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

Cont.Case (C) No.2098 of 2019

Case / Petition Number:CON.CASE(C)NO.2098 OF 2019

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Anil K. Narendran
  • Sophy Thomas
Judgment Date
2023-09-30
Court Decision / Holding
The Contempt Case is closed. The court acknowledges that, in view of the Supreme Court’s 2022 judgment (Sunil Kumar B. case) regarding the validity of the 2014 notification and related pension-scheme amendments, the petitioners’ entitlement for disbursement of higher pension requires reconsideration by the EPFO. The EPFO is directed to undertake the reconsideration in accordance with law, and the decision is to be implemented subject to any modifications arising from the law. The court’s order is without prejudice to EPFO’s right to re-evaluate entitlements in light of the cited Supreme Court decision.
Final Disposition
Contempt Case closed; EPFO to reconsider entitlement to higher pension in light of the Supreme Court judgment, with implementation to follow in accordance with law.

Parties to the Case

Appellants / Petitioners

  • SURESH.P.
  • GEORGE KUTTY M.K
  • VENUGOPALA SHENOI
  • VASUDEVAN NAMBOOTHIRI M.A
  • BENNY K.E
  • JACOB V.M
  • JOHN P VARGHESE
  • RAGHAVAN P.P
  • OOMMEN OOMMEN
  • BALABHADRAN V
  • SARAMMA MATHEW T
  • BABURAJ V.K
  • PONNAPPAN ACHARI M.K
  • MANI JOHN P
  • KARIMULLA M.A
  • SUKUMARAN A
  • PANKAJAVALLY T
  • SUBRAMANIAN POTTY R
  • BHASKARAN K
  • KUNJAPPAN K.T
  • KUMARAN M
  • PAILY P.O
  • MANI N
  • JOSEPH A
  • GOVINDAN K.K

Respondents

  • Sandeep Biswas
  • Rokkan Gopala Rao

Legal Representation & Advocates

Counsels for Petitioners

  • • Asok M. Cherian
  • • Dr. Sebastian Champappilly
  • • N. Satheesh
  • • George Cleetus
  • • K. Janardhana Shenoy

Counsels for Respondents

  • • Smt. Nita N.S.

Case Synopsis & Summary

This Contempt of Court case was filed by a large group of petitioners who had been parties to W.P.(C) No.33627 of 2016, challenging the implementation of the pension scheme for Employees Provident Fund Organisation (EPFO) beneficiaries and alleging willful disobedience of directions contained in Annexure I of the Kerala High Court judgment dated 12.10.2018 in WP(C) No.33627/2016 and connected matters. The petitioners invoked Section 12 of the Contempt of Courts Act, 1971, seeking compliance with the directions. The Supreme Court later delivered a detailed judgment on 04.11.2022 in Civil Appeals Nos.8143-44 of 2022 and connected matters, and in a related decision, held that the provisions of Notification No. G.S.R.609(E) dated 22.08.2014 are legal and valid, directing focused directions on how the pension scheme should operate post-amendment. The presence of this higher court guidance prompted the Kerala High Court to acknowledge that the entitlement to higher pension requires reconsideration by the EPFO in light of the 2022 judgment, rather than merely enforcing the earlier directives. On 30 September 2023, the court closed the contempt petition, while expressly reserving EPFO’s right to reassess entitlement in accordance with law following the Supreme Court decision. The matter thus centers on ensuring compliance with evolving pension scheme norms and the EPFO’s subsequent reconsideration process."

Provisions of Law Cited

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

Legal Doctrines & Maxims

  • ultra vires
  • read down
  • Article 142 of the Constitution (doctrine of extraordinary jurisdiction)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that the directive-based implementation of Annexure I in the 2018 Kerala High Court judgment has not been faithfully followed by the EPFO, amounting to willful disobedience under Section 12 of the Contempt of Courts Act. They rely on the 2014 G.S.R. 609(E) notification and the post-amendment pension scheme provisions (11(4)) to secure higher pension entitlements for eligible employees, as interpreted by the Supreme Court in the 2022 decision and in RC Gupta. They seek immediate compliance with the court directions and/or directions consistent with the 2022 Supreme Court judgment to ensure proper disbursement of higher pension.

Contentions of Respondents

The EPFO submits that the entitlement to higher pension must be reconsidered in accordance with law, taking into account Supreme Court guidance rendered in 2022. They advocate a process-based reassessment of entitlements rather than a mechanical grant of higher pension, in light of the amended scheme and the 2014 notification. They acknowledge the need to undertake the exercise directed by the Supreme Court and commit to conducting it within legal bounds.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Employees Provident Fund Organisation v. Sunil Kumar B.2022 (7) KHC 12 : AIR 2022 SC 5634PositiveThe Supreme Court held that the G.S.R. 609(E) notification is legal and valid; Kerala HC applies this principle, directing reconsideration of entitlements in line with the 2022 judgment.
RC Gupta and others v. Regional Provident Fund Commissioner, Employees Provident Fund Organisation and others[(2018) 14 SCC 809]PositiveCourt aligns with RC Gupta’s interpretation of paragraph 11(3) proviso and 11(4) post-amendment, guiding how options and pension calculations should be treated.

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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 MRS.JUSTICE SOPHY THOMAS ``` ``` SATURDAY, THE 30[TH] DAY OF SEPTEMBER 2023/8TH ASWINA, 1945 CON.CASE(C)NO.2098 OF 2019 ``` ``` ARISING OUT OF THE JUDGMENT DATED 12.10.2018 IN ``` ``` WP(C)NO.33627 OF 2016 OF HIGH COURT OF KERALA ``` ``` PETITIONERS/PETITIONERS: ``` - **`1 SURESH.P., AGED 64 YEARS, S/O. P.N PARAMESWARAN PILLAI, SURABHI, CLUB ROAD, VELLORKUNNAM, MUVATTUPUZHA, ERNAKULAM 686 673 (PETITIONER NO. 1 WPC NO 33627/2016)`** - **`2 GEORGE KUTTY M.K, AGED 69 YEARS S/O. ABRAHAM, KANJIRAVILLA HOUSE, MAKKANNOOR, KUNNIKODE P.O, PUNALUR, KOLLAM 691 508 (PETITIONER NO. 2 WPC NO 33627/2016)`** - **`3 VENUGOPALA SHENOI, AGED 63 YEARS, S/O. RAMAKRISHNA DAS S, GENESH KRIPA, HOUSE NO. 86, DREAM NAGAR, RAMANKULANGARA, KOLLAM 691 003 (PETITIONER NO. 3 WPC NO 33627/2016)`** - **`4 VASUDEVAN NAMBOOTHIRI M.A, AGED 66 YEARS S/O. M.A ARYAN NAMBOOTHIRI, AMEDAMANGALAM, UDAYAMPEREOOR (PO), ERNAKULAM 682 307 (PETITIONER NO. 4 WPC NO 33627/2016)`** - **`5 BENNY K.E, AGED 64 YEARS, S/O. K.K EAPEN, KUZHINAPURATH HOUSE, OMALLOOR (PO), PATHANAMTHITTA 689 647 (PETITIONER NO. 5 WPC NO 33627/2016)`** - **`6 JACOB V.M, AGED 72 YEARS, S/O. V.J MANI, VETTINAL HOUSE, KOOTHATTUKULAM, ERNAKULAM 686 662 (PETITIONER NO. 7 WPC NO 33627/2016)`** - **`7 JOHN P VARGHESE, AGED 65 YEARS, S/O. LATE P.M JOHN, PALAVILA, HOUSE NO. 223, A.K.G NAGAR, AVENUE 2 PEROORKADA P.O, THIRUVANANTHAPURAM 695 005`** 2 Cont.Case (C)No.2098 of 2019 ``` (PETITIONER NO. 9 WPC NO 33627/2016) ``` - **`8 RAGHAVAN P.P, AGED 66 YEARS, S/O. KUNJAMBU, PUTHIYAPARAYIL HOUSE, VADUVIL P.O, KANNUR 670 582 (PETITIONER NO. 11 WPC NO 33627/2016)`** - **`9 OOMMEN OOMMEN, AGED 66 YEARS, S/O. T.M OOMMEN, THYPARAMBIL HOUSE, VENMANI P.O, CHENGANNOOR, ALAPPUZHA 689 509 (PETITIONER NO. 12 WPC NO 33627/2016)`** - **`10 BALABHADRAN V, AGED 68 YEARS, S/O. K.V VASU, ROHINI33/238/A3, VENNAL, PUZHAKKARA PADOM, KOCHI 682 028 (PETITIONER NO 13 IN WP C NO 33627/2016)`** - **`11 SARAMMA MATHEW T, AGED 67 YEARS, D/O. LATE T.P MATHEW, H.NO. 28/2769 A, KANAKKANCHERIL HOUSE, PONNETH SOUTH ROAD, KADAVANTHRA P.O, KOCHI 682 020 PETITIONER NO. 14 IN WPC NO. 33627/2016)`** - **`12 BABURAJ V.K, AGED 65 YEARS, S/O. SHANKARAN, KRISHNA KRIPA HOUSE, MEVELLOOR P.O, VELLOR, PETITIONER NO. 15 IN WPC NO. 33627/2016)`** - **`13 PONNAPPAN ACHARI M.K, AGED 71 YEARS, S/O.M.V. KRISHNAN ACHARI, MUNDUPARAMBIL HOUSE, KIDANGOOR SOUTH (PO) KOTTAYAM DISTRICT PETITIONER NO. 16 IN WPC NO. 33627/2016)`** - **`14 MANI JOHN P, AGED 67 YEARS, S/O. P.J JOHN, PRAPPALLICHIRAYIL HOUSE, KOLLADU P.O, KOTTAYAM 686 004 PETITIONER NO. 17 IN WPC NO. 33627/2016)`** - **`15 KARIMULLA M.A, AGED 72 YEARS, S/O. M.C ANTHUKAYI, THUDAPARAMBIL, KULASEKHARAMANGALAM, VAIKOM, KOTTAYAM 686 608 PETITIONER NO. 18 IN WPC NO. 33627/2016)`** - **`16 SUKUMARAN A, AGED 64 YEARS, S/O. K. SANKARAN, ELAVANALPUTHENPURAYIL, MULAKULAM NORTH P.O, PIRAVOM, ERNAKULAM 686 664 PETITIONER NO. 19 IN WPC NO. 33627/2016)`** - **`17 PANKAJAVALLY T, AGED 69 YEARS, D/O. P KRISHNA PILLAI, SOPANAM VELLIMON WEST P.O, KUNDARA, KOLLAM, PIN 691 511 PETITIONER NO. 20 IN WPC NO. 33627/2016)`** 3 Cont.Case (C)No.2098 of 2019 - **`18 SUBRAMANIAN POTTY R, AGED 65 YEARS, S/O. RAMAN POTTY K, THOTTOTHU MADOM, VAIKOM, KOTTAYAM PETITIONER NO. 23 IN WPC NO. 33627/2016)`** - **`19 BHASKARAN K, AGED 66 YEARS, S/O. A. KRISHNAN NAMBIAR, PRATHEEKSHA, MAHATMA ROAD, TRICHAMBARAM, THALIPARAMBA, KANNUR 670 141 PETITIONER NO. 25 IN WPC NO. 33627/2016)`** - **`20 KUNJAPPAN K.T, AGED 67 YEARS KATTITHARATHUNDI HOUSE, MARADU P.O, KOCHI 682 304 PETITIONER NO. 26 IN WPC NO. 33627/2016)`** - **`21 KUMARAN M, AGED 64 YEARS, S/O. ACHUTHAN, MULLOMKUZHY (PO), KARIKODU P.O, PERUVA, MULLOMKUZHY (PO), KARIKODU P.O, PERUVA , MULLOMKUZHY (PO) KOTTAYAM 686 610 PETITIONER NO. 27 IN WPC NO. 33627/2016)`** - **`22 PAILY P.O, AGED 66 YEARS, S/O. OUSEPH, PADINJAREVALAYIL, MEVELLOOR P.O, MEVELLOOR, KOTTAYAM 686 609 PETITIONER NO. 29 IN WPC NO. 33627/2016)`** - **`23 MANI N, AGED 66 YEARS, S/O. P.V NARAYANAN, PARAKKAL HOUSE, ERIMAYUR P.O, PALAKKAD, PETITIONER NO. 30 IN WPC NO. 33627/2016)`** - **`24 JOSEPH A, AGED 68 YEARS, S/O. LAZER ANTONY, PREM NIVAS, KUMBALAM P.O, KOLLAM 691 503 PETITIONER NO. 32 IN WPC NO. 33627/2016)`** - **`25 GOVINDAN K.K, AGED 67 YEARS, S/O. KRISHNAN, VARIYATHU HOUSE, MEVELLOOR P.O, VELLOOR, KOTTAYAM 686 609 PETITIONER NO. 33 IN WPC NO. 33627/2016)`** ``` BY ADVS.ASOK M.CHERIAN DR.SEBASTIAN CHAMPAPPILLY ``` ``` N.SATHEESH ``` ``` SRI.GEORGE CLEETUS K.JANARDHANA SHENOY ``` ## **`RESPONDENTS/RESPONDENTS 4 AND 5:`** - **`1 SANDEEP BISWAS, (FATHER’S NAME, AGE AND RESIDENTIAL ADDRESS NOT KNOW TO THE PETITIONERS) SUB REGIONAL PROVIDENT FUND COMMISSIONER, EMPLOYEES PROVIDENT FUND SUB REGIONAL OFFICE, ADITYA SABAR TOWER, POST OFFICE`** 4 Cont.Case (C)No.2098 of 2019 ``` ROAD, THIRUNAKKARA, P.B NO. 36, KOTTAYAM 686 601 ``` - **`2 ROKKAN GOPALA RAO,(FATHER’S NAME, AGE AND RESIDENTIAL ADDRESS NOT KNOWN TO THE PETITIONERS), MANAGING DIRECTOR, HINDUSTAN NEWSPRINT LTD, NEWSPRINT NAGAR P.O, VAIKOM TALUK, KOTTAYAM DISTRICT, PIN 686 616`** ``` BY ADV SMT.NITA.N.S. ``` ``` THIS CONTEMPT OF COURT CASE (CIVIL) HAVING COME UP FOR ADMISSION ON 30.09.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` 5 Cont.Case (C)No.2098 of 2019 ## **JUDGMENT** Anil K. Narendran, J. The petitioners, who are some of the petitioners in W.P.(C)No.33627 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.2098 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.2098 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.2098 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.2098 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/7/10 10 Cont.Case (C)No.2098 of 2019 ## **`APPENDIX OF CON.CASE(C) 2098/2019`** ``` PETITIONER ANNEXURES ``` ## **`ANNEXURE 1`** ``` A CERTIFIED COPY OF THE JUDGMENT OF HON'BLE HIGH COURT OF KERALA IN WPC NO. 33627 OF 2016 DATED 12-10-2018 ```