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Kvs And Others v. Jaspal Kaur And Another
Factual and Procedural Background
Respondent 1 was appointed as a primary school teacher in the Kendriya Vidyalaya Sangathan (KVS) on 20-7-1978. KVS originally placed its employees under the Contributory Provident Fund (CPF) Scheme but, by circular dated 1-9-1988, offered them a one-time option to switch to the General Provident Fund-cum-Pension (GPF) Scheme. Between 1989 and 1997 multiple KVS letters assigned Respondent 1 the CPF Account No. 1889, reflecting her continuation under the CPF Scheme.
In 1997 and again in 2002 Respondent 1 sought conversion to the GPF Scheme. Her request was rejected on 7-11-2002, and on 8-3-2004 KVS reaffirmed that she had opted for CPF and could not now shift schemes.
Respondent 1 approached the Central Administrative Tribunal (CAT), which allowed her application, holding that there was no direct evidence of her written option for CPF. KVS’s writ petition was dismissed by the Punjab and Haryana High Court on the same ground. KVS thereafter filed the present appeal before the Supreme Court of India.
Legal Issues Presented
- Whether Respondent 1 had in fact exercised a valid option to remain under the CPF Scheme when the 1988 option was offered.
- If such an option existed, whether she was entitled to shift to the GPF-cum-Pension Scheme at a later stage.
Arguments of the Parties
Appellants’ Arguments (KVS)
- Multiple contemporaneous documents—including revised CPF account allotment letters of 1989, service-book entries, pay certificates, and Respondent 1’s own letter dated 15-3-1997—establish that she had opted for and continued under the CPF Scheme.
- Absence of the original written option form should not defeat the weight of the secondary evidence demonstrating the exercised option.
Respondent 1’s Arguments
- No original document demonstrating a written option was produced; without it the alleged exercise of option is unproved.
- Secondary evidence such as account numbers and deductions cannot substitute for the mandatory written option required by the 1988 circular.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The Supreme Court observed that both the CAT and the High Court had overlooked extensive documentary evidence proving Respondent 1’s CPF enrollment:
- Revised CPF allotment letters (6-3-1989, 6-7-1989, 15-7-1989) list Respondent 1 at Serial No. 8 with Account No. 1889, which she never disputed.
- Respondent 1’s own letter dated 15-3-1997 unequivocally states she had been contributing to CPF under Account No. 1889.
- Multiple “last pay certificates” (1992, 2003, 2005) explicitly record deductions towards CPF and note her option for the CPF Scheme.
- The passbook, income-tax returns, and service-book entries corroborate continuous CPF deductions.
In the Court’s view, these documents collectively constitute adequate proof of a valid option, even if the original option form is unavailable. Ignoring such cogent secondary evidence was an error of law. Consequently, the findings of the CAT and High Court were held to be unsustainable.
Holding and Implications
Appeal Allowed. The orders of the CAT and the Punjab and Haryana High Court are set aside. Respondent 1 is held to have validly opted for the CPF Scheme and is therefore not entitled to benefits under the GPF-cum-Pension Scheme.
Implications: The decision confines its effect to the parties by restoring Respondent 1 to the CPF framework and denying her pension claim. The judgment turns on evidentiary assessment and does not articulate any new legal principle of general application.
Dr. Arijit Pasayat, J.— Leave granted.
2. Challenge in this appeal is to the order passed by a Division Bench of the Punjab and Haryana High Court dismissing the writ petition filed by the appellants.
3. Background facts in a nutshell are as follows:
Respondent 1 joined as a primary school teacher in the Kendriya Vidyalaya Sangathan (for short “KVS”) on 20-7-1978. KVS is an autonomous body running schools all over the country. On 1-9-1988 the KVS issued circular providing for the option to the KVS employees to switch over to GPF Scheme from the CPF Scheme. On 6-3-1989 KVS allotted account numbers in the CPF subscription in which Respondent 1's name is at Serial No. 8. This document shows that a number of employees opted for the benefit of CPF Scheme. On 6-7-1989 a new CPF account number was allotted to Respondent 1 for having exercised the option to continue in the CPF Scheme. On 15-7-1989 revised CPF account which was allotted by letter dated 6-3-1989 was further changed vide OM dated 15-7-1989 in which also name of Respondent 1 appeared at Serial No. 8. On 15-3-1997 letter was received from Respondent 1 stating that she had been continuing under the CPF Scheme and it should be changed to GPF Scheme. In this letter Respondent 1 stated that she had been contributing towards the CPF and the CPF account number is JRC 1889. On 16-9-2002 Respondent 1 made another representation to change from CPF Scheme to GPF Scheme. By letter dated 7-11-2002 Senior Audit and Accounts Officer rejected the representation for change from CPF Scheme to GPF Scheme. On 8-3-2004 an order was passed by KVS to the effect that Respondent 1 was not entitled to claim benefit of GPF Scheme-cum-Pension Scheme as she had opted for CPF Scheme. She moved the Central Administrative Tribunal, Chandigarh Bench, Chandigarh (for short “CAT”). CAT held that she was entitled to claim benefit of GPF Scheme-cum-Pension Scheme. The original application was allowed by CAT on the ground that the appellants did not produce direct evidence to show that Respondent 1 had opted for the Scheme and brushed aside the secondary evidence produced before it by the appellants to the effect that she had been continuing in the CPF Scheme and that she was allotted CPF account number. CAT further held that Respondent 1 was entitled to the benefit of GPF-cum-Pension Scheme on account of her being in service in KVS. Further direction was given to the effect that Respondent 1 was entitled to get GPF-cum-Pension Scheme with effect from the due date with consequential benefits. Writ petition filed before the High Court was dismissed on the sole ground that in spite of the number of opportunities given to the department no direct evidence was furnished. The High Court held that the option was to be exercised in writing and other materials produced were not sufficient to show that Respondent 1 had exercised option.
4. Learned counsel for the appellants submitted that the reference has been made to various documents which prima facie show that the option had been exercised. On the contrary, the learned counsel for the respondents submitted that the original documents showing exercise of option were not produced. Merely because some other pieces of evidence were produced, they were not sufficient to show that option had been exercised.
5. In this context it is to be noted that the Tribunal itself noted that in the passbook name of the applicant appears at No. 1889 and the signatures of the Principal of KVS is indicated. It indicates her appointment in KVS from July 1978 to May 1992 in Delhi, from May 1992 to April 2003 at Baddowal, from April 2003 to April 2004 at Halwara and thereafter again at KVS Baddowal. It shows her Account No. 1889. A copy of the income tax return having deductions from pay and allowance for depositing in the CPF confirm this fact. The secondary pieces of evidence go to show that deductions were being made on regular basis from pay and allowances. This according to CAT was not sufficient to show that she had exercised her option.
6. It is to be noted that in the allotment of revised CPF number in the letter of KVS No. 16-2.C.O./89-90.CPF/KVS/PF dated 6-3-1989, name of Respondent 1 appears at Serial No. 8 and the revised CPF number is shown as 1889 in place of the earlier CPF No. CEC 2685. This change has not been denied by Respondent 1. Additionally, again in Letter No. 16-2.C.O./89-90.CPF/KVS/PF dated 6-7-1989 the name of Respondent 1 appears at Serial No. 8 and again existing CPF No. CEC 2685 has been indicated. This letter is significant because there is a note in the service-book of the employee concerned in respect of allotted CPF a/c under intimation to them. KVS Letter No. F.16-2/C.O/89-90.CPF/KVS/PF dated 15-7-1989 with reference to the earlier letter of 6-7-1989 intimated the employees about the change. Again in this letter the name of Respondent 1 appears at Serial No. 8. Most vital document in this controversy is Respondent 1's letter dated 15-3-1997. In this she has categorically stated that she was contributing towards CPF and her account number is JRC 1889. This was addressed to the Accounts Officer. This document clearly establishes that Respondent 1 was aware of the change in account number and she herself referred to account number. Her feigned ignorance about the change is absolutely hollow because she herself knows about the changed number.
7. The last pay certificate issued to Respondent 1 when she handed over charge on 23-5-1992 clearly indicates that CPF subscription of Rs 130 was being deducted and that she had opted for the pay of CPF Scheme and rate of subscription is Rs 130 for a month and allotment of CPF Account No. 1889 was being transferred. On the face of these documents CAT and the High Court should not have held that option was not exercised by Respondent 1. Pursuant to this Court's order the original service-book of Respondent 1 was produced. Even on 10-6-2005 in the last pay certificate it has been stated that she had opted for the CPF Scheme. Similar is the position in the last pay certificate dated 19-4-2003 and the last pay certificate of 18-1-1982. All these documents establish that Respondent 1 had exercised the option for the CPF Scheme. Merely because the original document relating to exercise of option was not produced that should not be a ground to ignore the ample materials produced to show exercise of the option. CAT and the High Court were not justified in taking a different view.
8. The appeal is allowed but in the circumstances without any order as to costs.
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