High Court of KeralaSingle JudgeWrit petition disposed of; directions issued fo...

W.P.(C).No. 21148 of 2012 (P)

Case / Petition Number:WP(C).No. 21148 of 2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • K. VINOD CHANDRAN
Judgment Date
2013-11-29
Court Decision / Holding
The writ petition is disposed of as above. No order as to costs. The 3rd respondent shall remit the contributions relating to 16 employees to the 2nd respondent Board along with interest under the EPF Act, and the 5th respondent shall within two weeks furnish the details of the 16 employees to the 2nd respondent and register itself with the 2nd respondent Board and satisfy any demand for shortage in contributions, if the demand is not disputed. This shall be done within 30 days from the receipt of a copy of this judgment and shall implement the Pension Scheme of 1994 as per the State arrangement.
Final Disposition
Writ petition disposed of; directions issued for transfer of contributions and registration with 2nd respondent; no costs.

Parties to the Case

Appellants / Petitioners

  • T.P. RAMESH
  • K.A. JOHN
  • SOSAMMA CHACKO
  • K.P. MARIAMMA
  • K.J. LEENA
  • K.H. ABDUL RAHIMAN
  • L.X. VARGHESE
  • A.K. SUSEELA
  • M.J. BABY
  • V.S. PHILOMINA
  • LUCY JOSEPH
  • BERNADETTE D SOUZHA
  • MARY K.A
  • C.A. BEENA
  • K.A. XIAVIER
  • P.K. REMADEVI

Respondents

  • THE STATE OF KERALA, represented by its Secretary to Government Co-operation Department, Government Secretariat, Thiruvananthapuram
  • THE KERALA STATE CO-OPERATIVE EMPLOYEES, PENSION BOARD, Thiruvananthapuram
  • THE EMPLOYMENT PROVIDENT FUND ORGANISATION, (MINISTRY OF LABOUR, GOVERNMENT OF INDIA) Regional Office, Thiruvananthapuram
  • THE REGIONAL PROVIDENT FUND COMMISSIONER, EMPLOYEES PROVIDENT FUND ORGANISATION, Kochi
  • THE COCHIN COPERATIVE HOSPITALS SOCIETY LTD, Kochi

Legal Representation & Advocates

Counsels for Petitioners

  • • SRI.O.D.SIVADAS

Counsels for Respondents

  • • SRI.K.R.SUNIL, SC, CO-OP. EMP.PENSION BOARD
  • • SRI.N.N.SUGUNAPALAN (Sr.), SC, EPF ORGANISATION
  • • SRI.T.N.GIRIJA, SC, EPF ORGANISATION
  • • SRI.P.N.MOHANAN
  • • GOVERNMENT PLEADER

Case Synopsis & Summary

The petitioners are regular employees of the 5th respondent Cochin Corporative Hospitals Society Ltd and are aggrieved by the continued requirement to contribute under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) to the 3rd respondent Organization, and by the pension arrangements under the corresponding schemes. They contend that their contributions should be transferred, at least for the petitioners, to the 2nd respondent, the Kerala State Co-operative Employees Pension Board, which implements the Kerala Co-operative Societies Self Financing Pension Scheme, 1994. The petition invokes a Division Bench ruling in Kerala State Co-operative Employees Pension Board v. Udayakumar (2012 (3) KLT 820), which held that employees already enrolled under EPF could opt to remain under the EPF Family Pension Scheme, 1995 or move to the State Pension Scheme under the 1994 Pension Scheme, and that the choice rests with each employee. The respondents dispute practical feasibility since the 5th respondent maintains a single account for multiple employees and is exempt from the 1995 Pension Scheme. The court notes that all 16 regular employees are party to the petition, while some staff are temporary, and emphasizes the employees’ right to choose between the two pension regimes. The court ultimately directs transfers and remittance, directing the 3rd respondent to remit contributions for 16 employees to the 2nd respondent within 30 days, require the 5th respondent to provide detailed employee data, register with the 2nd respondent, and satisfy any shortfall demanded, so as to implement the State Pension Scheme of 1994.

Provisions of Law Cited

Employees' Provident Funds and Miscellaneous Provisions Act, 1952Family Pension Scheme, 1995Pension Scheme of 1994 (State)Pension Scheme of 1995Kerala State Co-operative Societies Self Financing Pension Scheme, 1994

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners seek transfer of EPF contributions to the Kerala State Co-operative Employees Pension Board so that their retirement benefits can be governed by the State Pension Scheme of 1994 rather than the EPF’s Family Pension Scheme, 1995. Citing the Division Bench decision in Kerala State Co-operative Employees Pension Board v. Udayakumar, they argue that employees are entitled to choose between the two pension regimes and that the 5th respondent’s staff should be covered by the 1994 Pension Scheme where applicable; the 16 regular employees who are party must have their contributions remitted to the 2nd respondent and remittance with interest under the EPF Act should be made. They assert administrative feasibility is not a bar to the rights of employees to opt for the State pension. They request timely action to ensure compliance and substantive transfer of liabilities to the 2nd respondent.

Contentions of Respondents

The respondents contend that the 5th respondent maintains a single account for all employees, making partial transfers complex, and that the 5th respondent is exempt from the 1995 Pension Scheme. They submit that there are only 16 regular employees affected and some employees are temporary. They emphasize the Division Bench rule must be applied with regard to implementation practicality and registrational obligations for the 5th respondent, including remittance with any due interest and addressing any shortfall through the 2nd respondent. They seek to preserve administrative efficiency and adherence to existing statutory schemes.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Kerala State Co-operative Employees Pension Board v. Udayakumar2012 (3) KLT 820PositiveCited as binding precedent supporting employees' option to choose between pension schemes (EPF Family Pension Scheme 1995 or State Pension Scheme under Pension Scheme of 1994).

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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 K.VINOD CHANDRAN FRIDAY, THE 29TH DAY OF NOVEMBER 2013/8TH AGRAHAYANA, 1935 ## WP(C).No. 21148 of 2012 (P) ---------------------------- ## PETITIONER(S): -------------------------- 1. T.P. RAMESH, JUNIOR CLERK COCHIN CORPORATION HOSPITALS SOCIETY LTD E-288 GANDHI NAGAR, KOCHI 2. K.A. JOHN, ELECTRICIAN COCHIN CORPORATION HOSPITALS SOCIETY LTD E-288 GANDHI NAGAR, KOCHI 3. SOSAMMA CHACKO, - TELEPHONE OPERATOR COCHIN CORPORATION HOSPITALS SOCIETY LTD E-288 GANDHI NAGAR, KOCHI 4. K.P. MARIAMMA, - JUNIOR CLERK COCHIN CORPORATION HOSPITALS SOCIETY LTD E-288 GANDHI NAGAR, KOCHI 5. K.J. LEENA, - TELEPHONE OPERATOR COCHIN CORPORATION HOSPITALS SOCIETY LTD E-288 GANDHI NAGAR, KOCHI 6. K.H. ABDUL RAHIMAN, - HOSPITAL ASSISTANT COCHIN CORPORATION HOSPITALS SOCIETY LTD E-288 GANDHI NAGAR, KOCHI 7. L.X. VARGHESE, - HOSPITAL ASSISTANT COCHIN CORPORATION HOSPITALS SOCIETY LTD E-288 GANDHI NAGAR, KOCHI 8. A.K. SUSEELA, SWEEPER COCHIN CORPORATION HOSPITALS SOCIETY LTD E-288 GANDHI NAGAR, KOCHI 9. M.J. BABY, STAFF NURSE COCHIN CORPORATION HOSPITALS SOCIETY LTD E-288 GANDHI NAGAR, KOCHI WP(C).No. 21148 of 2012 -2- 10. V.S. PHILOMINA, RECEPTIONIST COCHIN CORPORATION HOSPITALS SOCIETY LTD E-288 GANDHI NAGAR, KOCHI 11. LUCY JOSEPH, PHARMACIST COCHIN CORPORATION HOSPITALS SOCIETY LTD E-288 GANDHI NAGAR, KOCHI 12. BERNADETTE D, SOUZHA, - LEONS APRTMENT, BANERJI ROAD, ROSHNA LANE COCHIN 13. MARY K.A, PUTHUMANGALATHU HOUSE, PLAY GROUND ROAD ELAMAKKARA P.O, KOCHI 682026 14. C.A. BEENA, ALUNKAL HOUSE, CHILANVNOOR, VINOBA NAGAR KADAVANDRA P.O, KOCHI 682020 15. K.A. XIAVIER, - KALLUVEETIL, KALLUVEEIL, CHILAVANOOR KADAVANTRA, KOCHI 16. P.K. REMADEVI, PALLIPARAMBIL HOUSE, COCHIN PALACE, P.O TRIPUNITHURA 682301 BY ADV. SRI.O.D.SIVADAS RESPONDENT(S): - ---------------------------- 1. THE STATE OF KERALA, REPRESENTED BY ITS SECRETARY TO GOVERNMENT CO-OPERATION DEPARTMENT, GOVERNMENT SECRETARIAT THIRUVANANTHAPURAM 695011 2. THE KERALA STATE CO-OPERATIVE EMPLOYEES, PENSION BOARD, P.B. NO 85, KALA NIVAS T.C NO 27/156, 157, CHINMAYA LANE KUNNUMPURAM, NEAR AYURVEDA COLLEGE THIRUVANANTHAPURAM 695011 REP. BY ITS SECRETARY. 3. THE EMPLOYMENT PROVIDENT FUND ORGANISATION, (MINISTRY OF LABOUR, GOVERNMENT OF INDIA) REGIONAL OFFICE "BHAVISHA NIDHI BHAVAN" PATTAM PALACE P.O THIRUVANANTHAPURAM 695004 4. THE REGIONAL PROVIDENT FUND COMMISSIONER, EMPLOYEES PROVIDENT FUND ORGANISATION, 36/685A PB NO 1895, BHAVISHYA NIDHI BHAVAN KALOOR, KOCHI 682017 WP(C).No. 21148 of 2012 -3- 5. THE COCHIN CORPERATIVE HOSPITALS SOCIETY LTD E-288, GANDHI NAGAR, KOCHI 682020 BY SRI.K.R.SUNIL,SC,CO-OP.EMP.PENSION BOAR BY SRI. N.N.SUGUNAPALAN(SR.) BY SMT.T.N.GIRIJA, SC,EPF ORGANISATION BY SRI.P.N.MOHANAN BY GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 29-11-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 21148 of 2012 APPENDIX PETITIONER(S) EXHIBITS EXT.P1TRUE COPY OF THE LETTER DATED 13-9-2011. EXT.P2TRUE COPY OF THE REQUISITION DATED 22-9-2011. EXT.P3TRUE COPY OF THE COMMUNICATION ISSUED BY THE 5TH RESPONDENT TO THE 2ND RESPONDENT DATED 17-5-2012. //true copy// P.A.To Judge ## **K.VINOD CHANDRAN, J** - - - - - - - - - - - - - - - - - - - - W.P.(C).No. 21148 of 2012 - - - - - - - - - - - - - - - - Dated 29[th] November, 2013 - - - - - - - - - - - - - - - - - - - - - - - - ## **JUDGMENT** The petitioners are regular employees of the 5[th] respondent/Society; four of whom have already retired and the others are still in employment. The petitioners are aggrieved by the continuance of payment of contributions to the 3[rd] respondent/Organization as per the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (for brevity 'the EPF Act') and the Pension Scheme of 1995. What the petitioners want is a transfer of the contributions made by the 5[th] respondent to the 3[rd] respondent at least, with respect to the petitioners herein; to the 2[nd] respondent/Board which is entrusted with the implementation of the Kerala Co-operative Societies Self Financing Pension Scheme, 1994. A Division Bench of this Court in **Kerala State Co-operative Employees Pension Board v. Udayakumar (2012 (3) KLT 820)** found that it is the option of each employee already enrolled under the EPF Act to decide as to whether they are to be continued **WP(C).21148/12** 2 under the Family Pension Scheme, 1995 or the State Pension declared as per the Pension Scheme of 1994. 2. Learned Senior Counsel, Sri.N.N.Sugunapalan, appearing for the respondent/Organization however, would point out a practical difficulty insofar as the Organization having maintained a single account with respect to all the employees of the 5[th] respondent. The establishment as such has been exempted by the State Government from the Pension Scheme of 1995. In this context, the contributions lying with the respondent/Organization with respect to all the employees of the 5[th] respondent are maintained as a single account and there would be practical difficulty in transferring a portion of the amount to the 2[nd] respondent/Board, being the amounts due to the 16 employees. 3. The learned counsel for the petitioners and the 5[th] respondent however would submit that there are only 16 regular employees, in the establishment, who are all parties to **WP(C).21148/12** 3 this writ petition and the other contributions are with respect to temporary employees engaged by the 5[th] respondent. In any event, going by the binding precedent of the Division Bench judgment, it is open for the employees to decide as to whether they should remain under the Pension Scheme of the 3[rd] respondent or that of the 2[nd] respondent. In the present case, since the petitioners all of whom have opted to be transferred to the Pension Scheme of 1994 implemented by the State Government, the 3[rd] respondent/Organization necessarily would have to remit the contributions with respect to 16 employees paid by the 5[th] respondent along with interest due as per the EPF Act, to the 2[nd] respondent/Board. The same shall be done within a period of 30 days from the date of receipt of a copy of this judgment. The 5[th] respondent shall within two weeks, furnish all the details with respect to the 16 employees to the respondent/Organization and shall register itself with the 2[nd] respondent/Board and shall also satisfy any demand made by the 2[nd] respondent/Board with respect to the shortage in contributions, if the demand made by the Board is not disputed 4 ## **WP(C).21148/12** so as to implement the Pension Scheme of 1995. The writ petition is disposed of as above. No order as to costs. **SD/K.VINOD CHANDRAN, Judge** Mrcs //true copy//