JUDGEMENT
-
(1.) Heard learned counsel for the parties. The petitioner herein is an association of faculty staff of Indian School of Mines, Dhanbad (hereinafter referred to as I.S.M., Dhanbad) who has espoused the cause of some of its members who are aggrieved by the decision of the Ministry of Human Resource Development Department (H.R.D.), Government of India contained in letter dated 16.11.2005 (Annexure-5) issued under the signature of the Director, where under the decision of I.S.M., Dhanbad permitting its faculty members to switch over from the Contributory Provident Fund (C.P.F.) scheme to the G.P.F-cum-Pension scheme has been disapproved. The said decision is based upon the opinion of the Ministry of Finance conveyed through the Director, Department of Expenditure which states that the Office Memo of 1.5.1987 is applicable only to the Central Government employees and not to the employees of autonomous institutions. A copy of the said opinion is also annexed to Annexure-5 to the writ petition.
(2.) The controversy in the present case revolves around implementation of the Office Memorandum of 1.5.1987 issued by the Government of India, Department of Pension and Pensioner Welfare to the employees/Teaching Faculty of the I.S.M., Dhanbad. The relevant provisions of the scheme which are also part of the writ petition is annexed as Annexures-1 and 8 to the supplementary affidavit and have been relied upon by the rival parties, are being quoted hereinbelow for better appreciation:--
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 the 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 an option to continue under the CPF Scheme, if they so desire. The option will have to be exercised and conveyed to the concerned Head of Office by 30.9.1987, 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.
The reading of the relevant paras of the scheme indicates that upon implementation of the 4th Central Pay Commission all the C.P.F. beneficiaries, in service on 1.5.1987 should be deemed to come over to the Pension scheme on that date unless they specifically opted out to continue in the C.P.F. scheme. Learned counsel for the petitioner as well as respondent-I.S.M., Dhanbad both have harped upon para. 3.2. of the scheme, which according to them categorically indicate that the employees under the C.P.F. scheme were required to exercise and convey their option to the concerned head of office by 30.9.1987 in the form enclosed, if the employee wished to continue under the C.P.F. scheme. If no option is received by that date the employees will be deemed to come over to the Pension scheme.
(3.) The controversy which has now arisen in the present writ application traces its genesis to the decision of the J.S.M., Dhanbad after adoption of the aforesaid scheme to invite option from its employees by notice dated 19.12.1987, as per which the C.P.F. optees were to exercise their option latest by 31.1.1988 to either remain in C.P.F. or change over to G.P.F. cum Pension scheme. The I.S.M., Dhanbad issued further notices on 3.1.1994 and 22.6.1994 giving C.P.F. optees another chance to exercise their choice to remain in C.P.F. scheme or to change over to G.P.F.-cum-Pension Scheme. As per the respondent-I.S.M., Dhanbad the total number of employees who were in G.P.F. cum pension scheme in December, 1987 were 581 out of 725 employees. The number of C.P.F. members in the corresponding date was 144. However, following the notification of December, 1987, 118 C.P.F. optees opted to switch over to G.P.F.-cum-Pension scheme. It is those employees who opted to continue under the C.P.F. scheme who are aggrieved by the decision of the Government of India, Ministry of H.R.D. (Annexure-5), which has refused to allow them to switch over to the G.P.F.-cum-Pension scheme, subsequently after the Executive Board of the I.S.M., Dhanbad in its meeting held on 9.9.2005 accepted their representations to switch over to the G.P.F.-cum-Pension scheme.;
Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.