{"id":160776,"date":"2011-05-09T00:00:00","date_gmt":"2011-05-08T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/union-of-india-thr-vs-shyam-babu-maheshwari-on-9-may-2011"},"modified":"2017-07-01T09:09:35","modified_gmt":"2017-07-01T03:39:35","slug":"union-of-india-thr-vs-shyam-babu-maheshwari-on-9-may-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/union-of-india-thr-vs-shyam-babu-maheshwari-on-9-may-2011","title":{"rendered":"Union Of India Thr. … vs Shyam Babu Maheshwari on 9 May, 2011"},"content":{"rendered":"
Supreme Court of India<\/div>\n
Union Of India Thr. … vs Shyam Babu Maheshwari on 9 May, 2011<\/div>\n
Author: A K Patnaik<\/div>\n
Bench: R.V. Raveendran, A.K. Patnaik<\/div>\n
                                                                          Reportable\n\n\n              IN THE SUPREME COURT OF INDIA\n\n\n\n                CIVIL APPELLATE JURISDICTION\n\n\n               CIVIL APPEAL No. 4202 OF 2011 \n\n         (Arising out of S.L.P. (C) No. 9803 of 2006)\n\n\n                                        \n\nUnion of India through the Secretary,          ......      Appellant\n\nNational Council of Educational \n\nResearch & Training  \n\n\n\n                                  Versus\n\n\n\nShyam Babu Maheshwari                            ...... Respondent\n\n\n\n\n\n                                 JUDGMENT\n<\/pre>\n
A. K. PATNAIK, J.\n<\/p>\n
      Leave granted.\n<\/p>\n
2.    This   is   an   appeal   against   the   order   dated   23.05.2006 <\/p>\n
      of   the   Division   Bench   of   the   Rajasthan   High   Court, <\/p>\n
      Jaipur   Bench,   dismissing   Civil   Special   Appeal   (Writ) <\/p>\n
      No.898 of 2005 of the appellant.\n<\/p>\n
3.    The   facts   of   this   case   are   that   the   respondent   was   in <\/p>\n
      the   service   of   the   National   Council   of   Educational <\/p>\n
      Research   and   Training   (for   short   `the   NCERT’).     The <\/p>\n
      employees   of   the   NCERT   were   given   an   option   to <\/p>\n
                               2<\/span><\/p>\n
choose  either  the  Central  Provident  Fund  Scheme (for <\/p>\n
short   `the   CPF   Scheme’)   or   the   General   Provident <\/p>\n
Fund-cum-Pension   Scheme   (for   short   `the   Pension <\/p>\n
Scheme’).   In 1977,  the  respondent  opted  for the CPF <\/p>\n
Scheme.   On 31.07.1984, the respondent retired from <\/p>\n
service   and   withdrew   his   benefits   under   the   CPF <\/p>\n
Scheme.         On   06.06.1985,   the   Ministry   of   Personnel <\/p>\n
and   Training   Administrative   Reforms   &   Public <\/p>\n
Grievances and Pension (Department of Personnel and <\/p>\n
Training)   issued   O.M.   No.F.3(1)-Pension   Unit\/85   (for <\/p>\n
short   `the   O.M.   dated   06.06.1985′)   intimating   the <\/p>\n
decision   of   the   Government   that   Central   Government <\/p>\n
employees   who   had   retained   the   Contributory <\/p>\n
Provident   Fund   benefits   in   terms   of   Rule   38   of   the <\/p>\n
Contributory   Provident   Fund   Rules,   1962   or   in   terms <\/p>\n
of   any   other   orders   issued   in   that   behalf,   may   be <\/p>\n
allowed   another   opportunity   to   opt   for   the   Pension <\/p>\n
Scheme   as   laid   down   in   the   Central   Civil   Services <\/p>\n
(Pension) Rules, 1972.   In the O.M. dated 06.06.1985, <\/p>\n
it   was   made   clear   that   the   option   was   open   to   those <\/p>\n
employees   who   were   in   service   on   31.03.1985   and <\/p>\n
                                   3<\/span><\/p>\n
      were retiring from service on or after that date.  NCERT <\/p>\n
      issued   a   circular   dated   18.07.1985   intimating   all <\/p>\n
      concerned   that   employees   of   NCERT,   who   had   earlier <\/p>\n
      opted   for   the   CPF   Scheme,   may   exercise   their   option <\/p>\n
      before   06.12.1985   to   switch   over   to   the   Pension <\/p>\n
      Scheme and such option once exercised will be treated <\/p>\n
      as final.\n<\/p>\n
4.    Before   his   retirement,   the   Respondent   claims   to   have <\/p>\n
      applied   on   27.02.1984   to   change   over   from   the   CPF <\/p>\n
      Scheme   to   the   Pension   Scheme.   The   said   request   for <\/p>\n
      change   over   from   the   CPF   Scheme   to   the   Pension <\/p>\n
      Scheme   was   rejected   on   23\/26.06.1989.                 The <\/p>\n
      respondent   filed   an   application   before   the   Rajasthan <\/p>\n
      Non-Government Education Tribunal, Jaipur (for short <\/p>\n
      `the Tribunal’) in the year 1995, seeking permission to <\/p>\n
      opt   for   the   Pension   Scheme.           By   order   dated <\/p>\n
      02.11.1995, the Tribunal relying on the decision of this <\/p>\n
      Court   in  Subramaniam  v.  Chief   Personnel   Officer,  <\/p>\n
      Central   Railways,   Ministry   of   Railways  (AIR<\/a>   1995   SC <\/p>\n
      983)   directed   the   appellant   to   declare   the   respondent <\/p>\n
      as entitled to the benefits of the Pension Scheme with <\/p>\n
                                     4<\/span><\/p>\n
      effect   from   the   date   of   his   retirement   and   fix   his <\/p>\n
      pension   accordingly.     The   appellant   challenged   the <\/p>\n
      order   of   the   Tribunal   before   the   High   Court   in   Civil <\/p>\n
      Writ Petition No.1447 of 1997 which was dismissed by <\/p>\n
      the   learned   Single   Judge   of   the   High   Court   by   order <\/p>\n
      dated   02.08.2005.     The   appellant   then   filed   Civil <\/p>\n
      Special   Appeal   (Writ)   No.898   of   2005   which   was   also <\/p>\n
      dismissed by the Division Bench of the High Court by <\/p>\n
      the impugned order.\n<\/p>\n
5.    Learned   counsel   for   the   appellant   submitted   that   the <\/p>\n
      Tribunal,   the   learned   Single   Judge   of   the   High   Court <\/p>\n
      and   the   Division   Bench   of   the   High   Court   have   all <\/p>\n
      relied on the decision of this Court in R. Subramaniam <\/p>\n
      v. Chief Personnel Officer, Central Railways, Ministry of  <\/p>\n
      Railways (AIR<\/a> 1995 SC 983 = (1996) 10 SCC 72) which <\/p>\n
      was   rendered   on   the   peculiar   facts   of   that   case.     He <\/p>\n
      submitted   that   a   Constitution   Bench   of   this   Court   in <\/p>\n
      Krishena Kumar, etc. v. Union of India & Ors. [(1990) 4 <\/p>\n
      SCC 207] has clearly held that employees who opt for <\/p>\n
      the   CPF   Scheme   and   employees   who   opt   for   the <\/p>\n
      Pension Scheme fall into two distinct classes and once <\/p>\n
                                       5<\/span><\/p>\n
      an   employee   opts   within   the   cut-off   date   to   be   under <\/p>\n
      the CPF Scheme, he cannot later on make a request to <\/p>\n
      switch over to the Pension Scheme.  He submitted that <\/p>\n
      the decision of the Constitution Bench of this Court in <\/p>\n
      Krishena   Kumar           (supra)   has   subsequently   been <\/p>\n
      followed   in  V.K.   Ramamurthy  v.  Union   of   India   &   Anr.<\/a>\n<\/p>\n
      [(1996)   10   SCC   73]   and  Union   of   India   &   Ors.   v.\n<\/p>\n
      Kailash   [(1998)   9  SCC  721]   and in  these  subsequent <\/p>\n
      decisions this Court has explained that the decision of <\/p>\n
      this Court in R. Subramaniam  (supra) was rendered on <\/p>\n
      the particular facts of that case.  He further submitted <\/p>\n
      that   in   any   case   it   will   be   clear   from   the   language   of <\/p>\n
      the O.M. dated 06.06.1985 which was adopted by the <\/p>\n
      NCERT   that   the   option   to   switch   over   from   the   CPF <\/p>\n
      Scheme   to   the   Pension   Scheme   was   available   to   only <\/p>\n
      those   employees   who   were   in   service   on   31.03.1985 <\/p>\n
      and were to retire from service on or after 31.03.1985 <\/p>\n
      and   not   to   the   appellant   who   was   not   in   service   on <\/p>\n
      31.03.1985 having retired on 31.07.1984.\n<\/p>\n
6.      Learned   counsel   for   the   respondent,   on   the   other <\/p>\n
      hand,   supported   the   orders   of   the   Tribunal,   the <\/p>\n
                                    6<\/span><\/p>\n
      learned   Single   Judge   of   the   High   Court   and   the <\/p>\n
      Division   Bench   of   the   High   Court   and   relied   on   the <\/p>\n
      decision of this Court in R. Subramaniam (supra).\n<\/p>\n
7.    We have carefully perused the decision of this Court in <\/p>\n
      R.  Subramaniam  (supra)   on   which   reliance   has   been <\/p>\n
      placed  by   the   Tribunal,   the   learned   Single   Judge   and <\/p>\n
      the   Division   Bench   of   the   High   Court   as   well   as <\/p>\n
      learned counsel for the respondent and we find that in <\/p>\n
      that   case   the   Central   Administrative   Tribunal, <\/p>\n
      Bombay,   by   its   order   dated   11.11.1987   had   directed <\/p>\n
      that Railway employees who had indicated their option <\/p>\n
      in favour of Pension Scheme either at any time while in <\/p>\n
      service or after their  retirement and who then desired <\/p>\n
      to   opt   for   the   Pension   Scheme   should   be   given   the <\/p>\n
      benefit   of   the   Pension   Scheme.     This   order   dated <\/p>\n
      11.11.1987 of the Central Administrative Tribunal was <\/p>\n
      challenged   by   the   Union   of   India   in   a   Special   Leave <\/p>\n
      Petition,  but  the  Special   Leave Petition  was dismissed <\/p>\n
      and   a   Review   Petition   was   also   dismissed   by   this <\/p>\n
      Court.  When the matter came before this Court for the <\/p>\n
      second time in R. Subramaniam (supra) this Court held <\/p>\n
                                7<\/span><\/p>\n
that   the   Union   of   India   cannot   resist   the   claim   of   R.\n<\/p>\n
Subramaniam.              It   is   thus   clear   that   in          R.\n<\/p>\n
Subramaniam  (supra) the claim of the employee had to <\/p>\n
be   allowed   by   this   Court   because   in   an   earlier   order, <\/p>\n
the   Central   Administrative   Tribunal   had   allowed   the <\/p>\n
claim   of   the   railway   employees   to   switch   over   to   the <\/p>\n
Pension   Scheme   and   the   order   of   the   Central <\/p>\n
Administrative   Tribunal   had   become   final   on   the <\/p>\n
dismissal of the Special Leave Petition and the Review <\/p>\n
Petition   by   this   Court.     The   facts   of   this   case   are <\/p>\n
entirely different.  There is no such earlier order of the <\/p>\n
Tribunal   or   a   Court   allowing   the   claim   of   the <\/p>\n
respondent to switch over from the CPF Scheme to the <\/p>\n
Pension   Scheme,   which   had   become   final.     The <\/p>\n
Tribunal,   the   learned   Single   Judge   and   the   Division <\/p>\n
Bench of the High Court were thus not right in relying <\/p>\n
on   the   decision   of   this   Court   in  R.  Subramaniam  <\/p>\n
(supra)   in   allowing   the   claim   of   the   respondent   to <\/p>\n
switch   over   from   the   CPF   Scheme   to   the   Pension <\/p>\n
Scheme.\n<\/p>\n
                                     8<\/span><\/p>\n
8.    We   may   now   consider   whether  dehors  the   decision   of <\/p>\n
      this   Court   in  R.  Subramaniam  (supra)   the   respondent <\/p>\n
      could be allowed to opt for the Pension Scheme having <\/p>\n
      earlier   opted   for   the   CPF   Scheme   while   in   service.\n<\/p>\n
      Admittedly,   the   respondent   while   he   was  in   service   of <\/p>\n
      NCERT   had   opted   for   the   CPF   Scheme   way   back   in <\/p>\n
      1977   and   on   his   retirement,   he   had   availed   the <\/p>\n
      benefits   of   the   CPF   Scheme.     This   Court   has   held   in <\/p>\n
      Krishena   Kumar,   etc.   v.  Union   of   India   &   Ors.,  V.K.\n<\/p>\n
      Ramamurthy  v.  Union   of   India   &   Anr.   and  Union   of  <\/p>\n
      India  & Ors. v.  Kailash  (supra) that once an employee <\/p>\n
      has   opted   for   the   CPF   Scheme,   his   exercise   of   option <\/p>\n
      was  final  and   he   is  not  entitled  to  change  over   to  the <\/p>\n
      Pension Scheme because the two schemes are entirely <\/p>\n
      different.  It, however, appears that the Government in <\/p>\n
      the   Ministry   of   Personal   and   Training   by   the   O.M.\n<\/p>\n
      dated   06.06.1985   gave   an   opportunity   to   Central <\/p>\n
      Government   employees   who   had   earlier   opted   for   the <\/p>\n
      CPF   Scheme   to   opt   for   the   Pension   Scheme.     The <\/p>\n
      relevant   portion   of   the   O.M.   dated   06.06.1985   is <\/p>\n
      extracted hereinbelow:-\n<\/p>\n
                                          9<\/span><\/p>\n
      “…  In  the  light  of   these   changes,  the  President is  <\/p>\n
      now   pleased   to   decide   that   Central   Government  <\/p>\n
      employees   who   have   retained   the   Contributory  <\/p>\n
      Provident Fund benefits in terms of rule 38 of the  <\/p>\n
      Contributory Provident Fund Rules (India), 1962 or  <\/p>\n
      in terms of any other orders issued in this behalf,  <\/p>\n
      may be allowed another opportunity to opt for the  <\/p>\n
      Pension Scheme as  laid down  in the  Central  Civil  <\/p>\n
      Services (Pension) Rules, 1972.  The option is open  <\/p>\n
      to   those   Government   employees   who   were   in  <\/p>\n
      service  on  the  31st  March,  1985  and   retiring  from  <\/p>\n
      service on or after that date.  The option should be  <\/p>\n
      exercised   within   a   period   of   six   months   from   the  <\/p>\n
      date   of   issue   of   this   O.M.     Option   once   exercised  <\/p>\n
      shall be final.”\n<\/p>\n
The O.M. dated 06.06.1985 has been adopted by the NCERT <\/p>\n
in   its   Circular   dated   18.07.1985.     It   will   be   clear   from   the <\/p>\n
language of the O.M. dated 06.06.1985 that the option to an <\/p>\n
employee   to   switch   over   from   the   CPF   Scheme   to   the <\/p>\n
Pension   Scheme   was   open   to   only   those   employees   who <\/p>\n
were in service on 31.03.1985 and who were retiring on or <\/p>\n
after   31.03.1985.   By   31.03.1985,   admittedly,   the <\/p>\n
respondent   had   retired,   his   date   of   retirement   being <\/p>\n
31.07.1984.   He is, therefore, not entitled to fresh option to <\/p>\n
switch over from the CPF Scheme to the Pension Scheme.\n<\/p>\n
9.          For   these   reasons,   we   set   aside   the   orders   of   the <\/p>\n
            Tribunal,   the   learned   Single   Judge   of   the   High   Court <\/p>\n
                                         1<\/span><\/p>\n
          and   the   Division   Bench   of   the   High   Court   and   allow <\/p>\n
          this appeal.  There shall be no order as to costs.\n<\/p>\n
                                                         ……………………..J.\n<\/p>\n
                                                               (R.V. Raveendran)<\/p>\n
                                                         ……………………..J.\n<\/p>\n
                                                               (A. K. Patnaik)<\/p>\n
New Delhi,<\/p>\n
May 09, 2011.<\/p>\n","protected":false},"excerpt":{"rendered":"
Supreme Court of India Union Of India Thr. … vs Shyam Babu Maheshwari on 9 May, 2011 Author: A K Patnaik Bench: R.V. Raveendran, A.K. Patnaik Reportable IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL No. 4202 OF 2011 (Arising out of S.L.P. (C) No. 9803 of 2006) Union of India through […]<\/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-160776","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"\nUnion Of India Thr. ... vs Shyam Babu Maheshwari on 9 May, 2011 - Free Judgements of Supreme Court & 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\/union-of-india-thr-vs-shyam-babu-maheshwari-on-9-may-2011\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Union Of India Thr. ... vs Shyam Babu Maheshwari on 9 May, 2011 - 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