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2025 Supreme(Jhk) 2229

IN THE HIGH COURT OF JHARKHAND AT RANCHI
Tarlok Singh Chauhan, C.J. RAJESH SHANKAR, J. 
Kendriya Vidyalaya Sangathan – Appellant 
Versus
Sh. Bhrigu Nandan Sharma, son of Late Kedar Prasad Sharma – Respondent 
W.P.(S) No. 6520, 6552 of 2025
Decided on : 05-12-2025

Advocates Appeared:
For the Appellant : Md. Mokhtar Khan, Adv Mr. Faisal Khan, Adv
For the Respondent: Md. Jalisur Rahman, Adv

Employees recruited before 1986 are entitled to switch from a contributory fund to a pension scheme. A failure to exercise an option by the deadline results in a deemed switch, and this beneficial choice cannot be denied, as such exclusion would constitute discriminatory treatment.

Headnote:(A) Retirement Benefits - Switch-over from Contributory Provident Fund (CPF) to General Provident Fund (GPF)-cum-Pension Scheme - Employees recruited prior to 01.01.1986 - Deemed conversion rule - If no clear option was exercised by the cutoff date, employees are deemed to have switched over to the pension scheme - Such switch-over is permissible even for those who had previously exercised an option for the contributory fund given that the pension scheme is more beneficial. (Paras 15, 18, 20)

(B) Service Law - Precedent - In case of conflicting judgments, the latest ruling of the Apex Court constitutes binding precedence - Denial of beneficial retirement benefits to one set of employees is discriminatory - Beneficial schemes designed for the welfare of employees ensure that technical defaults in opting should not deprive them of legitimate pensionary rights. (Paras 18, 21)

Facts of the case:
The respondents, recruited prior to 01.01.1986, sought to convert their retirement schemes from CPF to GPF-cum-Pension. Despite initial CPF participation, the respondents contended they never exercised a formal option to continue under CPF and were entitled to be deemed participants in the pension scheme following systemic circulars. The employer contested this, asserting the option exercised was final and noting that earlier requests for such one-time changes had been denied by government authorities.

Findings of Court:
The court found that memorandum circulars indicated a deemed switch-over to pension schemes if a contrary option was not exercised by the specified date. Following the legal position that the selection of a beneficial scheme constitutes a welfare measure, the court held that employees are entitled to transition to the more lucrative pension scheme, as denying such benefits would lead to discriminatory treatment.

Issues: Whether employees recruited prior to 01.01.1986, who were initially governed by the CPF scheme, are entitled to switch to the GPF-cum-Pension scheme, and whether the lack of an express option necessitates a deemed conversion.

Ratio Decidendi: The right to choose a beneficial pension scheme is an inherent welfare provision. Consequently, where an employee did not exercise a positive option to continue in the contributory scheme by the deadline, or where the change is sought for greater justice, the switch-over is permissible to avoid discriminatory denial of retirement benefits.

Result: The writ petitions were dismissed and the order of the tribunal was upheld.

Table of Content
1. historical factual overview of kvs employees appointment and provident fund options. (Para 2 , 3 , 4 , 6 , 8)
2. parties' contentions regarding the conversion from cpf to gpf-cum-pension scheme. (Para 5 , 7 , 9 , 10 , 11 , 12 , 16)
3. interpretation of deeming clauses in administrative memos and initial legal findings. (Para 13 , 14 , 15 , 17 , 23)
4. applicability of supreme court precedents on switch-over rights between pension schemes. (Para 18 , 19 , 20 , 21 , 22 , 24)
5. dismissal of writ petitions and final judicial orders. (Para 25 , 26)

JUDGMENT :

1. Heard the parties.

2. The learned Administrative Tribunal (for short ‘Tribunal) vide its judgment dated 28.05.2025 directed the cases of the respondents herein to be converted from CPF to G.P.F.-cum- Pension Scheme and aggrieved thereby the petitioner(s) have filed these writ petitions assailing the order passed by the learned Tribunal.

3. The facts are not in dispute. The respondent herein in WP(S) No. 6552 of 2025 is retired Yoga Teacher, Kendriya Vidhyalaya, Bulandshahr((U.P.). He retired on 31.03.2019, He was initially appointed as Yoga Teacher in the year 1981. The scheme of Yoga Teacher was introduced in KVS on Experimental basis . However, later on his service was ordered to be regularized in the month of April, 1995.

4. After appointment, the respondent had opted for CPF in the month of October, 1982. Thereafter, in view of the DOPT No. 4/1/87 dated 01.05.1987 issued by the Ministry of Personnel, Public Grievance and Pensions, Government of India and also the memorandum issued by the KVS vide KVS OM No. 152-1/79-80/KVS/Budget/Part.II dated 01.09.1988, the respondent had never exercised the option for continuance in the CPF Scheme.

5. It was contended by the respondent before the Tribunal that in view of the deeming clause of the Memo dated 01.05.1987 of the DOPT and also Memo dated 01.09.1988 of the KVS, the respondent’s provident fund scheme should have converted from CPF to G.P.F.-cum- Pension Scheme, but the authorities did not convert the same till the date of his retirement. The respondent had even submitted a representation on 30.09.2019 and requested for conversion of his CPF Scheme to G.P.F.-cum- Pension Scheme but nothing had been done.

6. The respondent had applied under Right to Information Act, 2005 for getting information, as to whether he had opted for CPF Scheme Pursuant to the Memo dated 01.09.1988 of the KVS and was informed that there was no such option form available in his service record. As per the respondent, he had never exercised the option to continue in CPF Scheme and, therefore, requested the appellant for conversion of his CPF Scheme to G.P.F.-cum- Pension Scheme.

7. The appellant recommended the case for the conversion for direct recruites, leaving behind the direct recruites since the respondent who were appointed prior to 01.01.1986, constraining him to approach the tribunal for the grant of following relief:-

“That the applicant has come before this Hon'ble Court with a prayer for quashing the order dated 06/10.04.2023 passed by the respondents concerned and for a direction to change over from CPF to GPF-cum-Pension Scheme in view of the recent judgment of the Hon'ble Supreme Court of India dated 10.05.2022 passed in University of Delhi Versus Smt. Shashi Kiran and analogous cases reported in 2022 SCC OnLine SC 594 whereby the Hon'ble Apex Court has upheld the finding of the Hon'ble Delhi High Court in R.N. Virmani batch of cases. On the similar matter, the Hon'ble Jharkhand High Court has also dismissed the writ application filed by the KVS vide WP(S) No. 6050 of 2019 (The Union of India & Ors Versus Priyabrat Singh) on 14.09.2022. The case of the applicant is squarely covered with the ratio of the Judgment rendered by the Hon'ble Supreme Court of India as well as the Hon'ble Jharkhand High Court."

8. As regards the respondent in W.P.S) No. 6520 of 2025, he was initially appointed in KVS as PRT on 01.09.1980 and opted CPF schem

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