The court held that the option to switch from CPF to Pension Scheme was valid only if exercised before the cut-off date, and prior adjudications on similar claims remain binding.

JUDGMENT :

(Ashwani Kumar Mishra, J.)

1. These appeals arise out of a judgment of learned Single Judge, dated 18.3.2025, whereby learned Single Judge has refused to extend the benefit to the writ petitioners of the judgment rendered by Hon’ble Supreme Court in University of Delhi Vs. Smt. Shashi Kiran and others , 2022 (7) SCR 957. Learned Single Judge has held that the judgment in the case of Smt. Shashi Kiran (supra) is though a judgment in rem, yet its benefit cannot be extended to petitioners in the facts of the present case.

2. Petitioners in this batch of writ petitions are the teaching and non-teaching staff of Banaras Hindu University (hereinafter referred to as the ‘BHU’). Some of them have also retired. Except petitioner Akhoury Sudhir Kumar Sinha, all other petitioners were in employment of the BHU prior to 1.1.1986. All of them were governed by the Central University Retirement Benefit Rules, 1967. As per these rules, they were entitled to benefit of Contributory Provident Fund Scheme (hereinafter referred to as ‘CPF Scheme’). They were not covered by the Pension Scheme.

3. Central government employees were also covered by the CPF Scheme. They were given an option to switch over to Pension Scheme. This option was not exercised by all employees and some of them continued under the CPF Scheme. Recommendations of Fourth Pay Commission was implemented w.e.f. from 1.1.1986 for the Central Government employees. One of the recommendation of commission was that all CPF beneficiaries in service on 1.1.1986 be deemed to have come over to the pension scheme on that date, unless they specifically opt out to continue under the CPF scheme. This decision was implemented vide office memorandum dated 1.5.1987 which is reproduced hereinafter:-

"The undersigned is directed to state that the Central Government employees who are governed by the Contributory Provident Fund Scheme (CPF Scheme) have been given repeated options in the past to come over to the Pension Scheme. The last such option was given in the Department of Personnel and Training O.M. No. F3(1)-Pension unit/85 dated the 6th June, 1985. However, some Central Government employees still continue under the CPF Scheme. The Fourth Central Pay Commission has now recommended that all CPF beneficiaries in service on January 1, 1986, should be deemed to have come over to the Pension Scheme on that date unless they specifically opt out to continue under the CPF Scheme.

2. After careful consideration the President is pleased to decide that the said recommendation shall be accepted and implemented in the manner hereinafter indicated.

3. All CPF beneficiaries, who were in service on 1.1.1986 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 CPF Scheme, if they so desire. The option will have to be exercised and conveyed to the concerned Head of Office by 30.09.1987 in the form enclosed if the employees wish to continue under the CPF Scheme. If no option is received by the Head of Office by the above date the employees will be deemed to have come over to the Pension Scheme.

3.3. The CPF beneficiaries, who were in service on 1.1.1986, 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 Scheme provided they refund to the Government, the Government contribution to the Contributory Provident Fund and the interest thereon, drawn by them at the time of settlement of the CPF Account. Such option shall be exercised latest by 30.09.1987.

3.4. In the case of CPF beneficiaries, who were in service on 1.1.1986 but have since retired, and in whose case the CPF Account has not already been paid, will be allowed retire