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IN THE HIGH COURT OF ALLAHABAD
SAUMITRA DAYAL SINGH, RAJENDRA KUMAR-IV, JJ.
Commissioner Kendriya Vidyalaya Sangathan – Appellant
Versus
Central Administrative Tribunal Bench And Another – Respondents
Writ A No.20745 of 2019
Decided on : 09-10-2023
GPF Scheme - Interpretation of Office Memorandum No.152-1/79-80/KVS/Budget/Part II - 01.09.1988 - Summary of Acts and Sections
Fact of the Case:
The Union of India filed a writ petition against the order of the Central Administrative Tribunal, Allahabad Bench, which allowed the Original Application and declared the private respondent entitled to pension under the GPF scheme instead of the CPF scheme. The dispute arose from the interpretation of the Office Memorandum No.152-1/79-80/KVS/Budget/Part II, dated 01.09.1988, issued by the Kendriya Vidyalaya Sangathan (KVS). The petitioner argued that the respondent had opted for the CPF scheme before the cut-off date, while the respondent contended that the legal fiction created by the Office Memorandum automatically migrated existing employees to the GPF scheme, and non-exercise of the option gave rise to absolute legal effect.
Finding of the Court:
The Court found that the legal fiction created by the Office Memorandum automatically migrated existing employees to the GPF scheme, and the respondent failed to provide evidence of exercising the option to remain under the CPF scheme before the cut-off date. The Court held that the continued deductions under the CPF scheme did not override the legal fiction, and the respondent was entitled to the benefits of the GPF scheme.
Issues: Interpretation of the Office Memorandum No.152-1/79-80/KVS/Budget/Part II, dated 01.09.1988, and the effect of the legal fiction created by the Memorandum on the migration of employees from the CPF scheme to the GPF scheme.
Ratio Decidendi: 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 scheme before the cut-off date. The continued deductions under the CPF scheme did not override the legal fiction, and the employee was entitled to the benefits of the GPF scheme.
Final Decision: The writ petition lacked merit and was dismissed. The respondent was entitled to the benefits of the GPF scheme, and the Union of India was entitled to make due deductions of amounts, if any, paid under the CPF scheme.
JUDGMENT :
1. Heard Sri Narendra Pratap Singh, learned counsel for the petitioner; Sri Rishabh Agarwal, learned counsel for the respondents and perused the records.
2. Present writ petition has been filed by the Union of India against the order of the Central Administrative Tribunal, Allahabad Bench Allahabad, in Original Application No.330/203/2019, dated 17.05.2019, Jai Prakash Mishra versus Union of India and 4 others. By that order, the Tribunal has allowed that Original Application and declared the private respondent entitled to pension under GPF-cum-Pension scheme (hereinafter referred to as “the GPF scheme”) as against the CPF scheme to which the respondent had been held entitled to, by the petitioner Union of India.
3. The facts of the case fall within a very narrow compass. The petitioner was appointed on the post of Primary Teacher by the Kendriya Vidyalaya Sangathan (hereinafter referred to as “KVS”) on 03.10.1978. He retired on the post Trained Graduate Teacher (Biology), on 30.06.2012. At the time of his retirement the respondent was not granted benefit of the GPF scheme. He protested and made that claim. It was rejected by the order dated 11.06.2018.
That order became subject matter of challenge in the above Original Application. The same has been allowed.
4. The dispute revolves around the interpretation to be made to the Office Memorandum No.152-1/79-80/KVS/Budget/Part II, dated 01.09.1988 issued by the KVS. Relevant to our discussion, the said Office Memorandum is extracted below:-
OFFICE MEMORANDUM
Subject:-Change over of the Kendriya Vidyalaya Sangathan employees from the Contributory Provident Fund Scheme to Pension Scheme.
…………..
In the 51st Meeting of the Board of Governor of the Kendriya Vidyalaya Sangathan held on 31 May, 1988, it was approved that Kendriya Vidyalaya Sangathan will implement mutatis-mutandis the decision taken by the Govt. of India on the recommendations of the Fourth Central Pay Commission for its employees for the change over from Contributory Provident Fund Scheme to Pension Scheme in the manner as indicated in the Ministry of Personnel, Public Grievances and Pensions (Deptt. Of Pension and Pensioners, Welfare) O.M. No. 4/1/87-PIC dated 01.05.1987.
2. It has, accordingly, been decided that persons joining service in the Sangathan on or after 01.01.1986 shall be governed only by the G.P.F. cum-Pension Scheme and will have no option for C.P.F. Scheme. However, for all CPF beneficiaries, who were in service on 01.01.1986, the decision taken shall be implemented in the manner herein after indicated.
3. All C.P.F. beneficiaries, who were in service on 01.01.1986 and who are still in service on the date of issue of these orders will be deemed to have come over to the Pension Scheme.
3.2 The employees of the category mentioned above will, however have an option to continue under the C.P.F. Scheme, if they so desire. The option will have to be exercised and conveyed to the concerned Head of office/Principal by 31.01.1989, in duplicate, in the form enclosed (one form may be sent to this office while the other kept with personal records of the employee concerned) if the employees wish to continue under the CPF Scheme. If no option is received by the Head of office/Principal by the above date and in this office through them by 28.02.1989 the employee will to be deemed to have come over the Pension Scheme. The Head of office/Principal are to forward in one lot options exercised by employees for retention of CPF Scheme received by them, to reach Sangathan's Office latest by 28.02.1989. Where no option to continue under the CPF Scheme is received by them from any, nil report be sent by due date viz. 28.02.1989.
3.3. The CPF beneficiaries, who were in service on 01.01.1986, but have since retired and in whose case retirement benefits have also been paid under the CPF Scheme, will have an option to have their retirement benefits calculated under the Pension Sch
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.
Belated post-retirement claim for switching from CPF to pension scheme rejected due to inordinate delay, laches, estoppel, and secondary evidence proving voluntary CPF continuance despite missing ori....
The court affirmed that failure to exercise the option to switch from CPF to GPF within stipulated timelines renders later requests invalid, underlining the importance of adherence to administrative ....
The transition from Contributory Provident Fund to Pension Scheme is automatic for those who did not exercise their option, ensuring deemed pensioner status for eligible employees.
The court affirmed that teachers of Kendriya Vidyalaya Sangathan automatically transitioned to the GPF Scheme without exercising an option to remain in the CPF Scheme, as per the O.M. dated 01.09.198....
In the absence of a specific option, an employee cannot be deemed to have opted for a different pension scheme, as per relevant documents and legal precedents.
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