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  • Section 19 of the Administrative Tribunal Act, 1985
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  • Section 19 of the Administrative Tribunal Act, 1985
Smart Summary

Summary of the Opinion (Vice Chairman Kaushal Kumar)

Factual and Procedural Background

The applicant joined the respondents' service as a carpenter in 1946. The applicant alleged his date of birth to be 19 July 1927, which, he says, appeared in various official communications. Based on that date he was due to retire on 31 July 1985 and was actually retired on that date. In 1983 the respondents circulated an opportunity for Railway employees governed by the SRPF to opt for pensionary benefits; the applicant submitted an option pursuant to that circular and again exercised an option on 17 July 1985 under a subsequent Railway Board circular dated 18 June 1985. The department communicated later that the applicant's correct date of birth was 19 February 1927 due to a clerical error and that he should have retired on 28 February 1985; accordingly the respondents treated the period 1 March 1985 to 31 July 1985 as irregular retention in service or re-employment and deemed the applicant to have retired on 28 February 1985. The applicant filed the present application under Section 19 of the Administrative Tribunal Act, 1985 challenging denial of pensionary benefits based on that deemed date of retirement.

Legal Issues Presented

  1. Whether a Railway employee who exercised an option while still in service for switching from the non-pensionable Contributory Provident Fund Scheme (SRPF) to the pension scheme can be denied the benefit of that option on the ground that his continuation in service beyond the actual date of superannuation was fortuitous (i.e., due to a clerical error in the recorded date of birth) and he is deemed to have retired earlier.
  2. Whether the applicant satisfied the eligibility conditions in the Railway Board circular dated 18-6-1985 (notably being in service on 31-3-1985 and actually in service at the time of exercising the option) so as to be entitled to opt for pensionary benefits.

Arguments of the Parties

Applicant's Arguments

  • The applicant contends his date of birth was 19 July 1927 and that he retired on 31 July 1985.
  • He exercised his option to come over to the pension scheme in pursuance of the Railway Board's invitation (exercise made in July 1985) and submitted the requisite forms.
  • He argues that his continued service until 31 July 1985 and his exercise of the option while in service entitle him to the pensionary scheme under the Railway Board circular dated 18-6-1985, and that a subsequent departmental assertion that he should have retired earlier (28-2-1985) due to a clerical error should not deprive him of the benefit of the option he validly exercised while in service.

Respondents' Arguments

  • The respondents admit a clerical error occurred: the retirement list recorded the date of birth as 19-7-1927 instead of 19-2-1927, and scrutiny at the time of settlement showed the correct date to be 19-2-1927.
  • Accordingly, the respondents contend the applicant should have retired on 28-2-1985 and therefore was not in continuous service on 31-3-1985; the Railway Board's circular of 18-6-1985 made the option available only to those who were in service on 31-3-1985 and retired on or after that date.
  • The respondents state the Railway Board treated the period 1-3-1985 to 31-7-1985 as re-employment and deemed the applicant to have retired w.e.f. 28-2-1985; thus he remained an SRPF optee and was not entitled to pension under the rules and the circular.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court examined the Railway Board circular dated 18-6-1985 which provided another opportunity for staff who "were in service on 31-3-85 and onwards and still governed by the SRPF (C) Rules" to opt for pension. The Court identified the pre-requisite conditions in the circular: (a) the employee must have been in service on 31-3-1985 and onwards and still governed by SRPF rules; (b) the option must be exercised within the prescribed period; (c) the employee must actually have been in service at the time of exercising the option; and (d) the option must be complete, unconditional and unambiguous.

Applying those conditions to the facts as pleaded and as established on record, the Court noted that the applicant had continued in service up to 31 July 1985 and had exercised his option in July 1985. The Court found nothing in the circular that excludes persons whose continuation in service beyond the earlier date was due to re-employment or extension; a technical or clerical lapse by the employer (leading to continued service beyond the date of actual superannuation) does not render an applicant ineligible when he in fact was in service and exercised a valid option within the prescribed period. Consequently, the respondents' contention that the applicant was "deemed" to have retired on 28-2-1985 and hence was not eligible under the 18-6-1985 circular was held to have no bearing on the applicant's entitlement to exercise the option and claim pensionary benefits, given that he actually remained in service and exercised the option in July 1985.

Holding and Implications

Holding: The application is allowed. The respondents are directed to accept the option exercised by the applicant in July 1985 and to act upon it to grant him the benefits of the pensionary scheme as admissible under the relevant rules and instructions, after adjusting any amounts already paid to the applicant. There shall be no order as to costs.

Implications: The direct effect is that the applicant is to be treated as having validly opted for pensionary benefits and the respondents must implement that option subject to adjustment of payments already made. The opinion does not discuss broader precedent beyond the application of the cited Railway Board circular; no new wider legal principle is announced beyond the determination of entitlement on these facts.

    Lal Singh v. Union Of India

    Kaushal Kumar, Vice Chairman:— The short point that arises for consideration in this case is whether a Railway employee who had exercised his option while still in service for switching over from the non-pensionable Contributory Providend Fund Scheme to the Pension Scheme can be denied the benefit of the said option on the ground that his continuation in service was due to the fortuitous circumstance of his having not been retired on the basis of the date as recorded in his service book.

    2. The facts of the case giving rise to the present application filed under Section 19 of the Administrative Tribunal Act, 1985 are that the applicant had joined the service of the respondents as Carpentor in the year 1946. According to the applicant, his date of birth was 19th July, 1927 and the same is said to have been mentioned in various official communications as per averment in para 6.4 of the application. On the basis of the said date of birth, the applicant was due for retirement on superannuation on 31st July, 1985 and he was actually retired from service on the said date.

    3. In 1983, the respondents had given an opportunity to all the Railway employees governed under the SRPF to switch over to pensionary benefits. It is averred in para 6.7 of the application that in pursuance of the aforesaid circular, the applicant opted for pensionary benefits and gave his option in the requisite form to Respondent No. 2. It appears that no action was taken on the same. The railway Board issued another circular No. F(E) 111/85.EN/1/15, dated 18-6-1965 which gave another opportunity to the Railway staff for exercising their option for the Railway Liberalised Pension Rules. The applicant was again asked to exercise his option for pensionary benefits on 17-7-1985. The Deputy Chief Mechanical Engineer (W), Alambagh, Lucknow, communicated the said option of the applicant to the Senior Accounts Officer (W), Lucknow, vide his letter dated 20th July, 1983, a copy of which has been filed up the requisite form for payment of pensionary benefits on the basis of his option. However, on 28-7-85. the applicant was informed by the Department that his date of retirement should have been 28-2-1985 but due to some administrative errors/omissions, it had been wrongly shown as 31-7-85 in the service record of the applicant. The applicant was informed vide letter dated 10-10-1987 filed as Annexure A-1 to the application, that since his case was a policy matter, it could not be considered by the Pension Adalat. Aggrieved by the said communication, the present application has been filed.

    4. The case of the respondents, as stated in the counter-affidavit is that “Due to clerical error, however, the date of birth was recorded in the retirement list as 19-7-1927 instead of 19-2-1927, hence he was shown to be retired on 31-7-1985 (AN) instead of 28-2-1985 (AN). However, at the time of his retirement for calculating and paying the settlement dues to the employees, just after his retirement as per extent rules and practice adopted by the Respondents, his service record was scrutinised and on scruitiny it was found that his date of birth is recorded as 19-2-1927, hence he should have retired on 28-2-1985, but due to clerical error, the petitioner worked for five more months beyond the date of actual superannuation (i.e 28-2-1985, from 1-3-1985 to 31-7-1985). No doubt, the petitioner opted for Pension on 17-7-1985, for the first time. In this regard it is stated that it he had retired on the date of superannuation i.e 28-2-1915, he would not have been entitled to exercise option for pension, as this option was available only for those employees who retired on or after 31-3-1985 and the petitioner was due to retire on 28-2-1985. However, his case was referred to the Rly. Board through the G.M (P). N. Rly's letter dt. 26-8-1985 (Annexure R-3 to accord sanction for the irregular retention in service beyond the date of superannuation i.e from 1-3-1985 to 31-7-1985, and the decision of the Rly. Board was received vide their letter No E(G) 86-RT 2/3 dated 8-4-86 under the G.M (P). N. Rly. Letter No. 522-E/399.E11/W/L dated 18-4-86 (Annexure R-4) in reply to letter dt. 24-5-86 (Annexure R-5) and on 25-8-1986 (Annexure R-6), wherein it has been decided that the period from 1-3-1985 to 31-7-1985 may be treated as on re-employment, according to which Shri Lal Singh, the petitioner, Ex. T. No. 323-A, is deemed to have retired from service w.e.f 28-2-1985. It has also been decided that in terms of the instructions contained in Rly. Board's letter dt. 18-6-85, circulated under G.M ‘st Printed Serial No. 8752 the persons who were in service on 31-3-85 and retired on or after 31-3-1985 were eligible to opt for pension. Since the petitioner is deemed to have retired from service on 28-2-1985, (and thus not in continuous service on 31-3-1985) as such his case is not covered under the Rly. Board's letter dt. 18-6-1985) P.S No. 8752) filed herewith as Annexure R-7). As a result, the petitioner remained as S.R.P.F optee and accordingly his case hag been settled under S..R.P.F Rules instead of Pension Rules

    5. The point that arises for determination is whether in terms of the Railway Board's letter dated 18-6-1985 on the subject of “Exercise of fresh option by the Railway Employees governed by the SRPF (C) Rules—to come over to the pensionable service”, the applicant is entitled for switching over to the pension scheme. The relevant paragraphs from the said circular, which was produced before us by the learned counsel Shri Moolri at the time of hearing, are reproduced below:—

    “Consequent upon the treatment of the entire dearness allowance upto the price Index Level of 568 as pay for retirement benefits w.e.f 31-3-85, removal of the exting limit of Rs. 1500/- p.m on pension and raising of the csiling of OCRG from Rs. 46,000 p.m to Rs. 30.000 p.m as issued vide this Ministry's letter No. PCIII/85.DP/1 dated 17-5-65 and F(E)III-82 PNI/3 dated 17-5-85 the Ministry of Railway with the approval of the President have decided that another opportunity for pension option be given to the Railway staff who were in service on 31-3-85 and onwards and still governed by the SRPF (G) Rules to come over to the pension scheme including Family Pension Scheme, This option wilt remain valid upto six months from the date of issue of the orders i.e upto and inclusive of 17-12-85.

    xxxxxx

    “4. The Railway servant who does not exercise an option within the prescribed period or quit service without exercising an option or whose option is incomplete or conditioned or ambiguous shall be deemed to have opted to remain under SRPF (C) Rules It should be made clear to all concerned that this is the last opportunity for them to opt for pensionary scheme and no further option should.”

    6. The pre-requisite conditions for exercising the option are that the concerned Government employee should have been in service on 31-3-1985 and onwards and still governed by SRPF Rules. Para 4 also makes it clear that the concerned Railway servant should have exercised his option in the prescribed period and he should actually have been in service at the time of exercising the option. Further, the option should have been complete, unconditional and ambiguous. It does not stipulate that if a person is continued in service on re-employment or extension, he would not be eligible for exercising the option in terms of the aforesaid circular in the present case, the applicant had continued in service till 31-7-1985. The same might have been due to any technical lapse on the part of the respondents and merely because they had treated the service for the period beyond 28-2-1985 as being on re-employment basis, does not render the applicant ineligible for exercising the option for the pensionary scheme, when the applicant had actually retired on 31st July, 1985 and was paid salaries due upto that date, his deemed retirement from 28-2-1985 as contended in the counter reply has no bearing in so far as his entitlement for pensionary benefits in terms of the circular dated 18-6-1985 is concerned.

    7. In the light of the above discussion, the application is allowed and we direct the respondents to accept the option exercised by the applicant in July, 1985 and act thereon for allowing him the benefits of pensionary scheme as admissible under the relevant rules and instructions on the subject after adjusting any amounts already paid to the applicant. There shall be no order as to costs.

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    Lal Singh v. Union Of India
    (Sep 14, 1990)