T.M. SAMPATH Vs. SECRETARY, MINISTRY OF WATER RESOURCES
LAWS(SC)-2015-1-87
SUPREME COURT OF INDIA (FROM: DELHI)
Decided on January 20,2015

T.M. SAMPATH Appellant
VERSUS
Secretary, Ministry Of Water Resources Respondents

JUDGEMENT

- (1.) Leave granted in all the SLPs. CIVIL APPEALS @ SLP(C) NOS.3106-3107 of 2012 AND SLP(C) NOS.20425-20426 of 2011)
(2.) These appeals, by special leave, have been filed against the judgment and order dated 06.01.2011 passed by the High Court of Delhi at New Delhi in Writ Petition (Civil) No.3197 of 2010 and order dated 18.03.2011 in Review Petition No.90/2011, by which the High Court set aside the Order dated 08.02.2010 passed by Central Administrative Tribunal in Original Application No.2037 of 2008 filed by the appellants herein.
(3.) The facts of these appeals are briefly stated hereinafter. Appellants herein are the employees of National Water Development Agency ("NWDA") which was established as a Society in July 1982 and was registered under the Societies Registration Act, 1860. The Society NWDA, which falls under the aegis and control, both administrative and financial, of the Ministry of Water Resources, is fully funded by the Government of India, headed by the Union Minister for Water Resources as the President. The NWDA framed Rules and Regulations for its smooth functioning. Whatever emoluments have been prescribed for the Government servants by the Central Government Office Memorandum ("O.M.", for short) the same apply mutatis mutandis to the employees of NWDA. By-law 28 of the NWDA also mandates that the rules and orders applicable to the Central Government employees shall apply mutatis mutandis to the employees of the NWDA subject to modification by the Governing Body concerning service conditions and only in case of any doubt, the matter has to be referred to the Governing Body for a decision. Bye-law 26(a) provides for the emoluments structure for all employees that will be adopted by NWDA, with the approval of Ministry of Finance (Department of Expenditure). Bye-law 28 provides that till such time the NWDA frames its rules governing service conditions of the employees, rules and orders applicable to Central Government Employees shall apply mutatis mutandis, subject to such modifications as made by NWDA from time to time. As per the appellants, NWDA had implemented all the recommendations of the Fourth Central Pay Commission from 22.10.1986. The pay scales of the employees of NWDA were revised as made applicable to Central Government employees. Pursuant to the recommendation of the Fourth Central Pay Commission, Office Memorandum dated 01-05-1987 was issued by the Ministry of Personnel, Public Grievance and Pension, Department of Pensions and Pensioners' Welfare, for switch-over of employees from Contributory Provident Scheme to Pension Scheme, according to which all Contributory Provident Fund (CPF) Scheme beneficiaries, who were in service of the Central Government on 1.1.1986, were deemed to have come over to the Pension Scheme unless they specifically opted out to continue under CPF Scheme. This Pension Scheme was formulated by the Government under the 1972 Pension Rules. The Office Memorandum dated 01-05-1987 reads as under: "Change-over of employees from Contributory Provident fund Scheme to Pension Scheme (G.I., Dept. of Pensions & Pensioners Welfare, O.M. No.4/1/87-P.I.C.I., dated the 1st May, 1987.) 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. F.3 (1)-Pension Unit/85, dated 6th June, 1985. However, some Central Government employees still continue under the CPF Scheme. The Fourth Central pay Commission has 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, it has been decided that the said recommendation shall be accepted and implemented in the manner hereinafter indicated. 3. 1 All CPF beneficiaries, who were in service on 1st January, 1986, and who are still in service on the date of issue of these orders (viz, 1st May, 1987) will be deemed to have come over to the pension Scheme. 3.2 The employees of the category mentioned above will, however, have as option to continue under the CPF Scheme, if they so desire. The option will have to be exercised and conveyed to the 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 1st January, 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 30.9.1987. 3.4 In the case of CPF beneficiaries, who were in service on 1.1.1986, but have been 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 benefits settled under the CPF Scheme. 3.5 In the case of CPF beneficiaries, who were in service on 1.1.1986, but have since died either before retirement or after retirement, the case will be settled in accordance with para 3.3 or 3.4 above, as the case may be. Options in such cases will be exercised latest by 30.9.1987, by the widow/widower and in the absence of widow/widower by the eldest surviving member of the family who would have otherwise been eligible to family pension under the Family Pension Scheme if such scheme were applicable. 3.6 The option once exercised shall be final. 3.7 In the types of cases covered by paragraphs 3.3 and 3.5 involving refund of Government's contribution to the contributory provident fund together with interest drawn at the time of retirement, the amount will have to be refunded latest by the 30th September, 1987. If the amount is not refunded by the said date, simple interest thereon will be payable at 10% per annum for period of delay beyond 30.9.1987.;


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