High Court of KeralaDivision BenchContempt case disposed/closed; subject to EPFO ...

Cont.Case (C) No. 2659 of 2019

Case / Petition Number:CON.CASE(C) NO. 2659 OF 2019

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Anil K. Narendran
  • G. Girish
Judgment Date
2023-10-30
Court Decision / Holding
This Contempt Case is closed, without prejudice to the right of the Employees’ Provident Fund Organisation to reconsider the petitioners’ entitlement for disbursement of higher pension in view of the Supreme Court judgment dated 04.11.2022 in Civil Appeal Nos. 8143-8144 of 2022 and connected matters (AIR 2022 SC 5634).
Final Disposition
Contempt case disposed/closed; subject to EPFO reconsideration of entitlement for higher pension in light of the 2022 apex court judgment.

Parties to the Case

Appellants / Petitioners

  • Vijayan C.
  • Peter.V.V.
  • Damodaran.T.K.
  • Mohananan.K.P.
  • George.P.C.
  • Venugopal.A.
  • Baby Mathew
  • Thanka Chandran
  • Muhammed Shafee.P.E.
  • K.M.Joseph
  • Sasidharan.P.P.
  • Abdu.P.M.
  • Sathyanandan.K.
  • DAS.V.B.
  • Mohanan.K.E.
  • Abdu.C.M.
  • Symon.P.P.
  • PriyoDarsanan.V.G.
  • Mohanan Nair.B.
  • Essidor.K.J.
  • Rajan.P.J.
  • John.M.A.
  • Basheer.B.T.
  • Babu.M.K.
  • Abraham.K.K.
  • Ramakrishnan.N.
  • Victoria Fulgancy.M.J.
  • Pareed.P.A.

Respondents

  • Kavitha N. George
  • V. Andrew Prabhu

Legal Representation & Advocates

Counsels for Petitioners

  • • Shri.Ashok M.Cherian
  • • Sri.N.Satheesh

Counsels for Respondents

  • • Sri.K.Janardhana Shenoy

Case Synopsis & Summary

This Contempt Case arises from W.P.(C) No.13181/2015 and concerns alleged willful disobedience of directions contained in the Annexure I judgment dated 12.10.2018 in that writ petition and connected matters. The petitioners (a large group of individuals) contend that the Employees’ Provident Fund Organisation (EPFO) failed to implement the higher-pension directions and other benefits mandated by the court’s earlier judgment, in particular in light of the 2014 amendments to the pension scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. The apex court’s later judgment dated 04.11.2022 in Civil Appeal Nos. 8143-8144 of 2022, which upheld the legality of G.S.R. 609(E) (2014) and laid down directions for applying the amended pension provisions, is invoked to argue for reconsideration of the petitioners’ entitlement. The respondents contend that any such entitlement must be determined by EPFO in accordance with the law, and that the contemnor authorities should undertake the exercise in light of the 2022 Supreme Court decision. Ultimately, the court closes the contempt with a direction that EPFO reconsider the petitioners’ entitlement for higher pension in view of the 2022 apex court judgment, while reserving rights to future action under law.

Provisions of Law Cited

Section 12 of the Contempt of Courts Act, 1971Employees' Provident Funds and Miscellaneous Provisions Act, 1952Notification No. G.S.R. 609(E) dated 22 August 2014Article 142 of the Constitution of IndiaParagraph 11(3) of the 1995 Pension Scheme (pre-amendment)Paragraph 11(4) of the post-amendment Pension Scheme

Legal Doctrines & Maxims

  • Ultra vires
  • Read down (a judicial doctrine of constraining statutory provisions)
  • Article 142 of the Constitution of India (doctrine of extraordinary jurisdiction)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contended that there was willful disobedience of the directions in Annexure I judgment (12.10.2018) and sought enforcement of higher pension and related benefits under the pension scheme as amended by G.S.R. 609(E). They urged the court to ensure compliance with the earlier order and to provide a pathway for beneficiaries to exercise options under the amended scheme, relying on the SC’s 2022 decision that validated the amendment and guided implementation.

Contentions of Respondents

The EPFO, through its Standing Counsel, argued that eligibility and benefits must be recalibrated by EPFO in accordance with the law and the SC’s 2022 decision, and that any extension or option exercise should be conducted within the framework established by the amended scheme. The court was urged to allow EPFO to undertake the necessary reconsideration rather than granting automatic relief in contempt proceedings.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Sunil Kumar B. v. Employees’ Provident Fund OrganisationAIR 2022 SC 5634PositiveApex Court held the notification amendments (G.S.R. 609(E)) legal and valid; the present court relies on this in directing reconsideration of entitlements.
R.C. Gupta and others v. Regional Provident Fund Commissioner, Employees’ Provident Fund Organisation and others(2018) 14 SCC 809PositiveCourt agrees with the view in RC Gupta (supra) regarding interpretation of the proviso to paragraph 11(3) of the pre-amendment pension scheme.

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Extracted Judgment Text

Exact text extracted from official judgment records.

``` IN THE HIGH COURT OF KERALA AT ERNAKULAM ``` # **`PRESENT`** ``` THE HONOURABLE MR.JUSTICE ANIL K. NARENDRAN ``` ``` & ``` ``` THE HONOURABLE MR.JUSTICE G.GIRISH ``` ``` MONDAY, THE 30[TH] DAY OF OCTOBER 2023 / 8TH KARTHIKA, 1945 ``` ``` CON.CASE(C) NO. 2659OF 2019 ``` ``` ARISING OUT OF THE JUDGMENT DATED 12.10.2018 IN WP(C)NO. 13181/2015 OF HIGH COURT OF KERALA ``` ``` PETITIONERS: ``` ``` 1VIJAYAN C. AGED 27 YEARS S/O.CHATHAN, PULPPANCHIRA VEEDU, CHENGAMANAD (PO), POICKATTUSSERY, KURUPANEYAM, ERNAKULAM-683 578. (PETITIONER NO.2 IN WPC NO.13181/2015). ``` ``` 2PETER.V.V. AGED 60 YEARS S/O.VARKEY.V.P., VELIYATH HOUSE, THANNIPUZHA, IKKAL P.O., ERNAKULAM-683 550. (PETITIONER NO.4 IN WPC NO.13181/2015). ``` ``` 3DAMODARAN.T.K., AGED 62 YEARS S/O.KUNHAMBU ADIYODI, THAZHE KUTTILATT HOUSE, KONGOTHARA, MAIKAD (PO), ERNAKULAM-683 589. (PETITIONER NO.10 IN WPC NO.13181/2015). ``` ``` 4MOHANAN.K.P. AGED 62 YEARS S/O.VELAYUDHAN, KANNANOORPARAMBIL HOUSE, EASWARAMANGALAM (PO), PONNANI, MALAPPURAM-679 577. (PETITIONER NO.15 IN WPC NO.13181/2015). ``` ``` 5GEORGE.P.C. AGED 62 YEARS S/O.CHERIYAN.P.P., PANJIKARAN HOUSE, ANGADIKADAVU, ANGAMALY P.O., ERNAKULAM-683 572. (PETITIONER NO.22 IN WPC NO.13181/2015). ``` ``` 6VENUGOPAL.A., AGED 61 YEARS ``` 2 Cont.Case (C)No.2659 of 2019 ``` S/O.DAMODHARAN NAIR, SREENILAYAM, KURUPPANAYAM, CHENGAMANDAD P.O., ERNAKULAM-683 578. (PETITIONER NO.31IN WPC NO.13181/2015). ``` ``` 7BABY MATHEW, AGED 62 YEARS ``` ``` S/O.LOOKA MATHEW, VADA PARAMBIL, ERANHIMANGAD P.O., MYLADY, NILAMBUR, MALAPPURAM-679 329. (PETITIONER NO.37 IN WPC NO.13181/2015). ``` - **`8 THANKA CHANDRAN AGED 60 YEARS`** ``` D/O.THEVAN, KARIMATH HOUSE KANADAND P.O., THIRUVAMKULAM, ERNAKULAM-682 305, (PETITIONER NO.66 IN WPC NO.13181/2015). ``` ``` 9MUHAMMED SHAFEE.P.E. AGED 61 YEARS ``` ``` S/O.IBRAHIMKUTTY, SHAMIYA NIVAS, CHENGAMANAD P.O., ERNAKULAM-683 578. (PETITIONER NO.82 IN WPC NO.13181/2015). ``` ``` 10K.M.JOSEPH AGED 61 YEARS S/O.K.C.MANUWEL, KOTHAKATH HOUSE, POIKATTUSSERY, CHENGAMANADP.O., ERNAKULAM-686 613. (PETITIONER NO.90 IN WPC NO.13181/2015). ``` - **`11 SASIDHARAN.P.P.,`** ``` AGED 61 YEARS ``` ``` S/O.PRASANNAN, POOZHIPPURATH HOUSE, EZHUMANATHURUTH P.O., KOTTAYAM-686 613. (PETITIONER NO.122 IN WPC NO.13181/2015). ``` ``` 12ABDU.P.M., AGED 62 YEARS ``` ``` S/O.MUHAMMED.P.P., PAROTH HOUSE, KUNNETHERY JUNCTION, THAIKATTUKARA P.O., ALUVA, ERNKAULAM-683 106. (PETITIONER NO.125 IN WPC NO.13181/2015). ``` ``` 13SATHYANANDAN.K., AGED 61 YEARS ``` ``` S/O.SANKARAN, KANDATHIPARAMBIL, UDAYAMPEROOR, SOUTH PARAVOOR P.O., ERNAKULAM-682 320. (PETITIONER NO.128 IN WPC NO.13181/2015). ``` ``` 14DAS.V.B., AGED 61 YEARS ``` ``` S/O.BHASKARAN, VARAYIL HOUSE, OKKAL P.O., ERNAKULAM- 683 550. (PETITIONER NO.130 IN WPC NO.13181/2015). ``` 3 Cont.Case (C)No.2659 of 2019 ``` 15MOHANAN.K.E., AGED 63 YEARS S/O.ETTIRA, KARANITHAKIDIYIL HOUSE, PAMPADY, POOTHAKUZHY P.O., KOTTAYAM-686 521. (PETITIONER NO.131 IN WPC NO.13181/2015). ``` ``` 16ABDU.C.M., AGED 62 YEARS S/O.MARAKKAR, CHARTHUMPARAMBIL, VATTEKUNNAM, MUTTAR FERRY ROAD, N.THRIKKAKARA, EDAPPALLY P.O., ERANKULAM- 682 024. (PETITIONER NO.132 IN WPC NO.13181/2015). ``` ``` 17SYMON.P.P., AGED 59 YEARS S/O./PETER, PUTHANPURACKAL, PERUMALPADI, ELAKUNNAPUZHA P.O., ERNAKULAM-682 503. (PETITIONER NO.134 IN WPC NO.13181/2015). ``` ``` 18PRIOYADARSANAN.V.G., AGED 62 YEARS ``` ``` S/O.GOPALAN, VELLAIKODATH HOUSE, NEELESWARAM P.O., KALADY, ERNAKULAM-683 574. (PETITIONER NO.135 IN WPC NO.13181/2015). ``` ``` 19MOHANAN NAIR.B., AGED 58 YEARS S/O.NBALAKRISHNAN NAIR.V., VISHNU BHAVAN, KULAKKADA EAST P.O., KOTTARAKKARA, KOLLAM-691 521. (PETITIONER NO.137 IN WPC NO.13181/2015). ``` ``` 20ESSIDOR.K.J., AGED 58 YEARS S/O.K.O.JOHN, KUNNAPILLY HOUSE, SOUTH CHITTOOR P.O., KOCHI, ERNAKULAM-682 027. (PETITIONER NO.140 IN WPC NO.13181/2015). ``` ``` 21RAJAN.P.J., AGED 58 YEARS S/O.RAMAN, PALLIPURATH PUTHAN PURA, KIZHILLAM P.O., THAIKARACHIRA, PERUMBAVOOR, ERNAKULAM-683 541. (PETITIONER NO.142 IN WPC NO.13181/2015). ``` ``` 22JOHN.M.A., AGED 58 YEARS S/O.M.P.ANTONY, MENACHERY HOUSE, ALNGAD P.O., KOTTAPPURAM, ERNAKULAM-683 511. (PETITIONER NO.145 IN WPC NO.13181/2015). ``` ``` 23BASHEER.B.T., AGED 60 YEARS ``` ``` S/O.BAVA, THOPPUVELY HOUSE, PONJASSERY P.O., ``` 4 Cont.Case (C)No.2659 of 2019 ``` PERUMBAVOOR, ERNKAULAM-683 547. (PETITIONER NO.147 IN WPC NO.13181/2015). ``` ``` 24BABU.M.K., AGED 61 YEARS ``` ``` S/O.KUMARAN, KUMARA MANDHIRAM, ITHIPUZHA, UDAYANAPURAM P.O., VAIKOM, KOTTAYAM-686 143. (PETITIONER NO.149 IN WPC NO.13181/2015). ``` ``` 25ABRAHAM.K.K., AGED 60 YEARS S/O.KOCHU DEVASSY, KAINADATHU PARAMBIL HOSUE, KALLETTUKARA (VIA), ALOOR P.O., THRISSUR-680 683. (PETITIONER NO.157 IN WPC NO.13181/2015). ``` ``` 26RAMAKRISHNAN.N., AGED 59 YEARS S/O.VELAYUDHAN, NARTHATHIL HOUSE, TRIKKANAPURAM P.O., THAVANOOR (VIA), MALAPPURAM-679 573, (PETITIONER NO.161 IN WPC NO.13181/2015). ``` - **`27 VICTORIA FULGANCY.M.J.`** ``` AGED 59 YEARS ``` ``` D/O.M.L.JOSEPH, MALIAKKAL HOUSE, KOTTAPURAM P.O., KODUNGALOOR, THRISSUR-680 667. (PETITIONER NO.166 IN WPC NO.13181/2015). ``` ``` 28PAREED.P.A., AGED 62 YEARS S/O.ALI.P.S., POLIYATHARA, CHEPPANAM, PANANGAD P.O., ERNAKULAM-682 506, (PETITIONER NO.169 IN WPC NO.13181/2015). ``` ``` BY ADVS. SHRI.ASOK M.CHERIAN SRI.N.SATHEESH ``` ``` SRI.K.JANARDHANA SHENOY ``` ## **`RESPONDENTS/RESPONDENTS 2 & 3 :`** - **`1 KAVITHA N.GEORGE`** ``` (FATHERS'S/HUSBAND'S NAME, AGE AND RESIDENTIAL ADDRESS NOT KNOWN TO THE PETITIONERS) REGIONAL PROVIDENT FUND COMMISSIONER, EMPLOYEES' PROVIDENT FUND ORGANISATION, BHAVISHYANIDHI BHAVAN, PATTOM PALACE, THIRUVANANTHAPURAM-695 004. ``` ## **`2 V.ANDREW PRABHU,`** ``` (FATHERS'S NAME, AGE AND RESIDENTIAL ADDRESS NOT KNOWN TO PETITIONERS),ASSISTANT PROVIDENT FUND COMMISSIONER, ``` 5 Cont.Case (C)No.2659 of 2019 ``` SUB REGIONAL OFFICE, EMPLOYEES PROVIDENT FUND ORGANISATION, NO.36/685A, BHAVISYANIDHI BHAVAN, KALOOR, ERNAKULAM, COCHIN-682 017. ``` ``` BY ADV SRI.SAJEEV KUMAR K. GOPAL, SC, EPFO ``` ``` THIS CONTEMPT OF COURT CASE (CIVIL) HAVING COME UP FOR ADMISSION ON 30.10.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` 6 Cont.Case (C)No.2659 of 2019 ## **JUDGMENT** Anil K. Narendran, J. The petitioners, who are some of the petitioners in W.P.(C)No.13181 of 2015, have filed this Contempt Case, invoking the provisions under Section 12 of the Contempt of Courts Act, 1971 alleging willful disobedience of the directions contained in Annexure I judgment dated 12.10.2018 in that writ petition along with W.P.(C)No.13120 of 2015 and connected matters. 2. The SLP filed by the Employees Provident Fund Organisation against the judgment dated 12.10.2018 in W.P.(C) No.13120 of 2015 and connected cases were dismissed by the Apex Court vide order dated 01.04.2019 in SLP (C) - Diary No.9610 of 2019. That order was recalled and the Apex Court rendered a detailed judgment dated 04.11.2022 in Civil Appeal Nos.8143 of 2022 and 8144 of 2022 and connected matters- **Employees Provident Fund Organisation v. Sunil Kumar B. [2022 (7) KHC 12 : AIR 2022 SC 5634]** . In that judgment, the Apex Court held that the provisions contained in Notification No.GSR 609(E) dated 22.08.2014 is legal and valid. The directions contained in paragraph 44 of the said judgment of the Apex Court dated 04.11.2022 read as follows: “44. We accordingly hold and direct:- 7 Cont.Case (C)No.2659 of 2019 (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 22[nd] 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 1[st] 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 1[st] September 2014 stands crystalised in the judgment of this Court in the case of **R.C.** **Gupta and others v. Regional Provident Fund Commissioner, Employees Provident Fund Organisation and others [(2018) 14 SCC 809]** . The scheme as it stood before 1[st] September 2014 did not provide for any cut-off date and thus those members shall 8 Cont.Case (C)No.2659 of 2019 be entitled to exercise option in terms of paragraph 11(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 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 1[st] 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 1[st] 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 Rs.15,000/per month as an additional contribution under the amended scheme is held to be ultra 9 Cont.Case (C)No.2659 of 2019 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 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. (x) The Contempt Petition (C) Nos.1917 - 1918 of 2018 and Contempt Petition (C) Nos. 619-620 of 2019 in Civil Appeal Nos. 10013-10014 of 2016 are disposed of in the above terms.” 3. Heard the learned counsel for the petitioners and also the learned Standing Counsel for the Employees Provident Fund 10 Cont.Case (C)No.2659 of 2019 Organisation, for the respondents. 4. In view of the judgment of the Apex Court dated 04.11.2022 in Civil Appeal Nos.8143-44 of 2022 and connected matters **[2022 (7) KHC 12 : AIR 2022 SC 5634]** , the entitlement of the petitioners for disbursement of higher pension requires reconsideration at the hands of the Employees Provident Fund Organisation. 5. The learned Standing Counsel for the respondents would submit that the aforesaid exercise shall be undertaken by the Employees Provident Fund Organisation in accordance with law. In the said circumstances, this Contempt Case is closed, without prejudice to the right of the Employees Provident Fund Organisation to reconsider the entitlement of the petitioners for disbursement of higher pension, in view of the judgment of the Apex Court dated 04.11.2022 in Civil Appeal Nos.8143-44 of 2022 and connected matters **[2022 (7) KHC 12 : AIR 2022 SC 5634]** . Sd/- ## **ANIL K. NARENDRAN, JUDGE** Sd/- **G. GIRISH, JUDGE** AV/15/11 11 Cont.Case (C)No.2659 of 2019 ## **`APPENDIX OF CON.CASE(C) 2659/2019`** ## **`PETITIONER ANNEXURES`** ``` ANNEXURE ICERTIFIED COPY OF THE JUDGMENT OF HON'BLE HIGH COURT OF KERALA IN WPC NO.13181/2015 DATED 12.10.2018. ```