Failure to exercise the prescribed CPF-retention option deems an employee irrevocably opted into the pension scheme.

The applicant was appointed as a conductor by the Delhi Transport Corporation (“DTC”) on 10 March 1983 and was subsequently placed on monthly rates of pay from 10 September 1983.

By Office Order No. 16 dated 27 November 1992, DTC introduced a GPF-cum-Pension Scheme and required existing employees to exercise an option within 30 days to continue under the Contributory Provident Fund (“CPF”) scheme or join the Pension Scheme.

Employees who failed to exercise an option within the prescribed period were deemed to have opted for the Pension Scheme.

The applicant did not submit an option within the prescribed period, which expired on 26 December 1992.

He subsequently submitted an option dated 15 January 1993 stating that he did not wish to opt for the DTC Pension Scheme.

Although his service records were stated to have been marked “Pension not opted”, his payslips reflected “S”, indicating pension-optee status.

The applicant retired on 31 January 2018.

DTC released ₹12,46,514 towards both the employee’s and employer’s provident-fund contributions and denied him DTC pension.

The applicant challenged DTC’s action before the Tribunal, relying upon the Delhi High Court’s decision in Delhi Transport Corporation v. Anil Luthra, W.P. (C) No. 2966/2016, decided on 18 March 2025, which held that failure to exercise an option within the prescribed period resulted in deemed conversion to the Pension Scheme.

DTC contended that the applicant had subsequently opted out of the Pension Scheme and had received the CPF benefits.

1. Whether an employee who failed to exercise an option within the 30-day period prescribed by DTC Office Order No. 16 dated 27 November 1992 was deemed to have opted for the Pension Scheme by operation of the Office Order, notwithstanding a subsequent option to remain under the CPF scheme?

2. Whether the applicant was entitled to DTC pension despite having received the CPF benefits upon retirement, and, if so, what limitations and conditions applied to the pensionary relief and arrears?

DTC Office Order No. 16 dated 27 November 1992 required existing employees to exercise an option within 30 days and provided under paragraph 9 that an employee who failed to exercise an option within the prescribed period would be deemed to have opted for the Pension Scheme.

The Tribunal applied the principles affirmed by the Supreme Court in University of Delhi v. Shashi Kiran and S.L. Verma, namely that failure to exercise an affirmative option to continue under the CPF scheme within the stipulated period results ipso facto in membership of the Pension Scheme, and a later attempt to revert to the CPF scheme has no legal effect.

It also followed the Delhi High Court’s decision in Delhi Transport Corporation v. Anil Luthra, which held that continued CPF contributions or receipt of CPF benefits do not defeat deemed pension-optee status; however, the employee must return the CPF benefits with interest, and pension arrears are restricted to three years preceding the filing of the Tribunal proceedings.

The Tribunal held that the applicant’s failure to submit an option by 26 December 1992 attracted the legal fiction under paragraph 9 of Office Order No. 16, whereby he became a deemed pension optee.

His subsequent letter dated 15 January 1993 expressing unwillingness to join the Pension Scheme could not displace the statutory consequence that had already operated upon expiry of the prescribed period.

Applying Anil Luthra, read with Shashi Kiran and S.L. Verma, the Tribunal rejected DTC’s reliance on the later option, service-record entries, CPF contributions, and release of provident-fund amounts.

The Tribunal nevertheless adopted the limitations imposed in Anil Luthra: the applicant could not retain the CPF benefits and his pension arrears were confined to three years preceding the filing of the Original Application.

DTC was directed to extend pensionary benefits to him in accordance with the Pension Scheme, with arrears restricted to three years preceding the filing of the O.A., subject to the applicant returning the CPF benefits in accordance with the principles stated in Anil Luthra.

The directions were to be implemented within six weeks from receipt of a certified copy of the order.

Pending miscellaneous applications were disposed of, with no order as to costs.