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Khodabhai Hathibhai Khant vs The Director Of Pension And Provident ...
2025 Latest Caselaw 1828 Guj

Citation : 2025 Latest Caselaw 1828 Guj
Judgement Date : 5 August, 2025

Gujarat High Court

Khodabhai Hathibhai Khant vs The Director Of Pension And Provident ... on 5 August, 2025

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                          C/SCA/1421/2019                                CAV JUDGMENT DATED: 05/08/2025

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                                                                       Reserved On   : 22/07/2025
                                                                       Pronounced On : 05/08/2025

                                     IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                                     R/SPECIAL CIVIL APPLICATION NO. 1421 of 2019
                                                         With
                                   CIVIL APPLICATION (FOR AMENDMENT) NO. 1 of 2023
                                    In R/SPECIAL CIVIL APPLICATION NO. 1421 of 2019
                                                         With
                                      R/SPECIAL CIVIL APPLICATION NO. 5078 of 2019
                                                         With
                                      R/SPECIAL CIVIL APPLICATION NO. 4235 of 2019
                                                         With
                                      R/SPECIAL CIVIL APPLICATION NO. 5934 of 2019
                                                         With
                                      R/SPECIAL CIVIL APPLICATION NO. 9093 of 2019
                                                         With
                                      R/SPECIAL CIVIL APPLICATION NO. 9562 of 2023
                                                         With
                                      R/SPECIAL CIVIL APPLICATION NO. 4094 of 2019
                                                         With
                                     R/SPECIAL CIVIL APPLICATION NO. 22683 of 2019
                                                         With
                                       R/SPECIAL CIVIL APPLICATION NO. 86 of 2019
                                                         With
                                      R/SPECIAL CIVIL APPLICATION NO. 4694 of 2019
                                                         With
                                      R/SPECIAL CIVIL APPLICATION NO. 8964 of 2019
                                                         With
                                     R/SPECIAL CIVIL APPLICATION NO. 11889 of 2020
                                                         With
                                     R/SPECIAL CIVIL APPLICATION NO. 13573 of 2019

                       FOR APPROVAL AND SIGNATURE:


                       HONOURABLE MR. JUSTICE SANDEEP N. BHATT
                       ==========================================================

Approved for Reporting Yes No

========================================================== KHODABHAI HATHIBHAI KHANT AND OTHERS Versus THE DIRECTOR OF PENSION AND PROVIDENT FUND & ORS. ========================================================== Appearance:

MR GM AMIN, ADVOCATE for the Petitioners

MR PREMAL JOSHI, MS HARSHAL N PANDYA, MR VISHRUT JANI, MR MEHUL RATHOD, MR HS MUNSHAW, MS ARCHANA AMIN, MR DG CHAUHAN, MR PRANAV SHAH for rest of the Respondents

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MR HENIL M SHAH, MR PARTH PATEL, MS SURBHI BHATI, MR JEET JOTANGIYA, MS DHARITRI PANCHOLI, AGPs for the State Authorities ==========================================================

CORAM:HONOURABLE MR. JUSTICE SANDEEP N. BHATT

1.1 Since the issue involved in this group of petitions

is identical, the averments made as well as the submissions

canvassed by the learned advocates for the respective parties

are also identical, with consent of the learned advocates, all

these matters are heard and decided by this Court together.

1.2 This group of petitions under Article 2226 of the

Constitution of India is filed by the petitioners seeking

direction to the respondent authorities against the recovery of

the amount which was again paid by calculating the pension

and other retiral dues.

2. For the sake of convenience, as Special Civil

Application No.1421 of 2019 is argued by the learned

advocates, the same is taken as lead matter, therefore, the

facts of that matter are epitomized as under.

2.1 The petitioner initially joined the services as

Oilmen / Tubewell Operators in Ahmedabad District

Panchayat.

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2.2 The services were transferred to the newly

formatted Gujarat Water Resources Development Corporation

on 07.08.1978.

2.3 The Government has passed a Resolution dated

14.10.1981 inviting options from all the employees as to

whether they wanted to be repatriated to parent department

or to continue with Corporation by the said resolution and

pursuant to the said resolution, all the employees were

treated to be the employees of the parent department till

13.12.1981. Therefore, the petitioners were treated to be the

employees of the Ahmedabad District Panchayat for the

period from 1972 to 13.12.1981 only and thereafter they were

treated to be the employees of the Gujarat Water Resources

Development Corporation.

2.4 The petitioners retired from the Corporation

between the years 2005-2007.

2.5 The Corporation does not have pension scheme.

2.6 Therefore upon retirement, they were granted the

retiral dues as per Contributory Provident Fund scheme,

gratuity, leave encashment, etc., for the period they served

with the Corporation i.e. from 07.08.1978 till 31.05.2006. The

amount of gratuity was paid by the Corporation for the

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period from 1978 to 2006.

2.7 After about 9 years from the retirement, the

petitioner and other similarly situated persons, have

approached this Court by filing Special Civil Application

No.10476 of 2015 seeking grant of pension, which was

allowed by the Coordinate Bench of this Court.

2.8 After that order, the petitioners became entitled

for the pension and other retirement dues from the State

Government for duration of 01.11.1972 till 13.12.1981.

2.9 Therefore, for the period of which they already

received gratuity from the Corporation, again ordered to be

granted from the Panchayat. For which gratuity is already

granted for the period from 07.08.1978 to 13.12.1981.

2.10 It is the said amount which is paid by the

Corporation as well as by the Panchayat to the petitioners,

which is recovered from them, for which the petitioners have

approached this Court by way of these petitions.

3. Heard learned advocate Mr. G. M. Amin for

the petitioners and Mr.Joshi, Ms.Pandya, Mr.Jani,

Mr.Munshaw, Mr.Rathod, Mr.Shah, Mr.Chauhan, Ms.Amin,

learned advocates for the respective respondents. Rule

returnable forthwith. With consent of the learned advocates,

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all these matters are taken up for hearing and final disposal.

4.1 Learned advocate Mr.G.M. Amin for the petitioners

submitted that recovery cannot be made from the arrears of

pension and since the Rule does not permit recovery,

therefore, they have exercised pressure on the petitioners to

recover the amount of grauity and CPF which is totally

uncalled for. He has further submitted that the petitioners

have actually worked with the Corporation and the date

mentioned in the judgment of the Coordinate Bench of this

Court is notional date for counting length of qualifying

service and it has nothing to do with the actual working in

the Ahmedabad District Panchayat, therefore, stand taken by

the Corporation to recover gratuity is totally uncalled for. He

has further submitted that as such, the petitioners were

transferred to the Corporation in the year 1978, however they were working from that date onwards till they retired. The

case of the Corporation is that the Coordinate Bench of this

Court has fixed the date of retirement is 13.12.1981 and

therefore, the Corporation is liable to pay gratuity from

07.06.1978 onwards and not from 08.07.1981 and therefore,

there is a gap for the period from 1978 to 1981, therefore,

the Corporation has ordered to recover the amount of

gratuity from the arrears of pension. The petitioners has

further submitted that the date fixed by this Court is a

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notional date for counting length of qualifying service of the

petitioners and as such, the petitioners have served with the

Corporation since 1978 and therefore, the Corporation is

liable to pay gratuity from 1978 till retirement and therefore,

the impugned action of the respondent authorities of

recovering amount with interest is illegal. He has also

submitted that the impugned action of the respondent

authorities of recovering provident fund from the areas of

pension of the petitioners is illegal and recovering the

amount from the petitioners is violative of Articles 14 and 19

of the Constitution of India.

4.2 He has further submitted that in view of the

Gujarat Civil Services (Pension) Rules, 2002, the petitioners

are entitled to get gratuity right from date of his joining of

service till his retirement. He has submitted that this Court while delivering the judgment had in clear terms stated that

the services rendered in the parent department is counted for

the purpose of pension. He has further submitted that the

petitioners are also entitled to interest on pension as it is

admissible under the rules and government circulars. He has

submitted that it is the duty of the department to send

proposal of interest to the Director of Pension and Provident

Fund, which the department has not done. He has submitted

that this Court has granted interest to one Narubha

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Mohabbatsinh Zala. He has barely submitted that the

Corporation has no pension scheme. He has submitted that

the recovery made by the Corporation is required to be

refunded with interest to the petitioners.

4.3 In support of his submissions, he has relied upon

the following decisions.

(i) Special Civil Application No.16511 of 2017 - Gulabji Kasturji Borana

(ii) (2015) 4 SCC 334 - State of Punjab versus Rafiq Masih

(iii) Special Civil Application No.16188 of 2011 -

Mathurbhai Karshanbhai Galtharia versus State of Gujarat

(iv) Special Civil Application No.6138 of 2006 - S.K. Pandya versus State of Gujarat

(v) 2016 (0) AIJEL - HC 237098 - Pravinbhai Kantilal Ganatra versus State of Gujarat

(vi) (2009) 3 SCC 475 - Syed Abdul Quadir versus State of Bihar

(vii) 2024 (0) AIJEL - SC 73884 - Jagdish Prasad Singh versus State of Bihar

(viii) 2022 SCC OnLine SC 536 - Thomas Daniel versus State of Kerala

(ix) Special Civil Application No.6057 of 2015 - Ajitbhai Vasanjibhai Patel versus District Primary Education Officer

(x) Special Civil Application No.16351 of 2014 -

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Ranjanben Dolatrai Desai versus Taluka Development Officer

(xi) (2014) 8 SCC 894 - D.D. Tewari versus Uttar Haryana Bijli Vitran Nigam Limited

4.4 He has submitted that these petitions may be

allowed.

5.1 Per contra, learned advocate Mr. Premal Joshi, learned advocate Mr.Vishrut Jani, learned advocate Mr.

Abhijeet Rathod for learned advocate Mr.Mehul Rathod,

learned advocate Ms.Archana Amin for the respective

respondents have vehemently opposed these petitions. Learned

advocate Mr.Joshi has drawn the attention of this Court

towards the affidavit in reply filed by the Panchayat and has

submitted that and has submitted that after the retirement,

the petitioners were granted retiral dues as per the CPF scheme, gratuity, leave encashment, etc., for the period they

served with the Corporation i.e. from 1978 till the date of

retirement i.e. 2005-2006. He has further submitted that

accordingly, the petitioners were paid gratuity from 1978 to

2006 by the Corporation. He has also submitted that after

the order of the Coordinate Bench of this Court, the

petitioners became entitled for the pension and other

retirement dues from the State for duration of 01.11.1972 till

13.12.1981, now for the period of which they already received

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gratuity from the Corporation again ordered to be granted

from the Panchayat; the duration for which gratuity is

already granted i.e. 07.08.1978 to 13.12.1981 has to be

adjusted. He has further submitted that the concerned

Panchayat were directed by the State Government to adjust

the amount in consultation with the Corporation and

therefore, the amount in question was recovered from the

petitioners. He has submitted that the petitioners have

approached this Court earlier after almost 9 years of delay.

5.2 In support of his submissions, he has relied upon

Rule 19 of the Gujarat Civil Services (Pension) Rules, 2002

and has submitted that double amount which has been paid

to the petitioners for the duration i.e. 07.08.1978 to

13.12.1981 by the Corporation as well as by the Panchayat

and therefore, out of which, one has to be adjusted and the authorities have rightly recovered the amount from the

petitioners.

5.3 He has submitted that these petitions may be

dismissed.

6. Learned advocate Ms. Harshal Pandya for the

Corporation has also vehemently opposed these petitions. She

has drawn the attention of this Court towards the affidavit

in reply filed by the Corporation. She has adopted that

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submissions made by the learned advocate Mr.Premal Joshi.

She has submitted that the petitioners have approached this

Court earlier that too after almost 9 years of delay. She has

also submitted that double amount which has been paid to

the petitioners for the duration i.e. 07.08.1978 to 13.12.1981

by the Corporation as well as by the Panchayat and

therefore, out of which, one has to be adjusted and the

authorities have rightly recovered the amount from the

petitioners. She has submitted that these petitions may be

dismissed.

7. Learned AGPs Ms.Surbhi Bhati, Mr.Henil Shah,

Mr.Parth Patel, Mr. Jeet Jotangiya, Ms. Dharitri Pancholi for

the State have adopted the submissions canvassed by the

learner advocates for the Corporation/Panchayat. They have

also vehemently opposed these petitions. They have submitted that it is an undisputed fact that the Corporation has no

pension scheme; and that the petitioners were the employees

of the State Government till 13.12.1981 and thereafter, by

the resolution, they were the employees of the Corporation;

and that the petitioners have not rendered qualifying service

with the State Government earlier; and that the petitioners

have approached this Court after 9 years of delay for their

pensionary benefits; and that this Court has allowed those

petitions and granted the pensionary benefits to the

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petitioners and directed the respondent authorities to consider

their earlier service for the purpose of pension only; and that

the State Government has, after the said direction, considered

their services as pensionable service and accordingly paid the

retiral dues; and that these petitioners have retired from the

service during the year 2005 to 2007; and that pursuant to

the direction of this Court, the Corporation has paid the

retiral dues as per the existing scheme of the CPF and

accordingly, gratuity, leave encashment and other benefits

were granted to the petitioners; and that the Panchayat has

also considered the case of the petitioners for retirement dues

including the pension and paid the all retiral dues to the

petitioners, therefore, the petitioners are in receipt of the

double payment, one is from the Corporation and another is

from the Panchayat / State for the period from 1978 to 1981; and that one of the dues has to be recovered by the

respondent authorities from the petitioners and therefore the

Corporation has adjusted the one amount accordingly. They

have submitted that these petitions may be dismissed.

8.1 I have considered the rival submissions made by

the learned advocates for the respective parties. I have

perused the documents available on record. From the record

as well as from the facts noted above, it transpires that the

petitioners have joined the services with the Ahmedabad

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District Panchayat as Oilment / Tubewell Operators in the

year 1972. Upon formation of Gujarat Water Resources

Development Corporation, the petitioners were transferred to

the Corporation on 07.08.1978. Thereafter, as per resolution

of the Government dated 14.10.1981, all the employees were

treated to be the employees of the parent department till

13.12.1981, that means after that date, all the employees are

treated to be the employees of the Corporation admittedly.

The Corporation does not have pension scheme, which is

known to the petitioners.

8.2 The petitioners have retired from the service of

the Corporation during the year 2005 to 2007. The

Corporation has paid the retiral dues as per the CPF

scheme, gratuity, leave encashment, etc., for the period they

served with the Corporation i.e. from 07.08.1978 till their retirement.

8.3 After about almost 9 years of delay, the

petitioners have approached this Court for grant of pension,

which was allowed by this Court and thereby directed the

respondent authorities to consider their earlier service for the

purpose of pension only and accordingly, paid the retiral

benefits. Now, for the period of which the petitioners have

already received gratuity from the Corporation after their

retirement, as per the order of this Court, they were granted

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the same benefits i.e. retiral benefits from the Panchayat /

State. The duration for which gratuity is already granted i.e.

07.08.1978 to 13.12.1981 is again paid to the petitioners due

to non-coordination between the Panchayat / State and the

Corporation. Thus, the petitioners were paid same retiral

benefits by the Corporation as well as by the Panchayat also

and more particularly, for the period from 1978 to 1981.

Thereafter, the Panchayat was directed by the State to adjust

the said amount in consultation with the Corporation and the

said double amount was recovered by the Corporation from

the petitioner accordingly.

8.4 In this background, this Court finds that the only

question for determination before this Court would be that,

the amount which is paid again to the petitioners for the

period from 07.08.1978 to 13.12.1981, which is recovered by the respondent authorities, be refunded to the petitioners or

not ?

8.5 It is a matter of record that the Corporation has

paid all the retiral dues to the petitioners as per their

existing scheme i.e. CPF, gratuity leave encashment, etc.,

after the retirement, which is an undisputed fact.

8.6 It is also a matter of record that as per the order

of this Court, the State has considered the case of the

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petitioners for pension and accordingly, paid them pension

and other retiral benefits, which is also an undisputed fact.

8.7 It is also a matter of record that the retiral dues

are paid to the petitioners by the Corporation as well as by

the State though as per the order of this Court for the

period from 07.08.1978 to 13.12.1981 and hence, for the said

period, the petitioners are paid the retiral dues twice, which

is also an undisputed fact.

8.8 Therefore, the Panchayat was directed by the State

Government to adjust the amount in consultation with the

Corporation and accordingly, whichever double amount has

been paid by the authorities to the petitioners has to be

recovered and is recovered from the petitioners accordingly by

the respondent authorities. It is this amount which is demanded by the petitioners back with interest.

8.9 At this stage, Rule 19 of the Gujarat Civil Service

(Pension) Rules, 2002 needs to be referred to, which is as

under.

"19. Limitation on number of pensions -

1. A Government employee shall not earn two pensions in the same service or post at the same time or for the same continuous service.

2. A Government employee who has retired

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on a superannuation pension or retiring pension and subsequently reemployed shall not be entitled you are separate pension or gratuity or the period of his re-employment."

8.10 In view of above, no person can claim double

benefits. Additionally, it is not a case of recovery but merely

of adjustment by the respondent authorities, which the

respondent authorities have rightly done in limpid way. As

per the order of this Court, the State / Panchayat has

granted pension and other retiral benefits and the same has

been extended to the petitioners and they are enjoying its

fruits and at the same time, the payment of CPF made by

the Corporation at the time of their retirement i.e. in the

years of 2005 to 2007 as there is no pension scheme

available with the Corporation and they are the employees of the Corporation, they were enjoying the said fruits also. It is

noted that at that time, there is no order of this Court as

the petitioner have approached this Court after delay of

about 9 years which itself is recondite aspect and the

Corporation has paid the retiral dues to the petitioners soon

after their retirement i.e. in the years 2005 to 2007. Under

the circumstances, the action of the respondent authorities for

recovering the one amount is just and legal and this Court

does not warrant any interference in it.

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8.11 At this stage, it would be fruitful to refer to the

decision of the Hon'ble Apex Court in the case of Committee

for Protection of Rights of ONGC Employees versus Oil and

Natural Gas Commission through its Chairman reported in

1990 (0) AIJEL-SC 6785 = (1990) 2 SCC 472, more

particularly paras : 1, 9 and 15 thereof, which read as

under.

"1. The only question which arises for consideration in this writ petition, filed under Art. 32 of the Constitution, is whether persons who were employed in temporary capacity with the Oil & Natural Gas Commission (hereinafter referred to as 'the Commission'), when it was being run as a Department of the Government of India prior to the enactment of the Oil & Natural Gas Commission Act, 1959 (hereinafter referred to as the ONGC Act) and who were subsequently absorbed in the Commission, as established under the said Act, are entitled to pension, in addition to the Provident Fund benefits to which they are entitled under the provisions of the Employees' Provident Fund and Miscellaneous Provisions Act (hereinafter referred to as the Provident Fund Act).

9. In the present case, the petitioners were employed on temporary basis at the time when

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the Commission was established as a statutory body under the ONGC Act and on that date they were not entitled to claim pension because under the relevant Rules pension was not payable to a person employed on temporary basis. The petitioners, therefore, cannot claim that on the date of their becoming the employees of the Commission established under the ONGC Act in 1959, they had a right to pension which has been protected under sub-sec. (1) of sec. 13 and Clause (2) of Regulation 3 of the Regulations. The petitioners cannot also claim protection of the aforesaid provisions on the basis that right to receive pension was part of their condition of service on the date of their becoming the employees of the Commission under sub-sec. (1) of sec. 13 of the ONGC Act, in as much as under

the relevant service rules applicable to them, they could either claim pension or the benefit of the Contributory Provident Fund and they could not avail both the benefits. Since the petitioners are entitled to the benefit of the Contributory Provident Fund under the Provident Fund Act and the Provident Fund Scheme and have availed the, said benefit for the past 28 years, they should be taken to have opted for said benefit and they cannot invoke the service rules with regard to pension and claim the right to receive pension as part of their conditions of service. We are, therefore, unable to accept the contention of

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Shri Ramamurthi, based on the provisions of sub- sec. (1) of Section 13 of the ONGC Act and Clause (2) of Regulation 3 of the Regulations, that the petitioners are entitled to claim pension in addition to the provident fund payable to them under the Provident Fund Act and the Provident Fund Scheme.

15. For the reasons mentioned above, it must be held that the persons who were employed in temporary capacity with the Commission when it was being run as a Department of the Government of India prior to the enactment of the ONGC Act and who were subsequently absorbed in the Commission, as established under the said Act, are not entitled to pension in addition to the Provident Fund benefits to which they are entitled under the provisions of the Provident Fund Act. The writ petition, therefore, falls and it is accordingly dismissed. There will be no order as to costs."

8.12 There cannot be any dispute with regard to the

law enunciated in the decisions of the Hon'ble Apex Court as

well as of this Court relied upon by the learned advocate for

the petitioners, however, it cannot be helpful to the

petitioners any further in view of the facts and circumstances

of the present case. The present case does not fall within the

purview of these decisions with such facts.

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9. For the reasons recorded above, these petitions

need to be dismissed and are dismissed accordingly. Rule is

discharged. Interim relief granted earlier, if any, stands

vacated. In view of this, civil application would not survive

and is disposed of accordingly.

(SANDEEP N. BHATT,J) M.H. DAVE

 
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