High Court of KeralaDivision BenchContempt Case closed; EPFO to reconsider the pe...

Cont.Case (C) No.129 of 2021

Case / Petition Number:Cont.Case (C) No.129 of 2021

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 Apex Court’s judgment dated 04.11.2022 in Civil Appeal Nos.8143-8144 of 2022 and connected matters (AIR 2022 SC 5634).
Final Disposition
Contempt Case closed; EPFO to reconsider the petitioners’ entitlement for higher pension in light of the apex judgment, in accordance with law.

Parties to the Case

Appellants / Petitioners

  • 1 A.K. Vinayakan
  • 2 N.T. Johny
  • 3 G. Jayakrishnan
  • 4 Thomas K. Antony
  • 5 C.S. Sunil
  • 6 K.P. Salim
  • 7 K.V. Thomas
  • 8 P.B. Balagangadharan
  • 9 K.I. Prabhakaran
  • 10 T.X. Paulson
  • 11 P.P. David
  • 12 K.C. George
  • 13 Joseph Rodrigus
  • 14 S. Vijayan
  • 15 V.B. Somanathan Nair
  • 16 A.A. Sivakumar Shenoy
  • 17 Suresh Babu
  • 18 M. Thomas Cherian
  • 19 V.K. Gopinathan
  • 20 K.A. Antony
  • 21 P.V. James
  • 22 M.V. Balakrishnan
  • 23 K.A. Joseph
  • 24 G. Neelan
  • 25 Godwin Pereira
  • 26 K.R. Mohanan
  • 27 K.N. Santosh
  • 28 N.N. Gopinathan Nair
  • 29 Biju C. Antony
  • 30 M.V. Francis
  • 31 Moncy Joseph
  • 32 N. Rajan
  • 33 K.C. Sudhakaran
  • 34 S.P. Sudesan
  • 35 T.P. George
  • 36 K.M. Thomas
  • 37 P.M. Bava
  • 38 George Martin Lazer
  • 39 V.K. Antony
  • 40 R. Kuganesan
  • 41 P. Arumughan
  • 42 P.X. Antony
  • 43 R. Harikumar
  • 44 M.A. Ashik
  • 45 Abdul Salam Nazer
  • 46 T.R. Lakshmanan
  • 47 M.C. Antony
  • 48 R. Gopalakrishnan
  • 49 P. Chandran Nair
  • 50 P.P. James
  • 51 A.K. Salim
  • 52 O.C. Suseelan
  • 53 V.R. Mohan

Respondents

  • Chief Provident Commissioner, Employees Provident Fund Organisation, Bhavishya Nidhi Bhavan, 14, BhikaJi Cama Palace, New Delhi - 110 066
  • Regional Provident Fund Commissioner, Employees Provident Fund Organisation, Kaloor, Ernakulam - 682 017
  • Sunil Barthwal
  • Andrew Prabhu

Legal Representation & Advocates

Counsels for Petitioners

  • • SRI R. SANJITH
  • • SMT. C.S. SINDHU KRISHNAH

Counsels for Respondents

  • • SRI SAJEEV KUMAR K.GOPAL

Case Synopsis & Summary

This Contempt of Court Case (Civil) No.129 of 2021 was heard by a Division Bench of the Kerala High Court arising from W.P.(C) No.31606 of 2016 and connected matters. The petitioners, several former employees from Indian Rare Earths Limited, filed the contempt petition under Section 12 of the Contempt of Courts Act, 1971, alleging willful disobedience of the directions contained in Annexure A1 of the High Court’s judgment dated 12.10.2018 in WP(C) No.31606/2016 and connected matters. The backdrop includes the apex Court’s dismissal of a Special Leave Petition against the 2018 judgment on 01.04.2019, which was later recalled, culminating in a detailed judgment dated 04.11.2022 in Civil Appeals 8143-8144 of 2022 and connected matters (Employees’ Provident Fund Organisation v. Sunil Kumar B., AIR 2022 SC 5634). The 2022 judgment held that the notification G.S.R.609(E) dated 22 August 2014 is legal and valid, and directed read-downs and extensions related to the pension scheme. In light of these developments, the Kerala High Court held that the petitioners’ entitlement to higher pension requires reconsideration by the EPFO under the apex judgment, and closed the contempt petition, while reserving EPFO’s right to reconsider entitlement in accordance with law. The judgment is delivered by Anil K. Narendran, J., and G. Girish, J. with final orders to be read in light of the apex decision.

Provisions of Law Cited

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

Legal Doctrines & Maxims

  • Ultra vires
  • Read down
  • Article 142 doctrine (conferred power to do complete justice)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that EPFO has willfully disobeyed Annexure A1 directions in the 2018 High Court judgment in WP(C) No.31606/2016 and connected matters, particularly regarding the pension scheme amendments under G.S.R. 609(E) of 2014 and the higher pension entitlements. They rely on the Supreme Court’s 2019 dismissal and its 2022 detailed judgment (Civil Appeals 8143-8144 of 2022) which upheld the legality of the amendment, directed read-downs, and extended option periods for those who did not exercise options earlier. The petitioners argue that higher pension entitlements must be disbursed without undue delay, and that the Court should ensure strict compliance by EPFO. They seek immediate implementation consistent with the 2022 apex judgment and restoration of the pre-existing rights where applicable.

Contentions of Respondents

The respondents submit that there has been no willful violation; the apex judgment directs EPFO to reconsider entitlements in accordance with law, with directives to implement the amended pension scheme and to extend options. They assert that the exercise must be undertaken by EPFO within lawful parameters and, where applicable, within time frames laid down by the apex decision, including a readjustment of contributions and pension calculations. The respondents request the contempt petition be closed, acknowledging EPFO’s obligation to reconsider entitlement in light of the 2022 apex judgment, while ensuring compliance with legal standards.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
R.C. Gupta and others v. Regional Provident Fund Commissioner, Employees Provident Fund Organisation and others(2018) 14 SCC 809PositiveThe High Court states agreement with the view in RC Gupta (supra) regarding interpretation of the pre-amendment paragraph 11(3) of the pension scheme.
Employees Provident Fund Organisation v. Sunil Kumar B.[2022] 7 KHC 12 : AIR 2022 SC 5634PositiveApex Court held the G.S.R. 609(E) 2014 notification legal and valid and directed read-down and extension; Kerala HC relies on this judgment for reconsideration of higher pension entitlement.

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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. 129OF 2021 ``` ``` ARISING OUT OF THE JUDGMENT DATED 25.02.2019 IN WP(C)NO. 31606/2016 OF HIGH COURT OF KERALA ``` ``` PETITIONERS/PETITIONERS 3,5,6,9 TO 12, ``` ``` 17,18,20,22,23,27,30,31,33,34,35,37,41,43,47,49,52,53,56,58 ,6063,64,68,69,72,74,76,78,80,88,89,105,113,115,116,120 TO 122,128,136 TO 138,140,142,147: ``` ## **`1 A.K. VINAYAKAN`** ``` AGED 63 YEARS ``` ``` S/O.KUMARAN, P.P.O.NO.KR/KCH/00086080, INDIAN RARE EARTHS LIMITED, RESIDING AT ALATHIL (H), MATHALI ROAD, PANANGAD P.O., PIN - 682 506. ``` ``` 2N.T.JOHNY AGED 60 YEARS ``` ``` S/O.THOMAS, PF NO.865, INDIAN RARE EARTHS LIMITED, RESIDING AT NEREVEETTIL (H), THRIKKAKARA P.O., KOCHI - 682 021. ``` - **`3 G.JAYAKRISHNAN AGED 61 YEARS`** ``` S/O.GOPINATHAN NAIR, PF NO.861, INDIAN RARE EARTHS LIMITED, RESIDING AT JAYABHAVAN, RAYONPURAM P.O., PERUMBAVOOR - 683 543. ``` - **`4 THOMAS K.ANTONY AGED 60 YEARS`** ``` S/O.ANTONY CHACKO, PF NO.1042, INDIAN RARE EARTHS LIMITED, RESIDING AT KANDATHIPARAMBIL (H), SUNDARAGIRI ROAD, KALAMASSERY - 683 104. ``` ``` 5C.S.SUNIL AGED 61 YEARS S/O.SUDARSHAN, EPF NO.KR/KCH/00094371, INDIAN RARE EARTHS LIMITED, RESIDING AT 1/1575, SOUTH ``` 2 Cont.Case (C)No.129 of 2021 ## **`THAMARAPARAMBU, FORT KOCHI - 682 001.`** ## **`6 K.P.SALIM`** ``` AGED 61 YEARS ``` ``` S/O.PARAMU, PF.NO.960, RESIDING AT INDIAN RARE EARTHS LIMITED, KUTTATH(H), CHENGAL, KALADY (PO) - 683 574. ``` - **`7 K.V.THOMAS`** ``` AGED 61 YEARS ``` ``` S/O.VAREED, PF.NO.1002, INDIAN RARE EARTHS LIMITED, RESIDING AT KAITHAMANA (H), PONNETH TEMPLE ROAD, NETHAJI CROSS ROAD, KOCHI - 682 020. ``` - **`8`** ## **`P.B.BALAGANGADHARAN`** ``` AGED 60 YEARS ``` ``` S/O.BALAN NAIR, PF.NO.1035, INDIAN RARE EARTHS LIMITED, RESIDING AT AIKKARA, POONKUDY (H), KUNNUMPURAM, DESOM, ALUVA. ``` - **`9 K.I.PRABHAKARAN`** ``` AGED 62 YEARS ``` ``` S/O.ITTYADI, EPF NO.KR/KCH/00092758, INDIAN RARE EARTHS LIMITED, RESIDING AT KADALIPLACKAL (H), CHUTTUPADUKARA, EDAPPALLY P.O., PIN - 682 024. ``` - **`10 T.X.PAULSON`** ``` AGED 60 YEARS ``` ``` S/O.XAVIER, PF.NO.1168, INDIAN RARE EARTHS LIMITED, RESIDING AT THANNIKKOTTU(H), NORTH KALOOR, KOCHI - 682 017. ``` - **`11 P.P.DAVID`** ``` AGED 61 YEARS ``` ``` S/O.P.A.PETER, PF- 912, INDIAN RARE EARTHS LIMITED, RESIDING AT POTHADY (H), BOLGATTY, MULAVUKADI P.O., KOCHI - 682 504. ``` - **`12 K.C.GEORGE`** ``` AGED 64 YEARS ``` ``` S/O.CHERIAN, PF - 1175, INDIAN RARE EARTHS LIMITED, RESIDING AT KOLATTUKUDY (H), MANJAPRA P.O., ERNAKULAM. ``` ``` 13JOSEPH RODRIGUS AGED 63 YEARS ``` ``` S/O.SIMON, PF-762, INDIAN RARE EARTHS LIMITED, RESIDING AT NADUVIL (H), VARAPUZHA LANDING P.O., ERNAKULAM. ``` ``` 14S.VIJAYAN AGED 72 YEARS PF-1148, INDIAN RARE EARTHS LIMITED, RESIDING AT ``` 3 Cont.Case (C)No.129 of 2021 ``` IRUTHIRUVATHIRA, ELOOR NORTH, UDYOGAMANDAL, PIN - 683 501. ``` ## **`15 V.B.SOMANATHAN NAIR AGED 63 YEARS`** ``` S/O.BALAKRISHNA PANICKER, P.P.O.NO.KR/KCH/00092759, INDIAN RARE EARTHS LIMITED, RESIDING AT VISHNUSREE, ELOOR NORTH, UDYOGAMANDAL - 683 501. ``` ## **`16 A.A.SIVAKUMAR SHENOY`** ``` AGED 63 YEARS ``` ``` S/O.ACHUTHA SHENOY, P.P.O.NO.KR/KCH/00085875, INDIAN RARE EARTHS LIMITED, RESIDING AT ARAKKAPADATH (H), NEAR PATHRIAKKATTUKAVU, NORTH KALAMASSERY - 683 104. ``` - **`17 SURESH BABU`** ``` AGED 61 YEARS ``` ``` S/O.BHARATHAN, PF 776, INDIAN RARE EARTHS LIMITED, RESIDING AT AJI NIVAS, ELOOR NORTH, UDYOGAMANDAL - 683 501. ``` - **`18 M.THOMAS CHERIAN`** ``` AGED 61 YEARS ``` ``` S/O.M.CHERIAN, PF-1138, INDIAN RARE EARTHS LIMITED, RESIDING AT MANALEL (H), NELSONMANDELA ROAD, ELOOR EAST, UDYOGAMANDAL - 683 501. ``` - **`19`** ## **`V.K.GOPINATHAN`** ``` AGED 62 YEARS ``` ``` S/O.KRISHNANKUTTY, P.P.O.NO.KR/KCH/00092757, INDIAN RARE EARTHS LIMITED, RESIDING AT H NO.E-20, CHANGAMPUZHA NAGAR, SOUTH KALAMASSERY - 682 033. ``` ## **`20 K.A.ANTONY`** ``` AGED 60 YEARS ``` ``` S/O.AUGUSTINE, PF NO.805, INDIAN RARE EARTHS LIMITED, RESIDING AT MOOTHERI (H), CONVENT ROAD, MANJUMMEL (PO) - 683 501. ``` ## **`21 P.V.JAMES`** ``` AGED 61 YEARS ``` ``` S/O.VAREED, PF NO.929, INDIAN RARE EARTHS LIMITED, RESIDING AT PALATTY (H), KUTTIPUZHA (PO), ERNAKULAM - 653 878. ``` ## **`22 M.V.BALAKRISHNAN AGED 60 YEARS`** ``` S/O.VISHWANATHAN, PF NO.1030, INDIAN RARE EARTHS LIMITED, RESIDING AT MANNALI(H), VELIYATHRA NARAYANAN ROAD, PERUMPADAPPU, KOCHI - 682 006. ``` 4 Cont.Case (C)No.129 of 2021 ``` 23K.A.JOSEPH AGED 60 YEARS S/O.K.A.ANTONY, PF NO.1118, INDIAN RARE EARTHS LIMITED, RESIDING AT KANJOOKARAN (H), PALLIKAVALA, CHERANELLORE - 682 034. ``` ``` 24G.NEELAN AGED 61 YEARS S/O.GURUSWAMY, PF NO.1024, INDIAN RARE EARTHS LIMITED, RESIDING AT KEETHOLIPARAMBIL (H), KUTTIKKATTUKARA, UDYOGAMANDAL - 683 501. ``` ``` 25GODWIN PEREIRA AGED 62 YEARS S/O.CLEMENT PEREIRA, INDIAN RARE EARTHS LIMITED, RESIDING AT THOPPIL HOUSE, VARAPUZHA LANDING P.O. - 683 517. 26K.R.MOHANAN AGED 63 YEARS S/O.RAMAN NAIR, PF NO.901, INDIAN RARE EARTHS LIMITED, RESIDING AT VRINDAVAN, W.PALOOPADAM, VAZHIKULANGARA, PARAVOOR. 27K.N.SANTHOSH AGED 62 YEARS S/O.NOBLE, PF NO.904, INDIAN RARE EARTHS LIMITED, RESIDING AT KOIPPILLY (H), JUBILEE ROAD, PATTERIPPURAM, ALUVA - 683 101. 28N.N.GOPINATHAN NAIR AGED 64 YEARS S/O.NARAYANAN NAIR, PF NO.1164, INDIAN RARE EARTHS LIMITED, RESIDING AT NEDUMPNAL (H), CHERKUNNUKARA, PUTHENCRUZ (PO) - 682 308. 29BIJU C.ANTONY AGED 62 YEARS S/O.C.C.ANTONY, PF NO.1194, INDIAN RARE EARTHS LIMITED, RESIDING AT CHALAKKAL (H), C.K.ROAD, MANJUMMEL P.O. - 683 501. ``` ``` 30M.V.FRANCIS AGED 61 YEARS S/O.VARGHESE, PF NO.1033, INDIAN RARE EARTHS LIMITED, RESIDING AT MENACHERY (H), VALLOM, RAYONPURAM (PO) - 683 543. 31MONCY JOSEPH AGED 61 YEARS PF NO.1158, INDIAN RARE EARTHS LIMITED, RESIDING AT ``` 5 Cont.Case (C)No.129 of 2021 ``` PATHIAPARAMBIL (H), MYTHRI NAGAR, KARIPPAI SUNARAGIRI ROAD, KALAMASSERY - 683 104. ``` ``` 32N.RAJAN AGED 61 YEARS ``` ``` S/O.NANU, PF NO.1076, INDIAN RARE EARTHS LIMITED, RESIDING AT NALUPARAYIL (H), KRRA-93, KALACHOOR ROAD, MANJUMMEL - 683 501. ``` ## **`33 K.C.SUDHAKARAN`** ``` AGED 63 YEARS ``` ``` S/O.CHATHU, P.P.O.NO.KR/KCH/00086126, INDIAN RARE EARTHS LIMITED, RESIDING AT KANNAMPULANGHAT (H), CHENNOR, KOTHAD P.O., ERNAKULAM - 68202. ``` ``` 34S.P.SUDESAN AGED 60 YEARS ``` ``` S/O.PARAMESWARAN, PF NO.914, INDIAN RARE EARTHS LIMITED, RESIDING AT SRAMBIKKAL (H), EDAPPALLY P.O., KOCHI - 682 024. ``` ``` 35T.P.GEORGE ``` ``` AGED 64 YEARS ``` ``` P.P.O.NO.KR/KCH/00086401, INDIAN RARE EARTHS LIMITED, RESIDING AT THENAMPARAMBIL (H), NH ROAD, CHIYYARAM P.O., THRISSUR - 680 026. ``` ``` 36K.M.THOMAS ``` ``` AGED 61 YEARS ``` ``` S/O.MATHULLA PUNNAN, PF NO.1046, INDIAN RARE EARTHS LIMITED, RESIDING AT KANNAKUZHIYIL (H), WEST OTHARA P.O., THIRUVALLA, PATHANAMTHITTA. ``` - **`37 P.M.BAVA`** ``` AGED 62 YEARS ``` ``` S/O.MOHAMME, PF NO.1114, INDIAN RARE EARTHS LIMITED, RESIDING AT PUTHUKKAD (H), ELOOR EAST, UDYOGAMANDAL - 683 501. ``` ## **`38 GEORGE MARTIN LAZER AGED 61 YEARS`** ``` S/O.GEORGE, PF NO.1195, INDIAN RARE EARTHS LIMITED, KALAPURAKKAL (H), SAMITHI ROAD, VADUTHALA P.O., KOCHI - 682 023. ``` ``` 39V.K.ANTONY AGED 60 YEARS S/O.KURIEN, PF NO.1139, INDIAN RARE EARTHS LIMITED, RESIDING AT VALIYAVEETTIL (H), PUTHENPALLY, VPZ P.O., PIN -683 517. ``` 6 Cont.Case (C)No.129 of 2021 ``` 40R.KUGANESAN, AGED 63 YEARS S/O.M.RAJU, PF NO.765, EPF KR/KCH/00093015, INDIAN RARE EARTHS LIMITED, RESIDING AT E-60, CHANGAMPUZHA NAGAR (PO), S.KALAMASSERY - 682 033. ``` ``` 41P.ARUMUGHAN, AGED 61 YEARS S/O.PAZHANIAANDI, PF NO.1116, INDIAN RARE EARTHS LIMITED, RESIDING AT VELLIYAMPALLATH(H), ELOOR NORTH, UDYOGAMANDAL - 683 501. ``` ``` 42P.X.ANTONY, AGED 62 YEARS S/O.XAVIER, PF NO.889, INDIAN RARE EARTHS LIMITED, RESIDING AT PUTHENVEETIL (H), PRASANTHI NAGAR, EDAPPALLY - 682 024. ``` - **`43 R.HARIKUMAR, AGED 61 YEARS S/O.RAMAN NAIR, PF NO.1003, INDIAN RARE EARTHS LIMITED, RESIDING AT PURATHANAYIL (H), MARAMPILLY (PO), ALUVA - 683 105.`** - **`44 M.A.ASHIK, AGED 61 YEARS S/O.ADIMA, PF NO.956, INDIAN RARE EARTHS LIMITED, RESIDING AT SANILA MANZIL, EDAPPALLY NORTH, AIMS (PO), PONNEKKARA, KOCHI - 682041.`** - **`45 ABDUL SALAM NAZER, AGED 62 YEARS S/O.SULAIMAN, PF NO.1023, INDIAN RARE EARTHS LIMITED, RESIDING AT VATHUKKAPARAMBIL (H), PONNARIMANGALAM, MULAVUKAD (PO) - 682 504.`** ``` 46T.R.LAKSHMANAN, AGED 61 YEARS S/O.RAMAN, PF NO.1080, INDIAN RARE EARTHS LIMITED, RESIDING AT THUNDIPARAMBIL (H), EDAYAKKUNNAM, S.CHITTOOR (PO)- 682 027. ``` ``` 47M.C.ANTONY, AGED 60 YEARS S/O.CHANDY, PF N.1034, INDIAN RARE EARTHS LIMITED, RESIDING AT MULAKARA HOUSE, KUMBALANGI P.O., KOCHI - 682 007. ``` - **`48 R.GOPALAKRISHNAN, AGED 63 YEARS S/O.BHAGAVATHY ACHARI, PF NO.918, INDIAN RARE EARTHS LIMITED, RESIDING AT RAHUL NIVAS, ELOOR NORTH, UDYOGAMANDAL. - 01.`** - **`49 P.CHANDRAN NAIR, AGED 61 YEARS S/O.PARAMESWARAN NAIR, PF NO.1137, INDIAN RARE EARTHS LIMITED, RESIDING AT 'POURNAMI', ANUPAMA NAGAR, ANRA51, KUSAVARAKKAL, MUTTADA P.O., THIRUVANANTHAPURAM - 695 025.`** 7 Cont.Case (C)No.129 of 2021 ``` 50P.P.JAMES, AGED 61 YEARS S/O.POULOSE, PF NO.1045, INDIAN RARE EARTHS LIMITED, RESIDING AT POOKODAN (H), VARANDARAPPILLY P.O., KORANADY, NEAR PUTHUKULAM, TRISSUR - 680 303. ``` ``` 51A.K.SALIM, AGED 62 YEARS S/O.KADHER, PPO NO.0094372, INDIAN RARE EARTHS LIMITED, RESIDING AT ANAKKATT(H), THAIKKATTUKARA P.O.. ALUVA - 683 106. ``` ``` 52O.C.SUSEELAN, AGED 61 YEARS S/O.CHATHAN, PF NO.941, INDIAN RARE EARTHS LIMITED, RESIDING AT 'SREESAILAM', OTTATHAIKAL, MANAKKAPADY, KARUMALLOOR P.O. - 683 511. ``` ``` 53V.R.MOHAN, AGED 62 YEARS S/O.K.RAMAN, PF NO.934, INDIAN RARE EARTHS LIMITED, RESIDING AT VALIYAVEETTIL (H), SRA-6, MOLATH ROAD, UNICHIRA, THRIKKAKARA P.O. ``` ``` BY ADVS.SRI.R.SANJITH ``` ``` SMT.C.S.SINDHU KRISHNAH ``` ## **`RESPONDENTS/RESPONDENTS 2 & 3:`** ``` 1SUNIL BARTHWAL AGE AND FATHERS NAME NOT KNOWN TO THE PETITIONERS, THE CHIEF PROVIDENT COMMISSIONER, THE EMPLOYEES PROVIDENT FUND ORGANISATION, BHAVISHYA NIDHI BHAVAN, 14, BHIKAJI CAME PALACE, NEW DELHI - 110 066. ``` ``` 2ANDREW PRABHU AGE AND FATHER'S NAME NOT KNOWN TO THE PETITIONERS, REGIONAL PROVIDENT FUND COMMISSIONER, THE EMPLOYEES PROVIDENT FUND ORGANIZATION, KALOOR, ERNAKULAM - 682 017. ``` ``` BY ADV SRI.SAJEEV KUMAR K.GOPAL ``` ``` THIS CONTEMPT OF COURT CASE (CIVIL) HAVING COME UP FOR ``` ``` ADMISSION ON 30.10.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` 8 Cont.Case (C)No.129 of 2021 ## **JUDGMENT** Anil K. Narendran, J. The petitioners, who are some of the petitioners in W.P.(C)No.31606 of 2016, 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 A1 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:- 9 Cont.Case (C)No.129 of 2021 (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 10 Cont.Case (C)No.129 of 2021 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 11 Cont.Case (C)No.129 of 2021 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 12 Cont.Case (C)No.129 of 2021 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 13 Cont.Case (C)No.129 of 2021 ## **`APPENDIX OF CON.CASE(C) 129/2021`** ## **`PETITIONER ANNEXURES`** - **`ANNEXURE A1 CERTIFIED COPY OF THE JUDGMENT DATED 12/10/2018 IN W.P.C.NO.31606/2016 OF THE HONORABLE DIVISION BENCH OF THE HONOURABLE HIGH COURT OF KERALA.`** - **`ANNEXURE A2 TRUE COPY OF THE REMINDER LETTER DATED 19/11/2020 SUBMITTED TO THE 2ND RESPONDENT BY PETITIONERS 1, 3, 5-7, 9, 11-17, 19,21, 24-33, 35-38, 40-46 & 4853 ALONG WITH ITS POSTAL RECEIPT & ACKNOWLEDGMENT CARD.`** - **`ANNEXURE A3 TRUE COPY OF THE REMINDER LETTER DATED 22/12/2020 SUBMITTED TO THE 2ND RESPONDENT BY PETITIONERS 2,4,8,10,18,20,22, 23,34,39& 47 ALONG WITH ITS POSTAL RECEIPT.`** ``` ANNEXURE A4TRUE COPY OF THE INTERIM ORDER IN C.C.C.369/2020 DATED 17/03/2020. ```