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2018 DIGILAW 1059 (RAJ)

Purnima Devi Rathore W/o Late Thakur Shri Bishan Singh Rathore v. State of Rajasthan Through Law Secretary

2018-04-24

DINESH CHANDRA SOMANI, M.N.BHANDARI

body2018
JUDGMENT : By this writ petition, a challenge is made to third proviso of Section 17(1) of the Rajasthan Advocates Welfare Fund Act, 1987 (in short “the Act of 1987”), as amended by the Act of 2012 i.e. Rajasthan Advocate Welfare Fund (Amendment) Act, 2012 (for short “the Amendment Act of 2012”) apart from Sections 17 and 18 of the Act of 1987, as amended in the year 2012. 2. Brief facts of the case are that petitioner’s husband was an Advocate and became Member of the Rajasthan Advocates Welfare Fund (in short “Welfare Fund”) on 25th February, 1991. He remained Member of the Welfare Fund continuously for more than 10 years, however, his membership was terminated/ceased due to default in making payment of subscription towards the Welfare Fund. The petitioner’s husband was re-admitted as Member of the Welfare Fund on 4th October, 2012. While readmitting, he had deposited complete arrears of subscription with interest for past years. 3. The petitioner’s husband died on 28th September, 2014. The petitioner prayed for relief under the Act of 1987 but has been denied by the Bar Council of Rajasthan in reference to Sections 16, 17 and 18 of the Act of 1987. For ready reference, the provisions are reproduced hereunder:- “16. Membership in the Fund.-(1) Every advocate practising before any Court, Tribunal or other authority legally authorized by any law to take evidence or to adjudicate or decide any dispute in the State shall apply to the Trustee Committee for admission as a member of the fund in such form as may be prescribed: (2) On receipt of an application under sub-sec. (1), the Trustee Committee shall make such enquiry as it deems Fit and either admit the applicant to the Fund or, for reasons to be recorded in writing, reject the application: Provided that no order rejecting an application shall be passed unless the applicant has been given an opportunity of being heard against rejection of his application. (3) Every applicant shall pay an admission fee of Rs.400/- in lump-sum alongwith application for membership, which shall be credited to the account of Trustee Committee. (4) In the event of rejection of the application, the admission fee paid shall be refunded to the applicant. (3) Every applicant shall pay an admission fee of Rs.400/- in lump-sum alongwith application for membership, which shall be credited to the account of Trustee Committee. (4) In the event of rejection of the application, the admission fee paid shall be refunded to the applicant. (5) Every member shall pay [in advance] an annual subscription to the Fund on or before the 30th June of every year at the following rates, namely:- (i) Where the standing of the Advocate at the Bar is less than five years- Rs. 300/- (ii) Where the standing of the Advocate at the Bar becomes five years or is less than ten years-Rs. 750/- (iii) Where the standing of the Advocate at the Bar is ten years or more-Rs. 1250/- Provided that a member of the fund may deposit in lump-sum a sum of Rs. [17,500/-] and in that event he shall not be required to pay annual subscription : Provided further that the prospective member shall pay the full subscription of the current year alongwith the admission fee to the fund : Provided also that if annual subscription of current year is not paid on or before 30th June, the member of the Fund shall be liable to pay on the amount of arrear an interest at the rate of Rs. 1.50 per hundred per month from the date on which subscription becomes due. (6) Any member who fails to remit the annual subscription on or before the due date mentioned in sub-sec. (5) shall, upon notice in writing of one month being [issued to him under postal certificate] by the Trustee Committee, be liable to be removed by the Trustee Committee from the membership of the Fund. (7) A person removed from the membership of the Fund under sub-sec. (5) shall, upon notice in writing of one month being [issued to him under postal certificate] by the Trustee Committee, be liable to be removed by the Trustee Committee from the membership of the Fund. (7) A person removed from the membership of the Fund under sub-sec. (6) shall be re-admitted by the Trustee Committee to the Fund on payment of the arrears of subscription due against him alongwith interest thereon at the rate of 1.50 rupees per hundred per month from the date the subscription became due and 100/- rupees as readmission fees within one year from the date of his removal : Provided that where a member does not move application for re-admission within stipulated period the amount deposited by way of subscription shall be refunded to him if he has not been granted any exgratia under Section 25 or he is not entitled for any benefit under Section 17. (8) A member of the Fund may, at any time after his admission to the membership of the Fund, make a nomination in the prescribed form appointing one or more person to receive the benefits arising from his membership of the Fund in the event of his death. (9) If a member nominates more than one person under sub-sec. (8), he shall specify in the nomination the amount or share payable to each of the nominees in such manner as to cover the whole of the amount that may be due to him. (10) A member may at any time cancel his nomination by sending notice in writing to the Trustee Committee and in that event, he shall be entitled to make a fresh nomination during the continuance of his membership in accordance with sub-sec. (8). (11) Every member who voluntarily suspends practice or retires shall, within fifteen days of such suspension or retirement, intimate that fact to the Trustee Committee and if such member fails to do so without sufficient reason, the Trustee Committee may reduce, in accordance with such principles as may be prescribed, the amount due to that member. (8). (11) Every member who voluntarily suspends practice or retires shall, within fifteen days of such suspension or retirement, intimate that fact to the Trustee Committee and if such member fails to do so without sufficient reason, the Trustee Committee may reduce, in accordance with such principles as may be prescribed, the amount due to that member. (12) A member who ceases to practice in Rajasthan shall automatically cease to be a member of the Fund and such member shall be entitled to receive the amount of subscription deposited by him, if he has not been granted any ex-gratia under Section 25 or, as the case may be, the benefits under Section 17 upto the date of such cessation. (13) A member of the Fund, who is punished for professional misconduct under the Advocates Act and is suspended from practice, shall not be entitled to benefits of the Fund for the period of such suspension nor shall be required to pay yearly subscription for such period. 17. Payments from the Fund on cessation of Practice.- (1) A member of the Fund who completes a period of five year’s practice after he becomes member of the Fund shall, subject to the provisions of this Act, be entitled on cessation of practice to receive out of the Fund an amount corresponding to the number of years of his standing at the rate specified in the Schedule. Explanation.- (i) For the purpose of calculating the number of years of standing of a member of the Fund for the purpose of this sub-section, every four year’s practice as an advocate before the admission of a member to the Fund shall be counted as one year’s standing and every year of practice over and above four years before such admission shall be counted equivalent to three month’s standing and the total number of years of standing so counted shall be added to the number of years of practice after such admission. (ii) The period during which a member of the Fund remained under suspension shall not be considered for the purpose of counting the years of standing: Provided that a member shall be entitled to claim an amount of Rs. (ii) The period during which a member of the Fund remained under suspension shall not be considered for the purpose of counting the years of standing: Provided that a member shall be entitled to claim an amount of Rs. 500/- for a fraction, if any, remaining after dividing the number of years of practice by four as per Explanation (I) : Provided further that in the event of death of a member the sum payable under this sub-section shall be the amount as specified in the Schedule or [rupees two lacs fifty thousand] whichever is higher: Provided also that the provisions of second proviso shall not be applicable in respect of a member who is admitted or readmitted after the age of forty five years: Provided also that the member admitted to the Fund after the commencement of the Rajasthan Advocates Welfare Fund (Amendment) Act, 2003 (Act No. 9 of 2003) shall not be entitled to the benefit of Explanation (i). (2) In the event of death of a member of the Fund, the amount to which the member was entitled shall be paid to his nominee, to his dependents and in absence thereof, to his legal heirs subject to their obtaining a succession certificate from the competent court. (3) The amount payable as per sub-sec.(1) can be claimed after completion of fifteen yeas practice as an advocate or on attaining fifty years of age, whichever is [later], but the member will have to seek retirement as an advocate and shall not be entitled to be enrolled as an advocate and to become member of the fund. Provided that a member suffering from permanent disablement shall be allowed to draw the amount before completing fifteen years of membership of fifty years of age or, as the case may be, both. (4) An application for payment of the amount from the Fund admissible to a member shall be made by him to the Trustee Committee in such form as may be prescribed. In the case of a member who voluntarily ceases to be in practice (otherwise than on account of his death) within five years of his admission to the Fund, he shall be entitled to the refund of the annual subscription paid by him under sub-sec. (5) of Section 16 on his making an application thereof in such form as may be prescribed. (5) An application received under sub-sec. (5) of Section 16 on his making an application thereof in such form as may be prescribed. (5) An application received under sub-sec. (3) or sub-sec. (4) shall be disposed of by the Trustee Committee after such enquiry as it deems necessary. 18. Restriction on benefits from the Fund.- (1) Notwithstanding anything to the contrary contained in this Act, if any Advocate after his admission to the Fund joins an employment, he shall cease to be a member of the Fund and if he, thereafter, gets readmission to the Fund within a period of fifteen years, he shall be entitled to the benefit as per the schedule appended to Section 17 for such number of years of standing as he remains member of the Fund before joining such employment and after such readmission. (2) Notwithstanding anything contained in this Act, a person who gets himself enrolled or resume as an Advocate after serving under may employer for a period of not less than fifteen years, shall not be entitled to become a member of the Fund nor to receive any benefit of the Fund. (3) A person who is in full time service gets himself enrolled by virtue of the provisions of the Advocates Act, 1961 (Central Act No. 25 of 1961) and rules framed thereunder by the Bar Council of India and State Bar Council shall not be entitled to become a member of the Fund.” 4. As per Section 16 of the Act of 1987, prior to amendment in the year 2012, the proviso, denying membership to the Advocates on attaining the age of 45 years, was deleted, thereby, the Advocates attaining the age of 45 years are made entitled to be a Member of the Welfare Fund. Simultaneously, an amendment was made by inserting third proviso to Section 17(1) of the Amendment Act of 2012 not to allow benefit of compensation, as given in the Schedule, if one was admitted or re-admitted after attaining the age of 45 years. The petitioner’s husband died after attaining the age of 45 years, but application for grant of compensation has not been accepted as he failed to complete five years after re-admission in the year 2012. It is in reference to Section 17(1) of the Amendment Act of 2012. 5. The petitioner’s husband died after attaining the age of 45 years, but application for grant of compensation has not been accepted as he failed to complete five years after re-admission in the year 2012. It is in reference to Section 17(1) of the Amendment Act of 2012. 5. The aforesaid provision requires membership for a period of five years which, in our opinion, has been completed by the petitioner’s husband. It is taking into consideration the initial date of admission i.e. 25th February, 1991. The initial date is taken for the reason that no notice is on record to cease or terminate the membership. Even if it was there, gets nullified and continues on payment of entire due amount of the intervening period with interest. Once the Bar Council of Rajasthan takes the subscription of the intervening period with interest, it should result in restoration of the membership. The position of fact would have been different if re-admission is without payment of due amount of the intervening period with interest. 6. Section 16(7) of the Act of 1987 provides for re-admission on the condition to repay the entire due amount of the intervening period with interest. The petitioner’s husband had paid due amount of the intervening period with interest. The fund for the intervening period cannot be charged for the sake of it. If it is charged then would amount to continuity of the membership. 7. In view of the above, we find petitioner to be entitled to receive compensation even if we uphold constitutional validity of Sections 17 and 18 of the Act of 1987, as amended by Amending Act of 2012. 8. So far as challenge to third proviso of Section 17(1) of the Amendment Act of 2012 is concerned, we find it to be unconstitutional for use of word “readmitted”. It is for the reason that re-admission is conditional one i.e. with payment of subscription of the intervening period with interest, thereby, readmission cannot be treated to be a fresh admission, rather, it is with continuity of membership. Thus the third proviso to Section 17(1) of the Amendment Act of 2012, using the word “readmitted”, is struck down to that extent while maintaining other parts of the provision. It is, however, made clear that if one was admitted after attaining the age of 45 years then proviso would apply. 9. Thus the third proviso to Section 17(1) of the Amendment Act of 2012, using the word “readmitted”, is struck down to that extent while maintaining other parts of the provision. It is, however, made clear that if one was admitted after attaining the age of 45 years then proviso would apply. 9. The aforesaid clarification is required for the reason that one can take membership of the Welfare Fund before the age of 45 years or even subsequent thereto. If original date of admission is at the age of 45 years and above, one cannot claim the same benefits as are given to others at the age of less than 45 years. Accordingly, explanation has been made while striking down the third proviso to Section 17(1) of the Amendment Act of 2012 to the extent of use of word “readmitted”. The clarification aforesaid would be taken note of for grant of benefit. The petitioner’s husband was admitted at the age of less than 45 years and remained Member for 10 years before the alleged termination and then readmitted in the year 2012 where he paid the entire due subscription of the intervening period with interest, as stated, thus his membership would be counted from the year 1991 for all the purposes. He would, accordingly, be entitled to the benefit of Welfare Fund. We are, however, not accepting the challenge to Sections 17 and 18 as a whole but interference is made limited to third proviso to Section 17(1) of the Amendment Act of 2012, that too, for use of word “readmitted”. It is, however, made clear that if a member failed to pay the amount and his membership was terminated or ceased and instead of making an application for readmission with payment of subscription of the intervening period with interest but makes an application for fresh admission then he would not be governed by this judgment, rather, would be treated to be a fresh membership instead of re-admission. 10. Accordingly, writ petition is allowed and the petitioner is held entitled to get benefit of fund in view of the discussions and observations made in this judgment. The Bar Council of Rajasthan is directed to pay due amount of compensation to the petitioner within a period of three months from the date of receipt of copy of this judgment.