Full Judgment Text
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 7148 OF 2008
The Calcutta Port Trust and others ....Appellants
versus
Anadi Kumar Das (Capt.) and others ....Respondents
J U D G M E N T
G.S. SINGHVI, J.
1. Whether respondent No.1 was entitled to opt for the Pension Scheme after
JUDGMENT
18 years of his retirement is the question which arises for consideration in this
appeal filed by the appellants against judgment dated 4.8.2006 passed by the
Division Bench of the Calcutta High Court. The appellants have also challenged
order dated 8.12.2006 by which the Division Bench of the High Court dismissed
the application filed for review of judgment dated 4.8.2006.
2. Respondent No.1 joined the service of appellant No.1-The Calcutta Port
Trust on 19.8.1957 as Class-I Officer. He was posted as Chief Officer (D&D)
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under the Marine Department of the then Commissioners for the Port of Calcutta,
which was re-named as the Calcutta Port Trust on 19.8.1957. He got several
promotions and ultimately retired from service w.e.f.1.4.1983 under the Voluntary
Retirement Scheme.
3. At the time of appointment of respondent No.1, there was no Pension
Scheme for the employees of appellant No.1 and they were given monetary
benefits of the Contributory Provident Fund Scheme (CPF Scheme). For the first
time, Pension Scheme was introduced for the Commissioner’s employees vide
th
circular dated 29 May, 1962 and made effective from 1.6.1962. All the existing
employees, who were in service on 1.6.1962 were given the choice to opt for the
Pension Scheme, but respondent No.1 did not exercise the option.
4. Vide circular dated 11.8.1979, appellant No.1 extended the cut off date
fixed for exercise of option under the Pension Scheme by Class-I and Class-II
officers and fixed 9.11.1979 as the last date. Many officers opted for the Pension
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Scheme but respondent No.1 did not opt for the same. Similar options were given
to the employees vide circulars dated 17.1.1981, 11.3.1981, 29.12.1984 and
19.2.1986, but respondent No.1 did not avail any of the opportunities.
5. In the year 2000, the Central Government issued circular dated 7.1.2000
and sanctioned ex gratia at the rate of Rs.600 per month for the CPF beneficiaries.
Respondent No.1 took benefit of that circular and received the amount of ex
gratia.
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6. In June 2001, the Government of India announced liberalized pensionary
benefits for retired Class-I and Class-II officers of Major Ports. This resulted in
manifold increase in the pension payable to them. With a view to take advantage
of the policy decision taken by the Central Government, respondent No.1
submitted application dated 23.7.2001 for grant of permission to exercise of
option in terms of circulars dated 29.12.1984 or 19.2.1986. The relevant portions
of the application read as under:
“This is to bearing to your kind notice that I joined my service as
Chief Officer D & D under the Marine Department of the then
Commissioners for the Port of Calcutta, since renamed as Calcutta
Port Trust on 19th August, 1957. During the tenure of my service I
got several promotions and ultimately retired from service under
Voluntary Retirement Scheme with effect from 1st April, 1983 after
completion of 25th years and 4 months of continuous service.
At the time of my appointment there was no pension scheme for the
employees of the Calcutta Port Trust and as such like all other
employees I was given the benefit of Contributory Provident Fund
Scheme. Since the time of my retirement. I have no contact with my
office.
JUDGMENT
During the tenure of my service pension scheme was introduced in the
Calcutta Port Trust for its employees but the said scheme was not
responded to by the majority of its employees partly due to non
circulation of the said scheme amongst its employees and partly due
to the fact that the scheme so introduced was not at all attractive.
However, since a poor response was received by the Calcutta Port
Trust, the said scheme did not materialize at all. I however could not
exercise such option as I was never advised by the authority
concerned either about the introduction of the said scheme or about
the benefits arising therefrom.
I further state that at the time of my retirement no such scheme was in
vogue for exercising any option to switch over to the pension scheme.
As such the provident fund benefits was given to me by way of my
terminal benefits.
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I further state that even after my retirement the Calcutta Port Trust
extended the benefits of the scheme of such pension to the retired
persons at least on two occasions. Once is December 1984 and Second
in February 1986. But unfortunately even those schemes were neither
circulated through mass media nor brought to the notice of retired
pension including myself as a result of which I also could not exercise
such option pursuant to the said schemes though the said scheme
appears to be much more beneficial then the earlier ones. I further
state that in these hard days of inflation it is practically impossible to
survive without pension and as such I opted for the scheme of ex
gratia payment to the retired employees which was introduced in
January 2000 whenever it came to my notice through the newspaper
circulation. Similarly I also availed of the scheme for medical benefits
employees which was introduced in 1998 as per notification issued
through newspaper publication.
Very recently it has come to my notice from one of my colleagues that
the Calcutta Port Trust also extended the benefits of such pension
scheme to the retired pensioners on condonation of delay on
sympathetic grounds though there was delayed exercise of such
option.
Accordingly I mostly humbly and respectfully pray to you for
allowing me to the exercise my option by condonation of delay as I
am otherwise entitled to avail of the said benefits as per the circular
issued by the Calcutta Port Trust either on 29th December 1984 or on
19th February 1986 which I could not avail of within the stipulated
time due to my ignorance about the introduction of the said scheme as
it was not at all noticed to me. I undertake to refund the Trustee's
contribution towards provident fund together with interest as per your
said schemes.”
JUDGMENT
(emphasis supplied)
7. The application of respondent No.1 was rejected by the Financial Adviser
and Chief Accounts Officer of appellant No.1 on the ground that option to switch
over to the Pension Scheme under Circular dated 29.12.1984 was open upto
31.5.1985 and under Circular dated 19.12.1986, it was open upto 30.6.1986. This
was conveyed to respondent No.1 vide letter dated 7.8.2001.
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8. Respondent No.1 challenged the rejection of his prayer for permission to
opt for pension in Writ Petition No.1830/2001 filed before the Calcutta High
Court. After chronologically presenting the facts relating to the Pension Scheme
and the circulars issued from time to time for giving opportunity to the retirees to
exercise option, respondent No.1 averred that he was never informed or made
aware of the same by way of publication in the newspapers or otherwise and he
came to know about the same only in June 2001 from his friend to whom he had
paid a courtesy visit and immediately thereafter, he submitted application dated
23.7.2001 for exercise of option in terms of circular dated 19.2.1986.
9. In the written statement filed on behalf of the appellants, it was averred that
respondent No.1 was very much aware of the Pension Scheme introduced in 1962
and circulars issued from time to time giving additional opportunities to the
retired employees and officers to opt for the pension. According to the appellants,
respondent No.1 availed benefits under CPF Scheme because it was more
JUDGMENT
beneficial and deliberately refrained from exercising option for the Pension
Scheme till it was liberalized in 2001 by the Central Government. The appellants
further pleaded that the application made by respondent No.1 after 18 years of his
retirement was rightly rejected by the Financial Advisor and Chief Accounts
Officer because it was submitted after more than 15 years of the issue of circular
dated 19.2.1986.
10. After analyzing the pleadings of the parties and the documents produced by
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them, the learned Single Judge opined that the plea of ignorance put forth by the
writ petitioner (respondent No.1) cannot be accepted because being a Class-I
officer he was very much aware of the Pension Scheme introduced in 1962 and
the circulars issued from time to time for giving opportunity to the retirees to
exercise option. The relevant portion of the order of the learned Single Judge is
extracted below:
“The case has to be judged on the basis of the averment made in the
petition so far as ignorance of the petitioner about the aforesaid
notification is concerned. In paragraph 10 of the petition it has been
stated that petitioner sometimes in the month of June 2001 went to the
residence of one of his friends and /or colleagues in the Calcutta Port
Trust on a courtesy visit and only then he came to know about the
introduction of pension scheme after his retirement. This story of
ignorance cannot be accepted as there was no particular as to the date
of his visit. No name of his alleged friend nor address of his residence
has been given. On the other hand, the petitioner had occasion to
know about the above pension scheme. Admittedly on 17th August
2000 he went to the office of the respondent for submitting an
application for ex-gratis payment in prescribed from. It is
unbelievable story that one will not be knowing of existence of such
pension scheme. Actually the petitioner was not really interested in
availing of pension scheme at any stage, as this scheme was not
advantageous and gainful for him. Now for the reason best known to
him, the return yielded from the corpus of provident fund amount is
not perhaps advantageous for him, so he has come to switch over his
option pension scheme at this belated stage. Mr. Majumdar is right in
saying that the approach of the petitioner is not bonafide as at no point
of time he was in favour of the pension scheme. In the case cited by
Mr.Bhattacharjee the petitioner therein at the first available
opportunity exercised his option. Moreover, in that case there was
delay of less than two years and such delay for ignorance of existence
of the said pension scheme during that period is quite reasonable. In
this case it is an unbelievable story further that 1984 till June 2001 he
would not be knowing of existence of this pension scheme. I am of the
view that story made out by the petitioner's absolutely concocted as no
supporting affidavit has been filed by the said friend in order to
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strengthen the belief of such case. It appears further that the petitioner
has connection with the pensioners' association of the Calcutta Port
Trust wherefrom he has collected copies of the circular of the pension
scheme sometimes in the month of July 2001. So, the petitioner could
have ascertained the existence of the pension scheme introduced in
1984 had he reasonably been diligent.”
11. The Division Bench of the High Court allowed the appeal filed by
respondent No.1 and reversed the order of the learned Single Judge by observing
that the circulars issued by appellant No.1 were neither published in the daily
newspaper nor the same were circulated among the concerned retired employees.
The Division Bench was of the view that appellant No.1 was duty bound to
publish the circulars in the daily newspapers or circulate the same amongst all the
concerned retired employees and that the learned Single Judge committed an error
by declining relief to him on the assumption that he must be aware of the circulars
issued in 1984 and 1986. The relevant portions of the judgment of the Division
Bench are extracted below:
JUDGMENT
“There is nothing to show that the said circular allowing the retired
employees to exercise option to come under the said pension scheme
was circulated amongst all the retired employees. There is also
nothing to show that there was any attempt on the part of Port Trust
Authority to publish the said circular in the daily newspaper either
English or Bengali for bringing the said beneficial order to the notice
of the retired employees. To the contrary, it appears that on
19.2.1986 there was another circular to all Heads of Department,
Calcutta Port Trust for granting fresh opportunity to Class-I and
Class-II officers who were on the Contributory Provident Fund
Scheme to elect the pension scheme by exercising option within
30.6.86. There is also nothing to show that this circular was
circulated amongst all the concerned retired employees of Calcutta
Port Trust and the same was published in any daily newspaper.
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It is needless to say that the circulation of the said orders extending
benefit to the retired employees amongst all the concerned retired
employees including the writ petitioner was a must and it was
incumbent upon the Port Trust Authority to show that the said
circular was brought to the knowledge of each and every concerned
retired employee by the authority. In order to discharge the heavy
onus upon the Calcutta Port Trust not a single scrap of paper was
produced by the respondent to show that the said matter was
circulated and reached the writ petitioner. It is not claimed by the
respondent that the concerned circulars were circulated by publishing
the same in any daily newspaper. In para 4(F) of the Affidavit in
opposition submitted on behalf of the respondent Nos.1 to 7 it was
stated that all the circulars were made through circulation of the
Heads of Departments which were in turn circulated through
Sectional Heads by displaying in notice board and there was no
reason why the writ petitioner being a Class-I employee would not
know the same at least till he retired. There is no paper to show that
there was any order of displaying the circulars in the Notice Board
and really the same was displayed in the Notice Board of the office
of the respondent. The first circular granting fresh opportunity to
Class-I and Class-II officers who were enjoying the benefits of the
Contributory Provident Fund Schemes to elect the pension scheme
was issued by the Calcutta Port Trust to all Heads of Department on
29.12.84 whereas the writ petitioner retired from service on 1.4.83. If
it is assumed that the said circular was displayed in the Notice Board
of the office still then it cannot be definitely said that the said circular
came to the notice of all the retired employees of Calcutta Port Trust
including the writ petitioner who retired from service before the date
of issue of the circular. It was incumbent on the part of the Calcutta
Port Trust to serve the said copy of circular upon the writ petitioner
but the Calcutta Port Trust Authority did not make any attempt to
send the said circular to the writ petitioner. The same was not
published in the newspaper. The Calcutta Port Trust Authority thus
failed to discharge the onus of proving that the said circular was
brought to the knowledge of the writ petitioner by it and despite the
fact that the said circular was brought to the notice of the writ
petitioner, the writ petitioner failed to exercise his choice within the
stipulated period.”
JUDGMENT
12. The Division Bench noted that even though respondent No.1 did not file
affidavit of his friend from whom he is said to have acquired knowledge about the
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circulars issued by appellant No.1 in 1984 and 1986 but held that it was the duty
of the latter to bring those circulars to the notice of respondent No.1 and it cannot
take advantage of the weakness of his case.
13. Shri Mohan Parasaran, learned Solicitor General and Shri Jayant Bhushan,
learned senior counsel appearing for the appellants relied upon the judgment of
this court in Union of India v. M.K. Sarkar (2010) 2 SCC 59 and argued that even
though the circulars issued by appellant No.1 giving an opportunity to the retirees
to opt for pension were not published in the newspapers or through
radio/television and copies thereof were not sent to the concerned individuals,
respondent No.1 was not entitled to exercise option after a time gap of 15 years
counted from the date of issue of circular dated 19.2.1986 and over 16 years
counted from 13.11.1984 because being a Class-I officer, who remained posted at
Calcutta, he will be deemed to be aware of the Pension Scheme introduced in
1962 and multiple opportunities afforded to the employees and officers to opt for
JUDGMENT
pension. Both Shri Parasaran and Shri Jayant Bhushan emphasized that
respondent No.1 did not opt for the Pension Scheme because till his retirement the
CPF Scheme was more beneficial and he submitted representation in July 2001
only after the Pension Scheme was liberalized and became very lucrative and
argued that the Division Bench of the High Court committed serious error by
entertaining the claim lodged by respondent No.1 after more than 15 years of the
issue of circular dated 19.2.1986.
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14. Shri Ajay Majithia, learned counsel for respondent No.1 relied upon the
judgment in Dakshin Haryana Bijli Vitran Nigam v. Bachan Singh (2009) 14 SCC
793 and argued that the Division Bench of the High Court did not commit any
error by granting an opportunity to his client to opt for the Pension Scheme
because at no point of time the circulars issued in 1984 and 1986 were
communicated to him.
15. We have considered the respective arguments and scrutinized the record.
In support of his plea that till 2001 he was unaware of the circulars issued by
appellant No.1 in 1984 and 1986, respondent No.1 made the following averments
in paragraphs 7 to 17 of the writ petition:
“7. Your petitioner states that from a newspaper publication
your petitioner came to a know that the Government of India,
Ministry of Surface Transport (Port Wing) by a letter being
No.A-38011/11/98 PET dated 7th January, 2000 decided to
grant ex gratia payment to C.P.F. beneficiaries who had retired
between 18th November, 1960 to 31st December, 1985 at the
rate of 600/- per month with effect from 1st November, 1997
subject to a condition that such persons should have rendered at
least 20 years of service.
JUDGMENT
8. Your petitioner states that after coming to know about the
introduction of the said scheme for ex gratia payment your
petitioner submitted an application in prescribed form on 17th
August, 2000 for grant of ex gratia payment and your Petitioner
was granted such ex gratia payment.
9. Your petitioner further states that your petitioner also
availed of the scheme for medical benefits extended by the
Calcutta Port Trust to its retired employees which was
introduced in 1998 as per the notification issued through
newspaper publication.
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10. Your petitioner states that sometimes in the month of
June, 2001 your petitioner went to the residence of one of his
friends and/or colleague in the Calcutta Port Trust on courtesy
visit. It is only then that your petitioner came to know about the
introduction of pension scheme introduced even after his
retirement. On further enquiry your petitioner came to know
that the Calcutta Port Trust extended the benefits of such
pension scheme to many of its employees by condoning their
defaults for delayed exercise of their options, sometimes on its
own and sometimes following the orders passed by this Hon'ble
Court in its constitutional writ jurisdiction on different writ
petitions filed by various retired employees of the Calcutta Port
Trust from time to time.
11. Your petitioner states that your petitioner came to know
that on or about 29th December, 1984. the Financial Adviser
and Chief Accounts officer issued a circular to all departmental
heads allowing fresh opportunity to all class-I and Class-II
officers who were in service on 1st August, 1982 but have
retired from service with Contributory Provident Fund benefits
after 1st August 1982 and till the date of issue of the said
Government order dated 30th November, 1984 provided such
retired employees exercise their option by 31st may 1985 and is
agreeable to first refund the Trustees contribution towards the
provident fund benefits inclusive of interest thereof.
A true copy of the said circular which your petitioner collected
from the petitioner's association of the Calcutta Port Trust
subsequently sometimes in early July, 2001 is annexed hereto
and is marked with Annexure "A" to this petition.
JUDGMENT
12. Your petitioner states that the said circular was never
intimated to your petitioner by the Calcutta Port Trust though it
is incumbent upon the Calcutta Port Trust to intimate the retired
employees personally about the scheme introduced for the
benefit of the retired employees.
13. Your petitioner states that the said circular was also not
circulated by the Calcutta Port Trust through the Mass Media
such as newspaper publication broadcasting of news over
Radio, Television etc. to keep the retired employee informed
about the introduction of such scheme. As a result your
petitioner could not know about the introduction of the said
scheme.
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14. Your petitioner states that your petitioner further came to
know that by a subsequent notification issued by the Calcutta
Port Trust vide Memo No. 1720 P dated 19th February 1986,
another opportunity for exercising fresh option to the retired
Class I and Class II officers who retired from service after 1st
August, 1982 with Contributory Provident Fund benefits and
till 1st January 1986 was given by the Calcutta Port Trust
provided such retired employees exercised their option within
30th June, 1986 and is agreeable to refund the Trustees
contribution towards the Contributory Provident Fund Scheme
including interest thereof.
A true copy of the said notice/circular which you petitioner
collected subsequently sometimes in early July 2001 is annexed
hereto and is marked with Annexure "B" to this petition.
15. Your petitioner states that even the said circular was not
intimated to your Petitioner personally by the Calcutta port
Trust though the Calcutta Port Trust was aware of your
petitioners residential address. Your petitioner further states that
like the earlier one, this time also the Calcutta Port Trust did not
circulate the said circular through the Mass Media as a result
your petitioner could not know about the said circular. Thus for
the reasons as aforesaid your petitioner could not exercise his
option though he was ready to avail of the benefits of the said
pension scheme.
16. Your petitioner states that since the introduction of the
aforesaid pension schemes by the Calcutta Port Trust was not
known to your petitioner, your petitioner was finding it
extremely difficult to survive without pension in these hard
days of inflation and as such your petitioner opted for the
scheme of ex gratia payment to the retired employees which
was introduced in January, 2000 whenever it came to the notice
of your petitioner through the newspaper circulation. Your
petitioner further states that had your petitioner had known
about the said pension scheme earlier then your petitioner
would have exercised his option within the stipulated period as
the said scheme is much more beneficial to your petitioner.
JUDGMENT
17. Your petitioner states that however, immediately after
coming to know that the Calcutta Port Trust allowed some of its
retired employees to come over to the pension scheme by
condoning their delayed exercise of option, your petitioner
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submitted a representation to the concerned respondents by his
rd
letter dated 23 July, 2001 inter alia praying for allowing your
petitioner to come over to pension scheme on condonation of
delay for exercising such option.
A true copy of the said representation which was received by
the concerned respondents on 27th July, 2001 is Annexed
hereto and is marked with Annexure "C" to this petition.”
16. The learned Single Judge critically analysed the above reproduced
averments and recorded a well reasoned finding that respondent No.1 was aware
of the Pension Scheme and the circulars issued by appellant No.1. The learned
Single Judge discarded the story of respondent No.1 that he came to know about
circular dated 19.2.1986 in the month of June from his friend/colleague. The
Division Bench of the High Court neither adverted to the averments contained in
the writ petition nor referred to the reasoning of the learned Single Judge and
granted relief to respondent No.1 on the premise that appellant No.1 is duty bound
to get the circulars published in the daily newspapers and display thereof on the
JUDGMENT
notice board was not sufficient to give an intimation to the retirees.
17. In Union of India v. D.R.R. Sastri (1997) 1 SCC 514, to which reference
has been made in Union of India v. M.K. Sarkar (supra) relied upon by the
learned counsel for the appellants, a two Judge Bench of this Court considered
whether the Central Administrative Tribunal was right in directing the Railway
Board to allow the respondent to exercise option for Pension Scheme after expiry
of the cut off date fixed for that purpose. While approving the order of the High
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Court, which dismissed the writ petition filed by the appellant, this Court
observed:
“When this case was listed before this Court on 6-5-1995, it was
brought to the notice of the Court that the Government itself has gran-
ted a similar benefit to one K.V. Kasthuri by an order dated 19-9-
1994, even though he had retired in the year 1973. The Court, there-
fore, called upon the Union Government to place the necessary mater-
ial which enabled the Government to grant the relief to Shri Kasthuri
and how his case stands on a different footing than the case of the re-
spondent. But no further affidavit was filed by the Union of India nor
was any material placed to indicate any distinguishing feature for
granting the relief to Shri K.V. Kasthuri and refusing the same to the
respondent. Be that as it may when the matter was again argued on
20-8-1996, it was contended on behalf of the appellant that the re-
spondent having resigned from the Railways and having been ab-
sorbed by the Heavy Engineering Corporation would be entitled to the
benefits available to him under the Heavy Engineering Corporation
and the counsel for the appellant also contended that the Heavy En-
gineering Corporation has already determined the pension of the re-
spondent by taking into account the entire period of service from
1952. In view of the aforesaid submissions of the learned counsel ap-
pearing for the appellant the Court had called upon the railway admin-
istration to indicate whether the period of service rendered by the re-
spondent from 1950 till 22-7-1972 under the Railways was taken into
account by the Heavy Engineering Corporation in fixing his pension
on his retirement from the service of Heavy Engineering Corporation
and whether the proportionality of the period of service from 1950 to
31-7-1972 and from 1-8-1972 till the retirement are separated to com-
pute the pension and if so computed whether the respondent would
stand to gain any higher pension than is being actually drawn. But un-
fortunately no further affidavit or material was placed by the appel-
lant. On the other hand the respondent has filed an affidavit stating
therein that he has not received any pension on his retirement from the
Heavy Engineering Corporation as the Corporation itself had no pen-
sionable scheme. In the aforesaid premises and in the absence of any
explanation from the appellant to indicate any special feature for
granting similar relief as late as in the year 1994 to Shri K.V. Kas-
thuri, we see no justification for our interference with the impugned
direction of the Tribunal. The respondent had served for about 22
years and he should not be deprived of the pensionary benefit when
JUDGMENT
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the Government itself had come forward with the Liberalised Pension
Scheme and gave option to the persons already retired to come over to
the pension scheme. But his pension is to be calculated as on 31-7-
1972 in accordance with the Railway Board’s letter dated 23-7-1974
and in compliance with all the necessary formalities by the respondent
in accordance with the said circular. ”
18. The question whether it was incumbent upon appellant No.1 to get the
circulars published in the newspapers and communicate the same to the individual
employees was considered by a two-Judge Bench in Union of India and others v.
M.K. Sarkar (supra) and answered in the following words:
“The Tribunal in this case has assumed that being “aware” of the
scheme was not sufficient notice to a retiree to exercise the option
and individual written communication was mandatory. The
Tribunal was of the view that as the Railways remained
unrepresented and failed to prove by positive evidence, that the
respondent was informed of the availability of the option, it
should be assumed that there was non-compliance with the
requirements relating to notice. The High Court has impliedly
accepted and affirmed this view. The assumption is not sound.
The Tribunal was examining the issue with reference to a case
where there was a delay of 22 years. A person, who is aware of
the availability of option, cannot contend that he was not served a
written notice of the availability of the option after 22 years. In
such a case, even if Railway Administration was represented, it
was not reasonable to expect the department to maintain the
records of such intimation(s) of individual notice to each
employee after 22 years. In fact by the time the matter was
considered more than nearly 27 years had elapsed. Further when
notice or knowledge of the availability of the option was clearly
inferable, the employee cannot after a long time (in this case 22
years) be heard to contend that in the absence of written
intimation of the option, he is still entitled to exercise the option.”
JUDGMENT
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In the above noted case, the Court found that the respondent had made
application after 22 years of his retirement for grant of opportunity to opt for the
Pension Scheme. The Chairman, Railway Board rejected his representation on
the ground that it was highly belated. The Tribunal set aside the decision of the
Chairman, Railway Board and the Division Bench of the Calcutta High Court
upheld the same. This Court reversed the orders of the Tribunal and the High
Court and observed:
“When a belated representation in regard to a “stale” or “dead”
issue/dispute is considered and decided, in compliance with a
direction by the court/tribunal to do so, the date of such decision
cannot be considered as furnishing a fresh cause of action for
reviving the “dead” issue or time-barred dispute. The issue of
limitation or delay and laches should be considered with reference
to the original cause of action and not with reference to the date
on which an order is passed in compliance with a court’s
direction. Neither a court’s direction to consider a representation
issued without examining the merits, nor a decision given in
compliance with such direction, will extend the limitation, or
erase the delay and laches.
A court or tribunal, before directing “consideration” of a claim or
representation should examine whether the claim or
representation is with reference to a “live” issue or whether it is
with reference to a “dead” or “stale” issue. If it is with reference
to a “dead” or “stale” issue or dispute, the court/tribunal should
put an end to the matter and should not direct consideration or
reconsideration. If the court or tribunal deciding to direct
“consideration” without itself examining the merits, it should
make it clear that such consideration will be without prejudice to
any contention relating to limitation or delay and laches. Even if
the court does not expressly say so, that would be the legal
position and effect.”
JUDGMENT
19. In Dakshin Haryana Bijli Vitran Nigam v. Bachan Singh (supra) on which
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reliance was placed by Shri Ajay Majithia, this Court approved the order of the
Punjab and Haryana High Court which had taken the view that the employer was
duty bound to inform the retired employees about the instructions issued for
giving them opportunity to switch over to the Pension Scheme. This Court
referred to the judgment of the Full Bench of the Punjab and Haryana High Court
in Kesar Chand v. State of Punjab AIR 1988 Punjab 265, the judgments of this
Court in D.S. Nakara v. Union of India (1983) 1 SCC 305, Subrata Sen v. Union
of India (2001) 8 SCC 71 and held:
“In view of the law as has been articulated in a large number of
cases where this Court has observed that any discriminatory action
on the part of the Government would be liable to be struck down.
Hence, in this case, it would be totally unreasonable and irrational
to deny the respondent the pensionary benefits under the scheme
particularly when the appellants have failed to produce any record
showing that the instructions dated 6-8-1993 and 9-8-1994 were
actually got noted in writing by the respondent. In the absence of
any such material it can well be inferred that the respondent had no
knowledge about the options called by the appellants.”
JUDGMENT
From the above extracted observation, it is evident that this Court felt
persuaded to approve the order of the High Court because no evidence was
produced by the appellant to prove that the respondent knew about the options
called by the appellants.
20. We would like to observe that whenever an employer introduces the
Pension Scheme or makes the same applicable to retired employees and give them
opportunity to exercise option, the circulars/instructions issued for that purpose
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should either be communicated to the retirees or made known to them by some
reasonable mode. Mere display of such notice/instructions on the notice board of
the Head Office cannot be treated as an intimation thereof to the retired
employees/officers. The employer cannot presume that all the retirees have
settled in the city where the Head Office is located. If the employees belong to
the services of the Central Government or its agencies/instrumentalities, they are
likely to settle in their native places which may be far away from the seat of the
Government or Head Office of the establishment or organisation. The retirees are
not expected to frequently travel from their native places to the seat of the
Government or Head Office to know about additional benefits, if any, extended
by the Government or their establishment/organization and it is the duty of the
employer to adopt a suitable mechanism for communicating the decision to the
retired employees so as to enable them to exercise option. This could be done
either by publishing a notice in the newspaper about which the retirees are told at
JUDGMENT
the time of their retirement or by sending copies of the circulars/instructions to the
retirees or by sending a copy thereof to the association of the employees and/or
officers with a direction to them to circulate the same among the concerned
retirees. By taking advantage of the modern technology, the employer can also
display the circulars/instructions on a designated website about which prior
information is made available to the employees at the time of their retirement. If
one of these modes is not adopted, the retired employees can legitimately
complain that they have been denied right to exercise the option and can seek
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intervention of the Court.
21. If an aggrieved retiree seeks intervention of the Court for issue of a
direction to the employer to give him opportunity to exercise option to switch
over from one scheme to the other, the employer can produce evidence to show
that the concerned employee had knowledge about the particular scheme etc. The
employer can also show that even though the scheme etc. had not been
communicated to the concerned employee in person, he was aware of the same.
Each such case will have to be decided by the competent Court keeping in view
the pleadings and evidence produced by the parties and it cannot be laid down as
a general rule that each and every circular/instruction issued by the employer
giving additional monetary benefits to the retired employees must be published in
the newspapers and that in the absence of such publication or personal
communication to the retired employee would entitle him to seek intervention of
the Court after lapse of many years.
JUDGMENT
22. We may now revert to the facts of this case. It is not in dispute that at the
time of the introduction of the Pension Scheme, respondent No.1 was very much
in service as Class-I officer. Circulars dated 11.8.1979, 17.1.1981 and 11.3.1981
were also issued during his tenure as a senior officer of appellant No.1.
Therefore, it is not possible for any person of ordinary prudence to believe that
respondent No.1 was not aware of the Pension Scheme and the opportunities
given to the retired employees/officers to exercise option to switch over from the
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CPF Scheme to the Pension Scheme. This is precisely what the learned Single
Judge did and we do not find any error in the approach adopted by him. The
story put forth by respondent No.1 of having acquired knowledge about the
circulars issued in 1984 and 1986 from his friend/colleague was rightly discarded
by the learned Single Judge. The failure of respondent No.1 to disclose the name
of the concerned friend/colleague adequately supports the inference drawn by the
learned Single Judge and the Division Bench of the High Court committed serious
error by interfering with the order of the learned Single Judge.
23. We may add that it was neither the pleaded case of respondent No.1 before
the High Court nor any evidence was produced by him to show that the copies of
the circulars issued by appellant No.1 were not sent to the Association of
employees. It was also not the pleaded case of respondent No.1 that he had
visited the Association for the first time in 2000 for collecting the circular issued
by the Government of India for grant of ex gratia of Rs.600 per month. This
JUDGMENT
being the position, it is not possible to accept the specious argument of respondent
No.1 that he had no knowledge of the Pension Scheme and the circulars issued in
1984 and 1986.
24. In the result, the appeal is allowed, the impugned judgment and order are
set aside and the one passed by the learned Single Judge is restored. However,
keeping in view the peculiar facts of this case, we direct the appellants to allow
respondent No.1 to exercise option in terms of circular dated 19.2.1986. The
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needful be done within a period of two months from the date of receipt of copy of
this judgment. At the same time, we make it clear that this direction shall not be
treated as a precedent for other cases pending before the High Court, which shall
be decided in the backdrop of their own facts.
......………………………..….J.
[G.S. SINGHVI]
New Delhi, ...….……..…..………………..J.
November 13, 2013. [V. GOPALA GOWDA]
JUDGMENT
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