Central Provident Fund Commissioner & Regional Provident Fund Commissioner v. Santosh A.B. Chage Hand; Saju Mathew; Sureshkumar M.G.; ...; Union of India; Forest Industries (Travancore) Limited (Writ Appeal No. 1556 of 2020)

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** # **PRESENT** ## **THE HONOURABLE MR. JUSTICE AMIT RAWAL** ## **&** **THE HONOURABLE MRS. JUSTICE C.S. SUDHA** **WEDNESDAY, THE 7[TH] DAY OF FEBRUARY 2024 / 18TH MAGHA, 1945 WA NO. 1556 OF 2020** **AGAINST THE JUDGMENT DATED 17.08.2020 IN W.P.(C)NO.36422 OF 2017 OF THIS HON'BLE COURT.** ## **APPELLANTS/RESPONDENTS NOS. 2 AND 3 IN W.P.(C):** - **1 CENTRAL PROVIDENT FUND COMMISSIONER, EMPLOYEES PROVIDENT FUND ORGANIZATION, BHAVISHYAIDHI BHAVAN, 14 BHIKAJI CAMA PLACE, NEW DELHI - 110 066.** - **2 REGIONAL PROVIDENT FUND COMMISSIONER, EMPLOYEES PROVIDENT FUND ORGANIZATION, REGIONAL OFFICE, BHAVISHYANIDHI BHAWAN, KALOOR, KOCHI - 682 017.** **BY ADV SAJEEV KUMAR K.GOPAL** ## **RESPONDENTS/WRIT PETITIONERS 1 TO 65 & RESPONDENT 1 & 4 IN** **W.P(C):** - **1 SANTHOSH A.B. CHARGE HAND, FOREST INDUSTRIES (TRAVANCORE) LIMITE, THAIKATTUKARA P.O., ALUVA - 683 106.** - **2 SAJU MATHEW BANDSAW OPERATOR, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **3 SURESHKUMAR M.G. PURACHASE CO-ORDINATOR, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **4 LAWRENCE M.A. MARKET GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **5 SANJU K.P. WORK CO-ORDINATOR GRADE-I, FOREST INDUSTRIES** Writ Appeal No.1556 of 2020 2 ## **(TRAVANCORE) LIMITED,** ## **THAIKATTUKARA P.O., ALUVA - 683 106.** - **6 BAIJU T.P. SENIOR MANAGER (PROJECTS), FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **7 MYTHEEN P.M. OPERATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **8 REMESAN M.R. OPERATOR GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **9 BABURAJ M.G. OPERATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **10 SUDHAKARAN D. OPERATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **11 JOY M.G. SUPERVISOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **12 MUHAMMED SHAFI P.M. SUPERVISOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **13 BEERAN M.M. OPERATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **14 HASSANKUTTY K.V. OPERATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **15 ANIRUDHAN N.K. CARPENTER GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **16 SURESHAN P.P. OPERATOR GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** 3 Writ Appeal No.1556 of 2020 - **17 PRASAD V.P.** - **OPERATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **18 SAINUDHEEN E.S.** - **OPERATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **19 RAJESH T.S. SUPERVISOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **20 HAMSA K.S. CARPENTER GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **21 BABU M.V. OPERATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **22 SINDHU C.N. CARPENTER GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **23 ANIL KUMAR C.G. CARPENTER GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **24 VINOD A.R. CARPENTER GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **25 ABDUL GAFOOR A.V. WORK CO-ORDINATOR GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **26 ASHRAF P.A. UPHOLSTERY CO-ORDINATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **27 GEORGE M.JOSEPH** - **OPERATOR GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **28 NANI K.A. TYPIST, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** Writ Appeal No.1556 of 2020 4 - **29 ANILKUMAR P.N. WORK CO-ORDINATOR GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O.,** - **ALUVA - 683 106.** - **30 KASIM N.A. OPERATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **31 RAJESH P.P. JUNIOR EXECUTIVE, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **32 REHANA ISMAIL SYSTEM CO-ORDINATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **33 SHAJI P.P. PLANNING CO-ORDINATOR, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **34 BINDU K.V. SALES CO-ORDINATOR, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **35 LATHIKADEVI K.N. SYSTEM CO-ORDINATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **36 YOUSUF K.A. OPERATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **37 HANSREE A. REGISTERED OFFICE CO-ORDINATOR, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **38 TENNY K.JOSEPH OPERATOR GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **39 ABOOBACKER P.A. OPERATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** Writ Appeal No.1556 of 2020 5 - **40 REMES V. DESIGN CO-ORDINATOR GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **41 JAYAN C.B. OPERATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **42 GIREESHKUMAR G.N. SECURITY SERGEANT, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **43 LATHA L.B. CARPENTER GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **44 JAFAR K.M. WORK CO-ORDINATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **45 ITTIERA P.V. CARPENTER GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **46 SHIBUKUMAR P.S. MANAGER (SALES AND MARKETING), FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **47 OMANAKUTTAN PILLAI R. FIELD OFFICER, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **48 VIMALKUMAR K.S. GENERAL HELPER (SKILLED), FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **49 RAVEENDRAN K. R & D CO-ORDINATOR, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **50 RAVEENDRAN M.G. CHIEF MECHANIC, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** Writ Appeal No.1556 of 2020 6 - **51 ALIYAR A.P. OPERATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **52 SASI P.C. WORK CO-ORDINATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **53 VIJAYAN V.C. JUNIOR EXECUTIVE, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **54 BABU A.V. CARPENTER GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **55 SANITHA S.NAICK ACCOUNT CLERK, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **56 REMYA A.NAIR MANAGER (PLANNING AND PRODUCTION), FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **57 KRISHNADAS K.S. CHIEF STORE KEEPER, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **58 CHANDRASEKHARAN P.B. OPERATOR GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **59 SUKU KUMAR G. DRIVER GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **60 SHAJI P. DRIVER GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **61 SAJITHA N.V.** - **ACCOUNT CLERK, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **62 THOMAS T.G.** - **CARPENTER GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** Writ Appeal No.1556 of 2020 7 - **63 MICHEAL P.A. CARPENTER GRADE-I, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **64 JALALUDHEEN V.A. OPERATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **65 NOUSHAD C.K.** - **OPERATOR GRADE-II, FOREST INDUSTRIES (TRAVANCORE) LIMITED, THAIKATTUKARA P.O., ALUVA - 683 106.** - **66 UNION OF INDI (UOI) REPRESENTED BY ITS SECRETARY, MINISTRY OF LABOUR AND EMPLOYMENT, DEPARTMENT OF EMPLOYMENT, GOVERNMENT OF INDIA, SHRAM SHAKTI BHAVAN, NEW DELHI - 110 001.** - **67 FOREST INDUSTRIES (TRAVANCORE) LIMITED REPRESENTED BY ITS MANAGING DIRECTOR, THAIKKATTUKARA P.O., ALUVA - 683106.** - **BY ADV G.MAHESWARY** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON** **07.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** Writ Appeal No.1556 of 2020 8 **AMIT RAWAL & C.S.SUDHA, JJ.** **------------------------------------------------------Writ Appeal No.1556 of 2020** **-----------------------------------------------------Dated this the 07[th] day of February, 2024** ## **J U D G M E N T** ## **Amit Rawal, J.** Central Provident Fund Commissioner has filed a writ appeal against the judgment dated 17/08/2020 rendered in W.P.(C) No.36422/2017 where the claim of the respondent for challenging the amendment brought in the Employment Pension Scheme with effect from 01/09/2014 was accepted by allowing the writ petition. The aforementioned judgment was passed on the basis of the judgment rendered by the Division Bench of this Court dated 12/10/2018 in W.P.(C) No.34284/2016 and connected matters. The aforementioned judgment was assailed before the Supreme Court and Larger Bench of the Supreme Court in **Employees Provident Fund Organisation v. Sunil Kumar, 2022 (6) KLT 234 (SC)** has set aside the judgment of the Division Bench of this Court by holding the provisions contained in the notification dated 22/08/2014 to be legal and valid, in the following manner : - Writ Appeal No.1556 of 2020 9 ## _“ 44. We accordingly hold and direct:-_ _(i) The provisions contained in the notification no. G.S.R.609(E) dated 22nd August 2014 are legal and valid. So far as present members of the fund are concerned, we have read down certain provisions of the scheme as applicable in their cases and we shall give our findings and directions on these provisions in the subsequent subparagraphs._ _(ii) Amendment to the pension scheme brought about by the notification no. G.S.R.609(E) dated 22nd August 2014 shall apply to the employees of the exempted establishments in the same manner as the employees of the regular establishments. Transfer of funds from the exempted establishments shall be in the manner as we have already directed._ _(iii) The employees who had exercised option under the proviso to paragraph 11(3) of the 1995 scheme and continued to be in service as on 1st September 2014, will be guided by the amended provisions of paragraph 11(4) of the pension scheme._ _(iv) The members of the scheme, who did not exercise option, as contemplated in the proviso to paragraph 11(3) of the pension scheme (as it was before the 2014 Amendment) would be entitled to exercise option under paragraph 11(4) of the post amendment scheme. Their right to exercise option before 1st September 2014 stands crystalised in the judgment of this Court in the case of R.C.Gupta (supra). The scheme as it stood before 1st September 2014 did not provide for any cut-off date and thus those members shall be entitled to exercise option in terms of paragraph11(4) of the scheme, as it stands at present. Their exercise of option shall be in the nature of joint options covering pre-amended paragraph 11(3) as also the amended paragraph 11(4) of the pension scheme. There was uncertainty as regards validity of the post amendment scheme, which was quashed by the aforesaid judgments of the three High Courts. Thus, all the employees who did not exercise option but were entitled to do so but could not due to the interpretation on cut-off date by the authorities, ought to be given a further chance to exercise_ Writ Appeal No.1556 of 2020 10 _their option. Time to exercise option under paragraph 11(4) of the scheme, under these circumstances, shall stand extended by a further period of four months. We are giving this direction in exercise of our jurisdiction under Article 142 of the Constitution of India._ _Rest of the requirements as per the amended provision shall be complied with._ _(v) The employees who had retired prior to 1st September 2014 without exercising any option under paragraph 11(3) of the pre-amendment scheme have already exited from the membership thereof. They would not be entitled to the benefit of this judgment._ _(vi) The employees who have retired before 1st September 2014 upon exercising option under paragraph 11(3) of the 1995 scheme shall be covered by the provisions of the paragraph 11(3) of the pension scheme as it stood prior to the amendment of 2014._ _(vii) The requirement of the members to contribute at the rate of 1.16 per cent of their salary to the extent such salary exceeds `15,000/- per month as an additional contribution under the amended scheme is held to be ultra vires the provisions of the 1952 Act. But for the reasons already explained above, we suspend operation of this part of our order for a period of six months. We do so to enable the authorities to make adjustments in the scheme so that the additional contribution can be generated from some other legitimate source within the scope of the Act, which could include enhancing the rate of contribution of the employers. We are not speculating on what steps the authorities will take as it would be for the legislature or the framers of the scheme to make necessary amendment. For the aforesaid period of six months or till such time any amendment is made, whichever is earlier, the employees’ contribution shall be as stop gap measure. The said sum shall be adjustable on the basis of alteration to the scheme that may be made._ _(viii) We do not find any flaw in altering the basis for computation of pensionable salary._ _(ix) We agree with the view taken by the Division Bench in the case of R.C.Gupta (supra) so far as interpretation of the_ Writ Appeal No.1556 of 2020 11 _proviso to paragraph 11(3) (pre-amendment) pension scheme is concerned. The fund authorities shall implement the directives contained in the said judgment within a period of eight weeks, subject to our directions contained earlier in this paragraph.”_ Learned counsels appearing on behalf of the respondents/petitioners do not deny this fact. In this view of the matter, judgment of the learned Single Bench is set aside and the writ appeal is allowed in terms of the operative part of the judgment of the Hon'ble Supreme Court extracted hereinabove. Sd/- **AMIT RAWAL JUDGE** Sd/- **C.S.SUDHA JUDGE** Jms Writ Appeal No.1556 of 2020 12 ## **APPENDIX OF WA 1556/2020** ## **PETITIONER ANNEXURES** |**ANNEXURE**|**1**|**TRUE COPY OF THE ORDER PASSED BY THE**| |---|---|---| |||**HON'BLE SUPREME COURT DATED 06/02/2020**| |||**IN W.P.(C) NO.233/2018 AND CONNECTED**| |||**CASES.**| |**ANNEXURE**|**2**|**TRUE COPY OF THE ORDER DATED 03/07/2020**| |||**IN W.P.(C) NO.2654 OF 2020.**| |**ANNEXURE**|**3**|**TRUE COPY OF THE ORDER DATED 19/08/2020**| |||**IN COC NO.1007 OF 2020.**| |**ANNEXURE**|**4**|**TRUE COPY OF THE ORDER DATED 14/01/2020**| |||**IN CWP-19985 OF 2018 (O&M).**| |**ANNEXURE**|**5**|**TRUE COPY OF THE ORDER IN W.P.NO.20572**| |||**OF 2018 DATED 03/03/2020.**| |**ANNEXURE**|**6**|**TRUE COPY OF THE ACTURIAL REPORT DATED**| |||**27/12/2018.**| |**ANNEXURE**|**7**|**TRUE COPY OF THE EXPLANATORY STATEMENT**| |||**DATED 20/06/2019.**|