Pepsu Road Tpt Corpn, Patiala vs Amandeep Singh & Ors

2. The brief facts of the case necessary to be noted for deciding the appeal are :

3. The Corporation aggrieved by the judgment of the Trial Court filed an appeal being C.A.D. No.21 of 2005 which was dismissed by learned Additional District Judge, Bathinda vide judgment dated 29th August, 2005.

4. The Appellate Court took the view that it was obligatory on the part of the defendants to have led cogent reasons that the scheme under the Regulations 1992 was circulated between the employees of the Corporation and they were made to note the same so as to opt within specified period. It was further held that plaintiff had never opted out of the Regulations. With the above finding the appeal was dismissed by the Additional District Judge.

5. Aggrieved by the judgment of the Appellate Court, Regular Second Appeal was filed by the Corporation in the Punjab and Haryana High Court. The High Court also dismissed the appeal by observing that there is no evidence that pension scheme was circulated within the employees and got noted by them. Relying on judgment of Punjab and Haryana High Court, the appeal was dismissed.

18. Aggrieved by this order of the Additional District Judge dated 27.04.2006, the respondent filed a Regular Second Appeal in the High Court, the same was allowed vide order and judgment dated 23.12.2008. The High Court has followed its earlier Judgment in Civil Writ Petition No. 14562 of 2004 titled as ‘Jagjit Singh v. Managing Director, Pepsu Road Transport Corporation and another’ dated 03.12.2008, wherein, the appeal was allowed on the ground that the pension scheme was never circulated nor was informed to the employees of the Corporation and mere non-refund of the loan taken from the C.P.F. account would not disentitle the employee from claiming pension under the scheme.”

15. Further as per Regulation 4 (iii) if an option is not exercised within a period of six months from the date of issue of Regulations, it shall be deemed that the employee has to continue with the existing Contributory Provident Fund benefit, thus in the event of non-exercise of option within the period prescribed, the employee is deemed to continue in the existing CPF benefit. The deeming clause has been incorporated in the statutory provisions for achieving a purpose i.e. those who do not opt within six months new scheme, they shall continue in the existing CPF benefit. There are no exceptions engrafted in the deeming provisions and the deeming is a legal fiction which embraces all the employees who do not opt for new pension scheme. The suit filed by the plaintiff had been decreed mainly on the ground that notice inviting option has not been personally served on the plaintiff. Whether notice is required to be personally served to an employee before the period of six months as provided in Regulation 4 may start running is the question to be answered. A plain reading of the Regulations does not indicate that period of six months which is provided for submitting an option is dependent on personal service of notice. Although, as noticed above the Regulation has been forwarded on 15th June, 1992 itself to the General Manager of all the Depots and other places and the letter dated 15th June, 1992 further contemplates putting on the notice board in the Head Office and the Depots, the Corporation has thus taken care of circulation of Regulation to all concerned including the Head Office and all the Depots.

secondly, even on exercise of option, if an employee fails to refund the amount of advance taken from employers contribution of the C.P.F. within 6 months from the date of issue of these Regulations, then it shall be deemed that employee has opted to continue for the existing C.P.F. benefit. Therefore, the failure on the part of the respondents to opt for the Pension Scheme and refund the advance taken from the employer’s contribution of C.P.F. will disentitle them from 38 claiming any benefit under the Pension Scheme. Therefore, we cannot sustain the Judgment and order passed by the High Court.” This Court in the above case set aside the judgment and orders passed by the High Court and allowed the appeals.

24. In view of the foregoing, we are of view that the judgments of the courts below are unsustainable. The suit of the plaintiff deserved to be dismissed. In the result the appeal is allowed. The judgments of the High Court as well as First Appellate Court and Trial Court are set aside and the suit of the plaintiff stands dismissed. The parties shall bear their own costs.