Supreme Court Rejects Retired NIRD Professor's Claim for GPF Pension After 2012 Regularisation

The Supreme Court of India has dismissed a Special Leave Petition filed by a retired professor of the National Institute of Rural Development (NIRD) who sought to be covered under the General Provident Fund-cum-Pension (GPF) Scheme instead of the Central Provident Fund (CPF) Scheme. A bench comprising Justice Ujjal Bhuyan and Justice Atul S. Chandurkar held that the petitioner, K. Suman Chandra, was bound by the terms of his 2012 regularisation order, which expressly continued his CPF coverage and which he never challenged.

A Binding Regularisation Order

Chandra was initially appointed as a Research Associate at NIRD on a contractual basis in 1984 and was placed under the CPF Scheme from the outset. His services were regularised in 1985, and he subsequently held several positions, including Assistant Director and Deputy Director. In 2007, he was appointed Professor on a contractual basis, and his services as Professor were regularised by Office Order No. 98 dated May 4, 2012. The order contained two crucial conditions: regularisation would take effect from the date of the order itself, and his services would continue to be governed by the existing CPF Scheme.

Chandra retired on January 31, 2017, and received his retiral benefits—including NIRD’s contribution to his CPF account—on February 14, 2017. Only after retirement did he approach the Central Administrative Tribunal (CAT), Hyderabad, seeking a declaration that his continued coverage under the CPF Scheme was illegal and contrary to the NIRD Rules, 2011 and the NIRD Service Bye-laws.

The Precedent That Sealed the Fate

Chandra’s case was closely tied to that of his colleague, Shyam Sunder Prasad Sharma, whose services were also regularised by the same May 4, 2012 order. Sharma had earlier obtained a favourable order from the CAT, which was upheld by the High Court. Relying on that, CAT allowed Chandra’s application in July 2019.

However, in National Institute of Rural Development v. Shyam Sunder Prasad Sharma (decided on February 28, 2023), the Supreme Court set aside the orders in Sharma’s favour. It held that the regularisation under the 2012 order operated prospectively from the date of the order and did not relate back to the date of initial appointment. Since the conditions of the order—including continued CPF coverage—were never challenged, Sharma remained entitled only to CPF benefits.

High Court's Rejection and Supreme Court's Affirmation

When NIRD challenged CAT’s order in Chandra’s case, the Telangana High Court applied the Sharma precedent and dismissed Chandra’s claim. The High Court noted that Chandra had approached the CAT only after retirement and after accepting CPF benefits.

Before the Supreme Court, Chandra’s counsel attempted to distinguish his case from Sharma’s, but the bench found no distinguishing features. The Court emphasised that Chandra’s regularisation order contained identical conditions to Sharma’s, and that Chandra had never challenged those terms during his service or after receiving benefits.

Key Observations

The Supreme Court made the following key observations:

“The petitioner's case is based on Office Order No. 98 dated 04.05.2012 by which the services of Academic Staff working on contractual basis were regularised. By the said Office Order, the services of the petitioner as Professor on contractual basis were regularised subject to various terms and conditions, which included the order of regularisation taking effect from the date of the said order as well as services being continued to be governed by the existing CPF Scheme.”

“The terms and conditions of regularisation stipulated in the Office Order dated 04.05.2012 were not challenged by the petitioner at any point of time.”

“Having accepted the terms and conditions for regularisation of services on the post of Professor and the grievance in this regard having been raised post-retirement after accepting benefits under the CPF Scheme, the petitioner was rightly non-suited by the High Court.”

Final Decision

The Supreme Court concluded that Chandra’s case was squarely covered by the Sharma precedent and found no reason to exercise jurisdiction under Article 136 of the Constitution. The Special Leave Petition was dismissed, upholding the Telangana High Court’s decision. The ruling reinforces the principle that employees who accept the terms of their regularisation without protest, and later accept benefits under those terms, cannot seek to renegotiate their pension coverage after retirement.