STATE OF U.P. Vs. VIRENDRA KUMAR

JUDGEMENT

(1.) On 10/2/2020, for the reasons recorded, a Bench of two Hon'ble judges of this Court came to the conclusion that the view taken by this Court in the case of State of Uttar Pradesh v. Preetam Singh and Ors. 2014 (15) SCC 774 (Preetam Singh's case) needs reconsideration. Under Sec. 3 of the Uttar Pradesh Avas Evam Vikas Parishad Adhiniyam, 1965 (for short 'the 1965 Act'), Uttar Pradesh Avas Evam Vikas Parishad (for short 'the Board') was established. The basic object of the establishment of the Board was of framing and executing housing and improvement schemes in the State of Uttar Pradesh. The core issue on which the reference is made to a larger Bench is whether the act of determining service conditions of the employees and officers of the Board is one of the statutory functions of the Board.

(2.) On 21/2/1995, the Board resolved to extend the pensionary benefits to its employees by replacing the existing Contributory Pension Scheme (for short 'the old pension scheme') with a pension/family pension/gratuity scheme (for short 'the new pension scheme'). On 16/5/1996, the State Government accorded its consent to the new pension scheme subject to the condition that the Board will not be entitled to seek any financial assistance for the implementation of the new pension scheme.

(3.) By a Resolution dtd. 5/11/1997, the Board approved the new pension scheme. The new pension scheme was based on the pension scheme of the State Government applicable to civil servants. On 26/11/1997, State Government passed an order staying the implementation of the new pension scheme. It appears that the State Government appointed a committee of experts to examine the new pension scheme of the Board. After considering the report of the committee of experts, the State Government vide order dtd. 14/9/1999 vacated the stay granted earlier by imposing a condition that the scheme shall be funded from the contribution to provident fund made by the Board and that neither the State Government nor the Board shall incur financial liability by implementing the new pension scheme.