HC allows ex-CSTC employees to apply for pension scheme

Kolkata: The Calcutta High Court has allowed the former employees of Calcutta State Transport Corporation (CSTC), who retired between 1999 and 2008, to apply for pension benefits scheme even though they had earlier voluntarily dropped out of it, opting for a provident fund scheme.

The bench of Justice Debangshu Basak and Justice Shabbar Rashidi was moved by the CSTC Retires’ and Pensioners’ Association which comprises retired employees. They challenged a Single Bench judgement which dismissed their writ petition, without granting relief. The division bench noted that the appellants opted for the pension scheme within the stipulated time. Thereafter, they of their own volition opted out of it and chose to be governed by the Central Provident Fund (CPF) scheme. After so many years of their superannuation, they are again claiming a right which they consciously relinquished.

The appellants claimed they are entitled to receive pension under the provisions of CSTC Employees (Death cum Retirement Benefits) Regulations, 1990. They claimed the benefits without refunding the employer’s share of provident fund and gratuity. Rather, they suggested adjustment to the same out of the arrears of pension.

In terms of DCRB Regulations, 1990 all employees of the Corporation who were on its payroll as on April 1, 1984 and retired subsequently were entitled to receive pension under it. Accordingly, the appellants opted for a pension scheme. However, on hearing pensions were irregular they withdrew from the scheme and switched to CPF scheme. Later, they learnt pension was regular and applied for switching back.

The court observed that the chronology of events does not and cannot brandish the claim of the appellant as a “stale claim”. It was observed that subsequent legislations extending the benefits as late as in 2002 coupled with its acknowledgement by an official in the managerial position in 2007 aids the cause of the appellants.

The court directed they are entitled to apply for the benefits of DCRB Regulations within eight weeks from date. If applied, the respondent authorities shall decide such a claim within four weeks.