Government of India

Ministry of Personnel, P.G. and Pensions

(Deptt. of Personnel and Training)


New Delhi, the 16th November, 1992.



Subject  :  Implementation of Supreme Court Judgement in case of employees of non-

                 statutory departmental/cooperative canteens/tiffin rooms located in Central

                 Government offices-extension of pensionary and GPF benefits – Matters 



The undersigned is directed to refer to O.M. No.12/5/91-Dir.(C)  dated 29th January, 1992 regarding implementation of Supreme Court judgement in case of the employees of non-statutory departmental/cooperative  canteen/tiffin rooms located in Central Govt. offices vide which the employees of the above canteens/tiffin rooms registered with Director (Canteens) were treated as Government servants w.e.f. 1.10.91 and extended all the benefits as are available to other Central Government employees of comparable status.  As envisaged in the judgement  delivered on 11.10.91 by the Hon’ble Supreme Court of India in WP No. 6189-7044 and 8246-55 of 1983 – C.K. Jha and others Vs. Union of India and others.  It was inter-alia stated vide the above quoted OM that a separate communication will follow with regard to GPF, Pension, Central Govt. employees Group Insurance Scheme etc.   Accordingly the instructions on Central Govt. Employees Group Insurance Scheme has been issued vide this Department OM No.12/2/92 –Dir.(C)  dated 28.5.92.


2.         In the judgement the Hon’ble Supreme Court ordered “FOR THE PURPOSE OF CALCULAITON OF PENSION SERVICE FROM THE DATE OF INTERLOCUTORY ORDER SHALL BE COUNTED…………”  The Hon’ble Court has passed interlocutory  order in the case on 26.9.83.  Accordingly the question of regulating retirement benefits pension and provident fund of the canteen employees has been under examination of the Govt.   The President is now pleased to decide that these may be regulated in the manner hereinafter prescribed :-



(i)         Those appointed  on or after 1.10.91 will be compulsorily governed by the provisions by the provisions contained in the CCS (Pension) Rules, 1972, CCS(Commutation of Pension) Rules 1991 and the CCS (Extra-ordinary Pension) Rules.


(ii)        Those appointed prior to 1.10.91  and were still in service on that date will have an option -





(a)                either to elect pension scheme under clause (i), or

(b)               be governed by the Contributory Provident Fund Scheme.  The option will have to be exercised within six months from the date of the issue of these orders in the form at annexure to these orders.  The option once exercised will be final.  These who do not exercise any option within the stipulated period will be deemed to have opted in favour of the pension scheme.


(iii)       Those who opt for pension scheme will also be eligible for benefits of family pension and retirement gratuity/ death gratuity under the CCS(Pension)Rules, 1972.


(iv)       Those who opt for CPF Scheme shall also be eligible for retirement gratuity/death gratuity admissible under the CCS(Pension)Rules, 1972.  They will not, however, be eligible for family pension benefits thereunder.


(v)        In the case of persons who have retired between 26.9.83 and 1.10.91, since they would have rendered less than 10 years qualifying Service reckoned from 26.9.83 and will not be eligible for monthly pension therefore, their  settlement of retirement benefits already done under the Departmental Canteen Employees (Recruitment and Conditions of Service) Rules, 1980 promulgated vide GSR No. 54,  dated 23.12.80 will not be disturbed.  Similarly in the case of those who have retired between 1.10.91 and the date of issue of these orders since they would also have rendered less than 10 years qualifying  service reckoned from 26.9.83 and will not be eligible for monthly pension, their settlement of retirement benefits already done under the Departmental Canteens Employees (Recruitment and conditions of service) Rules, 1980 will also not be disturbed.


(vi)       The families of the employees who died while in  service between 1.10.91 and the date of issue of these orders and who are eligible or have been allowed family  pensions benefits under the EPF and  Miscellaneous Provisions Act, 1952 will have an  option either to continue to draw family pension under the said Act or to receive family pension admissible under the CCS(Pension) Rules, 1972.  In the later case the family will have to refund the employer’s contribution of EPF  including interest thereon received by them alongwith simple interest at 6% per annum from the date of drawal to the date of refund.  The option will be exercised within six months of the date of issue of these orders.  The option once exercised will be final.  If no option is exercised within  the stipulated period, the families will be deemed to have retained the benefits under the EPF  and Misc. Provisions Act, 1952.  The employees who were not subscribing to EPF their families will be eligible for the benefit of family pension under CCS(Pension) Rules, 1972.







(i)         The employees appointed on or after 1.10.91 will be compulsorily governed by

the General Provident Fund (Central Services) Rules, 1960.


(ii)        In the case the employees recruited prior to 1.10.91 and were still in service on that date and are subscribing to Employees Provident Fund and opt for pension in terms of these  orders, shall be regulated as follows :-


(a)        The amount standing the EPF account as on 30.9.83  representing the employer’s contribution and the employees contribution, shall remain in the EPF account being operated by the Chief Provident Fund Commissioner and paid to the employees as and when they retire from Government Service.


(b)        As far as contributions made beyond 30.9.83 are concerned, the entire balance lying to their credit in the EPF accounts shall be transferred to the Government  who in turn will credit the employee’s contribution with interest thereon to their respective GPF account and the employer’s contribution with interest accrued thereon shall be resumed by the Government.


(iii)       In the case of those who were subscribing to EPF and to not opt for pension scheme in terms of these orders, they will be eligible for contributory Provident Fund benefits under the CPF Rules (India), 1960.  For this purpose their CPF accounts will be opened by the respective departments. The entire balance lying to their credit in EPF  - both employees and employers contribution  with interest accrued thereon shall be transferred to their CPF account to be opened in favour of each employees.  This can be done from a prospective date as and when their respective CPF  accounts are opened.


(iv)       In the case of those who are not subscribing to Employees Provident Fund, (a) those who opt for pension will be entitled to GPF benefits with effect from 1.10.1991 and (b) those who do not opt for pension scheme will be entitled to CPF benefits under the Contributory Provident Fund Rules (India), 1960.


            All the Ministries/Departments are requested to issue instructions to their attached/subordinate offices and the Chairman/Secretaries of the Chairman/Secretaries of the Managing Committee of the aforesaid Departmental Canteen etc. to take immediate necessary action and settle the EPF accounts of the above employees as indicated in the foregoing paragraphs, after obtaining the necessary option from the canteen employees etc. as indicated in this O.M.






            The issue with the concurrence of Ministry of Finance, Department of Expenditure vide their U.O.No. 1(16)/EV/92 of 9.11.1992 and Home Finance Division Dy. No. 2123/92-Fin.I dated 11.11.1992 and in consultation with Ministry of Labour vide their Dy.No.11025/14/92-SS.II dated 23.4.1992 and Department of Pension vide Dy. No.2182/JS(CS)/92 of 12.8.1992.


            Hindi Version will follow.





( R.C. Richhariya )

Director (Canteens)








1.         All Ministries/Departments to the Govt. of India (as per standard list).

2.         All Chairman of Managing Committee of Canteens/Tiffin Rooms (as per list attached).

3.         Ministry of Finance, Department of Expenditure.

4.         Ministry of Home Affairs, Home Finance Division.

5.         CGDA, R.K. Puram, New Delhi.

6.         DG, P&T, New Delhi.

7.         All Controllers of Accounts in Ministries/Departments.

8.         Ministry of Economic Affairs, Budgetary Division.

9.         CAG, New Delhi.

10.       Ministry of Labour for information and necessary action w.r.t. their Dy.No.11025/14/92-SS.II dated 24.4.92.

11.       Chief Provident Fund Commissioner, New Delhi with a request to issue immediate instructions to all the Regional Provident  Fund Commissioners to implement the above orders.

12.       Registrar (Judicial), Supreme Court of India w.r.t. his No.1999 & 1988/83/Sec of 2.9.1992.

13.       Department of Pension & Pensioner’s Welfare (Shri. Swarn Das, Dy. Secy.).

14.       S.O.(Canteens) with 300 spare copies.












1.         Name of the Ministry/Department/

            Office (with full address).


2.         Name of the employees.


3.         Designation and Scale of Pay.


4.         Canteen to which attached.


*          I do thereby opt for the pensionary  benefits;




*          I do not opt for the Pensionary benefits.


            I am fully aware that the option once exercised will be final.



Signature ………………………….


Name and Designation of the employee.


Dated :




1.         Signature & Designation.


2.         Signature & Designation.


            Counter-singed by  immediate superior.


  • Inapplicable clause to be scored out.