WP(C).No. 5738 of 2011 (N)

Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: K. Vinod Chandran
Judgment Date: 2014-03-11
Court Decision / Holding: Writ Petition allowed. Ext. P1 declared unconstitutional in the context of pension arrangements for the petitioners; petitioners entitled to continue under the Employees’ Pension Scheme, 1995 under the EPF Act, 1952; no costs.
Final Disposition: Writ Petition allowed; no costs.

Parties to the Case

Appellants / Petitioners

K.K. Madhusoodanan
P. Karunakaran
K.P. Balakrishnan
P.P. Mohanan
M. Ramesh Babu
P.V. Janardhanan
K. Babu
Shyamala P. P.
P. Satheesan
P.P. Shaji
T.V. Rajeevan
P. Sathyan
K. Prakashan
P.K. Ratheesan
K. Venugopalan
A. Kumaran
A. Pankajakshan
P. Sahadevan
T. Leena
P. Kausallya
C.P. Pushpavally
P. Usha
K.P. Biju
U.V. Rameshan
K. Pradyumnan
K. Ajith Kumar
V.K. Jijesh
K. Ranjith
P.P. Shadanannan
C.V. Thamban
Usha Devi. K
N. Seetha
K. Ambujakshi
T.V. Anoop
K. Ajitha
M.V. Lalitha
P. Beena
Sheeja. T

Respondents

State of Kerala, represented by the Secretary to Government of Kerala, Department of Labour
Secretary to Government, Co-operative Department, Government Secretariat, Thiruvananthapuram
Regional Provident Fund Commissioner, Employees’ Provident Fund Organisation, Kannur
Kerala State Co-operative Employees Pension Board
AECHOOR Service Co-operative Bank Limited, represented by its President

Legal Representation & Advocates

Counsels for Petitioners

• E.K. Nandakumar
• K. John Mathai
• P. Benny Thomas
• P. Gopinath

Counsels for Respondents

• N. George
• N.N. Sugunapalan
• T.N. Girija
• K.R. Sunil
• P.V. Mohanan

Case Synopsis & Summary

This is a batch writ petition challenging Ext. P1, a Government notification concerning pension treatment of employees of AECHOOR Service Co-operative Bank. A Single Judge quashed Ext. P1 and a Division Bench affirmed that decision in a related case, Kerala State Co-operative Employees Pension Board v. Udayakumar. The petitioners seek to be retained under the Employees’ Pension Scheme, 1995 (under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952). They contend Ext. P1 is unconstitutional and that their interests are best served by the EPF-based pension scheme. The respondents, including the State government departments, EPFO, and the Kerala State Cooperative Employees Pension Board, argue that Ext. P1 reflects a policy framework and that the question of scheme-benefit should be resolved in accordance with statutory provisions and established practice; they rely on departmental authorities and prior judgments. The judgment notes Ext. P1’s unconstitutional status and cites the Division Bench’s view that employees should decide which scheme offers greater benefit. The court ultimately allows the writ petition, holding that the petitioners are entitled to continue under the Employees’ Pension Scheme, 1995 under the EPF Act, 1952, rather than under the state pension scheme. No costs are awarded.

Provisions of Law Cited

Employees' Provident Funds and Miscellaneous Provisions Act, 1952Kerala Cooperative Societies Act

Submissions & Arguments

Contentions of Appellants / Petitioners

Petitioners contend Ext. P1 is unconstitutional and seek continued inclusion under the Employees’ Pension Scheme, 1995 under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, asserting that this scheme is more beneficial and consistent with the statutory EPF framework.

Contentions of Respondents

Respondents argue Ext. P1 is unconstitutional and that the matter should be resolved within the existing statutory/policy framework, referencing the EPF regime and the Kerala State Co-operative Employees Pension Board, and relying on prior judicial pronouncements that employees may decide the scheme that best serves their interests.

Cited Precedents (1)

Case Name	Citation	Treatment	Explanation
Kerala State Co-operative Employees Pension Board v. Udayakumar	2012 (3) KLT 820	Positive	Division Bench affirmed the Single Judge’s quashing of Ext. P1 and opined that employees may choose the most beneficial scheme (Pension Board or EPF), a principle relied upon in the present case.

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** **TUESDAY, THE 11TH DAY OF MARCH 2014/20TH PHALGUNA, 1935** ## **WP(C).No. 5738 of 2011 (N)** **--------------------------------------** **PETITIONER(S): ----------------------** **1. K.K. MADHUSOODANAN, SECRETARY (RTD), AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **2. P. KARUNAKARAN, ASST. SECRETARY (RTD), AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **3. K.P.BALAKRISHNAN, SECRETARY IN CHARGE, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **4. P.P.MOHANAN, BRANCH MANAGER, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **5. M.RAMESH BABU, BRANCH MANAGER, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **6. P.V. JANARDHANAN, INTERNAL AUDITOR, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **7. K. BABU, BRANCH MANAGER, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **8. SHYAMALA.P.P, ACCOUNTANT, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **9. P. SATHEESAN, ACCOUNTANT, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **PJ** **...2/-** **..2..** ## **WP(C).No. 5738 of 2011 (N)** ## **--------------------------------------** **10. P.P. SHAJI, SENIOR CLERK, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **11. T.V. RAJEEVAN, SENIOR CLERK, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **12. P. SATHYAN, JUNIOR CLERK, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **13. K. PRAKASHAN, JUNIOR CLERK, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **14. P.K. RATHEESAN, JUNIOR CLERK, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **15. K. VENUGOPALAN, ATTENDER, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **16. A. KUMARAN, ATTENDER, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **17. A.PANKAJAKSHAN, SALESMAN, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591. 18. P. SAHADEVAN, SALESMAN, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **19. T. LEENA, SALESMAN, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **20. P. KAUSALLYA, PEON, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591. 21. C.P.PUSHPAVALLY, PEON, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **PJ** **....3/-** **..3..** ## **WP(C).No. 5738 of 2011 (N)** ## **--------------------------------------** ## **22. P. USHA, PEON,** **AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **23. K.P. BIJU, NIGHT WATCHMAN, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **24. U.V, RAMESHAN, NIGHT WATCHMAN, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **25. K.PRADYUMNAN, NIGHT WATCHMAN, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **26. K.AJITH KUMAR, APPRAISER, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **27. V.K. JIJESH, APPRAISER, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **28. K. RANJITH, APPRAISER, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **29. P.P. SHADANANAN, APPRAISER, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **30. C.V. THAMBAN, BILL COLLECTOR, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **31. USHA DEVI. K, BILL COLLECTOR, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **32. N. SEETHA, BILL COLLECTOR, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **33. K. AMBUJAKSHI, BILL COLLECTOR, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **PJ** **....4/-** **..4..** ## **WP(C).No. 5738 of 2011 (N)** ## **--------------------------------------** **34. T.V. ANOOP, BILL COLLECTOR, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **35. K. AJITHA, BILL COLLECTOR, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **36. M.V. LALITHA, BILL COLLECTOR, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **37. P. BEENA, BILL COLLECTOR, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **38. SHEEJA.T, BILL COLLECTOR, AECHOOR SERVICE CO-OPERATIVE BANK LIMITED, NO.LL.75 P.O. EACHUR, KANNUR - 670 591.** **BY ADVS.SRI.E.K.NANDAKUMAR SRI.K.JOHN MATHAI SRI.P.BENNY THOMAS SRI.P.GOPINATH** ## **RESPONDENT(S):** **-------------------------** **1. STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT OF KERALA DEPARTMENT OF LABOUR, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM - 695 001.** **2. THE SECRETARY TO GOVERNMENT, CO-OPERATIVE DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM - 695 001.** **3. REGIONAL PROVIDENT FUND COMMISSIONER, EMPLOYEES PROVIDENT FUND ORGANISATION, SUB REGIONAL OFFICE, V.K. COMPLEX, FORT ROAD, KANNUR - 670 001.** **4. KERALA STATE CO-OPERATIVE EMPLOYEES PENSION BOARD, THIRUVANANTHAPURAM -695 001, REPRESENTED BY ITS SECRETARY.** **PJ** **....5/-** **..5..** ## **WP(C).No. 5738 of 2011 (N)** **--------------------------------------** ## **5. AECHOOR SERVICE CO-OPERATIVE BANK** **LIMITED, NO.LL.75, P.O. EACHUR KANNUR-670 591, REPRESENTED BY ITS PRESIDENT.** **R1,R2 BY GOVERNMENT PLEADER SRI.N.GEOREGE R3 BY ADVS. SRI.N.N.SUGUNAPALAN (SR.) SMT.T.N.GIRIJA, SC,EPF ORGANISATION R4 BY ADVS. SRI.K.R.SUNIL,SC,CO-OP.EMP.PENSION BOARD SRI.P.V.MOHANAN,SC,CO-OP.EMP.PENSION BOARD** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 11-03-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **PJ** ## **WP(C).No. 5738 of 2011 (N)** ## **--------------------------------------** ## **APPENDIX** ## **PETITIONERS' EXHIBITS ------------------------------------** - **P1: COPY OF THE GOVERNMENT NOTIFICATION DATED 19/6/2006** - **P2: COPY OF THE PENSION SCHEME FRAMED BY THE STATE GOVERNMENT IN ACCORDANCE WITH THE PROVISIONS CONTAINED IN THE KERALA COOPERATIVE SOCIETIES ACT DATED 14/3/2005** - **P3: COPY OF THE COMMUNICATION DATED 28/4/2005 ISSUED IN THIS REGARD BY THE 3RD RESPONDENT** - **P4: COPY OF THE CIRCULAR DATED 7/11/2008 ISSUED BY THE 3RD RESPONDENT** - **P5: COPY OF THE CIRCULAR DATED 22/1/2009 ISSUED BY THE 4TH RESPONDENT** - **P6: COPY OF THE REPRESENTATION DATED 20/8/2009 SUBMITTED BY THE PETITIONER** - **P7: COPY OF THE ORDER DATED 17/9/2009 PASSED BY THE 4TH RESPONDENT** ## **RESPONDENTS' EXHIBITS** - **--------------------------------------** ## **R3(A): COPY OF THE COMMUNICATION DATED 13/5/2009.** ## **/ TRUE COPY /** ## **P.S. TO JUDGE** **PJ** ## **K. VINOD CHANDRAN, J. =====================** ## **W.P.(C) No. 5738 of 2011 ====================== Dated this the 11[th] day of March, 2014** ## **J U D G M E N T** The notification Ext. P1 was challenged in a batch of Writ Petitions and a learned Single Judge of this Court quashed the same which decision was affirmed by a Division Bench of this Court in **Kerala State Co-operative Employees Pension Board v. Udayakumar in 2012 (3) KLT 820** . In fact in the Division Bench judgment, it was opined that, it would be for the employees to decide as to which scheme is more beneficial to them; whether under the Pension Board constituted by the State or under the Provident Fund Organisation constituted under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. In the present case, the Writ Petitioners seek that they be retained under the 3[rd] respondent. Ext. P1 has already been declared as unconstitutional. The petitioners W.P.(C) No. 5738 of 2011 **2** hence are entitled to a declaration that they are entitled to be continued in the Employees Pension Scheme, 1995 brought under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The Wit Petition is allowed. No costs. Sd/- **K. VINOD CHANDRAN, JUDGE** SB