IN THE HIGH COURT OF RAJASTHAN BENCH AT JAIPUR
SANJEEV PRAKASH SHARMA, J.
Manohar Singh – Appellant
Versus
Rajasthan State Road Transport Corporation and Ors. – Respondents
S.B. Civil Writ Petition No. 6947 of 2003
Decided On : 12-09-2019
PENSION - VOLUNTARY RETIREMENT - EMPLOYEE PENSION SCHEME 1965 - SECTION 2(1)(d) - EMPLOYEE PENSION SCHEME 1995 - SECTION 2(1)(d) - EMPLOYEES' PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952 - SECTION 7(A) - Reinstatement of employee after quashing of termination order - Entitlement to pension under voluntary retirement scheme - Calculation of service period - Break in service due to non-deposit of pension contribution by employer - Liability of employer to deposit contribution and interest - Action against employer for non-deposit of contribution.
Fact of the Case:
The petitioner, a driver with the Rajasthan State Road Transport Corporation (RSRTC), was terminated from service in 1988. He challenged the termination order and was reinstated in service in 2001 after the termination order was quashed by the court. The petitioner sought voluntary retirement in 2002 and the same was accepted by RSRTC. However, the petitioner's pension was not released as he had not completed 10 years of service, as required under the pension scheme.
Finding of the Court:
The court held that the petitioner was entitled to receive pension under the Employee Pension Scheme 1965, as he had completed more than 23 years of service, including the period of suspension. The court directed RSRTC to deposit the necessary pension contribution along with interest, and the Provident Fund Department to release the pension to the petitioner.
Issues: 1. Whether the petitioner was entitled to receive pension under the voluntary retirement scheme, despite not completing 10 years of service due to a break in service caused by the termination of his employment? 2. Whether the employer was liable to deposit the pension contribution and interest for the period of break in service?
Ratio Decidendi: 1. The court held that the petitioner was entitled to receive pension under the voluntary retirement scheme, as he had completed more than 23 years of service, including the period of suspension. The court relied on the provisions of the Employee Pension Scheme 1965 and the Employee Pension Scheme 1995, which define "service" as "continuous service rendered by a member from the date of joining the establishment to the date of his retirement". 2. The court held that the employer was liable to deposit the pension contribution and interest for the period of break in service, as it was the employer's responsibility to deposit the contribution regularly. The court relied on the provisions of Section 7(a) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, which provides for action against an employer who fails to deposit the contribution.
Final Decision: The court allowed the writ petition and directed RSRTC to deposit the necessary pension contribution along with interest, and the Provident Fund Department to release the pension to the petitioner. The court also directed the Provident Fund Department to initiate action against the concerned authorities under Rule 7(a) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, if the contribution was not deposited within two months.
JUDGMENT :
Sanjeev Prakash Sharma, J.
1. The petitioner filed this writ petition claiming following prayers :-
(i) all the pensionary benefits may be given to the petitioner;
(ii) from 8.12.1988 to 6.7.2001 all the salary during this period and all consequential benefits may be given to the petitioner;
(iii) Selection grade may kindly be paid to the petitioner as per his service;"
2. The brief facts which required to be noticed are that the petitioner was appointed on 22nd May, 1979 with the Rajasthan State Road Transport Corporation (for short "RSRTC") on the post of "Driver". His services were terminated vide order dated 08.12.1988, which has been challenged by preferring a civil suit. The civil suit was dismissed on 02.09.1994 by the Additional Civil Judge (Junior Division) No. 5, Jaipur. Thereafter, he preferred a Civil Regular Appeal No. 89/1998 before the learned Additional District Judge No. 3, Jaipur, who set aside the termination order with further direction to the respondent-RSRTC to conduct enquiry fresh, during the pendency of the enquiry, services of the petitioner were to remain under suspension. The enquiry was concluded vide order dated 04.06.2001. The Disciplinary Authority held the petitioner guilty of charges and withheld his two annual grade increments with cumulative effect. The remaining salary apart from substance allowances was also forfeited for the suspension period and the petitioner was reinstated on duty.
3. Thereafter, the petitioner has sought voluntary retirement by moving an application on 31.05.2002 and the same was accepted by the respondent-RSRTC by 28th May, 2002 with effect from 31st May, 2002. The case of the petitioner is for release of pension in terms of voluntary retirement order dated 18.10.2002, however, it has not been released for the reasons that the total actual services rendered by the petitioner was treated as less than 10 years.
4. Learned counsel for the petitioner submits that as per the scheme of voluntary retirement, a person can seek voluntary retirement if he has completed more than 10 years of service or has attained age of 40 years. It is further submitted that the petitioner had completed more than 23 years of service and therefore his voluntary retirement was accepted and he was entitled to receive pension in terms of the years of service rendered. Learned counsel further submits that the respondents although have not passed any order but have sent the reply of the legal notice informing that the respondents have counted the petitioner's service as 9 years and 9 days only treating the entire period from 08.12.1988 till reinstatement as break in service.
5. A reply has been preferred by the contesting respondents No. 1 & 2 and respondent No. 3 separately. Respondents No. 1 & 2 in their reply state that the petitioner was a member of the Family Pension Scheme of 1971 under the Employee Contributory Provident Fund, it was later on converted as Employee Pension Scheme 1965 w.e.f. 16.11.1995. The pension case of the petitioner was sent to respondent No. 3 who objected that the petitioner has not completed 10 years of service thus not eligible for pension. Thereafter, his contribution of employees has been refunded to him as amounting Rs. 5,749/- and has been deposited in his account, thus, it is submitted that pension is not payable to him. Respondent No. 3 i.e. Provident Fund Department in its reply submitted that the petitioner has not completed qualified pensionable service of 10 years as such he was found not eligible for pension and also states that after having sent the letter from respondent-RSRTC for release of pension, it was noticed that the petitioner was having one more code number i.e. RJ/272/14087. As the pension scheme is linked with pension contribution and total period of service,
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