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1992 Supreme(Bom) 26

IN THE HIGH COURT OF BOMBAY
Agarwal Ashok, J.
K.B. Sharma .... Petitioner.
Versus
R.M. Gandhi, Regional Provident
Fund Commissioner others.... Respondents.
Writ Petition No. 3066 of 1986, decided on 15-1-1992.
Advocates appeared :
S.C. Naidu, for petitioner.
H.V. Mehta with R.C. Master, for respondents.

Headnote:EMPLOYEES FAMILY PENSION SCHEME, 1971.

       Paras 34 and 32 and Employees Provident Fund and Miscellaneous provisions Act (19 of 1952), Section 6-A and 6-Provisions of Para 34 of Scheme 1971 curtail and bridge right to receive full amount in fund-Same ultra vires Liable to be struck down as null and void-Employee entitled to be paid in lump sum as provided in pragraph 32.

       EMPLOYEES PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952.

       Sections 6-A and 6.

       See Employees Family Pension Scheme, 1971, Paras 34 and 32.

JUDGMENT - AGARWAL ASHOK, J.:—By this petition, the petitioner prays for a declaration that paragraph 34 of the Employees' Family Pension Scheme, 1971 is ultra vires and void. He further prays for a direction against the first respondent, Regional Provident Fund Commissioner, to pay the difference of what has been paid under the scheme and what according to him is legitimately due to him. The petitioner joined the services of the third respondent-company as its Factory Manager in 1966. In November, 1970, the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as “the Act”) was made applicable to the third respondent. At the same time, the petitioner was made a member of the Provident Fund Scheme and contribution at the rate of 8 per cent was being deducted from his salary and equivalent contribution was made by the third respondent-company and both the amounts were deposited with the first respondent. On 1st of March, 1971 the Employees' Family Pension Scheme under the Employees' Family Pension Scheme, 1971 was introduced. Section 6-A came to be introduced in the Act by way of amendment whereby 1.17 per cent of the contribution paid by the petitioner under section 6 of the Act was earmarked under the new head of Family Pension. In August, 1971 the petitioner was required to contribute under the Family Pension Scheme. On 31st December, 1981 the petitioner retired from the Family Pension Fund upon completing 60 years of age. On 14th September, 1983 the first respondent settled the family pension on payment of lump sum amount of Rs. 1160/-. The petitioner found that the said amount did not represent even his contribution and he, therefore, made representations. Correspondence ensued between the petitioner and respondents Nos. 1 and 2 leading to the filing of the present petition. The petitioner has attached to his petition a statement of contribution made under the Family Pension Scheme. It is as under:

Statement of Contribution under Family Pension

Year Contribution of Contribution of

Pensioner employer on petitioner account

1971-72 58.00 58.00

1972-73 64.00 64.00

1973-74 92.00 92.00

1974-75 116.75 116.75

1975-76 126.00 126.00

1976-77 153.00 153.00

1977-78 168.00 168.00

1978-79 146.25 146.25

1979-80 156.75 156.75

1980-81 141.00 141.00

1981-82 141.00 141.00

1982-83 25.50 25.50

Total 1,386.25 1,386.25

Total contribution deposited

in Petitioner Family Pension Fund. 2,772.50

Less : Excess contributed

for Jan. 82 to April, 1982 94.00

---------------

2,678.50

---------------

2. It is the grievance of the petitioner that payment of Rs. 1160/ - does not represent even his contribution to the scheme. According to him, the benefits under the Family Pension Scheme under section 6-A cannot be less than the benefits under section 6 of the Act. The petitioner is, therefore, entitled to receive the full benefits of the contribution to the scheme. Reliance is placed on paragraph 69 of the Provident Fund Scheme. Para 69, in so far as is relevant, is as under:—

“Circumstances in which accumulation in the Fund are payable to a member- (1) A member may withdraw the full amount standing to his credit in the Fund;

(a) On retirement from service after attaining the age of 55 years.” According to the petitioner, he has retired from service after attaining the age of 55 years. He is, therefore, entitled to withdraw the full amount standing to his credit in the Fund.

3. Further reliance is placed on Paragraph 32 of the Employees' Family Pension Scheme, 1971. Paragraph 32, in so far as is relevant, provides as under: —

“On attaining the age of 60 years, a member of the Family Pension Fund who has contributed to the Family Pension Fund for a period of not less that 2 years shall be paid a lump sum of Rs. 4,000/ and t











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