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2023 Supreme(All) 1623

IN THE HIGH COURT OF ALLAHABAD
OM PRAKASH SHUKLA, J.
Sheeldhar Singh And Others – Appellants
Versus
State Of U.P. Thru. Prin. Secy. Basic Edu. Anubhag Lko. And Others – Respondents
Writ A No.83 of 2023
Decided on : 13-12-2023

Advocates:
Advocate Appeared:
For the Appellant : Vinod Kumar Singh, Vivek Srivastava
For the Respondent: Ajay Kumar, Ran Vijay Singh

The main legal point established in the judgment is the applicability of the New Pension Scheme to government employees who joined the service after 01.04.2005, based on the relevant rules and regulations. The judgment also emphasizes the importance of adhering to the terms and conditions of appointment and the enforceability of the New Pension Scheme for new recruits.

Headnote:

Pension Scheme - Applicability to Assistant Teachers/Head Masters - U.P. Retirement Benefit Rules, 1961, U.P. General Provident Fund Rules, 1985 - The court considered the applicability of the New Pension Scheme to Assistant Teachers/Head Masters employed in Primary Schools in the State who joined after 01.04.2005. The court analyzed the impugned notification dated 28.03.2005 and subsequent orders, and discussed the arguments presented by both parties regarding the New Pension Scheme and its impact on the employees. The court also referred to relevant legal provisions and previous judgments to determine the applicability of the pension scheme to the petitioners. The court ultimately dismissed the writ petitions, upholding the applicability of the New Pension Scheme to the petitioners.

Fact of the Case:

The case concerned the applicability of the New Pension Scheme to Assistant Teachers/Head Masters employed in Primary Schools in the State who joined after 01.04.2005. The petitioners challenged the notification dated 28.03.2005 and subsequent orders issued by the State Government related to the adoption and implementation of the Defined Contribution Pension Scheme.

Finding of the Court:

The court found that the New Pension Scheme was mandatorily applicable to new recruits joining the service of the State Government after 01.04.2005. The court held that the petitioners, who joined after the enforcement of the New Pension Scheme, could not claim coverage under the Old Pension Scheme. The court also noted that the petitioners' challenge to the impugned orders lacked merit and dismissed the writ petitions.

Issues: The main issue revolved around the applicability of the New Pension Scheme to the petitioners who joined the service after 01.04.2005. The court also addressed the petitioners' contentions regarding the alleged unreasonableness and arbitrariness of the impugned orders.

Ratio Decidendi: The court relied on the U.P. Retirement Benefit Rules, 1961 and U.P. General Provident Fund Rules, 1985 to determine the eligibility of the petitioners for the Old Pension Scheme. The court also considered previous judgments and legal principles related to pension rights and the applicability of pension schemes to government employees.

Final Decision: The court dismissed the writ petitions, upholding the applicability of the New Pension Scheme to the petitioners who joined the service after 01.04.2005. The court found no illegality or infirmity in the impugned Government Orders and held that the petitioners' challenge lacked merit.

JUDGMENT :

(1) Heard learned Counsel for the parties and perused the material brought on record.

(2) The issue involved in the above-captioned petitions concerns applicability of New Pension Scheme to the Assistant Teacher/ Head Master employed in Primary Schools in the State who admittedly joined after 01.04.2005. The entire controversy revolves around the notification/Government Order dated 28.03.2005, which is under challenged in the above-captioned writ petitions, issued by the State Government in relation to adoption of Defined Contribution Pension Scheme on the lines of the Government of India notification as well as consequential orders issued by the authorities of the State/Basic Education Officer concern in furtherance of the aforesaid Government Order dated 28.03.2005 for proper implementation of the Defined Contribution Pension Scheme in place of existing Old Pension Scheme.

(3) Apparently, by the Government Order dated 28.03.2005, the State Government has mandated that w.e.f. 1st of April, 2005, the new Defined Contribution Pension Scheme (hereinafter referred to as “New Pension Scheme") would compulsorily apply to all new recruits to the service of the State Government and of all State controlled autonomous and State-aided private educational institutions, where the existing pension scheme is patterned on the scheme for Government employees and is funded by the consolidated fund of the State Government.

(4) In furtherance to the impugned notification dated 28.03.2005, the State Government has passed consequential order dated 16.12.2022, directing that without registration of the Permanent Retirement Account Number (PRAN) under New Pension Scheme of the Teachers after 01.04.2005, their salary may not be drawn. Pursuant to this order dated 16.12.2022, the Finance Controller, Basic Shiksha Parishad, Prayagraj, vide order dated 22.12.2022, directed all the District Basic Education Officers and Finance & Accounts Officer for ensuring the compliance of para-3 (v) of order dated 16.12.2022. Thereafter, respective consequential orders, impugned in the above-captioned writ petitions, have been passed by the Basic Education Officer and Finance and Accounts Officers of each district of the State for implementation of the impugned order dated 16.12.2022.

(5) Shri H.G.S. Parihar, learned Senior Advocate assisted by Shri Durga Prasad Shukla representing the petitioners has drawn attention to impugned notification dated 28.03.2005 and has argued that the New Pension Scheme has been made effective in Uttar Pradesh from 01.04.2005 vide impugned notification dated 28.03.2005, which is on the basis of a defined contribution and has two tiers i.e. Tier-I and Tier-II. According to the learned Senior Counsel, the contribution to Tier-I is mandatory for Government servant, who joined Government service on or after 01.04.2005 i.e. the date on which State Government adopted the New Pension Scheme, whereas Tier-II is optional and is at the discretion of the Government servant. Learned Counsel submits that on adoption of the New Pension Scheme by the State Government, a corresponding amendment was made in the U.P. Retirement Benefits Rules, 1961 and General Provident Fund Rules, 1985 w.e.f. 01.04.2005, however, in the said amendment, nothing has been stated about New Pension Scheme and only stated that these Rules will not be applicable to the employees who join services on or after 01.04.2005.

(6) Elaborating his submission, learned Senior Counsel representing the petitioners has argued that under the New Pension Scheme, both the employee and employer make predetermined contribution towards the scheme and the asset Managers manages the investment on the basis of their wisdom. Learned Counsel submits that in India, the downward prediction of interest rules has increased the liability of the pension providers. The contributions are invested in a predefined asset and managed by the pension fund managers. However, the Pension Fund Regulatory and Dev

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