Smt Geetha Kumar and others v. State Farming Corporation Ltd. and others

Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: Amit Rawal
Judgment Date: 2022-08-23
Court Decision / Holding: The writ petitions are disposed of with a direction to the respondent to afford an opportunity of hearing to the petitioners and give the details as to how and under what circumstances the amount has been arrived at. The petitioners would be at liberty to rebut the same and thereafter pass the order in accordance with law and till such time, the demand raised is ordered to be kept in abeyance. Four months from the date of receipt of a certified copy of this judgment for completion of the exercise.
Final Disposition: Writ petitions disposed of with directions as stated above.

Parties to the Case

Appellants / Petitioners

Smt Geetha Kumar
A. Shajahan
Smt Ajitha T.P
M.K. Sivadasan
KURIAN THOMAS
P.V. Varghese
C. Thankachan

Respondents

State Farming Corporation Ltd.
The Managing Director, State Farming Corporation Ltd.
Personnel Manager, State Farming Corporation Ltd.

Legal Representation & Advocates

Counsels for Petitioners

• KURIAN GEORGE KANNANTHANAM (SR.)
• TONY GEORGE KANNANTHANAM
• THOMAS GEORGE
• EBEE ANTONY ALEX GEORGE (CHAMAPPARAYIL)

Case Synopsis & Summary

Geetha Kumar and others v. State Farming Corporation Ltd. and others, along with petitions by C. Thankachan and P.V. Varghese, challenge notices demanding refund of excess EPF (Employees Provident Fund) contributions paid by their employer, the State Farming Corporation of Kerala. The petitions trace the chronology of EPF contributions: initially 6.25% of wages (basic pay plus dearness allowance), raised progressively to 8%, then 10%, and eventually to 12%, with a government ceiling on the employer’s contribution being 12% of Rs.15,000 (basic + DA) with effect from 1 July 2014, as clarified by subsequent orders. The retirees contend that the earlier ceiling modification and the notices directing refunds were not properly issued, and that any recovery must follow due process. The Court notes that a previous Division Bench had considered the upper ceiling issue and, after boards’ reconsideration, notices were issued to the petitioners. The petitioners argue the notices amount to orders and sought relief from the Court. The judgment disposes of the three petitions by directing the State Farming Corporation to furnish computation details, grant a hearing, permit rebuttal, and keep the demand in abeyance until four months from receipt of a certified copy, ensuring fairness and compliance with law before any recovery is effected.

Legal Doctrines & Maxims

Principle of natural justice
Right to hearing / fair hearing

Submissions & Arguments

Contentions of Appellants / Petitioners

Learned counsel for the petitioners submitted that it is not the notices but an order and therefore the petitioners has no other remedy but to approach this Court.

Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE AMIT RAWAL** **TUESDAY, THE 23[RD] DAY OF AUGUST 2022 / 1ST BHADRA, 1944** ## **WP(C) NO. 12092 OF 2022** ## **PETITIONER/S:** 1 P.V. VARGHESE (VEHICLE ATTENDER, MULLUMALA ESTATE), THE STATE FARMING CORPORATION OF KERALA, VETTITHITTA P.O., ALIMUKKU, PUNALUR - 689 696. 2 T.R.SATHEESAN NAIR (TAPPING SUPERVISOR, T.S.25, CHITHALVETTI ESTATE), VETTITHITTA P.O., ALIMUKKU, PUNALUR - 689696. BY ADVS. KURIAN GEORGE KANNANTHANAM (SR.) TONY GEORGE KANNANTHANAM THOMAS GEORGE ## **RESPONDENT/S:** 1 STATE FARMING CORPORATION LTD. REPRESENTED BY ITS MANAGING DIRECTOR, VETTITHALA P.O., PUNALUR - 689 696. 2 THE MANAGING DIRECTOR STATE FARMING CORPORATION LTD., VETTITHALA P.O., PUNALUR - 689 696. 3 PERSONNEL MANAGER STATE FARMING CORPORATION LTD., VETTITHALA, PUNALUR - 680 696. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.08.2022, ALONG WITH WP(C).7895/2022, 10672/2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: **2** ## **WP(C) NO. 12092 OF 2022 and conctd. Cases** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL TUESDAY, THE 23[RD] DAY OF AUGUST 2022 / 1ST BHADRA, 1944 WP(C) NO. 7895 OF 2022** ## **PETITIONER/S:** 1 GEETHA KUMARI, AGED 58 YEARS (TYPIST GRADE II, STATE FARMING CORPORATION OF KERALA), MALAYATHU KAVUVILA, PUTHENVEEDU, MULAYARA P.O, VILAPPIL, THIRUVANANTHAPURAM-695 543. 2 A. SHAJAHAN, (COLLECTION WORKER, STATE FARMING CORPORATION OF KERALA) VATTAKKAVU PUTHEN VEEDU, MAVCODE, PATHANAPURAM, PATHANAMTHITTA 689 694. 3 SMT. AJITHA T.P, (TYPIST GRADE I, STATE FARMING CORPORATION OF KERALA), THEKKEMANAYATH, KEDAMANGALAM, N. PARUR-683 513. 4 M.K. SIVADASAN, (SR. SUPDT. STATE FARMING CORPORATION OF KERALA), MACHINGAL HOUSE, ARIKANNIYUR, KANDANISSERY, THALAPPILLY, TRICHUR-680102 5 KURIAN THOMAS, (LABOUR WELFARE OFFICER, STATE FARMING CORPORATION), KORUVELLIL HOUSE, KUTTAMPUZHA P.O, THIRUVALLA-689 103 BY ADVS. KURIAN GEORGE KANNANTHANAM (SR.) TONY GEORGE KANNANTHANAM THOMAS GEORGE EBEE ANTONY ALEX GEORGE 1 STATE FARMING CORPORATION LTD., REPRESENTED BY ITS MANAGING DIRECTOR, VETTITHALA P.O, PUNALUR 689 696. ## **RESPONDENT/S:** ## **WP(C) NO. 12092 OF 2022 and conctd. Cases** ## **3** 2 THE MANAGING DIRECTOR, STATE FARMING CORPORATION LTD., VETTITHALA P.O, PUNALUR689 696. 3 PERSONNEL MANAGER, STATE FARMING CORPORATION LTD., VETTITHALA, PUNALUR-689 696 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.08.2022, ALONG WITH WP(C).12092/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: **WP(C) NO. 12092 OF 2022 and conctd. Cases** **4** ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE AMIT RAWAL** **TUESDAY, THE 23[RD] DAY OF AUGUST 2022 / 1ST BHADRA, 1944 WP(C) NO. 10672 OF 2022** ## **PETITIONER/S:** C.THANKACHAN ASSISTANT GRADE I, THE STATE FARMING CORPORATION OF KERALA, VETTITHITTA P.O., ALIMUKKU, PUNALUR-689696. BY ADVS. KURIAN GEORGE KANNANTHANAM (SR.) TONY GEORGE KANNANTHANAM THOMAS GEORGE EBEE ANTONY ALEX GEORGE (CHAMAPPARAYIL) ## **RESPONDENT/S:** 1 STATE FARMING CORPORATION LIMITED, REPRESENTED BY ITS MANAGING DIRECTOR, VETTITHALA P.O., PUNALUR-689696. 2 THE MANAGING DIRECTOR, STATE FRAMING CORPORATION LTD., VETTITHALA P.O., PUNALUR-689696. 3 PERSONNEL MANAGER, STATE FRAMING CORPORATION LTD., VETTITHALA P.O., PUNALUR-689696. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.08.2022, ALONG WITH WP(C).12092/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: **WP(C) NO. 12092 OF 2022 and conctd. Cases** **5** ## **JUDGMENT** The judgment of mine shall dispose of three writ petitions ie., WP(C) No.7895 of 2022 titled as Smt. Geetha Kumar and others v. State Farming Corporation Ltd. and others, WP(C) No.10672 of 2022 titled as C.Thankachan v. State Farming Corporation Ltd and others and WP(C) No.12092 of 2022 titled as P.V Varghese and another v. State Farming Corporation Ltd. and others preferred by the former employees of the State Farming Corporation Ltd. against the notices issued by the respondent demanding the refund of the excess amount towards the provident fund allegedly paid by them. All the petitioners had retired while discharging their duties with the full satisfaction of the employer. Initially, the contribution to the EPF was 6.25% of the wages of the employees including the basic pay plus D.A 6.25% and equivalent amount was being remitted by the employer. The aforementioned contribution was enhanced to 8% and then to 10% and finally in 2011 to 12%. There was a revision of pay of the employees of the first respondent as per the order dated 24.8.2017. The maximum employer's contribution in EPF will be calculated at 12% of Rs.15,000/- (Basic + D.A) unless otherwise ordered by the Government (with effect from 1.7.2014). As far as the **WP(C) NO. 12092 OF 2022 and conctd. Cases** **6** fixation of the upper ceiling concerned was under challenge before this Court and the management had taken undertaking from all the employees and in case the finding is rendered in favour of the management, the excess amount remitted would be paid back to the Company. All the writ petitions were allowed by the Division Bench and the upper ceiling of the employees contribution was taken away. The matter was again considered by the Board of Directors. Petitioners on retirement had received notices of withholding the excess amount allegedly paid by the Corporation which was duly replied. On the basis of the statement giving the derivation of the said figure. 2. Learned counsel for the petitioners submitted that it is not the notices but an order and therefore the petitioners has no other remedy but to approach this Court. 3. I have heard the learned counsel for the petitioners and appraised the paper book. It would be appropriate to extract one of the notices issued. _Sri.P.V Varghese, Vehicle Attender will be retired from the service of the Corporation on 30.4.2022, as per the reference cited above. The excess amount Rs.1,43,009/- paid by the Corporation on account of EPF as Employer Contribution is to be remitted to the Corporation office._ **WP(C) NO. 12092 OF 2022 and conctd. Cases** **7** The respondent cannot seek the refund without giving the details and giving opportunity to the petitioners as to whether they are entitled to refund on account of the EPF allegedly paid higher than what the employees was entitled to. There has to be a fairness in compliance of the principles of natural justice. The present writ petitions are disposed of with a direction to the respondent to afford an opportunity of hearing to the petitioners and give the details as to how and under what circumstances the amount has been arrived at. The petitioners would be at liberty to rebut the same and thereafter pass the order in accordance with law and till such time, the demand raised is ordered to be kept in abeyance. Let this exercise be undertaken within a period of four months from the date of receipt of a certified copy of this judgment. sab Sd/- **AMIT RAWAL** **JUDGE** ## **WP(C) NO. 12092 OF 2022 and conctd. Cases** ## **8** ## **APPENDIX OF WP(C) 7895/2022** |PETITIONER EXHIBITS|| |---|---| |Exhibit P1|TRUE COPY OF THE CIRCULAR NO. 71/2011/FIN.| ||DATED 20.10.2011 OF THE GOVERNMENT OF| ||KERALA.| |Exhibit P2|TRUE COPY OF THE OFFICE ORDER NO.| ||SFCK/PER/RPF/2012-13/4434 OF THE 2ND| ||RESPONDENT.| |Exhibit P3|TRUE COPY OF THE ORDER G.O(MS) NO.| ||106/2017/AD DATED 24.08.2017 OF THE| ||AGRICULTURE (PU) DEPARTMENT.| |Exhibit P4|TRUE COPY OF THE MINUTES OF THE 350TH| ||MEETING OF THE BOARD OF DIRECTORS OF THE| ||STATE FARMING CORPORATION HELD ON| ||23.12.2020 WITH ENGLISH TRANSLATION.| |Exhibit P5|TRUE COPY OF THE NOTICE NO. S.F.C.K /PERSL.| ||2/2021-22/482 DATED 16.02.2022 WITH ENGLISH| ||TRANSLATION.| |Exhibit P6|TRUE COPY OF THE NOTICE NO.| ||S.F.C.K./PERSL.2/2021-22/481 DATED| ||16.2.2022 WITH ENGLISH TRANSLATION.| |Exhibit P7|TRUE COPY OF THE NOTICE NO. S.F.C.K/PERSL.| ||2/2021-22/583 DATED 24.2.2022 WITH ENGLISH| ||TRANSLATION.| |Exhibit P8|TRUE COPY OF THE NOTICE NO. S.F.C.K/PERSL.| ||2/2021-22/582 DATED 24.2.2022 WITH ENGLISH| ||TRANSLATION.| |Exhibit P9|TRUE COPY OF THE NOTICE NO. S.F.C.K/PERSL.| ||2 /2021-22/581 DATED 24.2.2022 WITH ENGLISH| ||TRANSLATION.| **9** ## **WP(C) NO. 12092 OF 2022 and conctd. Cases** ## **APPENDIX OF WP(C) 10672/2022** PETITIONER EXHIBITS - Exhibit P1 TRUE COPY OF THE CIRCULAR NO.71/2011/FIN. DATED 20.10.2011 OF THE GOVERNMENT OF KERALA. - Exhibit P2 TRUE COPY OF THE OFFICE ORDER NO.SFCK/PER/RPF/2012-13/4434 OF THE 2ND RESPONDENT. - Exhibit P3 TRUE COPY OF THE ORDER G.O.(MS) NO.106/2017/AD DATED 24.8.2017 OF THE AGRICULTURE (PU) DEPARTMENT. - Exhibit P4 TRUE COPY OF THE MINUTES OF THE 350TH MEETING OF THE BOARD OF DIRECTORS OF THE STATE FARMING CORPORATION HELD ON 23.12.2020 WITH ENGLISH TRANSLATION OF EXT.P4. - Exhibit P5 TRUE COPY OF THE ORDER NO. S.F.C.K./PERSL.2/2021-22/467 DATED 9.2.2022 TO THE PETITIONER WITH ENGLISH TRANSLATION OF EXT.P5. Exhibit P6 TRUE COPY OF THE DIRECTION DATED 21.3.2022 ALONG WITH CHART ISSUED BY THE 3RD RESPONDENT WITH ENGLISH TRANSLATION OF EXT.P6. Exhibit P7 TRUE COPY OF THE INTERIM ORDER DATED 10.3.2022 IN WP(C) NO.7895/2022 OF THIS HON. COURT. ## **WP(C) NO. 12092 OF 2022 and conctd. Cases** ## **10** ## **APPENDIX OF WP(C) 12092/2022** |PETITIONER EXHIBITS|| |---|---| |Exhibit P1|TRUE COPY OF THE CIRCULAR NO.71/2011/FIN. DATED| ||20/10/2011 OF THE GOVERNMENT OF KERALA.| |Exhibit P2|TRUE COPY OF THE OFFICE ORDER NO.SFCK/PER/RPF/2012-| ||13/4434 OF THE 2ND RESPONDENT.| |Exhibit P3|TRUE COPY OF THE ORDER G.O.(MS) NO.106/2017/AD| ||DATED 24/8/2017 OF THE AGRICULTURE (PU) DEPARTMENT.| |Exhibit P4|TRUE COPY OF THE MINUTES OF THE 350TH MEETING OF| ||THE BOARD OF DIRECTORS OF THE STATE FARMING| ||CORPORATION HELD ON 23/12/2020 WITH ENGLISH| ||TRANSLATION OF EXT.P4.| |Exhibit P5|TRUE COPY OF THE ORDER NO.S.F.C.K./PERSL.2/2021-| ||22/724 DATED 7/3/2022 TO THE 1ST PETITIONER WITH| ||ENGLISH TRANSLATION OF EXT.P5.| |Exhibit P6|TRUE COPY OF THE ORDER NO.S.F.C.K./PERSL2/2021-| ||22/728 DATED 7/3/2022 TO THE 2ND PETITIONER WITH| ||ENGLISH TRANSLATION OF EXT.P6.| |Exhibit P7|TRUE COPY OF THE LETTER NO.S.F.C.K./PERSL.2./2021-| ||22/870 DATED 22/3/2022 WITH ATTACHMENT TO THE 1ST| ||PETITIONER WITH ENGLISH TRANSLATION OF EXT.P7.| |Exhibit P8|TRUE COPY OF THE LETTER NO.S.F.C.K./PERSL/2021-| ||22/868 DATED 22/3/2022 WITH ATTACHMENT TO THE 2ND| ||PETITIONER WITH ENGLISH TRANSLATION OF EXT.P8.| |Exhibit P9|TRUE COPY OF THE INTERIM ORDER DATED 28/3/2022 IN| ||WP(C) NO.10672/2022 OF THIS HON.COURT.|