{"id":116960,"date":"1998-08-27T00:00:00","date_gmt":"1998-08-26T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/transport-manager-pune-vs-vasant-gopal-bhagwat-dad-by-lrs-on-27-august-1998"},"modified":"2016-05-17T02:49:32","modified_gmt":"2016-05-16T21:19:32","slug":"transport-manager-pune-vs-vasant-gopal-bhagwat-dad-by-lrs-on-27-august-1998","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/transport-manager-pune-vs-vasant-gopal-bhagwat-dad-by-lrs-on-27-august-1998","title":{"rendered":"Transport Manager, Pune &#8230; vs Vasant Gopal Bhagwat (Dad) By Lrs. &#8230; on 27 August, 1998"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Transport Manager, Pune &#8230; vs Vasant Gopal Bhagwat (Dad) By Lrs. &#8230; on 27 August, 1998<\/div>\n<div class=\"doc_author\">Author: R Babu<\/div>\n<div class=\"doc_bench\">Bench: S.C. Agrawal, S. Rajendra Babu<\/div>\n<pre>           PETITIONER:\nTRANSPORT MANAGER, PUNE MUNICIPAL CORPORATION, TRANSPORTUNDE\n\n\tVs.\n\nRESPONDENT:\nVASANT GOPAL BHAGWAT (DAD) BY LRS.  AND OTHERS\n\nDATE OF JUDGMENT:\t27\/08\/1998\n\nBENCH:\nS.C. AGRAWAL, S. RAJENDRA BABU\n\n\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>\t\t      J U D G M E N T<br \/>\nRajendra Babu, J.\n<\/p>\n<p>     Leave granted.\n<\/p>\n<p>     Respondents   1 to\t 7  are\t retired  employees  of\t the<br \/>\nTransport Undertaking  of  the\tPune  Municipal\t Corporation<br \/>\n(&#8220;Municipal Corporation\t &#8221;  for\t short).  Respondent  No.  1<br \/>\nretired on  20.10.1962,\t  respondent  No.  2  on  15.8.1968,<br \/>\nrespondent No. 3 on 1.7.1974,  respondent No. 4 on 1.8.1977,<br \/>\nrespondent No.\t5 on 31.3.1975, respondent No. 6 on 2.1.1967<br \/>\nand the\t respondent No. 7 on 13.9.1961 under section 462 (3)\n<\/p>\n<p>(a) of\tthe Bombay  provincial\tMunicipal  Corporation\tAct,<br \/>\n1949,  the   Pune  Municipal   Corporation  had\t  introduced<br \/>\nProvident Fund\tRegulations for\t its employees\tin  November<br \/>\n1950 which were made applicable to officers and employees of<br \/>\nthe transport Undertaking in the Corporation. At the time of<br \/>\nretirement these  respondents had  received  provident\tfund<br \/>\namount\tstanding   to  their  credit  in  the  account.\t The<br \/>\nMunicipal  Corporation\t framed\t Pension   Scheme  for\t its<br \/>\nemployees in  the  year\t 1954.\tHowever,  employees  of\t the<br \/>\nTransport Undertaking  were not\t included in the said Scheme<br \/>\nbecause\t Transport   Undertaking  itself   was\ta   separate<br \/>\nautonomous body.  The 1954  Scheme was replaced by a revised<br \/>\nPension Regulation  Scheme of  1960. In\t the year 1970,\t the<br \/>\nCorporation framed  Pension Regulations for the employees of<br \/>\nthe  Transport\t Undertaking  which  were  approved  by\t the<br \/>\nGovernment of Maharashtra dn became effective from 1.4.1967.<br \/>\nRespondents 1,\t6 and  7 had  retired prior to 1.4.1967 and,<br \/>\ntherefore, the\tbenefits under the said Pensions Scheme were<br \/>\nnot available  to them. 2nd respondent though he had retired<br \/>\nwas covered  by the  Scheme  as\t he  retired  subsequent  to<br \/>\n1.4.1967. Respondents  3, 4 and 5 were still in service when<br \/>\nthe Scheme  was introduced and these respondents 2,3,4 and 5<br \/>\nwere informed  of the  Pension Scheme and were asked to give<br \/>\ntheir option  to have  the benefit of the said. Scheme. None<br \/>\nof them opted for the new Scheme. A modification was made to<br \/>\nthe Pension  Scheme of\t1970 on 16.1.1975 and sub-regulation<br \/>\nNo. IV\tof the\tPension Scheme\twhich is  relevant  for\t our<br \/>\npurpose was inserted which reads as follows:-\n<\/p>\n<blockquote><p>     &#8220;Notwithstanding anything contained<br \/>\n     in\t  sub-Rule    (ii)   and   (iii)<br \/>\n     Municipal Officers and Servants who<br \/>\n     were appointed  in Poona  Municipal<br \/>\n     Transport before  1st July 1970 and<br \/>\n     are  still\t  in  service  in  Poona<br \/>\n     Municipal Transport  on  or  before<br \/>\n     1st August\t 1973 and  who have been<br \/>\n     deemed  to\t have  opted  to  remain<br \/>\n     under    the     Provident\t    Fund<br \/>\n     Regulations of  Employees Provident<br \/>\n     Fund  Act,\t  1952,\t shall\t have  a<br \/>\n     further  option   to  elect  to  be<br \/>\n     governed by these Regulations or to<br \/>\n     remain under the Regulations of the<br \/>\n     Employees&#8217; Provident Fund Act, 1952<br \/>\n     applicable\t to   him.  This  option<br \/>\n     shall  be\texercised  within  three<br \/>\n     months  of\t  the  date   on   which<br \/>\n     approval of Government to this rule<br \/>\n     is\t  communicated.\t   Option   once<br \/>\n     exercised will be final.&#8221;<br \/>\n     Again the said Scheme was modified on 8.1.1985 and sub-\n<\/p><\/blockquote>\n<p>Regulation V of the modified Scheme reads as Follows:-\n<\/p>\n<blockquote><p>     &#8221; The  officers and Servants of the<br \/>\n     Pune      Municipal       transport<br \/>\n     Undertaking who were in the service<br \/>\n     before 1st April 1971 and those who<br \/>\n     are in  the service on or after 1St<br \/>\n     April 1978 and who have been deemed<br \/>\n     to have  opted to\tremain under the<br \/>\n     Provident Fund Act, 1952 shall have<br \/>\n     a\tfurther\t  option  to  elect  the<br \/>\n     pension Rules of the Pune Municipal<br \/>\n     Transport Undertaking  or to remain<br \/>\n     under  the\t  Regulations\tof   the<br \/>\n     Employees&#8217; Provident Fund Act, 1952<br \/>\n     applicable\t to  them.  This  option<br \/>\n     shall  be\texercised  within  three<br \/>\n     months  from   the\t date  on  which<br \/>\n     approval of Government to this Rule<br \/>\n     is\t  communicated.\t   Option   once<br \/>\n     exercised final.&#8221;<\/p><\/blockquote>\n<p>     The  Municipal   Corporation  passed  a  resolution  on<br \/>\n18.11.1986 extending the benefit of the Pension Rules to the<br \/>\nemployees with\tretrospective effect from 1st January, 1957.<br \/>\nEven in\t cases where  a pensioner  had died, the benefit was<br \/>\nmade available\tto his\theirs. A  Writ Petition was filed in<br \/>\nthe year 1990 to apply the resolution dated 18.11.1986 so as<br \/>\nto extend  the benefit of pension Scheme to the employees of<br \/>\nthe Transport Undertaking even though they had opted or were<br \/>\ngoverned by  the Provident  Fund Scheme\t and  retired  after<br \/>\n1.1.1957 but  prior to\t29.11.1986. The appellants contested<br \/>\nthe  said   position  on   the\tbasis\tthat  the  Transport<br \/>\nUndertaking was a separate autonomous body and the employees<br \/>\nof the\tTransport Undertaking  had separate  set of  Pension<br \/>\nRules and  they cannot\tclaim parity in the pension with the<br \/>\nemployees of the Pune Municipal Corporation. the High Court,<br \/>\nhowever, took  the view\t that the employees of the Transport<br \/>\nUndertaking are also employees of the Municipal Corporation;<br \/>\nthat they are entitled to the same benefits which  have been<br \/>\ngranted to  the employees of the Pune Municipal Corporation;<br \/>\nthat therefore,\t allowed the Writ Petitions and directed the<br \/>\nextension of  the benefits  of the Revised Pension Scheme to<br \/>\nrespondents 2  to 5.  The Corporation  was also\t directed to<br \/>\nextend the  benefits of\t the said Scheme to the employees of<br \/>\nthe Transport  Undertaking who\thad retired  after  1.4.1957<br \/>\nincluding respondents No.s 1,6 and 7.\n<\/p>\n<p>     We shall first deal with the question whether Scheme as<br \/>\napplicable to  the employees  of the  Municipal\t Corporation<br \/>\nshould\tbe   applied  to  the  employees  of  the  Transport<br \/>\nUndertaking. At para 13 of its order, the High Court records<br \/>\nas follows:-\n<\/p>\n<blockquote><p>     &#8221; It  is true that the employees of<br \/>\n     the said  undertaking are\tgoverned<br \/>\n     by different  service rules  but it<br \/>\n     is equally\t true that  the\t pension<br \/>\n     undertaking is  similar to\t the one<br \/>\n     applied\tto    other    municipal<br \/>\n     employees and  if that  is so  then<br \/>\n     there cannot be any differentiation<br \/>\n     in the  treatment\tas  far\t as  the<br \/>\n     fixation  of   cut\t off   date   is<br \/>\n     concerned.<\/p><\/blockquote>\n<p>     The position  is that  the employees  of the  Transport<br \/>\nUndertaking are\t governed by  different set  of\t rules.\t The<br \/>\nemployees  of\tthe  transport\t Undertaking  are  appointed<br \/>\npursuant to  Chapter XX\t of the Act and are subject to Poona<br \/>\nMunicipal Transport  Service Regulations.  The nature of the<br \/>\nwork done by them and other municipal employees cannot prima<br \/>\nfacie be  identical.  There  was  a  provident\tFund  Scheme<br \/>\nintroduced to  the employees  of the  Transport\t Undertaking<br \/>\nframed under  the Employees Provident Fund Act, 1952 and all<br \/>\nthe respondents had drawn the benefits of the Provident Fund<br \/>\nScheme. Under  the  Provident  Fund  Scheme  a\tcontribution<br \/>\nmatching that  of the  employees is  made by  the  Transport<br \/>\nUndertaking.  Therefore,   the\tscheme\tapplied\t insofar  as<br \/>\npension is  concerned to  the  employees  of  the  Transport<br \/>\nUndertaking  was   entirely  different\t from  that  of\t the<br \/>\nMunicipal Corporation.\n<\/p>\n<p>     The Scheme\t provided that modifications thereof were to<br \/>\nbe effective  from 1.4.1967.  The High\tCourt took  the view<br \/>\nthat the  cut of  date is arbitrary and there is no rational<br \/>\nbasis in  fixing the  Same. It is brought to out notice that<br \/>\nan agreement  was entered  into with  the employees  of\t the<br \/>\nTransport Undertaking  Corporation and\tthe Corporation\t and<br \/>\nthe agreement  became effective\t from 1st April, 1967 and in<br \/>\nthose circumstances  the particular  date had been fixed. If<br \/>\nthat is\t so, it\t cannot be  said that  the  appellants\thave<br \/>\nchosen\tthe   cut  of  date  arbitrarily  and  is  therefore<br \/>\nviolative of Article 14 of the Constitution.\n<\/p>\n<p>     It is only for the first time in the year 1970 that the<br \/>\nCorporation framed  Pension Regulations for the employees of<br \/>\nthe Transport  Undertaking. until  then there was no pension<br \/>\nscheme\tavailable   to\tthe   employees\t in   the  Transport<br \/>\nUndertaking of the Corporation. The said Scheme was modified<br \/>\nfrom time  to time  and the  resolutions were  passed by the<br \/>\nMunicipal  Corporation\t whenever  it\twanted\tto  make  it<br \/>\napplicable specifically\t to the\t employees of  the Transport<br \/>\nUndertaking, the same was specifically mentioned. When there<br \/>\nwas no such mention of the benefit of the Scheme, it was not<br \/>\nopen to the High Court to extend the benefit thereof from an<br \/>\nanterior date  to the  employees in question. The basis upon<br \/>\nwhich the distinction was maintained between the two classes<br \/>\nof employees was not appreciated by the High Court. The same<br \/>\nwas brushed aside by stating that such a reason could hardly<br \/>\nbe a  basis for\t meting out different treatment to different<br \/>\ndepartment in  vital matters  like pension  and\t other\tpost<br \/>\nretirement benefits.\n<\/p>\n<p>     One cannot\t be dogmatic in such matter. Introduction of<br \/>\nthe Provident  Fund Scheme  and application  of the  Pension<br \/>\nScheme only  from the  year 1970  was in  the background set<br \/>\nforth above.  If these\taspects make  it clear that the High<br \/>\nCourt appears to have slipped into such an error.\n<\/p>\n<p>     In the  circumstances, the view taken by the High Court<br \/>\ncannot be  sustained. The  order made  by  the\tHigh  Court,<br \/>\ntherefore, is  set aside  and the writ petition filed by the<br \/>\nrespondents shall stand dismissed. The appeal is allowed. No<br \/>\nCosts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Transport Manager, Pune &#8230; vs Vasant Gopal Bhagwat (Dad) By Lrs. &#8230; on 27 August, 1998 Author: R Babu Bench: S.C. Agrawal, S. Rajendra Babu PETITIONER: TRANSPORT MANAGER, PUNE MUNICIPAL CORPORATION, TRANSPORTUNDE Vs. RESPONDENT: VASANT GOPAL BHAGWAT (DAD) BY LRS. AND OTHERS DATE OF JUDGMENT: 27\/08\/1998 BENCH: S.C. AGRAWAL, S. RAJENDRA [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-116960","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Transport Manager, Pune ... vs Vasant Gopal Bhagwat (Dad) By Lrs. ... on 27 August, 1998 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/transport-manager-pune-vs-vasant-gopal-bhagwat-dad-by-lrs-on-27-august-1998\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Transport Manager, Pune ... vs Vasant Gopal Bhagwat (Dad) By Lrs. ... on 27 August, 1998 - Free Judgements of Supreme Court &amp; 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