Case Note & Summary
The case involved a dispute regarding the entitlement of the widow of an employee to family pension under the Employees Family Pension Scheme, 1971. The appellant, Rajasthan State Road Transport Corporation, challenged the decision of the Labour and Industrial Tribunal which had directed the Corporation to disburse family pension to the widow of late Hari Singh, who had not opted for the scheme before his death in 1982. The Tribunal found that the employee was not informed of his right to exercise the option under the scheme. The appellant contended that the Tribunal and lower courts misinterpreted the scheme's provisions and failed to consider relevant facts. The court noted that the employee had been informed of the scheme and had chosen not to opt for it, preferring the provident fund benefits instead. The court found that the notification regarding the scheme was adequately disseminated to employees, and several had opted for it while others, including Hari Singh, had not. The court concluded that the widow's claim was untenable as the employee had not exercised his option and had already received the provident fund amount. The appeal was allowed, and the Tribunal's award along with the lower court judgments were set aside without any order as to costs.
Headnote
A) Pension Law - Family Pension Entitlement - Right to Family Pension - Employees Family Pension Scheme, 1971 - The court examined whether the employee's widow was entitled to family pension despite the employee not opting for the scheme, and found that the employer had adequately informed employees of their rights. The court held that the widow's claim was untenable as the employee had not opted for the scheme and had received the provident fund amount (Paras 2-15).
Issue of Consideration
Whether the widow of an employee is entitled to family pension under the Employees Family Pension Scheme, 1971 despite the employee not exercising the option.
Final Decision
The Supreme Court allowed the appeal, set aside the Tribunal's award and the judgments of the lower courts, ruling that the widow was not entitled to family pension as the employee had not opted for the scheme and had already received the provident fund amount.
Law Points
- Family pension entitlement
- Employees Family Pension Scheme
- 1971
- option exercise
- employer notification obligations
- concurrent findings
