High Court of KeralaDivision BenchContempt case closed; EPFO to reconsider petiti...

Contempt Case (Civil) Cont.Case (C) No.2013 of 2019

Case / Petition Number:CON.CASE(C) NO. 2013 OF 2019
Neutral Citation:/null

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Anil K. Narendran, J.
  • Sophy Thomas, J.
Judgment Date
2023-10-17
Court Decision / Holding
The 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 Appeals Nos.8143-8144 of 2022 and connected matters.
Final Disposition
Contempt case closed; EPFO to reconsider petitioners’ entitlements for higher pension in light of the 2022 Supreme Court judgment, with implementation under law and within the amended pension scheme.

Parties to the Case

Appellants / Petitioners

  • G. Valsala
  • Santhakumari K.G
  • R. Madhu
  • Ceena G
  • V. Muraleedharan
  • C.N. Unnikrishnan
  • K.K. Suresh
  • Jessamma Mathew P
  • Sakeria P. Paul
  • T. Gireesh Kumar
  • K.B. Gangamany
  • Sheela Kuruvilla
  • M.B. Rema
  • Saraswathy M.J
  • K.M. Haridas
  • P. Narayanan
  • T.J. Xavier
  • R. Gangadharan
  • C. Sreekumari

Respondents

  • The Employees Provident Fund Organisation
  • Sunil Barthwal (Chief Provident Commissioner, EPFO)
  • Andrew Prabhu (Regional Provident Fund Commissioner, EPFO)

Legal Representation & Advocates

Counsels for Respondents

  • • Adv. SMT. Nita N.S.

Case Synopsis & Summary

This Contempt Case arises from alleged willful disobedience of the directions contained in Annexure A1, the judgment dated 12.10.2018 in WP(C) No.29546 of 2016 and connected matters. The petitioners, a group of petitioners (including several employees and members associated with the Kerala State Cooperative Housing Federation Limited), contended that the Employees Provident Fund Organisation (EPFO) failed to implement the directions to grant higher pension under the amended pension scheme and to extend the options to employees who did not exercise options before the 1st September 2014 cut-off. The Supreme Court, in its detailed judgment dated 04.11.2022 in Civil Appeals Nos.8143-8144 of 2022 and connected matters, held that the provisions of Notification No. G.S.R. 609(E) dated 22 August 2014 are legal and valid, read down certain provisions, and directed phased implementation and extension of options. The present court notes that the entitlement of the petitioners for higher pension requires reconsideration by EPFO in light of the 2022 judgment. The respondents submitted that such reconsideration should be undertaken in accordance with law. The Contempt Case is closed, without prejudice to EPFO reconsidering the petitioners’ entitlement under the Supreme Court’s directions, with implementation within the framework of the amended scheme.

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 2014Paragraph 11(3) of the 1995 pension scheme (pre-amendment)Paragraph 11(4) of the post-amendment pension scheme

Legal Doctrines & Maxims

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

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contended that the EPFO willfully disobeyed the directions in Annexure A1 and violated the High Court’s 2018 directives in WP(C) No. 29546/2016, particularly regarding higher pension and the extension of option rights under the amended pension scheme. They urged that the contempt proceedings should culminate in immediate compliance or a clear timetable for disbursement of higher pension in line with the Supreme Court’s 2022 ruling, which validated the 2014 amendment and read down certain provisions.

Contentions of Respondents

The EPFO and its counsel submitted that the Supreme Court’s 2022 decision necessitates a reconsideration of the petitioners’ entitlements under the amended pension scheme, within the framework of law. They asserted that EPFO must undertake the required exercise to determine eligibility for higher pension and to extend options, and that the contempt petition should be disposed of with an opportunity for such reconsideration rather than a direct order for immediate disbursement.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Employees Provident Fund Organisation v. Sunil Kumar B.2022 (7) KHC 12; AIR 2022 SC 5634PositiveSupreme Court held the 2014 amendment legal and valid and provided directions read down provisions, which the High Court relies on for reconsideration of entitlement.
R.C. Gupta and others v. Regional Provident Fund Commissioner, Employees Provident Fund Organisation and others[(2018) 14 SCC 809]PositiveCourt agrees with the view in this decision regarding interpretation of the proviso to paragraph 11(3) (pre-amendment) of the pension scheme and eligibility for options.

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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 ``` ``` TUESDAY, THE 17[TH] DAY OF OCTOBER 2023 / 25TH ASWINA, 1945 CON.CASE(C) NO. 2013 OF 2019 ``` ``` ARISING OUT OF THE JUDGMENT DATED 12.10.2018 IN ``` ``` WP(C)NO.29546 OF 2016 OF HIGH COURT OF KERALA ``` ``` -- PETITIONERS/PETITIONERS 14, 7, 1215, 17, 24, 25, 27, 29 - AND 3337: ``` - **`1 G.VALSALA, AGED 60 YEARS, W/O.T.V.SANAL KUMARAN NAIR, JUNIOR INSPECTOR, KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, P.F.AC.NO.KR/KCH/0010337/000/0000066, NAVAMI, VARANAD P.O., CHERTHALA, ALAPPUZHA DISTRICT.`** - **`2 SANTHAKUMARI. K.G, AGED 60 YEARS`** - **`W/O.PONNAPPAN V., JUNIOR INSPECTOR, KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, P.F.AC.NO.KR/KCH/0010337/000/0000067, VELUTHARAYIL HOUSE, AROOKUTTY P.O., CHERTHALA.`** - **`3 R. MADHU, AGED 58 YEARS`** ``` S/O.P.RAMAKRISHNAN, SENIOR INSPECTOR, KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, P.F.AC.NO.KR/KCH/0010337/000/0000047, CHILANKA, AIMS P.O., KOCHI - 682 041. ``` - **`4 CEENA. G, AGED 59 YEARS`** - **`W/O.RAJIVE N.B., REGIONAL MANAGER, KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, P.F.AC.NO.KR/KCH/10337/32, NEELIMATHARA HOUSE, KAITHANAM P.O., ERNAKULAM - 683 519.`** - **`5 V.MURALEEDHARAN, AGED 59 YEARS`** ``` S/O.V.VASUDEVAN, JUNIOR INSPECTOR, KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, ``` 2 Cont.Case (C)No.2013 of 2019 ``` P.F.AC.NO.KR/KCH/10337/76, AMBADI, KEDAVITHU VILA, PALACHIRA, P.O.VARKALA, TRIVANDRUM. ``` ## **`6 C.N. UNNIKRISHNAN,`** - **`AGED 58 YEARS`** ``` S/O.K.NARAYANA PILLAI, SENIOR RECORD KEEPER, KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, P.F.AC.NO.KR/KCH/0010337/000/0000023, SOUPARNIKA, MULANTHURUTHY P.O., ERNAKULAM - 682 314. ``` - **`7 K.K.SURESH, AGED 59 YEARS`** ``` DESPATCH ASSISTANT, KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, ``` ``` P.F.AC.NO.KR/KCH/0010337/000/0000084, KARACHUVATTIL HOUSE, EDAPALLY NORTH P.O., PIN - 682 024. ``` - **`8 JESSAMMA MATHEW.P, AGED 59 YEARS`** ``` W/O.DOMINIC D., SENIOR INSPECTOR, KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, VADAKKENATHU HOUSE, PALLITHAZHAM, MULANTHURUTHY P.O., ERNAKULAM - 682 314. ``` - **`9 SAKERIA.P. PAUL, AGED 60 YEARS`** ``` S/O.P.I.POULOSE, JUNIOR INSPECTOR, KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, P.F.AC.NO.KR/0010337/000/0000065, PALLICKAL HOUSE, NAZERETH LANE, ANGAMALY - 683 572. ``` ## **`10 T.GIREESH KUMAR, AGED 58 YEARS`** ``` JUNIOR INSPECTOR, KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, P.F.AC.NO.KR/KCH/10337/71, PALAZHY, THRIKANDIYOOR P.O., THIRUR - 4, MALAPPURAM DISTRICT. ``` ## **`11 K.B. GANGAMANY, AGED 60 YEARS`** ``` W/O.T.P.VENUGOPAL, REGIONAL MANAGER, KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, P.F.AC.NO.KR/KCH/0010337/000/0000043, KAILASAM, KADAKKARAPPALLY P.O., CHERTHALA, ALAPPUZHA DISTRICT, PIN - 688 543. ``` ## **`12 SHEELA KURUVILLA, AGED 59 YEARS`** 3 Cont.Case (C)No.2013 of 2019 ``` W/O.M.C.POULOSE, SENIOR INSPECTOR, KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, P.F.AC.NO.KR/KCH/10337/45, MOOZHIKAL HOUSE, COCHIN UNIVERSITY P.O., KOCHI - 22. ``` ## **`13 M.B. REMA,`** ``` AGED 58 YEARS ``` ``` W/O.K.G.SANJAYAN, JUNIOR INSPECTOR, KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, P.F.AC.NO.KR/KCH/10337/69, KATTOOR HOUSE, NAYARAMBALAM, KOCHI - 682 509. ``` ## **`14 SARASWATHY.M.J,`** ``` AGED 58 YEARS ``` ``` W/O.S.GANGADHARAN NAMBOOTHIRY, RECOVERY OFFICER, KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, P.F.AC.NO.KR/KCH/10337/38, VELLAYANI ILLAM, PURANATTUKARA P.O., TRICHUR - 680 551. ``` ## **`15 K.M.HARIDAS,`** ``` AGED 60 YEARS ``` ``` S/O.P.MADHAVAN NAIR, DEPUTY GENERAL MANAGER (ADMINISTRATION), KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, P.F.AC.NO.KR/10337/33, HARISREE, KUZHIKALADAN KANDI, PAROPPADI, MERIKUNNU P.O., KOZHIKODE - 673 012. ``` ## **`16 P.NARAYANAN,`** ``` AGED 60 YEARS ``` ``` S/O.LATE V.BALAKRISHNAN NAIR, DEPUTY GENERAL MANAGER (ACCOUNTS), KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, ``` ``` P.F.AC.NO.KR/KCH/10337/13, PULLIKUTH HOUSE, PALACE ROAD, NILAMBUR P.O., MALAPURAM - 679 329. ``` - **`17 T.J.XAVIER,`** ``` AGED 61 YEARS ``` ``` S/O.T.P.JOSEPH, JUNIOR TYPIST (H.G.), KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, P.F.AC.NO.KR/KCH/0010337/000/0000024, THOTTUPURAM HOUSE, CHAMBAKKARA, POONITHURA P.O., PIN - 682 038. ``` ## **`18 R.GANGADHARAN, AGED 59 YEARS`** ``` W/O.M.K.RAMANKUTTY, DRIVER GRADE II, KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, P.F.AC.NO.KR/KCH/0010337/000/0000079, GOKULAM NIVAS, KAYAPPILLY LINE, ELAMAKKARA P.O., ERNAKULAM, ``` 4 Cont.Case (C)No.2013 of 2019 ``` KOCHI - 26. ``` - **`19 C.SREEKUMARI, AGED 58 YEARS`** - **`W/O.LATE K VENU, ATTENDER (H.G.), KERALA STATE COOPERATIVE HOUSING FEDERATION LIMITED, P.F.AC.NO.KR/10337/87, TC 16/1025(3), VS NIVAS, C.S.ROAD, JAGATHY, THIRUVANANTHAPURAM - 14.`** ``` BY ADVS.R.SANJITH SMT.C.S.SINDHU KRISHNAH ``` ``` RESPONDENTS/RESPONDENTS 2 & 3: ``` - **`1 SUNIL BARTHWAL, AGE AND FATHER’S NAME NOT KNOWN TO THE PETITIONERS, THE CHIEF PROVIDENT COMMISSIONER, THE EMPLOYEES PROVIDENT FUND ORGANISATION, BHAVISHYA NIDHI BHAVAN, 14, BHIKAJICAMA PALACE, NEW DELHI110066.`** - **`2 ANDREW PRABHU, AGE AND FATHER’S NAME NOT KNOWN TO THE PETITIONER, REGIONAL PROVIDENT FUND COMMISSIONER, THE EMPLOYEES PROVIDENT FUND ORGANIZATION, KALOOR, ERNAKULAM-682 017.`** ``` BY ADV SMT.NITA.N.S. ``` ``` THIS CONTEMPT OF COURT CASE (CIVIL) HAVING COME UP FOR ``` ``` ADMISSION ON 17.10.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` 5 Cont.Case (C)No.2013 of 2019 ## **JUDGMENT** Anil K. Narendran, J. The petitioners, who are petitioners 1 to 4, 7, 12 to 15, 17, 24, 25, 27, 29 and 33 to 37 in W.P.(C)No.29546 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: 6 Cont.Case (C)No.2013 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.2013 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.2013 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.2013 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.2013 of 2019 ## **`APPENDIX OF CON.CASE(C) 2013/2019`** ``` PETITIONER ANNEXURES ``` |**`ANNEXURE A1`**|**`CERTIFIED COPY OF THE JUDGMENT DATED`**| |---|---| ||**`12.10.2018 IN WPC NO 29546/2016 OF THE`**| ||**`HONOURABLE DIVISION BENCH OF THE HONOURABLE`**| ||**`HIGH COURT OF KERALA`**| |**`ANNEXURE A2`**|**`TRUE COPY OF THE INTERIM ORDER DATED 6.9.2016`**| ||**`IN WPC NO 29546/2016`**|