyoti Nagar, Jaipur and Anr.
Versus
Mahaveer Prasad Jain S/o Shri Daulat Mal Jain
D.B. Special Appeal (Writ) No. 1326/2007—Decided on 19.12.2007.
APPEARANCES :
Mr. S.P. Sharma, Advocate, for the Appellants.
Mr. Nitin Jain, Advocate, for the Respondent.
Headnote:Service and Employment—Absorption—Pension—Contributory Provident Fund (CPF)—Absorbed employees will be governed by the Rules of absorbing enterprises—Absorbing department had both the Central Provident Fund Scheme as well as Pension Scheme for its employees—CPF account of the present respondent was closed after he was absorbed in the RSEB and that he was called upon to deposit employee's share of CPF amount which he did—Appellants accepted that respondent would be governed by the pension scheme and his case is covered by 11(b)—Thus, rejection of the respondent's claim for pension was not legally proper—Merely because the respondent had withdrawn the entire CPF amount prior to his absorption would not make any difference because the CPF account was closed by the Board on the employee's absorption.
[Paras 5, 6, 10 and 11]
2. Two fold submission was made by the counsel for the appellants, namely : (i) that paragraph 11 of the guidelines issued by the Government of Rajasthan (State Enterprises Department) dt. 02.07.1991 for absorption of employees of State Public Enterprises is applicable and not-paragraph 11(b) of the said guidelines; and (ii) that having withdrawn the entire amount of CPF Scheme before his absorption in the Rajasthan State Electricity Board (Now Jaipur Vidhyut Vitran Nigam Limited), the respondent No. 1 was not entitled to the benefit of pension scheme under the said guidelines. In this connection, the counsel for the appellants relied upon two judgments of the Supreme Court; (i) Bank of India and Ors. vs. O.P. Swamakar and Ors. (2003) 2 SCC 721, and KVS and Ors. vs. Jaspal Kaur and Anr. (2007) 6 SCC 13.
3. That there is mechanism for absorption of surplus employees of one State Public Enterprise to other State Public Enterprise is not in dispute. By providing for mechanism for absorption of surplus employees of one state public enterprise to other state public enterprise, guidelines came to be issued by the Bureau of Public Enterprises, State Enterprises Department, Government of Rajasthan on 02.07.1991. Inter alia it provides that an appointment by way of absorption of surplus employees shall be deemed a direct recruitment; surplus employees on absorption shall be governed by the Rules of absorbing enterprises and the provision of CPF scheme or pension scheme, as the case may be, in the case of surplus employees. Paragraph 11 of the guidelines makes provision for the surplus employees who were covered under CPF Scheme. It provides thus:
“11. In case the surplus employees were covered under CPF Scheme, on absorption :
(a) In an enterprise having CPF Scheme, the balance in the CPF account of the surplus employees shall be transferred to the absorbing enterprise. On absorption the surplus employees would be governed by CPF Scheme and rules of the absorbing enterprise.
(b)In an enterprise having pension scheme, the balance in CPF Account of surplus employees will be transferred to absorbing enterprise for credit to the CPF Account of the employees and the pension Fund in proportion of employees subscription and organisation’s contribution respectively. The eligible period of service rendered in relieving enterprise would be considered as qualifying service under pension scheme of absorbing enterprise.”
4. Paragraph 12 deals with the surplus employees covered by pension scheme which reads thus:
“12.In the case of the surplus employees were covered by pension scheme, on absorption:
(a) In an enterprise having pension scheme the relieving enterprise would transfer the balance of GPF Account of the employee and his share in the Pension Fund of the relieving organization to the absorbing organization for credit to GPF Account and Pension Fund respectively.
(b) In an enterprise having CPF Scheme, the balance of GPF Account and share in pension Fund would be transferred to the absorbing enterprise for credit to the CPF Account. On absorption, the surplus employees would be governed by CPF Scheme and rules of the absorbing enterprise.”
5. In view of the admitted fact that the present respondent (original petitioner) was not covered by Pension Scheme as an employee of the Rajasthan State Agro Industries Corporation Limited, para 12 of the guidelines has no application. Paragraph 12 of the guidelines governs surplus employees covered by a Pension Scheme. Since the respondent was covered under the CPF Scheme, his case for absorption is covered by paragraph 11. Thus, first contention of the counsel for the appellant has no meri
