High Court of KeralaSingle Judge2020-03-20Petition allowed; see operative directions above.

Sudheer Kumar and others v. Terumo Penpol Private Limited and Union of India and others

Case / Petition Number:WP(C).505/18

Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: V. G. Arun
Judgment Date: 2020-03-20
Court Decision / Holding: The writ petition is allowed. i) Paragraphs 4(a), (b), (c) ii, (d) and 5 of GSR 609(E) published 22.08.2014 are set aside. ii) All consequential orders and proceedings issued by the PF authorities on the basis of the impugned amendments shall also stand set aside. iii) The proceedings declining to grant opportunities to exercise a joint option to remit contributions to the EPS on the basis of actual salaries are set aside. iv) The employees shall be entitled to exercise the option under paragraph 26 of the EPF Scheme without being restricted by any date.
Final Disposition: Petition allowed; see operative directions above.

Parties to the Case

Appellants / Petitioners

Sudheer Kumar and 44 others

Respondents

M/S. TERUMO PENPOL PRIVATE LIMITED, Blood Bag Factory, Puliyarkonam P.O., Thiruvananthapuram (represented by its Managing Director)
Union of India represented by the Secretary, Ministry of Labour and Employment
The Central Employees Provident Fund Commissioner Employee Provident Fund Organization
Regional Provident Fund Commissioner, Employees Provident Fund Organization, Thiruvananthapuram

Legal Representation & Advocates

Counsels for Petitioners

• Adv. A.K. Preetha

Counsels for Respondents

• Adv. O.M. Shalina, CGC

Case Synopsis & Summary

The petitioners are employees of the 1st respondent establishment (Terumo Penpol Private Limited, Blood Bag Factory) and members of the Employees Provident Fund Scheme and Employees' Pension Scheme. They have been remitting provident fund contributions on their actual salary, not restricted to the statutory ceiling of Rs 6,500. The ceiling has been raised to Rs 15,000 per Exhibit P3, and the maximum pensionable salary is Rs 15,000, but the provision for reckoning higher pensionable salary based on higher contributions has been deleted. The petitioners contend that 8.33% of employees' contributions remitted to the pension fund under Section 6 of the Act should be credited to the Pension Fund without any ceiling limitation, and their pensionable salary should be reckoned on such remittance. They challenge paragraphs 11(1), 11(2), 11(4) and proviso to those paragraphs of the Pension Scheme as amended by GSR 609(E) and the deletion of proviso 8 to sub-paragraph 3 of paragraph 11 and proviso to paragraph 12(2) as ultra vires. The Division Bench in Sasikumar P. v. Union of India upheld the challenge; SLP by PF Organization against that judgment has been dismissed. The Court finds that in view of Sasikumar's case and the judgment in W.P(C).No.1948/2018, the petition should be allowed on terms: (i) set aside GSR 609(E) paras 4(a)-(ii) etc; (ii) set aside consequential orders; (iii) grant option to remit contributions under paragraph 26; (iv) allow the joint option to remit contributions to the Pension Scheme on the basis of actual salaries without date restriction.

Provisions of Law Cited

Employees Provident Fund and Miscellaneous Provisions Act, 1952 - Section 6Pension Scheme - Paragraphs 11(1), 11(2), 11(4) (amended); provisos to paragraph 11; paragraph 12(2)GSR 609(E) dated 22.08.2014 (Gazette)EPF Scheme - Paragraph 26

Legal Doctrines & Maxims

ultra vires

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners argued that the amendments to the Pension Scheme under GSR 609(E) purport to cap the pensionable salary at Rs 15,000 and delete the provision for reckoning higher salary on higher contributions. They request restoration of the option to remit 8.33% of employees’ contributions to the Pension Fund based on actual salaries without ceiling and to exercise the option under paragraph 26 of the EPF Scheme without date restrictions, relying on Sasikumar P. v. UoI (ILR 2019(1) Ker. 614) and the judgment in W.P(C).No.1948/2018.

Contentions of Respondents

The respondents contended that the amendments under GSR 609(E) were valid and aligned with the statutory framework. They relied on previous rulings including Sasikumar P.’s decision and argued for upholding the validity of the amendments and the existing scheme provisions. They asserted that the petitions should be dismissed and the existing policy maintained.

Cited Precedents (3)

Case Name	Citation	Treatment	Explanation
Sasikumar P. v. Union of India and others	ILR 2019(1) Ker. 614	Positive	Division Bench upheld the challenge to the amendments, which the present Court relies on to grant relief.
W.P(C).No.1948 of 2018	—	Positive	Identical prayer considered and allowed; relied upon in granting relief.
Judgment dated 4.11.2011 in W.P.C. No. 9929/2007	WPC 9929/2007	Mentioned Only	Exhibit P2 references this earlier judgment; not discussed in detail in the decision.

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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 V.G.ARUN** **FRIDAY, THE 20TH DAY OF MARCH 2020 / 30TH PHALGUNA, 1941** ## **WP(C).No.505 OF 2018(K)** ## **PETITIONER/S:** - **1 SUDHEER KUMAR AGED 47 YEARS** **SR. TECHNICIAN(ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **2 O.M.SAVITHRI CHARGEMAN-I(ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **3 L. SHEELA CHARGEMAN-I(ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **4 K.S. HARIKUMAR CHARGEMAN-I (ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** **5 A.GOPA KUMAR CHARGEMAN-I (ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** **6 K. SURESH BABU CHARGEMAN-I (ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **7 P.M. ABDUL KHADAR CHARGEMAN-I (ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **8 V.K. SREE KUMARAN NAIR CHARGEMAN-I (ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** _**WP(C).505/18**_ 2 - **9 G. KRISHNAN NAIR CHARGEMAN-I (ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **10 P.V.SREE KUMAR** - **CHARGEMAN-I (ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **11 GEORGE VARGHESE CHARGEMAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **12 J.S. SHAJUDEEN CHARGEMAN-I (ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **13 K. PRATHAPAN** - **SR. TECHNICIAN-II(ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **14 M.ASOKA KUMAR** - **SR. TECHNICIAN-II(ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **15 M.S. SOBHA KUMAR SR. TECHNICIAN-II(ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **16 THULASEEDHARAN SR. TECHNICIAN-I(ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **17 K.C.SASI KUMAR** - **SR. TECHNICIAN-II(ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **18 B.SURESH KUMAR** - **SR. TECHNICIAN-I(ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **19 B.SAJI KUMAR** _**WP(C).505/18**_ 3 **SR. TECHNICIAN-I(ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **20 B.KISHORE KUMAR** - **SR. TECHNICIAN-I(ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **21 M. ANIL KUMAR** - **SR. TECHNICIAN-I(ELECTRICIAL), TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **22 K. ASOKAN** - **SR. TECHNICIAN TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **23 NIYAS. S** **SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **24 SREENATH K.S** **SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **25 AJAYACHANDRAN. C.A SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **26 BAIJU.S** - **SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **27 DEEPESH. T.N** - **SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **28 SUDHEESH KUMAR. S SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **29 SANTHOSH KUMAR. S** - **SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O,** _**WP(C).505/18**_ 4 ## **THIRUVANANTHAPURAM.** - **30 ARUNNATH G.R** - **SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **31 KRISHNA KUMAR P.S SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **32 ARUN SAKTHI. S SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **33 KIRAN M.G SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **34 SABU.G SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **35 MIDHUN M.S SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** **36 VINI DAVID SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **37 ANISH BABU. V.K** - **SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **38 RAJESH. S** - **SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **39 DEEPAK M.S** - **SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** _**WP(C).505/18**_ 5 - **40 MURALI KRISHNAN A SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **41 GANESH .G.S** - **SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **42 UMESH BABU B.U** **SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **43 S. AJITH KUMAR** **SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **44 KIRANKUMAR. R.S SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** - **45 C.M. JOSHY** **SR. TECHNICIAN, TERUMO PENPOL PRIVATE LIMITED, BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM.** **BY ADV. SMT.A.K.PREETHA** ## **RESPONDENT/S:** - **1 M/S.TERUMO PENPOL PRIVATE LIMITED BLOOD BAG FACTORY PULIYARKONAM P.O, THIRUVANANTHAPURAM,REPRESENTED BY ITS MANAGING DIRECTOR-695 573.** - **2 UNION OF INDIA REPRESENTED BY THE SECRETARY,MINISTRY OF LABOUR AND EMPLOYMENT,GOVERNMENT OF INDIA,SHRAM SAKTHI BHAVAN,RAFI MARGH, NEW DELHI-110 001.** - **3 THE CENTRAL EMPLOYEES PROVIDENT FUND COMMISSIONER EMPLOYEES PROVIDENT FUND** - **ORGANIZATION,BHAVISHYANIDHI BHAVAN, 14-BHIKHAJI CAMA PLACE,NEW DELHI-110 066.** _**WP(C).505/18**_ 6 **4 REGIONAL PROVIDENT FUND COMMISSIONER EMPLOYEES PROVIDENT FUND ORGANIZATION,REGIONAL OFFICE, BHAVISHYANIDHI BHAVAN,PATTOM, THRIVUVANANTHAPURAM-695 004.** **R1 BY ADV. SMT.O.M.SHALINA CGC R2 BY ADV. SMT.O.M.SHALINA, CGC** ## **OTHER PRESENT:** **SC NITA N.S.; ASG P.VIJAYAKUMAR** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 20.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** _**WP(C).505/18**_ 7 ## **V.G.ARUN, J. ----------------------------------------------W.P(C).No. 505 of 2018 ----------------------------------------------Dated this the 20[th] day of March, 2020** ## **JUDGMENT** The petitioners are employees of the 1[st] respondent establishment and members of the Employees Provident Fund Scheme as well as the Employees' Pension Scheme constituted under the Employees Provident Fund and Miscellaneous Provisions Act, 1952. The petitioners are remitting the provident fund contribution under the Act on their actual salary, without limiting it to the ceiling of Rs.6,500/provided in the Act and the Scheme. The limit of contribution has now been enhanced to Rs.15,000/- as per Exhibit P3 notification. As per the amendment to paragraph 11(3), the maximum pensionable salary is Rs.15,000/-, but the provision for reckoning a higher pensionable salary, based on higher contribution, stands deleted. It is the contention of the petitioners that the petitioners are entitled to have 8.33% of the employees' contribution paid under Section 6 of the Act remitted to the pension fund without any ceiling limit and their pensionable salary reckoned based on such remittance. It is contended that paragraphs 11(1), 11(2) and 11(4) and the proviso thereto of the Pension Scheme as amended by GSR 609(E) and the deletion of proviso 8 to sub paragraph 3 of paragraph 11 as well as proviso to _**WP(C).505/18**_ 8 paragraph 12(2) are ultra vires and liable to be struck down. 2. The challenge against the aforementioned provisions was upheld by a Division Bench of this Court in _**Sasikumar P. v. Union of India and others**_ [ILR 2019(1) Ker. 614]. The matter has attained finality on the SLP filed by the Provident Fund Organisation against the Division Bench judgment being dismissed. The learned counsel submits that an identical prayer with respect to the employees of the same establishment was considered and allowed as per the judgment in W.P(C).No.1948 of 2018. 3. Heard the learned Standing Counsel for the Provident Fund Organisation also. 4. In view of the Division Bench judgment in _**Sasikumar's case (supra),**_ and the judgment in W.P(C).No.1948 of 2018, the writ petition is allowed on the following terms: i) Paragraph 4(a), (b), (c) ii, (d) and 5 of GSR.609(E) published as per notification dated 22.8.2014 in Gazette of India Extraordinary dated 22.8.2014 is set aside. ii) All consequential orders and proceedings issued by the Provident Fund authorities/respondents on the basis of the impugned amendments shall also stand set aside. iii) The various proceedings issued by the Employees _**WP(C).505/18**_ 9 Provident Fund Organization, declining to grant opportunities to the petitioners to exercise a joint option along with other employees to remit contributions to the Employees Pension Scheme on the basis of the actual salaries drawn by them are set aside. iv) The employees shall be entitled to exercise the option stipulated by paragraph 26 of the EPF Scheme without being restricted in doing so by the insistence on a date. Sd/- **V.G.ARUN, JUDGE** _vgs20.3_ _**WP(C).505/18**_ 10 ## **APPENDIX** **PETITIONER'S/S EXHIBITS:** **EXHIBIT P1 TRUE COPY OF IRCULAR NO.PENSION/MISC/2005 DATED NIL, ISSUED FROM THE OFFICE OF THE 3RD RESPONDENT.** **EXHIBIT P2 TRUE COPY OF JUDGMENT DATED 4.11.2011 IN WPC NO. 9929/2007.** **EXHIBIT P3 TRUE COPY OF NOTIFICATIONS DATED 22/8/2014 PUBLISHED IN GAZETTE OF INDIA, MINISTRY OF LABOUR AND EMPLOYMENT.**