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2024 Supreme(Online)(CAT) 16912

CENTRAL ADMINISTRATIVE TRIBUNAL
M. Swaminathan, J, Sangam Narain Srivastava, A
N. Vijayendran – Appellant
Versus
Union of India – Respondent
OA | No. 20091/2022



Advocates:
For the Appellants/Petitioners: M/s. Balan Haridas
For the Respondents: Mr. M. Vaidyanathan (R2)

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.

Headnote:The case pertains to a dispute regarding the transition of employees from the Contributory Provident Fund (CPF) Scheme to the Pension Scheme as per Office Memorandum dated 01.09.1988. The applicant, having retired without exercising the option to remain in the CPF Scheme, claimed to be a deemed pensioner. The court found that the transition to the Pension Scheme was automatic due to the applicant's service continuity, supporting this conclusion with multiple judicial references. The court confirmed the lower tribunal's ruling to treat the applicant as a deemed pensioner and directed the respondents to implement the ruling within 12 weeks.

Table of Content
1. application for pension benefits based on service continuity. (Para 1 , 2)
2. counsel's arguments regarding entitlement under pension scheme. (Para 3 , 4)
3. judicial confirmations of procedural compliance and employee rights. (Para 5)
4. emphasis on automatic transition to pension with no further options required. (Para 6)
5. final order to grant pension benefits as directed. (Para 7 , 8)

ORAL ORDER

(Pronounced by Hon'ble Mr. M. Swaminathan, Member(J))

In the instant OA, the applicant seeks the following relief:

“...(1) to quash the order of the 2nd Respondent dated 14.10.2016 bearing F.No.110125/2014/KVS/CPF to GPF/KVS/2878

(ii) consequently direct the Respondents to treat the applicant as deemed pensioner and pay pension from the date of retirement viz., 30.09.2009, arrears of pension and

(iii) pass such other orders or directions as this Hon'ble Tribunal think fit in the circumstances of the case and render justice.”

2. Brief facts of the case as submitted by the applicant:

The applicant joined the 2nd Respondent during the year 1973 in the post of Upper Division Clerk. The applicant gained promotion to the post of Assistant Supervisor and Assistant and retired from service on 30.09.2009 on attaining the age of superannuation. The applicant while joined the service the contributory provident fund was in vogue. The Ministry of Personnel, Public Grievances and Pensions, Department of Pension and Pension Welfare issued Office Memorandum dated 01.05.1987 pursuant to the recommendations of the IV Pay Commission and the Central Government Employees were permitted to switch over from Contributory Provident Fund Scheme to Pension Scheme. As per the Memorandum, all the CPF beneficiaries who were in service as on 1.1.1986 and who still continue to be in service on the date of issue of the Office Memorandum will be deemed to have come over to the Pension Scheme and if the employee wants continue in CPF Scheme, he will have to exercise the option and convey the same to be Head of Office on or before 30.09.1987 and that if no option is received, the employee will be deemed to have come over to the Pension Scheme. The 2nd Respondent adopted the Office Memorandum dated 01.05.1987 and all the CPF beneficiaries who were in service on 1.1.1986 and who continue to be in service were deemed to have come over to the pension scheme and if anybody wants to retain in CPF Scheme, they will have to do so by exercising option by 28.02.1989 and if no option is exercised they will be deemed to have come over to the pension scheme. The applicant did not exercise his option and therefore he is a deemed pensioner. While so, the Respondents have treated the applicant to be on contributory provident fund scheme and not extended the pension scheme. When the applicant had made representation, the same has been rejected by the 2nd Respondent by an order dated 09.03.2017 on untenable grounds. Hence this original application is preferred before this Tribunal seeking the above relief.

3. When the matter was taken up for hearing, the learned counsel for the applicant stated that the issue is no more res integra. The Hon'ble High Court has decided the issue on 29.10.2024 in WP No. 20091/2022 and batch of cases and he relied on the said judgment.

4. Per contra, the learned counsel for the respondents vehmenetly opposes the submissions of the applicant. He sticked on to his reply. But when the said judgment was put forth before him he could not controvert the same.

5. We have heard both the parties at length and perused the materials placed on record including the judgments cited by the learned counsel for the respondents.

6. We find that the issue is no more res integra and has been decided by the Hon'ble High Court of Madras in WP No. 20091/2022 and batch dated 29.10.2024. The relevant porion of the jugment is extracted below:

“21. We have heard learned counsel in extenso and have carefully perused the materials referred as well as the case laws cited.

There is

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