High Court of KeralaSingle JudgeWrit petitions allowed; quashing of Exts P9, P1...

WP(C).NO.20261/2012-G & WP(C).NO.18418/2013

Case / Petition Number:WP(C).NO.20261/2012-G; WP(C).NO.18418/2013

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.K. Abdul Rehim
Judgment Date
2013-08-29
Court Decision / Holding
The writ petitions are allowed. Exts. P9, P10, P11 and P14 in both petitions are quashed. Respondents 2 and 3 are directed to take fresh decisions recomputing the quantum of pension based on the revision of pay effected retrospectively, following the Supreme Court’s dictum in Prantiya’s case and the High Court’s WP(C). No.10162/12 judgment, and to afford personal hearing to representatives of the petitioners. The decision must be taken within two months from receipt of a copy of this judgment.
Final Disposition
Writ petitions allowed; quashing of Exts P9, P10, P11, P14; directions to recompute pension based on retrospective pay revision with hearing; to decide within two months from copy of the judgment.

Parties to the Case

Appellants / Petitioners

  • PRAKASAN .K.
  • D. VENUGOPAL
  • T.P. VARGHESE
  • C. MURALEEDHARAN PILLAI
  • K.R. MURALEEDHARAN NAIR
  • BABY P.Y.
  • M.A. THANKAPPAN
  • P.P. CHOTHY
  • S. GOPALAKRISHNA KURUP
  • MOHANAN K.P.
  • R. RAJASEKHARAN NAIR
  • P.G. DIVAKARAN NAIR
  • P. GOPINATHAN
  • K.A. GEORGE
  • P. VELAYUDHAN
  • T.G. MATHEW
  • R. MURALEEDHARA KURUP
  • R. RAJAN UNNITHAN
  • ITTYAVARA CHERIAN
  • RAJAGOPALAN M.
  • P. VIJAYAKUMAR
  • C.A. KAMALANATHAN
  • K.N. SANKARAN NAIR
  • V.K. RAMACHANDRAN
  • M.S. ABRAHAM

Respondents

  • UNION OF INDIA, represented by Secretary to Government, Ministry of Chemicals and Fertilizers
  • CENTRAL PROVIDENT FUND COMMISSIONER
  • REGIONAL PROVIDENT FUND COMMISSIONER
  • THE FERTILIZERS AND CHEMICALS TRAVANCORE LTD.

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. Sri. Prakash.M.P.

Counsels for Respondents

  • • Sri. P. Parameswaran Nair (Asst. SGI)
  • • Sri. N.N. Sugunapaln (Senior Advocate)
  • • Adv. Smt.T.N.Girija (SC)
  • • Adv. M. Gopikrishnan Nambiar
  • • Sri. P. Gopinath
  • • Sri. P. Benny Thomas
  • • Sri. K. John Mathai

Case Synopsis & Summary

These consolidated writ petitions challenge the denial by the Regional Provident Fund Commissioner to reckon revised pay for pension computation of retired employees of Fertilisers and Chemicals Travancore Ltd. (FACT). The petitioners had their pay revised with retrospective effect after retirement, and the employer had contributed to the Provident Fund on the basis of the retrospective revision. The petitioners argue that pension must be recomputed using the revised pay, in line with the Supreme Court’s decision in Prantiya Vidhyut Mandal Mazdoor Federation v. Rajasthan State Electricity Board (1992) 2 SCC 723, which held that pension should reflect revised pay even if revision is retrospective. The respondents contend that the central office had not finalized such relief; however, the Regional PF Office had already shown a favorable stance and central approval is necessary for uniform application. The High Court, relying on the Supreme Court dictum and the earlier HC decision in WP(C).No.10162/2012 and connected cases, disposes of the petitions on identical terms. It quashes Exts. P9, P10, P11, P14 and directs the respondents to take fresh decisions recomputing the quantum of pension based on retrospective pay revision, with a personal hearing and a deadline of two months from the judgment copy. The petitions are allowed in part.

Legal Doctrines & Maxims

  • Pension to be recomputed on the basis of revised pay even if the revision was retrospective (Prantiya Vidhyut Mandal Mazdoor Federation v. Rajasthan State Electricity Board, 1992 (2) SCC 723)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners submit that their pension must be fixed by reckoning the revised pay, even though the revision was granted with retrospective effect. They rely on the Supreme Court’s ruling in Prantiya Vidhyut Mandal Mazdoor Federation v. Rajasthan State Electricity Board, which held that pension should be recomputed on the basis of revised pay, notwithstanding retrospective revision. Since the employer had already contributed to the Provident Fund on the basis of the retrospective revision, denying pension reckoning would be arbitrary and against the legitimate expectation of the workers. They also cite a prior HC decision in WP(C).No.10162/12 and connected cases that directed reconsideration consistent with the Supreme Court’s dictum.

Contentions of Respondents

The respondents contend that final central approval for extending the relief has not been issued; though the Regional PF Office has expressed a favorable stance, central office clearance is necessary to ensure uniform application. They emphasize procedural propriety and that the relief cannot be granted unilaterally without central policy guidance. They argue for conformity with established rules and for ensuring due process, including hearing where required. They also point to the ongoing review in light of the Supreme Court guidance, asserting that a fresh, policy-compliant decision is necessary.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Prantiya Vidhyut Mandal Mazdoor Federation and others v. Rajasthan State Electricity Board and others1992 (2) SCC 723Positive relied upon by the court to hold that pension must be computed on the basis of revised pay, even where revision is retrospective.

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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 C.K.ABDUL REHIM** **THURSDAY, THE 29TH DAY OF AUGUST 2013/7TH BHADRA, 1935** ## **WP(C).No. 20261 of 2012 (G)** **----------------------------------------** ## **PETITIONERS:** **---------------------** **1. PRAKASAN .K., S/O. NARAYANAN N.K., 20/121 A, GOWREESHAM NAMBIAPURAM, PALLURUTHY, KOCHI-682 006.** **2. D. VENUGOPAL, S/O.K.NARAYANAN NAUTOR, CHULLIKKATT HOUSE, KONNUKARA P.O, ALUVA-683 524.** **3. T.P. VARGHESE, S/O.T.V.PAULOSE, THALIYANCAYATH HOUSE, IRUMPANAM PO-682 309.** **4. C. MURALEEDHARAN PILLAI, S/O. CHANDRASEKHARAN PILLAI, QR.NO.506/06, FACT CD T/SHOP, AMBALAMEDU P.O. - 682 303.** **5. K.R. MURALEEDHARAN NAIR, S/O. RAMAN NAIR, QR. NO.515/08, FACT CD T/SHOP AMBALAMEDU PO-682 303.** **6. BABY P.Y., S/O.YOHANNAN, PULIYANAL HOUSE, MORAKKALA, KUMARAPURAM-683 565.** **7. M.A. THANKAPPAN, S/O.N.K.AYYAPPAN, QR. NO.314/1, FACT CD-AMBALAMEDU P.O-682 303.** ## **8. P.P. CHOTHY,** - **PUTHUKKIRI HOUSE, ERUMELKARA, KUMARAPURAM P.O-686 535.** ## **9. S. GOPALAKRISHNA KURUP,** - **S/O.SREEDHARAN PILLAI, "SARADHA VIHAR"AMBALAMEDU - 682 303.** ## **10.MOHANAN K.P., S/O.PARAMESWARAN NAIR, KOCHUPARAMBIL HOUSE, UDAYAMPEROOR P.O, TRIPUNITHURA.** ## **11.R. RAJASEKHARAN NAIR, S/O.LATE T.P.RAMAN NAIR, SWATHI, NEAR MUTHUKADU TEMPLE, MUPPATHADAM, ALUVA- 683 110.** **Prv.** **W.P.(C).NO.20261/2012-G:** **12. P.G. DIVAKARAN NAIR,** - **S/O. LATE M.K.GOVINDAN NAIR, PONNAKUDAM, VADACODE P.O, (VIA) B.M.C., KOCHI-21.** **13. P. GOPINATHAN, S/O.NARAYANAN NAIR,** - **"NAVANEETHAM", PARAPILLIL ROAD, HILL PALACE-682 305.** **14. K.A. GEORGE, S/O.K.J.AUGUSTINE, KOTHETH HOUSE, MANJUMMEL P.O.- 683 501.** **15. P. VELAYUDHAN, S/O.PANIKKAN, MANNILKALAM, PALLATHERY P.O., PALAKKAD-678 007.** **16. T.G. MATHEW, S/O.T.A. GEORGE, THODUKAYIL HOUSE, CANAL ROAD, GANDHI NAGAR, KANDANAD P.O.** **17. R. MURALEEDHARA KURUP, S/O. LATE RAMAKRISHNAN NAIR, VAZHAPPALLIL HOUSE, KALLIMEL P.O., MAVELIKARA, ALAPPUZHA- 690 108.** **18. R. RAJAN UNNITHAN, S/O. LATE RAMAKRISHNAN UNNITHAN, "PRANAVAM" ,MADAPPOTTU ROAD, MANJUMMEL P.O, UDYOGAMANDAL -683 501.** **19. ITTYAVARA CHERIAN, S/O. LATE P.K.CHERIAN, MANALETHE HOUSE, THOPPIL, THRIKKAKARA P.O., COCHIN-21.** **20. RAJAGOPALAN .M, S/O.M.R.PANICKER, 'SREYAS', MANJELIPADAM ROAD, EROOR WEST P.O, TRIPUNITHURA- 682 306** **21. P. VIJAYAKUMAR,** - **S/O. V.K.PRABHAKARAN NAIR, SREEPADAM, EROOR NORTH, UDYOGAMANDAL P.O. - 683 571.** **22. C.A. KAMALANATHAN, S/O. LATE K.P.ACHUTHAN NAIR, NARAYANEEYAM, NATTEKUNNAM, EDAPPALLY NORTH P.O., COCHIN-682 024.** **23. K.N. SANKARAN NAIR, S/O. LATE K.NARAYANAN NAIR, CHALIL HOUSE, ERUMELI KARA, KUMARAPURAM P.O-683 565.** **24. V.K. RAMACHANDRAN, S/O. R.KESAVAN NAIR, SARU NIVAS, CHAITHANAYA NAGAR LANE-6, EROOR WEST P.O.** **25. M.S. ABRAHAM, S/O.M.T. SAMUEL, MAMPOZHIL HOUSE, KIZHAKKAMPALAM P.O, THAMARACHAL-683 562.** ## **BY ADV. SRI.PRAKASH.M.P.** **W.P.(C).NO.20261/2012-G:** ## **RESPONDENTS:** - **------------------------** **1. UNION OF INDIA, REPRESENTED BY SECRETARY TO GOVERNMENT, MINISTRY OF CHEMICALS AND FERTILIZERS, SASTHRI BHAVAN,NEW DELHI- 110 001.** **2. CENTRAL PROVIDENT FUND COMMISSIONER, BHAVISHYA NIDHI BHAWAN, 14-BHIKAIJI CAMA PLACE, NEW DELHI- 110 066.** **3. REGIONAL PROVIDENT FUND COMMISSIONER, 36/685 A, BHAVISHYA NIDHI BHAWAN, KALOOR, P.B. NO.1895, KOCHI- 682 017.** **4. THE FERTILIZERS AND CHEMICALS TRAVANCORE LTD., REPRESENTED BY ITS MANAGING DIRECTOR, UDYOGAMANDAL- 683 501.** **R1 BY SRI. P. PARAMESWARAN NAIR, ASST. S.G.I, R2 & R3 BY SRI.N.N.SUGUNAPALAN, SENIOR ADVOCATE, ADV. SMT.T.N.GIRIJA, S.C, R4 BY ADVS.SRI.M.GOPIKRISHNAN NAMBIAR, SRI.P.GOPINATH, SRI.P.BENNY THOMAS, SRI.K.JOHN MATHAI.** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 29-08-2013, ALONG WITH W.P.(C).NO. 18418/2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **Prv.** ## **W.P.(C).NO.20261/2012-G:** ## **APPENDIX** ## **PETITIONER'S EXHIBITS:** **EXHIBIT-P1 - A TRUE COPY OF THE O.M.NO.96/4/2009-HR-I DATED 3-8-2010.** - **EXHIBIT-P2 - A TRUE COPY OF THE SETTLEMENT DATED 14-8-2010 BETWEEN THE MANAGEMENT OF THE 4TH RESPONDENT COMPANY AND THE UNIONS REPRESENTING THE WORKMEN.** - **EXHIBIT-P3 - A TRUE COPY OF THE ORDER DATED 14-8-2010 OF THE 4TH RESPONDENT.** - **EXHIBIT-P4 - A TRUE COPY OF THE LETTER DATED 21-9-2010 OF THE 4TH RESPONDENT.** - **EXHIBIT-P5 - A TRUE COPY OF THE LETTER DATED 30-10-2010 OF THE 3RD RESPONDENT.** - **EXHIBIT-P6 - A TRUE COPY OF THE LETTER DATED 4-5-2011 OF THE 4TH RESPONDENT.** - **EXHIBIT-P7 - A TRUE COPY OF THE LETTER DATED 16-5-2011 OF THE 2ND RESPONDENT.** - **EXHIBIT-P8 - A TRUE COPY OF THE LETTER DATED 28-8-2011 OF THE PRESIDENT OF THE ALL INDIA E.P.F PENSIONERS ASSOCIATION.** - **EXHIBIT-P9 - A TRUE COPY OF THE LETTER DATED 5-9-2011 OF THE 3RD RESPONDENT.** - **EXHIBIT-P10 - A TRUE COPY OF THE LETTER DATED 28-10-2011 OF THE 3RD RESPONDENT.** - **EXHIBIT-P11 - A TRUE COPY OF THE LETTER DATED 31-10-2011 OF THE 3RD RESPONDENT.** - **EXHIBIT-P12 - A TRUE COPY OF THE LETTER DATED 5-12-2011 OF THE 3RD RESPONDENT.** - **EXHIBIT-P13 - A TRUE COPY OF THE LETTER DATED 16-1-2012 OF THE 4TH RESPONDENT.** - **EXHIBIT-P14 - A TRUE COPY OF THE LETTER DATED 9-3-2012 OF THE 3RD RESPONDENT.** - **EXHIBIT-P15 - A TRUE COPY OF THE LETTER DATED 12-3-2012 OF THE ALL INDIA E.P.F PENSIONERS' ASSOCIATION.** **Prv.** **W.P.(C).NO.20261/2012-G:** ## **EXHIBIT-P16 - A TRUE COPY OF THE LETTER DATED 26-4-2012 OF THE 3RD RESPONDENT.** **EXHIBIT-P17 - A TRUE COPY OF THE LETTER DATED 3-5-2012 OF THE 4TH RESPONDENT.** ## **RESPONDENTS' EXHIBITS: NIL.** **//TRUE COPY//** **P.S. TO JUDGE.** **Prv.** ## C.K.ABDUL REHIM,J. ------------------------------WP(C).NO.20261/2012 & 18418/2013 --------------------------------Dated this the 29th day of August, 2013 ## JUDGMENT The petitioners in both these cases are retired employees of M/s. Fertilisers and Chemicals Travancore Ltd. (FACT). Pay was revised subsequent to their retirement with retrospective effect. Request of the petitioners for reckoning revised pay for the purpose of computation of pension, has been declined by the Regional Provident Fund Commissioner. The petitions are challenging the decision taken to the above effect. 2. The issue now stands covered by a decision of the Honourable Supreme Court in **Prantiya Vidhyut Mandal Mazdoor Federation and others vs. Rajasthan State Electricity Board and others (1992 (2) SCC 723).** Dictum laid is to the effect that, pension has to be recomputed on the basis of revised pay, even if the revision was effected only retrospectively. In the cases at hand, it is evident that the employer had paid the difference in contribution, on the basis of retrospective revision of pay, to the Provident Fund Organisation. WP(C). 20261 /2012 & 18418/2013 2 Therefore there is no justification for the Provident Fund Organisation in not reckoning the revision of pay for the purpose of fixation of pension. 3. It is noticed that this court had disposed of a batch of identical cases through judgment in WP(C).No.10162/2012 and connected cases, dt. 15.2.2013. Identical orders rejecting the claim issued by the Provident Fund Organisation was set aside and the Provident Fund Organisation was directed to reconsider the issue in the light of the observations contained. Learned Standing Counsel appearing for the Organisation submitted that in view of the said judgment decision has already been taken by the Regional Provident Fund Commissioner granting relief, which is awaiting approval from the central office of the Provident Fund Organisation. Since the issue stands already covered by decision of the Honourable Supreme Court and since the Regional Office of the Provident Fund Organisation has already taken a favourable stand, I am of the opinion that these writ petitions can be disposed of on identical terms. 4. Accordingly these writ petitions are allowed. Exts.P9, WP(C). 20261 /2012 & 18418/2013 3 P10, P11 and P14 in both these writ petitions are hereby quashed. Respondents 2 and 3 in WP(C).No.20261/2012 are directed to take fresh decision recomputing the quantum of pension based on the revision of pay effected retrospectively, and to take a decision following the dictum laid by the Hon'ble Supreme Court in **Prantiya's** case (cited above) and the judgment of this court in WP(C).No.10162/12 and connected cases. A decision in this regard shall be taken after affording an opportunity of personal hearing to any one of the representatives of the petitioners. A decision in this regard shall be taken at the earliest, at any rate within a period of two months from the date of receipt of a copy of this judgment. C.K.ABDUL REHIM, JUDGE pmn/ WP(C). 20261 /2012 & 18418/2013 4 WP(C). 20261 /2012 & 18418/2013 5