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High Court of KeralaSingle JudgeWrit petition allowed; pension benefits under u...

K. Lalithambika and others v Union of India, Central Employees Provident Fund Organisation, Kerala Minerals & Metals Limited

Case / Petition Number:WP(C).No.33550 OF 2014

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • A. M. Badar
Judgment Date
2020-08-20
Court Decision / Holding
The petition stands allowed. The respondents are directed to release all benefits envisaged under the Employees' Pension Scheme, 1995 without reference to the Employees' Pension (Amendment) Scheme, 2014, and to re-determine the pension in light of the unamended EPS 1995. The order must be carried out within four months, with the caveat that any further action remains subject to ongoing Supreme Court proceedings.
Final Disposition
Writ petition allowed; pension benefits under unamended EPS 1995 to be paid; four-month time limit; subject to Supreme Court proceedings.

Parties to the Case

Appellants / Petitioners

  • 1 K.LALITHAMBIKA,'PRIYADARSINI', MANAYIL KULANGARA, THIRUMULLAVARAM P.O., KOLLAM-12.
  • 2 N.CHANDRIKA,KADUKKARA PUTHEN VEEDU, MEKKU, VADAKKUMTHALA, CHAVARA P.O.
  • 3 M.MURALEEDHARAN PILLAI, KOTTAKUZHIYIL HOUSE, KUTHIRAPANTHI, THAZHAVA.
  • 4 CECIL LOPUS, ANCY COTTAGE, MEKKAD, PANMANA, CHAVARA, KOLLAM.
  • 5 M.BABU, PUTHEN VEEDU, KADAPPA, MYNAGAPPALLY, KOLLAM.
  • 6 S.SATHYAVATHI, VALIYATHARAYIL, ATHINADU SOUTH, KATTIKADAVU P.O., KARUNAGAPPALLY, KOLLAM.
  • 7 K.KOMALAN, ANAMUKHATH VEEDU, CHENKOTTUKONAM, THUNDATHIL PO, NEAR SN PUBLIC SCHOOL, THIRUVANANTHAPURAM-695581.
  • 8 V.VIJAYAN PILLAI, VYSHNAVAM, MEKKADU, PANMANA, CHAVARA, KOLLAM.
  • 9 G.RAJAMMAL, 'SREELAKSHMI', PRA 116, PUTHUPALLY LANE, MEDICAL COLLEGE P.O., THIRUVANANTHAPURAM-695011.
  • 10 M.R.VIJAYA KUMAR,MARUTHOLIL HOUSE, MADAMON PO, RANNI, PERUNADU, PATHANAMTHITTA-689711.
  • 11 E.SHARAFUDHEEN, KAKKAN KUTTYYIL VEEDU, KADAPPA, MYNAGAPPALLY, KOLLAM.
  • 12 K.R.RAJASEKHARAN NAIR, 'THIRUVATHIRA', SANGARAMANGALAM COMPOUNd, SASTHAMCOTTA, KOLLAM.
  • 13 K.PADMINI AMMA, 'AMPADY', PARIMANOM, NEENDAKARA, KOLLAM.
  • 14 CLEMENT D SILVA,ROSE VILLA, KOTTAKKAKOM, CHAVARA PO, KOLLAM.
  • 15 GOPALAKRISHNAN CHETTIAR,KANNEPADIJATTATHIL, THOTTINUVADAKKU, CHAVARA P.O., KOLLAM.
  • 16 P.I.KURIYAKOSE,PAZAYATTU HOUSE, KUDAMURITTY P.O., RANNI, PATHANAMTHITTA.
  • 17 K.FRANCIS, KAMANTHARAYIL, PORUKKARA, EDAPPALLYKOTTA P.O., CHAVARA, KOLLAM.
  • 18 M.D.BHASKARAN NAIR, SREERANGAM, PERIGALA, KAYAMKULAM.
  • 19 M.R.SREEKUMAR, SOUPARNIKA, VETTUVENI, HARIPAD PO, ALAPPUZHA.
  • 20 P.ARAVINDAKSHAN PILLAI,LAVANYA, AKKAL BHAGOM, PANMANA, VADUTHALA, KOLLAM.
  • 21 P.BALAKRISHNA PILLAI,PIRAVOOR, PUTHEN VEEDU, PANMANA, CHAVARA, KOLLAM.
  • 22 D.APPUKUTTAN,PANDAKASHALA, PUTHENVEEDU, KOLLAKA, KARUNAGAPPALLY, KOLLAM.
  • 23 P.THANGALKUNJU, SHAJI MANZIL, EDAKULANGARA P.O., KARUNAGAPPALLY, KOLLAM.
  • 24 G.OMANAKUTTAN PILLAI,VILAVEETILPUTHENVEEDU, CHATHINAMKULAM, CHANDANATHOPPU PO, KOLLAM.
  • 25 SYAMA KUMARI.A,TC 3/1422-2, KRIPA, LAKSHMI NAGAR, LNG1/1 PATTOM PALACE, THIRUVANANTHAPURAM.
  • 26 T.V.RAJENDRAN, KAUSTHUBHAM, MULAMPUZHA, PANDALAM P.O., PATHANAMTHITTA.
  • 27 D.RADHAKRISHNAN NAIR,KRISHNALAYAM, MAVELI, PANMANA MANAYIL PO, CHAVARA, KOLLAM.
  • 28 V.RAMACHANDRAN, MALAMEL VADAKKATHIL, VADAKKUMTHALA P.O., KOLLAM.
  • 29 S.OMANAKUTTAN,CHOKKANTHARAYIL, PONMANA P.O., CHAVARA, KOLLAM.
  • 30 K.C.KURIAN, MALAYIL, KOTTAPPURATHU, PUTHAKAVU, KOTTARAKAVU, MAVELIKKARA, ALAPPUZHA.
  • 31 C.THOMAS D CRUZ, THIRUVATHIRA THOPPU, CHERRUSSERI BHAGOM, CHAVARA P.O., KOLLAM.
  • 32 S.VISWAMONY, GAURISANGARAM, CHERRUSSERI BHAGOM, CHAVARA PO, KOLLAM.

Respondents

  • UNION OF INDIA represented by the Secretary, Ministry of Labour and Employment, Shram Sashthi Bhavan, Rafi Marg, New Delhi-110001
  • CENTRAL EMPLOYEES Provident Fund Commissioner, Employees Provident Fund Organisation, Bhavishyanidhi Bhavan, 14-Bhikaji Cama Place, New Delhi-110066
  • KERALA MINERALS & METALS LIMITED, Chavara P.O., Kollam-691583, represented by its Chairman and Managing Director

Legal Representation & Advocates

Counsels for Respondents

  • • ADV. SHRI.P.VIJAYAKUMAR, ASG OF INDIA
  • • ADV. SMT.T.N.GIRIJA, SCEPF ORGANISATION
  • • ADV. SMT.LATHA KRISHNAN

Case Synopsis & Summary

The petitioners, employees of Kerala Minerals & Metals Limited, challenge amendments to the Employees Pension Scheme 1995 introduced by Government Notification GSR 609(E) in 2014. They contend that paragraphs 11(1), 11(2) (first proviso to paragraph 11(4)) and the proviso to paragraph 12 of the EPS 1995 as amended are ultra vires and unconstitutional, and seek to be retained under the unamended EPS 1995 with all pension benefits, without reference to the 2014 amendment. The petition relies on earlier judicial pronouncements, notably the Division Bench decision in P. Sasikumar and others v Union of India (ILR 2019 (1) Ker 614) and the Single Judge decisions in WP(C) No.10401 of 2015 (31.03.2015) and WP(C) No.20557 of 2019 (24.06.2020), which the petition asserts have been affirmed by the Supreme Court in related proceedings. The respondents contend that a Review Petition is pending before the Supreme Court and that there are conflicting views on the issue, warranting dismissal. The Court, after careful consideration, holds that the issue is squarely covered by the cited judgments and that there are concluded precedents on the matter. It therefore allows the petition, directing the respondents to release all benefits under the EPS 1995 without regard to the 2014 amendment and to re-determine pension accordingly, within four months, subject to ongoing Supreme Court proceedings.

Provisions of Law Cited

Employees' Provident Funds and Miscellaneous Provisions Act, 1952Employees Pension Scheme, 1995Paragraph 11(1) of EPS 1995Paragraph 11(2) (First proviso to paragraph 11(4))Proviso to Paragraph 12GSR 609(E) (Employees Pension (Amendment) Scheme 2014)Employees Pension (Amendment) Scheme 2014

Legal Doctrines & Maxims

  • Ultra vires
  • No retrospective operation of GSR 609(E)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that the core issue—whether the 2014 amendment to the EPS 1995 can be applied to employees retired prior to 22 August 2014—has been conclusively settled by this Court in P. Sasikumar and others v Union of India (ILR 2019 (1) Ker 614) and corroborated by other judgments (e.g., WP(C) No.10401 of 2015 and WP(C) No.20557 of 2019). They argue the amendments are ultra vires and retroactively inapplicable to in-service employees who were to be governed by the unamended scheme, seeking mandatory pension benefits under EPS 1995 without reference to the 2014 amendment. They urge the Court to follow the unamended scheme and grant pension rights accordingly.

Contentions of Respondents

The respondents submit that a Review Petition is pending before the Supreme Court, along with a Government SLP, and that there are divergent views on the issue; given this, the writ petition should be dismissed. They contend thatuntil the Supreme Court decides, the 2014 amendment should be allowed to stand and apply, and pension determinations should await final adjudication.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
P. Sasikumar and others v Union of IndiaILR 2019 (1) Ker 614PositiveDirectly on point; confirms the petitioners' position and forms the basis of the court's reasoning for applying the unamended EPS 1995.
WP(C) No.10401 of 2015WP(C) No.10401 of 2015Mentioned OnlyCited as supportive authority in the Court's discussion of prior judgments.
WP(C) No.20557 of 2019WP(C) No.20557 of 2019Mentioned OnlyCited as part of earlier judgments referenced by the petitioners.

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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 A.M.BADAR** ## **THURSDAY, THE 20TH DAY OF AUGUST 2020 / 29TH SRAVANA, 1942** ## **WP(C).No.33550 OF 2014(P)** ## **PETITIONERS:** - **1 K.LALITHAMBIKA,'PRIYADARSINI', MANAYIL KULANGARA, THIRUMULLAVARAM P.O., KOLLAM-12.** - **2 N.CHANDRIKA,KADUKKARA PUTHEN VEEDU, MEKKU, VADAKKUMTHALA, CHAVARA P.O.** - **3 M.MURALEEDHARAN PILLAI, KOTTAKUZHIYIL HOUSE, KUTHIRAPANTHI, THAZHAVA.** - **4 CECIL LOPUS, ANCY COTTAGE, MEKKAD, PANMANA, CHAVARA, KOLLAM.** - **5 M.BABU, PUTHEN VEEDU, KADAPPA, MYNAGAPPALLY, KOLLAM.** - **6 S.SATHYAVATHI, VALIYATHARAYIL, ATHINADU SOUTH, KATTIKADAVU P.O., KARUNAGAPPALLY, KOLLAM.** - **7 K.KOMALAN, ANAMUKHATH VEEDU, CHENKOTTUKONAM, THUNDATHIL PO, NEAR SN PUBLIC SCHOOL, THIRUVANANTHAPURAM-695581.** - **8 V.VIJAYAN PILLAI, VYSHNAVAM, MEKKADU, PANMANA, CHAVARA, KOLLAM.** - **9 G.RAJAMMAL, 'SREELAKSHMI', PRA 116, PUTHUPALLY LANE, MEDICAL COLLEGE P.O., THIRUVANANTHAPURAM-695011.** - **10 M.R.VIJAYA KUMAR,MARUTHOLIL HOUSE, MADAMON PO, RANNI, PERUNADU, PATHANAMTHITTA-689711.** - **11 E.SHARAFUDHEEN, KAKKAN KUTTYYIL VEEDU, KADAPPA, MYNAGAPPALLY, KOLLAM.** **W.P.(C) No.33550 OF 2014** **2** - **12 K.R.RAJASEKHARAN NAIR, 'THIRUVATHIRA', SANGARAMANGALAM COMPOUNd, SASTHAMCOTTA, KOLLAM.** - **13 K.PADMINI AMMA, 'AMPADY', PARIMANOM, NEENDAKARA, KOLLAM.** - **14 CLEMENT D SILVA,ROSE VILLA, KOTTAKKAKOM, CHAVARA PO, KOLLAM.** - **15 GOPALAKRISHNAN CHETTIAR,KANNEPADIJATTATHIL, THOTTINUVADAKKU, CHAVARA P.O., KOLLAM.** - **16 P.I.KURIYAKOSE,PAZAYATTU HOUSE, KUDAMURITTY P.O., RANNI, PATHANAMTHITTA.** - **17 K.FRANCIS, KAMANTHARAYIL, PORUKKARA, EDAPPALLYKOTTA P.O., CHAVARA, KOLLAM.** - **18 M.D.BHASKARAN NAIR, SREERANGAM, PERIGALA, KAYAMKULAM.** - **19 M.R.SREEKUMAR, SOUPARNIKA, VETTUVENI, HARIPAD PO, ALAPPUZHA.** - **20 P.ARAVINDAKSHAN PILLAI,LAVANYA, AKKAL BHAGOM, PANMANA, VADUTHALA, KOLLAM.** - **21 P.BALAKRISHNA PILLAI,PIRAVOOR, PUTHEN VEEDU, PANMANA, CHAVARA, KOLLAM.** - **22 D.APPUKUTTAN,PANDAKASHALA, PUTHENVEEDU, KOLLAKA, KARUNAGAPPALLY, KOLLAM.** - **23 P.THANGALKUNJU, SHAJI MANZIL, EDAKULANGARA P.O., KARUNAGAPPALLY, KOLLAM.** - **24 G.OMANAKUTTAN PILLAI,VILAVEETILPUTHENVEEDU, CHATHINAMKULAM, CHANDANATHOPPU PO, KOLLAM.** - **25 SYAMA KUMARI.A,TC 3/1422-2, KRIPA, LAKSHMI NAGAR, LNG1/1 PATTOM PALACE, THIRUVANANTHAPURAM.** - **26 T.V.RAJENDRAN, KAUSTHUBHAM, MULAMPUZHA, PANDALAM P.O., PATHANAMTHITTA.** **W.P.(C) No.33550 OF 2014** **3** - **27 D.RADHAKRISHNAN NAIR,KRISHNALAYAM, MAVELI, PANMANA MANAYIL PO, CHAVARA, KOLLAM.** - **28 V.RAMACHANDRAN, MALAMEL VADAKKATHIL, VADAKKUMTHALA P.O., KOLLAM.** - **29 S.OMANAKUTTAN,CHOKKANTHARAYIL, PONMANA P.O., CHAVARA, KOLLAM.** - **30 K.C.KURIAN, MALAYIL, KOTTAPPURATHU, PUTHAKAVU, KOTTARAKAVU, MAVELIKKARA, ALAPPUZHA.** - **31 C.THOMAS D CRUZ, THIRUVATHIRA THOPPU, CHERRUSSERI BHAGOM, CHAVARA P.O., KOLLAM.** - **32 S.VISWAMONY, GAURISANGARAM, CHERRUSSERI BHAGOM, CHAVARA PO, KOLLAM.** - **BY ADV. SRI.P.RAMAKRISHNAN** ## **RESPONDENTS:** - **1 UNION OF INDIA,REPRESENTED BY THE SECRETARY, MINISTRY OF LABOUR AND EMPLOYMENT, GOVERNMENT OF INDIA, SHRAM SAKTHI BHAVAN, RAFI MARGH, NEW DELHI-110001.** - **2 THE CENTRAL EMPLOYEES PROVIDENT FUND COMMISSIONER EMPLOYEES PROVIDENT FUND ORGANIZATION, BHAVISHYANIDHI BHAVAN, 14-BHIKHAJI CAMA PLACE, NEW DELHI-110066.** - **3 KERALA MINERALS & METALS LIMITED CHAVARA PO, KOLLAM-691583, REPRESENTED BY ITS CHAIRMAN AND MANAGING DIRECTOR.** - **R1 BY ADV. SHRI.P.VIJAYAKUMAR, ASG OF INDIA R2 BY ADV. SMT.T.N.GIRIJA SCEPF ORGANISATION R3 BY ADV. SMT.LATHA KRISHNAN** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 20.08.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **W.P.(C) No.33550 OF 2014** **4** ## **JUDGMENT** ## **Dated this the 20[th] day of August 2020** The petitioners are employees of the 3[rd] respondent-Kerala Minerals & Metals Limited, working in various cadres and they are covered under the Employee's Provident Funds and Miscellaneous Provisions Act, 1952. They are members of the Employees' Pension Scheme, 1995 framed under the Employees' Provident Funds and Miscellaneous Provisions Act 1952. Their contribution along with employer's contribution to the Provident Fund is made on the basis of the actual salary without limiting the contribution on the basis of fixed salary of Rs.6500/- per month. 2. The petitioners are praying for following reliefs in this writ petition. - (a) Issue a writ of certiorari or any other appropriate writ or order, quashing and setting aside paragraph 11(1), 11(2) first proviso to paragraph 11(4) and proviso to paragraph 12 of Employees Pension Scheme 1995 amended as per GSR 609(E) in Exhibit P2 as ultra vires and unconstitutional. - (b) Issue a writ of mandamus or any other appropriate writ or order, commanding the respondents to retain the petitioners in Employees Pension Scheme 1995 and confer to them all the benefits envisaged **W.P.(C) No.33550 OF 2014** **5** under the said Scheme without reference to the Employees Pension (Amendment) Scheme 2014. - (c) Hold that paragraph 11(1), 11(2) First proviso to paragraph 11(4) and proviso to paragraph 12 of Employees Pension Scheme 1995 amended as per GSR 609(E) in Exhibit P2 is not enforceable under law. - (d) Hold that Exhibit P2 notification bearing No.GSR 609(E) has no retrospective operation and cannot apply to employees in service prior to 22/8/2014. - (e) Hold that the petitioners are entitled to pensionary benefits under the un-amended pension scheme. 3. It is argued by the learned counsel for the petitioners that the subject matter is covered by judgment of the Hon'ble Division Bench of this Court in _**P.Sasikumar and others**_ vs. _**Union of India**_ (ILR 2019 (1) Kerala 614) and also of the learned Single Judge of this Court in W.P.(C) No.10401 of 2015 dated 31.03.2015 and in W.P.(C) No.20557 of 2019 dated 24.06.2020. It is reported that the judgment of this Court in the matter of _**P.Sasikumar's case**_ (supra) is already confirmed by the Hon'ble Supreme Court in the Special Leave Petition filed by the Employees' Provident Fund Organization. With this, learned counsel for the petitioners submitted that, as the issue is already covered by several judgments of this Court which are also **W.P.(C) No.33550 OF 2014 6** confirmed by the Hon'ble Apex Court, the instant petition needs to be allowed. 4. As against this, learned Standing Counsel appearing for the Employees' Provident Fund Organization submitted that a Review Petition has already been filed before the Hon'ble Supreme Court. The Government of India has also preferred a Special Leave Petition and it is directed to be fixed for hearing along with the Review Petition. With this, it is argued by the learned Standing Counsel that this writ petition deserves to be dismissed. 5. I have carefully considered the submissions advanced and also perused judgments of this Court cited above. I am of the considered opinion that the issue raised in the instant petition is squarely covered by the above cited judgments. As of now, there are concluded judgments on the issue involved in the instant petition. Therefore, respondents are duty bound to initiate action for re-determination of the pension in the light of directions given in the aforesaid decisions. In this view of the matter, this writ petition stands allowed. The concerned respondents are directed to release all benefits envisaged under the Employees' Pension Scheme, 1995 without **W.P.(C) No.33550 OF 2014 7** reference to the Employees' Pension (Amendment) Scheme, 2014. The respondents are directed to do the needful within a period of four months. However, the consequent action shall be subject to any proceedings pending before the Hon'ble Supreme Court. ## **Sd/-** **A.M.BADAR** **JUDGE** smp **W.P.(C) No.33550 OF 2014 8** ## **APPENDIX** ## **PETITIONER'S EXHIBITS:** **EXHIBIT P1 TRUE COPY OF REPRESENTATION DATED 15/7/2014 SUBMITTED BY THE PETITIONERS' TRADE UNIONS BEFORE THE 1ST RESPONDENT. EXHIBIT P2 TRUE COPY OF NOTIFICATIONS DATED 22/8/2014 PUBLISHED IN THE GAZETTE OF INDIA OF MINISTRY OF LABOUR AND EMPLOYMENT.** **EXHIBIT P3 TRUE COPY OF CALCULATION STATEMENT SHOWING THE DIFFERENCE IN PENSION RECEIVABLE BY THE EMPLOYEES. EXHIBIT P4 TRUE COPY OF LETTER DATED 20/01/2015 WRITTEN BY THE 1ST RESPONDENT TO THE 4TH RESPONDENT EXHIBIT P5 TRUE COPY OF ORDER DATED 25/2/2015 IN IA. NO.2647/2015 IN WP(C). NO.30792/2014** RESPONDENTS' EXHIBITS: NIL. True Copy P.S to Judge smp