Ch.Sudhakar vs Singareni Colleries Comp.Ltd.3

This is a Writ Petition filed by the petitioner under Article 226 of the Constitution of India seeking a Writ of Mandamus declaring the proceedings No.CPF/HYd/PEN/Ch.Sudhakar/130/160, dated 10/21.04.2003 rejecting the claim of the petitioner for pension under the Coal Mine Pension Scheme, 1998 on the premise that the petitioner failed to exercise the option in PS-I within the stipulated date, as illegal, arbitrary and consequently to direct the respondents to extend the pension under the Coal Mines Pension Scheme, 1998 with all consequential benefits.

Brief facts of the case are that the petitioner joined the 1st respondent company as daily mazdoor on 04.07.1956 and retired from service as a Foreman on 16.05.1997 on medical grounds in terms of VRS Scheme floated by the respondent company. At the time of retirement, the petitioner was working at GDK 10A Incline. The Government of India introduced a scheme known as Coal Mines Pension Scheme, 1998 in exercise of the powers conferred under Section 3(E) of the Coal Mine Provident Fund and Miscellaneous Provisions Act, 1948 which came into force with effect from 31.03.1998 and the scheme was made applicable to all the employees who are members of the Coal Mine Provident Fund Scheme, 1971 and had not attained the age of superannuation. It was also made applicable to the employees who were covered by the Coal Mines Provident Fund Scheme subject to their exercising the option under the provisions of the scheme within a period of 60 days from the date of notification and they are deemed to have become members of the scheme from the date of exercising the option in Form PS-I. Subsequently in the year 2002, the Coal Mines Pension Scheme was amended and sub-para 2(B) was introduced specifying that an employee, who had not opted for the Coal Mines Family Pension Scheme 1971 but was covered by the Coal Mines Provident Fund Scheme and had superannuated within 01.04.1994 to 31.03.1998, may opt for pension under the provisions of the scheme within a period of 9 months from the date of the notification in the official Gazette and he shall be deemed to have become the member of the scheme from the date of his exercising the option in Form PS-I. Further, an employee who had superannuated within 01.04.1994 to 31.03.1998 was given choice to opt for pension under the provisions of Coal Mine Pension Scheme, 1998 within a period of 9 months from the date of notification in the official Gazette and he shall be deemed to have become the member of the scheme from the date of his exercising the option in Form PS-I. Para 2 of the scheme provides for pension to the employees, whereas para 4 provides for family pension to the employees. The Government of India had issued a notification extending the family pension benefits to the employees who have superannuated or retired. But similar provision was not made applicable for grant of pension to an employee who has retired from service. There was a difference in extension of the scheme in paras 2 and 4 and in view of the same, the petitioner made a representation to the Government of India and the Commissioner of Coal Mine Provident Fund and Regional Coal Mine Provident Fund authorities on 18.03.2003. The petitioner was served with a letter dt.13.07.2003 communicating that as per the latest amendment of the scheme, a member may become eligible for pension if he has tendered the option in Form PS-I before 07.04.2003 and thereafter, he has to deposit contribution towards the provident fund and since the petitioner failed to submit option in PS-I within the stipulated date, his case is not being entertained and accordingly, the claim of the petitioner was rejected. The petitioner submitted that he has been making representations to the respondents ever since his date of retirement, i.e. 16.05.1997 and after the introduction of the scheme in 1998, pursuant to the amendment of the Coal Mine Pension Scheme in 1999, the time for submission of the option form was extended by 360 days. Accordingly, the respondent company had forwarded Forms PS-I, PS-II, PS-III and PS-IV to the Regional Commissioner, CMPF, Hyderabad and in response to the Superintendent of Mines' letter dt.30.12.1999, the Assistant Commissioner-I of the Regional Commissioner, Coal Mines Provident Fund addressed a letter dt.25.07.2000 that since the petitioner is a non-pension member of the family pension scheme, 1971 and since there is no provision for the members of such nature who left the service / retired on or before 30.03.1998, the claim was closed at their end. The same was communicated to the petitioner. In pursuance thereof, the petitioner made a representation dt.20.08.2000 stating that the option forms including Forms PS-I, PS-II, PS-III and PS-IV have been submitted to the Regional Provident Fund Officer vide letter dt.31.12.1999 and requested the authorities to admit him into the Coal Mine Pension Scheme, 1998 and had given an undertaking that he would make the payment in cash in terms of the scheme 1998. However, there was no response from the respondents and aggrieved, the petitioner has filed this Writ Petition.

Learned counsel for the petitioner, Smt. K. Udaya Sri, has drawn the attention of this Court to the petitioner's representations as well as the provisions of the Scheme whereby he would become eligible for the pension.

Learned Standing Counsel for the respondents, Sri J. Sreenivasa Rao, relied upon the contentions in the counter to say that since the petitioner had not filed the details in Form PS-I and had not made contribution to the pension fund, he is not eligible for pension under Coal Mines Pension Scheme, 1998.

Having regard to the rival contentions and the material on record, this Court finds that the only reason for rejecting the petitioner's request for making him as a member of the pension scheme is that he has not submitted the details in Form PS-I and has not made the payment of contribution to the provident fund. It is seen that the petitioner has been making representations and in letter dt.28.06.2000, he had clearly stated therein that he was willing to make the payment in cash to the Provident Fund after the authority issues an advice of contribution to be paid by him. Page 17 of the writ petition papers is the letter of the respondents to the Regional Commissioner, CMPF, Hyderabad dt.24.05.1999, wherein it is clearly mentioned that PS-1, PS-2, PS-3 and PS-4 of the petitioner along with his application are being forwarded. Therefore, it is clear that the petitioner has made an application in Form PS-I and was willing to make payment towards the contribution to the provident fund provided he was advised to do so. Except for the technical ground that Form PS-I was not submitted within the prescribed time, i.e., 7.04.2003, there is no other ground for rejection of the petitioner's claim. The petitioner has been making representations and has also submitted form PS-I which has been forwarded by the respondent company to the 3rd respondent vide letter dt.24.05.1999, i.e., prior to 7.04.2003. In view of the same, this Court is of the opinion that the petitioner is eligible for grant of pension as per the Coal Mines Pension Scheme, 1998. The respondents are accordingly directed to allow the petitioner to submit Form PS-I afresh, if need be, and also collect contribution towards the provident fund and thereafter make the petitioner as a member of the scheme and allow the pension in accordance with the said scheme. All this exercise is to be completed within a period of 90 days from the date of receipt of this order.

The Writ Petition is accordingly allowed. No order as to costs.

Pending miscellaneous petitions, if any, in this Writ Petition shall stand closed.