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2024 Supreme(Online)(CAT) 17333

CENTRAL ADMINISTRATIVE TRIBUNAL
Smt Kalyani Joshi – Appellant
Versus
Kendriya Vidyalaya Sanghthan – Respondent
O.A./249/2021



Failure to timely exercise the option for GPF/Pension Scheme bars entitlement to conversion from the CPF Scheme, and significant delays preclude claims for benefits.

Headnote:(A) Central Administrative Tribunal Act, 1985 - Office Memorandum dated 01.05.1987 and 01.09.1988 regarding pension scheme conversion - An employee under CPF Scheme who fails to exercise option for GPF/Pension by a specified date is deemed to have remained under CPF - The applicant retired on 31.10.2015 under CPF without objection, and her late representation in 2018 does not justify a shift to GPF. (Paras 2, 3, 9, 10, 12, 21, 22)

Facts of the case:
The applicant joined as TGT (English) in 1985 under CPF and retired on 31.10.2015 without opting to switch to the Pension Scheme as per the Office Memorandum. Post-retirement, she sought to convert to the GPF/Pension Scheme but was denied on grounds of delay in claiming benefits. (Paras 9, 10)

Findings of Court:
The applicant was deemed to have remained under the CPF Scheme due to her inaction and late claim, thereby not entitled to conversion to the GPF/Pension Scheme. Delays and laches precluded her claim. (Paras 12, 22)

Issues: Whether the applicant's failure to submit an option timely bars her from claiming conversion to the Pension Scheme, and if her representation constitutes a valid claim despite significant delay. (Paras 10, 11)

Ratio Decidendi: The court ruled that an employee’s failure to exercise a timely option as per the stipulated Memoranda constitutes abandonment of the conversion right, and that long delay nullifies claims for benefits subsequently sought. (Paras 21, 22)

Result: Original Application dismissed.

Table of Content
1. applicant joined kvs under cpf scheme. (Para 2 , 3)
2. applicant's plea relies on om provisions. (Para 4 , 5 , 6)
3. delay in application undermines the claim. (Para 7 , 10 , 11)
4. claims against procedural norms are dismissed. (Para 8 , 9 , 15 , 16 , 23)
5. supreme court precedents bind the case. (Para 12 , 13 , 14)

O R D E R

As it reveals from the record, on 24.08.1985 Applicant joined as TGT (English) in Kendriya Vidyalaya Sangathan under CPF Scheme in vogue. On the recommendation of the 4th CPC, Govt. of India issued OM dated 01.05.1987 giving one time opportunity to the employees continuing under CPF to opt as to whether to continue under CPF or to come over to Pension/GPF Scheme, based on which, KV also issued OM on 01.09.1988 for its employees continuing under CPF, stipulating conditions as under:

OFFICE MEMORANDUM

“F.No. 152-1/79-80/KVS/Budget/Part.ll Dated: 01.09.88

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 Scheme Provided they refund to the Sangathan, the Sangathan contribution (management Share) 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 31.01.1989.

3.4 In the case of CPF beneficiaries, who were in service on 01.01.1988, but have since retired, and in whose case the CPF account has not already been paid, will be allowed retirement benefits as if they were borne on pensionable establishments unless they specifically opto by 31.01.1989 to have their retirement benefits settled under the CPF Scheme.

3.5 In the case of CPF beneficiaries, who were in service on 01.01.1986

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