High Court of KeralaDivision BenchContempt case disposed of; closed with directio...

In the High Court of Kerala at Ernakulam Contempt Case (C) No. 2174 of 2019

Case / Petition Number:CON.CASE(C) NO. 2174 OF 2019

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Anil K Narendran
  • Sophy Thomas
Judgment Date
2023-09-25
Court Decision / Holding
The Contempt Case is closed. The Kerala High Court directs EPFO to reconsider the petitioners’ entitlement to higher pension in accordance with law, taking into account the Supreme Court’s 4 November 2022 judgment in Civil Appeals Nos. 8143–8144 of 2022 and connected matters (AIR 2022 SC 5634) and the related directives (including the validity of G.S.R. 609(E) and the extension of option periods). The order is without prejudice to the right of EPFO to complete the reconsideration exercise as directed by law and the apex court’s judgment.
Final Disposition
Contempt case disposed of; closed with directions for EPFO to reconsider petitioners’ entitlement to higher pension in accordance with law and the apex court’s 2022 judgment.

Parties to the Case

Appellants / Petitioners

  • THOMAS M.J.
  • ABUL FAZIL.M.
  • JINSON BABY
  • SAIFUDEEN.A.
  • SANGEETH.P.S.
  • SAHADEVAN.M.
  • SREERAJ.S.
  • ANURAJ.V.V
  • SUJITH.K.
  • ANEESH MON C.S.
  • BOOSARI.B.
  • ANSAR BABU
  • HASIM.K.V.
  • RATHEESAN.A.
  • DEBHI H D SILVA
  • S. VIKRAMAN NAIR
  • JOHNSON VARGHESE
  • DEEPAK.M.U.
  • DEEPAK KRISHNANKUTTY
  • SHELTON.J.
  • SAJI.A.K.
  • SHIBIN.I.
  • JUSHNU K. SURENDRAN
  • THOMAS MON V.T.
  • ANOOP.S.S
  • TERRYSON JOSE
  • JAYADAS.R.
  • S.CHANDRAN
  • LINDA SABINOSE
  • BENSIGAR.M.
  • GEORGE THOMAS
  • SHIBU.P.
  • ASHEEM.P.S.

Respondents

  • Ranjay Mooshahhari (Regional Provident Fund Commissioner, EPFO)

Legal Representation & Advocates

Counsels for Petitioners

  • • C.ANIL KUMAR
  • • SMT.A.K.PREETHA

Counsels for Respondents

  • • SMT.NITA.N.S.

Case Synopsis & Summary

This Contempt Case (Civil) arises from a petition filed under Section 12 of the Contempt of Courts Act, 1971, alleging willful disobedience of directions contained in the Kerala High Court’s judgment dated 12 October 2018 in W.P.(C) No. 38199 of 2016 and connected matters. The petitioners, who are arrayed as petitioners 1–6, 8–20, 22–27, 29–34, and others, are employees of Travancore Titanium Products Limited (TTPL) seeking higher pension entitlements under the Employees Provident Fund Organisation (EPFO) scheme, as interpreted after the 2014 amendment via G.S.R. 609(E). The respondent EPFO had challenged or delayed disbursal pursuant to the Supreme Court’s judgments in 2022, particularly Civil Appeals Nos. 8143–8144 of 2022, and the decision in Sunil Kumar B. (AIR 2022 SC 5634). The Court recalls the Supreme Court’s directions in 2022 to validate the 2014 amendment, extend option periods, and provide a mechanism for pension computation (read with para 11(3)/(4) of the 1995 pension scheme). Following hearing, the Kerala High Court held that the petitioners’ entitlement to higher pension requires reconsideration by EPFO in accordance with law, and closed the contempt petition, without prejudice to EPFO’s right to redo the entitlement exercise in light of the Apex Court’s judgment. The judgment directs EPFO to undertake the necessary reconsideration within the statutory framework."

Provisions of Law Cited

Section 12 of the Contempt of Courts Act, 1971G.S.R. 609(E) dated 22 August 2014 (Pension Scheme amendments)Paragraph 11(3) and 11(4) of the Pension Scheme, 1995 (as amended)Employees Provident Fund and Miscellaneous Provisions Act, 1952Article 142 of the Constitution of India

Legal Doctrines & Maxims

  • Ultra vires (of the 1952 Act)
  • Read down (doctrine of interpreting amendments)
  • Article 142 jurisdiction of the Supreme Court/Constitutional remedy

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contended that the EPFO has willfully disobeyed the directions issued by the Supreme Court in its 2022 judgment regarding validity of the 2014 amendment to the pension scheme (G.S.R. 609(E)) and the extended option windows under para 11(4) of the post-amendment scheme. They argued that the read-down directives and the extension to exercise options were essential to ensure the higher pension entitlements promised by the apex court, and that the EPFO must implement these directives promptly and in accordance with law. They sought coercive relief to ensure compliance and immediate disbursement of the higher pension to eligible members, emphasizing the need for timely implementation of the Supreme Court’s directions and the extended window for exercising options. respondents:The respondent EPFO’s position was that the matter requires reconsideration by EPFO in conformity with law, after taking into account the 2022 apex court judgment. They stated that the authorities will undertake the exercise within the framework of the amended scheme, and that no contempt is ultimately required; the remedy lies in a lawful reconsideration process, which the court can monitor but should proceed pursuant to law.”,

Contentions of Respondents

The respondent contended that the appropriate remedy is to permit EPFO to revisit entitlements in line with the Supreme Court’s 2022 judgment and not to grant immediate relief or punitive measures. They argued that directions must be implemented through a lawful reconsideration process, with the EPFO directed to re-examine higher pension entitlements in light of the 2014 amendment and the 2018/2019 cases cited by the apex court, ensuring compliance within the statutory framework.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
R.C. Gupta and others v. Regional Provident Fund Commissioner, Employees Provident Fund Organisation and others(2018) 14 SCC 809PositiveThe judgment notes agreement with the view taken in RC Gupta on interpretation of para 11(3) proviso of the pension scheme, applying it to the present case.
Employees Provident Fund Organisation v. Sunil Kumar B.AIR 2022 SC 5634; 2022 (7) KHC 12PositiveCited to support the legality and application of the 2014 amendment (G.S.R. 609(E)) and its implementation in light of the 2022 apex judgment.
Civil Appeal Nos. 8143-8144 of 2022 and connected mattersAIR 2022 SC 5634PositiveApex Court judgment through Civil Appeals Nos. 8143-8144/2022 reiterating the validity of amendments and directing implementation steps; relied upon in this Contempt case to justify reconsideration by EPFO.

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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 ``` ``` MONDAY, THE 25[TH] DAY OF SEPTEMBER 2023/3RD ASWINA, 1945 ``` ## **`CON.CASE(C) NO. 2174 OF 2019`** ``` AGAINST THE JUDGMENT DATED 12.10.2018 IN WP(C) 38199/2016 OF HIGH COURT OF KERALA ``` ``` PETITIONERS/PETITIONERS 1 TO 6, 8 TO 20, 22 TO 27, 29 TO 34, ``` ## **`36 & 37:`** ``` 1THOMAS.M.J AGED 58 YEARS W.NO. 1910/1524, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` ``` 2ABUL FAZIL.M., W.NO. 1969/1552, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` ``` 3JINSON BABY, W.NO. 2252/1935, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` ``` 4SAIFUDEEN. A., W.NO. 2253/1524, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` ``` 5SANGEETH.P.S., W.NO. 2255/1941, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` ``` 6SAHADEVAN. M. ``` ``` EMP. CODE NO. 1275 (1651), SUPERVISOR, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` - **`7 SREERAJ.S. W.NO. 2257/1940, TRAVANCORE TITANIUM PRODUCTS`** Cont. Case (C) No.2174 of 2019 2 ``` LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` ``` 8ANURAJ.V.V W.NO. 2258/1941, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` ``` 9SUJITH.K., W.NO. 2254/1937, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` - **`10 ANEESH MON C.S., W.NO. 2256/1939, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021.`** - **`11 BOOSARI.B., W.NO. 2251/1934, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021.`** - **`12 ANSAR BABU, W.NO. 2260/1943, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021.`** ``` 13HASIM.K.V., EMP. CODE NO. 1414/7521, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` ``` 14RATHEESAN.A., W.NO. 1516/1168, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` - **`15 DEBHI H D SILVA., W.NO. 2259/1942, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021.`** ``` 16S. VIKRAMAN NAIR, COMP. NO. 7782/1147, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` - **`17 JOHNSON VARGHESE, W.NO. 2007. EMP. CODE 1606, TRAVANCORE TITANIUM`** Cont. Case (C) No.2174 of 2019 3 ``` PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` - **`18 DEEPAK.M.U., W.NO. 1918, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021.`** - **`19 DEEPAK KRISHNANKUTTY, W.NO. 7020, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021.`** - **`20 SHELTON. J., W.NO. 1891, EMP. CODE 1494,, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021.`** - **`21 SAJI. A.K., W.NO. 2209, EMP. CODE 1875, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021.`** - **`22 SHIBIN.I., EMP. CODE NO. 1926, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021.`** - **`23 JUSHNU K. SURENDRAN., EMP. CODE NO. 1925, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021.`** - **`24 THOMAS MON V.T., EMP. NO. 7029, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021.`** - **`25 ANOOP.S.S EMP. NO. 7021, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021.`** - **`26 TERRYSON JOSE, EMP. CODE NO. 7022, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021.`** - **`27 JAYADAS.R., W.NO. 2091, EMP. CODE 1581, TRAVANCORE TITANIUM`** Cont. Case (C) No.2174 of 2019 4 ``` PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` - **`28 S. CHANDRAN,`** ``` EMP. CODE NO. 1798 , TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` ``` 29LINDA SABINOSE, EMP. CODE NO. 1677, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` ``` 30BENSIGAR. M. EMP. CODE NO. 1314, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` ``` 31GEORGE THOMAS, EMP. CODE NO. 1093, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` ``` 32SHIBU.P. EMP. CODE NO. 1859, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` ``` 33ASHEEM.P.S., W.NO. 1733 EMP. CODE 1345, TRAVANCORE TITANIUM PRODUCTS LIMITED, TITANIUM P.O. KOCHUVELI, THIRUVANANTHAPURAM 695 021. ``` ``` BY ADVS. C.ANIL KUMAR SMT.A.K.PREETHA ``` ## **`RESPONDENT:`** ``` RANJAY MOOSHAHARI AGED 41 YEARS S/O. R.S. MOOSHAHARI REGIONAL PROVIDENT FUND COMMISSIONER, EMPLOYEES PROVIDENT FUND ORGANISATION, , REGIONAL OFFICE, BHAVISHYANIDHI BHAVAN, PB NO. 106, PATTAOM THIRUVANANTHAPURAM 695 004. ``` ``` BY ADV SMT.NITA.N.S. ``` Cont. Case (C) No.2174 of 2019 5 ``` THIS CONTEMPT OF COURT CASE (CIVIL) HAVING COME UP FOR ADMISSION ON 25.09.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` Cont. Case (C) No.2174 of 2019 6 ## **JUDGMENT** ## Anil K Narendran, J **.** The petitioners, who are petitioners 1 to 6, 8 to 20, 22 to 27, 29 to 34, 36 and 37 in W.P.(C)No.38199 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 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 4.11.2022 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:- Cont. Case (C) No.2174 of 2019 7 (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 sub-paragraphs. (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 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. Cont. Case (C) No.2174 of 2019 8 There was uncertainty as regards validity of the postamendment 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 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 Cont. Case (C) No.2174 of 2019 9 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 Organisation, for the respondent. 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 Cont. Case (C) No.2174 of 2019 10 Organisation. 5. The learned Standing Counsel for the respondent 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** yd Cont. Case (C) No.2174 of 2019 11 ## **`APPENDIX OF CON.CASE(C) 2174/2019`** ## **`PETITIONER ANNEXURES`** ``` ANNEXURE 1TRUE COPY O THE COVERING LETTER DATED 27/06/2019 SUBMITTED BY THE TRAVANCORE TITANIUM PRODUCTS TO THE RESPONDENT. ```