SACHIDANAND SHRIVASTAVA Vs. STATE OF BIHAR

JUDGEMENT

(1.) THIS writ petition by a retired employee of the Rajendra Agricultural University, Pusa, (hereinafter referred to as 'the University ') has been filed for a direction to the respondents to recalculate the interest with regard to proceeds of GPF at the rate applicable to the general provident fund governed by the rules and orders of the State Government and pay the correct amount of GPF to the petitioner.

(2.) THE question of law falling for determination in this writ petition is whether the University is liable to pay interest over provident fund contributions of the petitioner as per interest paid by the Bank in the savings bank account where the contributions were deposited as per arrangement made by the University or at the rate prescribed by the State Government under statutory provisions governing a government provident fund. For this purpose, the relevant facts are few and not in dispute. The petitioner was initially appointed in the year 1962 in the cadre of class II senior officer of Bihar Agricultural Service. The University was established in the year 1971. After 12 years and four months of service under the Government, petitioner 'sservice was transferred to the University in February 1980 and as per notification dated 9th February, 1980 (Annexure -1) issued under the signature of Vice Chancellor of the University petitioner was treated to have been appointed to the post of Assistant Professor in the University with effect from 1st April, 1975 on a probation for two years and absorbed in the University with effect from 1.4.1977 on,a permanent basis. Para 5 of Annexure -1 is relevant for deciding the present controversy and it runs as follows:

(3.) PETITIONER claims that respondent University never furnished copy of the provident fund account of the petitioner but petitioner came to know from office of the University that on the contributions of provident fund petitioner was credited with interest only at the rate of savings bank interest I.e. 4.5% or 5% per annum and not at the rate of interest provided by the State Government which was 10% from Financial Year 1982 -83 to June 1985 and 12.5% from 1.7.1985. He claims to have filed representations in March 1995 and subsequently but no reply was given to him. According to petitioner, If rate of interest prescribed by the State Government is applied then petitioner 's GPF proceeds will amount to Rs. 5.25 lakhs otherwise, on savings bank interest it would amount only to Rs. 2.45 lakhs. Petitioner has claimed interest at the rate prescribed by the State Government on the basis of Annexure -1 and also on the basis of provisions in Chapter XVI of Rajendra Agricultural University Statutes, 1976 (hereinafter referred to as 'the Statutes '), particularly section 16.1, (e). which relates to general provident fund and provides as follows :