High Court of KeralaDivision BenchContempt petition closed; EPFO directed to reco...

Cont.Case (C) No.2031 of 2019

Case / Petition Number:CON.CASE(C) NO. 2031 OF 2019

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Anil K. Narendran
  • Sophy Thomas
Judgment Date
2023-10-16
Court Decision / Holding
Contempt case closed. The EPFO is directed to reconsider the petitioners’ entitlement to higher pension in light of the Supreme Court’s 4 November 2022 judgment in Sunil Kumar B. and connected matters, with directions to implement the directives of the 2022 judgment within eight weeks to the extent feasible; further proceedings to be conducted in accordance with law.
Final Disposition
Contempt petition closed; EPFO directed to reconsider entitlement to higher pension in light of the 2022 apex judgment, with implementation to be carried out within the stated framework and time limits.

Parties to the Case

Appellants / Petitioners

  • Lakshminarayanan K.
  • Ayyappan K.D.
  • Kesavadasan P.M.
  • Chandrabose V.S.
  • Dakshinamoorthy A.
  • Ajaykumar P.T.
  • Threesan T.
  • Aliyar M.I.
  • Satheesan K.N.
  • Sasidharan R.
  • Raju Thomas
  • Mohandas M.C.
  • Sunilkumar K.V.
  • Francis T.G.
  • Joshapaul
  • Johny P.J.
  • Sasi P.C.
  • Rajalakshmi C.K.
  • Ramakrishnan U.A.
  • Vijayan C.A.
  • Roy K.J.
  • Sureshbabu U.
  • Saleem V.K.
  • Jayakrishnan A.
  • Purushothaman T.
  • Beerankoya K.V.
  • Sivadasan T.P.
  • Radhakrishnan K.
  • Soman S.
  • K.K.Dasan

Respondents

  • Kavitha N. George
  • V. Andrew Prabhu

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. Asok M. Cherian
  • • Adv. N. Satheesh
  • • Adv. K. Janardhana Shenoy

Counsels for Respondents

  • • Adv. Nita N.S.

Case Synopsis & Summary

This Contempt of Court case (Civil) concerns a petition by the petitioners in W.P.(C) No.34533 of 2016 alleging willful disobedience of the directions contained in Annexure I judgment dated 12.10.2018 in W.P.(C) No.34533/2016 and connected matters. The petitioners sought enforcement of those directions in light of the Employees’ Provident Fund Organisation’s (EPFO) non-compliance. The matter traversed through the appeal and review of related orders, including the Supreme Court’s dismissal of certain SLPs, recall of orders, and a detailed 2022 judgment in Sunil Kumar B. (Air 2022 SC 5634) upholding the legality and validity of Notification No. G.S.R.609(E) (22 August 2014) and directing readjustments in the pension scheme. The Kerala High Court acknowledges that the 2022 Apex Court decision requires reconsideration of the petitioners’ entitlement to higher pension by the EPFO. Accordingly, the contempt petition is closed, without prejudice to EPFO reconsidering the petitioners’ pension entitlement in accordance with law and the 2022 apex judgment. The order concludes with directions for implementing the 2022 judgment’s framework by the EPFO.”

Provisions of Law Cited

Section 12 of the Contempt of Courts Act, 1971Article 142 of the Constitution of IndiaEmployees' Provident Fund and Miscellaneous Provisions Act, 1952Notification No. G.S.R.609(E) dated 22 August 2014

Legal Doctrines & Maxims

  • Read down (doctrine)
  • Ultra vires (doctrine)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contended willful disobedience of the directions contained in Annexure I of the 2018 judgment (WPC 34533/2016) and sought enforcement of those directions; they relied on the Supreme Court’s 2022 decision upholding the legal validity of the 2014 notification and directing adjustments in the pension scheme, arguing that EPFO must implement comparable changes and grant higher pension accordingly.

Contentions of Respondents

The respondents urged reconsideration of the petitioners’ entitlement to higher pension by EPFO in accordance with the law, referencing the 2022 Supreme Court judgment and directing the authorities to undertake the necessary recalculations and adjustments.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Sunil Kumar B.[2022 (7) KHC 12 : AIR 2022 SC 5634]PositiveThe High Court cites the 2022 Supreme Court decision as establishing the validity of the 2014 notification and its directives, and uses it to frame the reconsideration of pension entitlements.
R.C. Gupta and others v. Regional Provident Fund Commissioner, Employees Provident Fund Organisation and others[(2018) 14 SCC 809]PositiveThe judgment notes agreement with the view in RC Gupta on interpretation of the proviso to paragraph 11(3) pre-amendment pension scheme and directs implementation accordingly.

Diagnostic Tool

Beta

Does this judgment govern your specific facts?

Don't risk relying on a distinguishable precedent. Enter your facts or proposition below. We will test it against Cont.Case (C) No.2031 of 2019 and instantly map out authorities that support, challenge, or govern your position.

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 MRS.JUSTICE SOPHY THOMAS ``` ``` MONDAY, THE 16[TH] DAY OF OCTOBER 2023 / 24TH ASWINA, 1945 ``` ``` CON.CASE(C) NO. 2031 OF 2019 ``` ``` ARISING OUT OF THE JUDGMENT DATED 12.10.2018 IN WP(C)NO. ``` ``` 34533/2016 OF HIGH COURT OF KERALA ``` ``` PETITIONERS/PETITIONERS: ``` - **`1 LAKSHMINARAYANAN K., AGED 60 YEARS, S/O.LATE L.KRISHNA IYER, IV/388D, MYTHRINAGAR, AMBALAPURAM P.O., PERINGANDOOR, TRICHUR -680 581, (PETITIONER NO.1 IN WPC 34533/2016).`** - **`2 AYYAPPAN K.D., AGED 60 YEARS, S/O.DAMODARAN K.N., KARIMBANAKKAL HOUSE, PAZHAYI P.O., PUDUKAD, THRISSUR - 680 301 (PETITIONER NO.3 IN WPC 34533/2016).`** - **`3 KESAVADASAN P.M., AGED 59 YEARS, S/O.SANKARAN NAIR, POURNAMI, SILK NAGAR, PLOT NO.14, PERENGANDOOR P.O., TRISSUR - 680 581. (PETITIONER NO.4 IN WPC 34533/2016).`** - **`4 CHANDRABOSE V.S., AGED 59 YEARS, S/O.SANKARAN V.K., VADASSERY HOUSE, SOUHRIDA NAGAR, PERINDOOR P.O., TRISSUR - 680 581. (PETITIONER NO.5 IN WPC 34533/2016).`** - **`5 DAKSHINAMOORTHY A., AGED 60 YEARS, S/O.AZHAGAN, SUSEELA ILLAM AKOODI LINE, MULANKUNNATH KAVU P.O. TRISSUR -689 581. (PETITIONER NO.6 IN WPC 34533/2016).`** - **`6 AJAYKUMAR P.T., AGED 58 YEARS, S/O.A.PADMANABHAN, APPAT HOUSE, VENKILIPPADAM, MANAKKODY, THRISSUR - 680 012. (PETITIONER NO.11 IN WPC 34533/2016)`** - **`7 THREESAN T., AGED 59 YEARS, S/O.T.GOVINDAN, DEVI NILAYAM, VELLAYIL, NADAKAVU P.O., KOZHIKODE-11`** 2 Cont.Case (C)No.2031 of 2019 ``` (PETITIONER NO.12 IN WPC 34533/2016). ``` - **`8 ALIYAR M.I., AGED 59 YEARS, S/O.IBRAHIMU, MANNOOPARAMBIL HOUSE, VENGOLA P.O. TRISSUR (PETITIONER NO.13 IN WPC NO.34533/2016).`** - **`9 SATHEESAN K.N., AGED 58 YEARS, S/O.NARAYANAN K.S., KUNDUPARAMBIL HOUSE, P.O.POTTORE, TRISSUR - 680 581 (PETITIONER NO.18 IN WPC 34533/2016)`** - **`10 SASIDHARAN R., AGED 59 YEARS, S/O.RAJAPPAN M., KALLARATHALA V.S.BHAVAN, ATHIYANNOOR, RAMAPURAM, ARALUMOODU P.O., TRIVANDRUM -695 123 (PETITIONER NO.25 IN WPC 34533/2016)`** - **`11 RAJU THOMAS, AGED 59 YEARS, S/O.K.P.THOMAS, KOTTURAN HOUSE, IRINGALAKUDA, TRISSUR - 680 121 (PETITIONER NO.27 IN WPC 34533/2016).`** - **`12 MOHANDAS M.C., AGED 59 YEARS, S/O.CHATHERKUTTY, MELEPURAM HOUSE, ATHANI, THRISSUR - 680 581 (PETITIONER NO.31 IN WPC 34533/2016).`** - **`13 SUNILKUMAR K.V., AGED 59 YEARS, VELAYUDHAN, KARIPADATH HOUSE, MANNUTHIKULAM ROAD, IRINGALAKUDA, TRISSUR - 680 121 (PETITIONER NO.33 IN WPC 34533/2016).`** - **`14 FRANCIS T.G., AGED 60 YEARS, S/O.T.D.GEORGE, THAZHATH HOUSE, PALIYEKKARA, CHITTISSERY P.O., TRISSUR - 680 301 (PETITIONER NO.45 IN WPC 34533/2016).`** - **`15 JOSHAPAUL, AGED 58 YEARS, S/O.PAUL K.V., ELAMKUNNAPUZHA HOUSE, VENNOOR, ANNAMANAD POST, TRICHUR - 680 741 (PETITIONER NO.49 IN WPC 34533/2016).`** - **`16 JOHNY P.J., AGED 58 YEARS, S/O.YOHANNAN, PAROOKKARAN HOUSE, PERINGANDOOR P.O., SILK NAGAR, TRISSUR - 680 581 (PETITIONER NO.50 IN WPC 34533/2016)`** - **`17 SASI P.C., AGED 60 YEARS, S/O.CHATHAN, PAPPALY HOUSE, KAVIL KODAKARA, TRISSUR - 680 684 (PETITIONER NO.57 IN WPC 34533/2016).`** 3 Cont.Case (C)No.2031 of 2019 - **`18 RAJALAKSHMI C.K., AGED 58 YEARS, D/O.KITTUNNY C.V., ADATTUPARAMBIL HOUSE, SILK NAGAR, PERINGANDOOR P.O., ATHANI, TRISSUR - 680 581 (PETITIONER NO.65 IN WPC 34533/2016)`** - **`19 RAMAKRISHNAN U.A., AGED 60 YEARS, S/O.APPU U.K., UTTUMADATHIL HOUSE, ELAVATHUR P.O., PATHIYARKULANGARA, TRISSUR - 680 552 (PETITIONER NO.72 IN WPC 34533/2016)`** - **`20 VIJAYAN C.A., AGED 59 YEARS, S/O.AYYAPPAN, CHAKKYADATH HOUSE, P.O.CHEROOR, PANDIKAVU 1ST STREET, TRISSUR - 680 008 (PETITIONER NO.78 IN WPC 34533/2016).`** - **`21 ROY K.J., AGED 59 YEARS, S/O.JOSEPH K., KALATHIL HOUSE, THAZHEKADE, KALLETTUNGARA P.O., TRISSUR - 680 683 (PETITIONER NO.82 IN WPC 34533/2016)`** - **`22 SURESHBABU U., AGED 59 YEARS, S/O.VELU U., UCHAKAVIL HOUSE, P.O.NADATHARA, TRISSUR - 680 751 (PETITIONER NO.103 IN WPC 34533/2016).`** - **`23 SALEEM V.K., AGED 60 YEARS, S/O.V.A.KOCHUNNY, VAZHAKKALA HOUSE, CHEMBUMUKKU, NEAR TRANQUIL RESIDENCY, THRIKKARA P.O., KOCHI - 682 021 (PETITIONER NO.110 IN WPC 34533/2016).`** - **`24 JAYAKRISHNAN A., AGED 59 YEARS, S/O.MENON K.P.A. KALPAKA, S.R.K.NAGAR, OTTAPALAM, PALAKKAD - 679 103 (PETITIONER NO.111 IN WPC 34533/2016)`** - **`25 PURUSHOTHAMAN T., S/O.M.C.THEVAN, NOORUPARAYIL HOUSE, SANTHANAPURAM P.O., KALARCODE, ALAPPUZHA - 688 003 (PETITIONER NO.112 IN WPC 34533/2016).`** - **`26 BEERANKOYA K.V., AGED 58 YEARS, S/O.K.V.ALAVI, AYSHA MANZIL, P.O.VALLIKKUNNU NORTH, MALAPPURAM - 673 314 (PETITIONER NO.114 IN WPC 34533/2016).`** - **`27 SIVADASAN T.P., AGED 59 YEARS, S/O.T.P.KARAPPAN, THEKKEPURAKKAL HOUSE, FAROOK COLLEGE, P.O.RAMANTTUKARA, KOZHIKODE (PETITIONER NO.116 IN WPC 34533/2016).`** - **`28 RADHAKRISHNAN K., AGED 58 YEARS, S/O.DAMODARAN NAIR, KRISHENDU HOUSE, PAYYADITHAZHAM,`** 4 Cont.Case (C)No.2031 of 2019 ``` PANTHEERANKAVE P.O., KOZHIKODE - 673019 (PETITIONER NO.117 IN WPC NO.34533/2016). ``` ``` 29SOMAN S., AGED 58 YEARS, S/O.SANKARANKUTTY, THRUTHIKKATTU NIKARATH, ERAMALLOOR P.O., CHERTHALA, ALAPPUZHA - 688 537 (PETITIONER NO.119 IN WPC 34533/2016). ``` ``` 30K.K.DASAN, AGED 58 YEARS, S/O.KOCHURAMAN, SRUTHY NIVAS, LAKKIDI (PO), KILLIKKURISSIMANGALAM, PALAKKAD -679 301(PETITIONER NO.197 IN WPC 34533/2016). ``` ``` BY ADVS.ASOK M.CHERIAN ``` ``` SRI.N.SATHEESH SRI.K.JANARDHANA SHENOY ``` ## **`RESPONDENTSS/RESPONDENTS 3 AND 4:`** ``` 1KAVITHA N.GEORGE, (FATHER’S/HUSBAND'S NAME, AGE AND RESIDENTIAL ADDRESS NOT KNOWN TO THE PETITIONER), REGIONAL PROVIDENT FUND COMMISSIONER, EMPLOYEES PROVIDENT FUND ORGANISATION, PATTOM, THIRUVANANTHAPURAM - 695004. ``` ``` 2V.ANDREW PRABHU, (FATHER’S NAME, AGE AND RESIDENTIAL ADDRESS NOT ``` ``` KNOWN TO THE PETITIONER), SUB REGIONAL PROVIDENT FUND COMMISSIONER, NO.36/685A, BHAVISHYANIDHI BHAVAN, KALOOR, ERNAKULAM - 682017. ``` ``` BY ADV SMT.NITA.N.S. ``` ``` THIS CONTEMPT OF COURT CASE (CIVIL) HAVING COME UP FOR ADMISSION ON 16.10.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` 5 Cont.Case (C)No.2031 of 2019 ## **JUDGMENT** Anil K. Narendran, J. The petitioners, who are some of the petitioners in W.P.(C)No.34533 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 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: 6 Cont.Case (C)No.2031 of 2019 ## “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 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 7 Cont.Case (C)No.2031 of 2019 provide for any cut-off date and thus those members shall 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 preamended 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 8 Cont.Case (C)No.2031 of 2019 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 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 9 Cont.Case (C)No.2031 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/- **SOPHY THOMAS, JUDGE** AV/25/10 10 Cont.Case (C)No.2031 of 2019 ## **`APPENDIX OF CON.CASE(C) 2031/2019`** ``` PETITIONER ANNEXURES ``` ``` ANNEXURE 1 ``` ``` A CERTIFIED COPY OF THE JUDGMENT OF HON'BLE HIGH COURT OF KERALA IN WPC NO.34533/2016 DATED 12/10/2018 ```