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Gujarat High Court

Sajjansinh P Lakod -Since Deceased Thru ... vs State Of Gujarat & 5 on 30 October, 2015

Author: J.B.Pardiwala

Bench: J.B.Pardiwala

               C/SCA/16209/2013                                           CAV JUDGMENT




                   IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                      SPECIAL CIVIL APPLICATION NO. 16209 of 2013



         FOR APPROVAL AND SIGNATURE:



         HONOURABLE MR.JUSTICE J.B.PARDIWALA

         ==========================================================

         1   Whether Reporters of Local Papers may be allowed to
             see the judgment ?                                                          NO

         2   To be referred to the Reporter or not ?
                                                                                         NO
         3   Whether their Lordships wish to see the fair copy of
             the judgment ?                                                              NO

         4   Whether this case involves a substantial question of
             law as to the interpretation of the Constitution of India
                                                                                         NO
             or any order made thereunder ?


         ==========================================================
             SAJJANSINH P LAKOD -SINCE DECEASED THRU LEGAL HEIRS &
                                  6....Petitioner(s)
                                       Versus
                      STATE OF GUJARAT & 5....Respondent(s)
         ==========================================================
         Appearance:
         MS HARSHAL N PANDYA, ADVOCATE for the Petitioner(s) No. 1 - 7
         MR SWAPNESHWAR GAUTAM, AGP for the Respondent(s) No. 1 - 6
         ==========================================================

                  CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA

                                    Date : 30/10/2015


                                    CAV JUDGMENT
Page 1 of 17

HC-NIC Page 1 of 17 Created On Sat Oct 31 02:44:03 IST 2015 C/SCA/16209/2013 CAV JUDGMENT 1 By this writ application under Article 226 of the Constitution of  India, the petitioners - retired Government employees, have prayed for  the following reliefs:

"7.  The  petitioners  respectfully  pray  that,  on  the  basis  of the  facts  and   circumstances as mentioned hereinabove and which may be urged at the   time of hearing, the Honourable Court may be pleased to issue a writ of   mandamus   or   any   other   appropriate   writ,   order   or   direction   to   the   respondent authorities and may be pleased to:­ (A) declare and hold that the petitioners are entitled and eligible for the   benefit of medical allowance in monthly pension and the family pension,   and  (B)   direct   the   respondent   authorities   to   extend   the   benefit   of   medical   allowance in their monthly pension and the benefit of family pension to   the petitioners, and  (C) award the cost of present petition, and  (D) pension admissible and final disposal of this petition, this Honourable   Court may be pleased to direct the GIRDA, Res. No.4 to sent the proposal   to the State Government in respect of grant of benefit of medical allowance   and family pension to the petitioners so as to enable the authorities of the   State Government to consider the same, and  (E) pending admissible and final disposal of this petition, this Honourable   Court may be pleased to direct the respondent authorities to start paying   medical   allowance  to  the   petitioners  in  their  monthly  pension  as   being   paid to other pensioners, and/or  (F) grant any other relief or pass any other order which the Honourable   Court may consider as just and proper in the facts and circumstances of   the case."

2 The case of the petitioners may be summarized as under; 2.1 The petitioners joined the services of the State Government and  were   posted   in   the   Industrial   Research   Laboratory   ('I.R.L.',   for   short)  under the Administrative Control of the Commissioner of Industries. All  Page 2 of 17 HC-NIC Page 2 of 17 Created On Sat Oct 31 02:44:03 IST 2015 C/SCA/16209/2013 CAV JUDGMENT the petitioners were holding the technical post.  2.2 On 06.04.1981, the Gujarat Industrial Research and Development  Agency ("GIRDA", for short) was established. 

2.3 On 30.06.1982, the State Government accorded approval to the  GIRDA to take over the Industrial Research Laboratory with effect from  01.04.1982, and accordingly, the same was taken over by the GIRDA. All  the   employees   working   in   the   I.R.L.   were   sent   on   deputation   in   the  GIRDA. In the year 1982, the question of permanent absorption of the  employees working in the I.R.L. cropped up in view of the merger of the  I.R.L.   with   the   GIRDA,   In   such   circumstances,   the   State   Government  decided to call for an option from the employees of the I.R.L. whether  they desired to be absorbed permanently in the  GIRDA or not. While  calling for such option, it was made clear to the employees working on  the technical side that as everything was being taken over by the GIRDA,  no technical post would continue, and therefore, upon giving option for  being   continued   in   the   parent   department,   their   services   would   be  terminated. 

2.4 In such circumstances referred to above, the petitioners were left  with   no   other   option,   except   being   absorbed   in   the   GIRDA,   and  accordingly,   they   were   absorbed   with   effect   from   01.10.1985   on  permanent basis. 

Page 3 of 17 HC-NIC Page 3 of 17 Created On Sat Oct 31 02:44:03 IST 2015 C/SCA/16209/2013 CAV JUDGMENT 2.5 After   being   absorbed   in   the   GIRDA,   all   the   petitioners   were  treated to have retired from the services of the Government. The pension  was sanctioned in favour of the petitioners with effect from 01.10.1985  for that period and were permitted to commute full pension. In the year  1998­1999, the  State  Government decided to grant the benefit of the  commuted portion of pension to all the Government employees who had  been  absorbed in  the  Public  Sector  Undertaking  / Autonomous  Body.  Since   the   authority   delayed   the   process,   the   petitioners   Nos.1   and   2  herein filed two Special Civil Applications Nos.12436 and 12437 of 2009  respectively. Both the writ applications were disposed of in the following  terms: 

1. "During   the   course   of   hearing,   Mr.J.K.   Shah,   learned   Assistant   Government   Pleader,  has   tendered  the   affidavit   filed   by   Mr.Ramsing   R.   Parmar, whereby it is categorically stated that his office has received the   letter from the office of the Pension and Provident Fund, Gandinagar, and   the same is under consideration by his office. In pursuance of the same,   learned Assistant Government Pleader has submitted that the grievance of   the  petitioners  will  be  redressed  by the  respondent­authority  within  the   stipulated time.
2. Mr.Paresh Upadhyay,  learned advocate for the  petitioners, states that in   view of the averments made in the said affidavit as well as the statement   made by the learned Assistant Government Pleader, he does not press both   the petitions.
3. In view of aforesaid, both the petitions stand disposed of as not pressed. It   is made clear that the respondent­authority will redress the grievance of   the  petitioners  within   a   period   of   six   weeks   from   today.   Notice   is   discharged with no order as to costs. Liberty to revive in case of difficulty."
2.6 The authorities, thereafter, started processing the pension cases by  Page 4 of 17 HC-NIC Page 4 of 17 Created On Sat Oct 31 02:44:03 IST 2015 C/SCA/16209/2013 CAV JUDGMENT asking the petitioners  to provide  the necessary details  in a prescribed  format.   In   the   year   2010­11,   the   sanction   letters   of   restoration   of  pension were issued in favour of the petitioners with revision pertaining  to the  6th  Pay Commission. Since the authorities  did  not sanction  the  pension,   after   merging   50%   D.A.   in   view   of   the   policy   of   the   State  Government of granting the benefit of merger of D.A. in pension with  effect   from   01.04.2004,   several   representations   were   made   in   that  regard. On 11.05.2011, the Finance Department clarified that since all  the  benefits  were granted to the  absorbed employees at par with  the  other   pensioners,   the   benefit   of   merger   of   50%   D.A.   would   be   also  payable to such employees. 
2.7 On 28.07.2011, the District Treasury Office was instructed to pay  pension after merging 50% D.A.  2.8 It is the case of the petitioners that in the pension, which is being  paid   to   them,   the   medical   allowance   is   not   being   paid.   The   other  pensioners are being paid the medical allowance. The two widows of the  Government employees also preferred representations for grant of the  family   pension   upon   death   of   their   respective   husbands   who   were  absorbed   and   treated   as   retired   from   the   Government   services   along  with   the   present   petitioners.   However,   the   request   was   declined.   On  09.05.2012, the District Treasury Office, Vadodara replied that as there  Page 5 of 17 HC-NIC Page 5 of 17 Created On Sat Oct 31 02:44:03 IST 2015 C/SCA/16209/2013 CAV JUDGMENT was no clear direction for payment of medical allowance, the same was  not being paid. On the issue of family pension and medical allowance,  the GIRDA informed the State  Government that such benefits are not  being paid to the employees of the GIRDA and appropriate instructions  were sought in  that  regard by the  GIRDA from  the  Government. The  grievance of the petitioners is that they have all retired and although are  entitled for the benefit of medical allowance in their monthly pension,  yet the  same  has  been  wrongly denied  without  there  being any legal  basis for the same. 

3 Ms.   Harshal   Pandya,   the   learned   advocate   appearing   for   the  petitioners submitted that although the Commissioner of Industries has  issued   appropriate   directions   as   regards   the   payment   of   medical  allowance, the authorities of GIRDA for some reasons or the other are  not   forwarding   the   proposal   for   the   grant   of   medical   allowance   and  family pension. 

4 Ms. Pandya submitted that it is not proper on the part of the State  Government to harass helpless widows. According  to Ms. Pandya, the  benefit   of   family   pension   is   available   to   a   widow   /   widower   of   a  pensioner   under   the   statutory   rules   of   the   Gujarat   Civil   Services  (Pension) Rules, but the same has been denied despite the fact that the  employees absorbed in other Boards / Corporations are being paid the  Page 6 of 17 HC-NIC Page 6 of 17 Created On Sat Oct 31 02:44:03 IST 2015 C/SCA/16209/2013 CAV JUDGMENT same. 

5 Ms. Pandya submitted that her clients are all retired employees of  the State Government and are claiming pension for the service rendered  with the State Government. For the service rendered with the GIRDA,  benefits   have   already   been   paid   which   do   not   include   pension.   Her  clients are not claiming any benefit from the GIRDA.  6 In   such  circumstances  referred   to  above,  Ms.  Pandya   submitted  that   there   being   merit   in   this   application,   the   same   be   allowed   and  appropriate Mandamus be issued. 

7 On   the   other   hand,   this   writ   application   has   been   vehemently  opposed   by   Mr.   Swapneshwar   Gautam,   the   learned   Assistant  Government   Pleader   appearing   for   the   State   respondent.  Mr.  Gautam  placed reliance on the following averments made in the affidavit­reply  filed on behalf of the respondents Nos.1, 3 and 4: 

"5. It is respectfully submits that by way of filing the present petition   the petitioner has prayed for to allow the benefit of medical allowance in   monthly   pension   and   family   pension.   It   is   further   submits   that   on   06.04.1981 the Gujarat Industrial Research Development Agency ("GIRDA   for   short)   came   into   existence.   The     State   Government   accorded   the   approval  to   GIRDA   take  over   the  Research   Laboratory   with   effect   from   01.04.1982,   wide   Government   Resolution   dated   03.06.1982   and   accordingly,  the  same  was  taken  over  by GIRDA  and  all the  employees   working   in   IRL   was   take   over   by   GIRDA,   they   have   been   given   fresh   appointment letters from GIRDA. The copy of GIRDA appointment letter   and   GIRDS   service   rules   1981   are   attached   herewith   and   marked   as   Annexure R­1. 
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6. It   is   respectfully   submits   that   as   all   the   petitioners   were   absorb   GIRDA on 01.10.1985. Non­Technical staff have been given the option to   absorb in GIRDS or to stay in parent department while technical staff were   absorb   with   three   increment   and   one   promotion   it   appears   that   the   petitioner were benefited by a good option. A copy of acknowledgment for   the   appointment   of   three   increment   and   one   promotion   is   attached   herewith   and   marked   as   Annexure   R­2.   It   is   further   submits   that   the   petitioner   have   been   also   given   commuted   full   pension   for   the   service   which they have  done  in IRL. A copy of commuted  full  pension  for  the   services done by the petitioners in IRL is attached herewith and marked as   Annexure R­3. 
7. It is respectfully submits that as order passed by the Hon'ble Court   dated 30.04.2010,  the pension and Provident Fund Office have released   pension   with   effect   from   01.07.2004   vide   order   No.DPP/   Restoratinpension/PR1/G/10/531/AG/REV/843   dated   13.05.2010.   A   copy is attached herewith and marked as Annexure R­4. 
8. It is respectfully submits that the petitioners are already being paid   6   pay   commission   and   their   pension   case   are   also   approved   by   the   th pension and provident fund office and they are paid pension accordingly.   It is further submits that after seeking guidance from Finance Department,   Office of the Pension and Providence Fund vide leter dated 28.07.2011 as   Directed   Treasury   Officer,   Vadodara   merging   the   benefit   of   50   percent   Dearness Allowance on revised pension for the duration of 01.04.2004 to   31.12.2005 the copy of letter dated 28.07.2011 is attached as Annexure   R­5. 
9. It   is   further   submitted   that   in   earlier   time   Provident   Fund   and   Pension Department has decided to give 1/3 pension for period petitioner   work for IRL. By the letter dated 28.07.2011 they have given the merger of   50 percent Dearness Allowance on revised pension. 
10. It is respectfully  submit that in accordance  with the  provision  of   Finance Departments G.R. No NVN/1074/U.O./352/J dated 19.02.1974   office   of   the   Pension   and   Provident   Fund   had   issued   as   letter   dated   29.11.2013   stating   there   in   that,   the   State   Government   has   not   been   accepted   responsibility,   provide   the   benefit   of   family   pension   to   the   employees who are absorb in public sector unit and therefore there is no   question   of   sanction   family   pension   for   their   families.   A   copy   of   letter   dated   29.11.2013   and   Finance   Department   G.R.   Dated   19.02.1974   is   attached herewith and marked as Annexure R­6. 
11. It is respectfully draw the attention of this Hon'ble Court that the   widow of later Mr. Shah and Mr. Machhi were paid full commuted value   of pension for services they render in IRL. It is further submitted that late   Mr. Shah and Mr. Machhi were pay as prescribe by GIRDA during service   Page 8 of 17 HC-NIC Page 8 of 17 Created On Sat Oct 31 02:44:03 IST 2015 C/SCA/16209/2013 CAV JUDGMENT in GIRDA they were also paid retirement benefit. 
12. It is respectfully submit that as per the provision made in Finance   Department by GR dated 03.10.2012  read with provision of 5th  pay GR   dated   07.01.1998,   the   medical   allowance   is   to   be   paid   to   state   Govt.   employees   as   per   standard   rules.   Both   above   referred   G.R.   Is   attached   herewith Annexure R­7. 
It is further submitted that the two letters as mentioned below annexed as   Annexure R­8:­ 
1. Letter dated 01.06.2012 issued by Accountant and Treasury   Office, Gandhinagar. The Director has clearly mentioned that the   employees of the State Government who were deputation to public   sector   unit   and   again   repatriate   are   not   entitle   have   medical   allowance.
2. The  finance  dapartment  has  mentioned  in  its  letter  dated   15.04.2010   that   they   get   the   benefit   of   medical   allowance   from   office   where   they   service   during   the   period   of   absorption.   The   petitioners  have  given  appointment  letters  from  GIRDA  and  they   are   abide   by   GIRDA   service   rules,   as   per   GIRDA   service   1981,   GIRDA is providing CPF scheme to it employee. 
13. It is further submits that GIRDA is grant in aid organization and   registered   under   society   act   the   copy   of   100   percent   grant   in   aid   certificate/resolution is attached as Annexure R­9. It is further submitted   that as per GIRDA service, GIRDA is paying only Contributive Provident   Fund (CPF) to its employee. The Industries and Mines Department is the   administrative authority of the GIRDA. Therefore GIRDA has no power to   sanction medical allowance in pension. It is respectfully submitted that the   present   petitioner   has   given   example   of   Gujarat   Water   Resources   and   Development   Corporation   Limited   where   the   petitioner   want   to   convey   that by GR dated  05.06.2012  granting  benefit of family pension  to the   Government employees who were absorb in Gujarat Water Resources and   Development   Corporation   Limited   and   request   to   considered   their   case   grant of benefit for family pension and medical allowance. 
14. It   is   further   submits   that   the   Gujarat   Water   Resources   and   Development Corporation Limited is autonomous body, having liberty to   frame   their   own   rules.   Therefore   their   rules   are   not   applicable   to   Industries   Commissioner   or   GIRDA.   It   is   respectfully   submits   that   the   petitioner   are   seeking   benefit   of   medical   allowance   from   the   State   Government   and   alleged   that   as   the   pension   is   paid   by   the   State   Government so they should be treated as State Government employees. The   petitioners has also mentioned since the GIRDA has no power to sanction   medical   allowance,   in   light   of   petitioner.   The   present   department   may   refer   issued   to   State   Government   to   direct   GIRDA   to   proposed   medical   Page 9 of 17 HC-NIC Page 9 of 17 Created On Sat Oct 31 02:44:03 IST 2015 C/SCA/16209/2013 CAV JUDGMENT allowance. GIRDA sought guidance from Industries and Mines Department   as   it   is   administrative   authority   of   GIRDA   vide   letter   No.GIRDA/PE.Ta.Bh/12­13/1192   dated   30.01.2013   for   medical   allowances in pension. In reply of letter dated 30.01.2013,  the Industry   and Mines Department has advised us to act as per GIRDA service rule. A   copy   of   communication   letters   are   attached   herein   and   marked   as   Annexure R­10. It is further submitted that GIRDA is having CPF scheme   in   which   such   retire   employees   are   not   entitled   for   pension   or  medical   allowances in pension. 
15. It is respectfully  submits  that GIRDA  has not  receive  any official   letter from its Head Office i.e., Office of the Industry Commissioner asking   us to submit proposal for granting medical allowance, the industries and   mines  Dept.  is an administrative  authority the authorities  has asked  to   conduct   suitable  action   in   this   matter,  therefore   GIRDA   is   sought   their   advise and having advised as GIRDA and act as per GIRDA service rule.   GIRDA is being autonomous body grant in aid organization and registered   under   society   act   which   has   provided   only   CPF   to   each   employee.   Therefore, no medical allowance in the pension to be paid to its employees.   As   per   letter   No.DPP/LM/Spe.C.A.16209­13/733/13   dated   29.11.2013   from office of the pension and Provident Fund, the employees absorb on   01.10.1985   in   GIRDA   are   paid   commuted   full   pension   and   after   completion of 15 years they are eligible to get 1/3 pension. With reference   to finance  department  G.R.  dated  19.02.1974  office  of the pension  and   Provident Fun as issued the letter No.DPP/Lm.Spe.C.A. No.16209­13/13   dated 29.11.2013 stating that the State Government has not accept the   responsibilities of the family pension for their families for the employees   who are absorbed, therefore no question of sanctioning family pension for   the present petitioner. 
16. It is respectfully submitted the office of the Industries Cm missioner   wide   letter   dated   27.02.103   have   advised   GIRDA   to   contact   treasury   branch   Vadodara   and   taken   action   for   the   family   pension   of   Mr.   R.R.   Shah   and   Mr.   Z.R.   Machhi   reference   was   made   to   treasury   officer   vadodara were letter dated 03.04.2013 in the matter. In reply to our letter   dated   01.03.2013   treasury   officer   has   informed   GIRDA   that   family   pension cannot be sanction to the employees where repatriated and absorb   in present department. The petitioner have also inform accordingly. A copy   of   letters   dated   27.02.2013,   01.03.2013   and   03.04.2014   are   attached   herewith and marked as Annexure R­11. 
17. It is further submit that with reference the finance department GR   dated   19.02.1974   as   per   letter   No.DPP/LM/Spe.   C.A.   No     16209­ 13/733/13  dated  29.11.2013  from  the  office  of Pension  and  Provident   Fund, providing / sanctioning  medical allowance  is policy matter of the   State   Government.   Medical   allowance   in   pension   cannot   be   payable   to   absorb employees entitle and in this their official orders raised from the   Page 10 of 17 HC-NIC Page 10 of 17 Created On Sat Oct 31 02:44:03 IST 2015 C/SCA/16209/2013 CAV JUDGMENT State Government. 
18. It   is   respectfully   submits   that   the   present   petitioner   who   are   employees absorb from IRL to GIRDA has got full commuted pension from   Government for the service done in IRL. They have also paid salary and   medical allowance while they are on service with GIRDA. They were paid   retirement   benefit   and   contributive   Provident   Fund   (CPF)   after   getting   retied from GIRDA." 

8 Mr.  Gautam   submitted   that   in   view   of   the   above   stance   of   the  State Government, this application deserves to be rejected.  9 Having heard the learned counsel appearing for the parties and  having gone through the materials on record, the only question that falls  for my consideration is whether the petitioners are entitled to reliefs, as  prayed for, in this writ application. 

10 The   word   'pensioner'   is   defined   in   the   Gujarat   Civil   Service  (Pension) Rules, 2002. 

"Pensioner  means   a   retired   Government   employee   who   has   been   granted pension"

10.1 Rule   51   of   the   Gujarat   Civil   Service   (Pension)   Rules,   2002  provides benefit of family pension to the families of absorbed employees,  which reads as under:

"Rule   51:   Pension   on   absorption   in   or   under   Public   Sector  undertaking:
(2)(b)(i) The benefit of family pension under Chapter­X of these rules   shall be admissible only to the families of those who are actually in  receipt of pension from the State Government, after their absorption  Page 11 of 17 HC-NIC Page 11 of 17 Created On Sat Oct 31 02:44:03 IST 2015 C/SCA/16209/2013 CAV JUDGMENT in the Public Sector undertaking referred to in this rule. This benefit   shall not be admissible to the families of those who got only the service   gratuity. 
(ii) Family Pension shall not be admissible from only one source either   from the State Government or the public sector undertaking referred  to in this rule in case such public sector undertaking has a similar   scheme for payment of family pension. The beneficiary shall be given   option to choose either of the two scheme. 
(iii)   Grant   of   family   pension   shall   be   subject   to   other   conditions   specified in Chapter - X of these rules. 
(iv)   It   shall   be   responsibility   of   pension   sanctioning   authority   to   process the claim of family pension. He shall forward the claim of  family pension after verifying that there exists no scheme for grant of   family pension to the families of the Government employees already   absorbed in the public sector undertaking."

11 It appears from the stance of the GIRDA that the grant of benefit  of   restoration   of   pension,   merger   of   D.A.   and   three   increments,  disentitle   the   pensioners   to   claim   the   family   pension   and   medical  allowance,   as   they   cannot   be   treated   as   employees   of   the   State  Government.  It also appears  that the   GIRDA proposes to  rely upon  a  Government   Resolution   dated   19.02.1974,   by   which,   the   State  Government had declined to take the responsibility of paying the family  pension. 

12 However, it appears that the State Government, thereafter, issued  another   resolution   dated   01.04.1989   modifying   the   earlier  resolution/policy   for   bringing   uniformity   in   the   mater   of   pensionery  benefits.   The   relevant   part   of   the   resolution   dated   01.04.1989   reads  Page 12 of 17 HC-NIC Page 12 of 17 Created On Sat Oct 31 02:44:03 IST 2015 C/SCA/16209/2013 CAV JUDGMENT thus:

"At present the cases of Government  employees, on deputation to Public   Sector   Undertaking   of   the   State   Government,   who   are   absorbed   in   the   PSUs in public interest permanently, are regulated as per the provisions   contained in the G.Rs. F. D. referred to in the preamble. The question of   establishing   parity   in   the   matter   of,   pensionary   benefit   to   such   State   Government   employees,   with   the   provisions   in   force   in   Government   of  India   had   been   under   consideration   of   Government.   After   careful   consideration, Government has decided that in partial modification to the   provisions contained in the GRs  referred to in the preamble, the cases of   the Government employees who select to be absorbed in the Autonomous   body/Public Sector Undertaking will be regulated as under:­ (1)   A   Government   employee   on   absorption   to   Public   Sector   Undertaking/Autonomous body is eligible for pro­rata pension and DCRG   based on the length of his qualifying services till the date of his absorption   in   the   PSU/Autonomous   Body.   The   pension   will   be   calculated   on   the   average   emoluments   for   3   years   preceding   the   date   of   absorption   and   DCRG   will   be   calculated   on   the   basis   of   the   emoluments   immediately   before absorption. 
(2) Within 6 months of absorption, every such of Government employees,   absorbed in PSUs/Autonomous bodies will exercise option for either of the   two alternatives indicated below:­ 
(a) Receiving monthly pension and DCRG as per the rules or
(b) Receiving DCTG and a lumpsum amount in lieu   of pension worked out with reference  to the commutation table.  

Were   no   option   is   exercised,   the   absorbed   employee   will   automatically be governed under the option (b) above. The option   once exercised will be final. The person who chooses the alternative   mentioned in Para­1 and 2(b) above, 1/3 of the lumpsum amount   will be treated as commutation of pension and 2/3 of the amount   will be treated as retirement benefits. 

(3)   In   case   the   Government   employee,   absorbed   in   PSU/Autonomous   Bodies, resigns after receiving pensionery benefits, the resignation will be   treated as resignation from Government service and as a consequence  of   resignation,   pensionary   benefits   received   under   these   orders   will   be   forfeited. 

(4)   The   absorbed   Government   employee   will   receive   all   the   benefits   admissible to other corresponding employees of PSUs/Autonomous bodies.   But   in   respect   of   gratuity   the   sum   total   of   the   gratuity   received   from   Government at the time of absorption and the gratuity received from the   Page 13 of 17 HC-NIC Page 13 of 17 Created On Sat Oct 31 02:44:03 IST 2015 C/SCA/16209/2013 CAV JUDGMENT PSU/Autonomous  body for service  rendered  there  should  not exceed  the   amount of gratuity that would have been received had he been continued   in   Government  service   and   retired   on   the   same   pay   which   be   drew   on   retirement from PSUs/Autonomous bodies. 

(5) Any further liberalisation of pension rule after permanent absorption   will   not   be   extended.   However,   if   such   liberalisation   comes   into   effect   retrospectively   i.e.,   with   effect   from   the   date   prior   to   the   date   of   absorption, the benefit will be admissible. 

(6) In the  case where  the absorbed  employee  elects  to receive  recurring   pension  and  DCRG  in terms  of  1(2)(a)  above,  and  wishes  to commute   some portion of his pension as per the rules, the same will be admissible.  (7) These  benefits  will be admissible  only if the absorption  is in public   interest. 

(8)  A  permanent   Government   employee  who  has  been   appointed  in an   Autonomous Body/PSU wholly on substantially financed by Government,   on his own application in response to a press advertisement etc., on his   permanent absorption in such organisation will be entitled to get benefits   of these orders except carry forward of leave. 

(9) All the cases to be regulated under this order will have to be decided by   the  concerned   Administrative  Departments  in Sachivalaya,  who   in  turn   will have to seek approval of Finance Department.  (10) The pay of the Government employee absorbed in PSUs/Autonomous   bodies   will   be   regulated   as   per   the   provisions   of   the   G.R.F.D.   No.NVT­ 3286­GOI­95­P dated 17­8­1988 as amended from time time.  (11) (i) The benefit of family pension will be admissible to those who are   in receipt of pension after absorption in PSUs. 

(ii) The benefit is not admissible to those who have not rendered requisite   number of qualifying service to earn them pension. Accordingly the benefit   of   family,   pension   will   not   be   admissible   to   the   families   of   those   Government servants absorbed in PSUs, who have not completed 10 years   qualifying service. 

(iii)   The   family   pension   will   also   be   admissible   to   those   Government   servants  absorbed  in   PSUs   who   die  before  receiving  pensionery   benefits   admissible   under   these   orders   subject   to   the   fulfillment   of   conditions   mentioned in para 1(11)(ii) above. 

(iv)   The   family   pension   will   This   benefit   will   be   admissible   to   the   Government servant who is appointed to PSUs in the manner indicated in   Page 14 of 17 HC-NIC Page 14 of 17 Created On Sat Oct 31 02:44:03 IST 2015 C/SCA/16209/2013 CAV JUDGMENT para   1(8)   above   and   has   been   granted   retirement   benefits   under   these   orders. 

(v)   The   family   pension   to   the   eligible   members   of   the   PSU   absorbed,   Government servants will be given from one source only, i.e., either from   the   Government   or   from   the   Public   Sector   Undertakings/   Autonomous   bodies if such organization has any scheme for grant of family pension.   The eligible member may be allowed to choose either of the two scheme. 

(vi) It will be responsibility of the pension sanctioning authority to process   the   claim   for   family   pension.   He   should   forward   the   claim   for   family   pension   after   verifying   that   there   exists   no   scheme   for   grant   of   family   pension   to   the  families   of  Government   servant   already   absorbed   in   the   PSUs/Autonomous bodies. 

(12)   For   actual   payment   of   retired   benefits   as   a   consequence   of   absorption,   the   procedure   prescribed   for   a   retired   employee   should   be   followed."

13 The materials on record would indicate  that the  widows  of the  respective   employees,   who   were   absorbed   in   the   Gujarat   Water  Resources   Development   Corporation   and   were   receiving   the   pension  from   the   State   Government,   are   being   granted   the   benefit   of   family  pension. The G.W.R.D.C. is also a Public Sector Undertaking of the State  Government.   I   see   no   good   reason   for   the   respondents   to   deny   the  benefit so far as the petitioners are concerned, including the widows. I  also   take   notice   of   the   Government   resolution   dated   03.10.2012  sanctioning   the   medical   allowance   to   the   Government   /   Panchayat  employees, etc, which reads as under:

"RESOLUTION:
Under the Government Resolution Dated : 22/01/98, mentioned in   Page 15 of 17 HC-NIC Page 15 of 17 Created On Sat Oct 31 02:44:03 IST 2015 C/SCA/16209/2013 CAV JUDGMENT the   preamble,   the   state   Government   has   decided   to   grant   Medical   Allowance of Rs.100/­ per month to employees as well as pensioners of the   State   Government   and   Panchayat.   The   revision   of   the   existing   rate   of   Medical   Allowance   was   under   consideration   of   the   Government.   After   careful consideration the Government is pleased to revise the existing rate   of  Medical   Allowance   Rs.100/­   per   month   to   Rs.300/­   per  month   with   following conditions. 
1)  These  orders   shall  be   applicable   to  employees  and  pensioners   of  the   State Government,  employees and pensioners of panchayat and Primary   and Secondary School teachers as well as Work Charged employees (who   have completed the service of one full year without any break).
(2) These orders shall be implemented with effect from dated 01­10­2012. 
(3) Other provisions of the G.R.F,D. Dated 22­01­1998 shall continue to   be applicable. 
(4) Accounting system and conditions regarding option shall be as it is."

14 I also take notice of the Government resolution dated 09.03.1999  as regards the absorption of the Government employees in the Public  Sector Undertaking / Autonomous Body of the State Government. The  same reads as under:

"In   the   Government   Resolution   Finance   Department   No.NVT­1196­ GOI­10­P,   dated:   23.4.1998,   Para   3   of   the   said   Resolution   is   substituted as follow:
"3. The Government, after careful considerations, has decided   to grant benefit of restoration of one third commuted portion of  pension of pension after 15 years from the date of commutation  or 1.4.1985, whichever is later notwithstanding the fact that   having commuted the full pension they were not in receipt of   any monthly pension.""

15 I find merit in the submissions of Ms. Pandya that the confusion  has been created by the Treasury Office, Vadodara, so far as the grant of  Page 16 of 17 HC-NIC Page 16 of 17 Created On Sat Oct 31 02:44:03 IST 2015 C/SCA/16209/2013 CAV JUDGMENT family pension to the two widows is concerned. Ms. Pandya is right in  submitting that the Treasury Office has no authority to take any decision  in the absence of any direction or decision taken by the highest authority  i.e. the Finance Department. I find substance in the submissions of Ms.  Pandya   that   the   petitioners   are   claiming   the   two   benefits   in   their  capacity   as   retired   employees   of   the   State   Government   i.e.   for   the  services rendered with the State  Government and not for the services  rendered with the GIRDA. In fact, the GIRDA has nothing to do with this  issue. 

16 In the result, this application is allowed. The State Government as  well as the respondent No.3 herein are directed to see that the medical  allowance   is   sanctioned   and   paid   to   the   pensioners   along   with   the  monthly pension as they are receiving, and at the same time, the two  widows   are   paid   the   family   pensions   in   accordance   with   the   rules  governing the same. This exercise shall be completed within a period of  two months from today and the payment should be made with arrears  from the date of filing of this petition. 

(J.B.PARDIWALA, J.) chandresh Page 17 of 17 HC-NIC Page 17 of 17 Created On Sat Oct 31 02:44:03 IST 2015