Gujarat High Court has delivered a significant judgment that concerns thousands of retired government employees in the state. The court has ruled that the benefits of the General Provident Fund (GPF) will only be applicable for the period of service after April 1, 1982. 

A division bench of Justice A S Supehia and Justice Nisha M Thakore overturned the decision of a single judge, which had previously ruled that retired employees were entitled to GPF benefits from their initial appointment date. This ruling by the high court is expected to impact thousands of retired government employees in the state.

Reduction of over ₹600 cr financial burden of govt

The high court gave this verdict while upholding the state’s Letters Patent Appeal. The key legal issue before the court was whether retired employees—most of whom retired before 2006—were entitled to receive GPF benefits from their initial appointment date.

The court took special note of the fact that many employees who received promotions after 1982 had opted to consider their new appointment for availing GPF benefits under the government scheme. However, after several years, the same employees changed their stance and demanded that their entire tenure, from their initial appointment, be counted under the GPF scheme. Some of these appointments date back as far as 1965. The court observed that such claims by retired employees were contradictory, unfair, and unreasonable.

Experts believe that this landmark judgment by the Gujarat HC will help save the state treasury over ₹600 crore. The ruling has significantly reduced the financial burden on the government.

Representing the government, Advocate General Gursharan Singh Virk referred to a 2015 High Court judgment to resolve the legal dilemma. He argued that the retired employees’ stance was inconsistent—they wanted their promotions to be considered as fresh appointments for one purpose, while demanding GPF benefits for their entire service tenure from the original appointment date.

The 2015 judgment had already clarified this issue, stating that GPF benefits are applicable only for service rendered after 1982, whereas pre-1982 service can only be considered for pension calculations. The retired employees had initially accepted GPF benefits under certain eligibility criteria, but they were now attempting to revoke their earlier choice and claim benefits from their appointment date. The high court ruled that such a demand was impractical and against the principles of natural justice.