Back
2016 Supreme(Ker) 916
IN THE HIGH COURT OF KERALA
P.V. Asha, J.
M.N. Chellappan Pillai - Appellant
Vs.
State of Kerala - Respondent
WP(C). No. 18069 of 2008 (A)
Decided On : 04-08-2016
For the Appellant :Sri. N. Ashok Kumar and Smt. Mariamma George Marangoly, Advocates
For the Respondent:Sri. Arunkumar M.R. Karanavar, Advocate, Sri. P.V. Mohanan and SC Sri. K.R. Sunil, Advocate
Headnote:
Pension Scheme - Exclusion of Retired Employees from Pension Scheme - Kerala Co-operative Societies Act, 1969 - Sections 80A, 18, 19, 20, 38A - The court discussed the eligibility for pension under the Kerala Co-operative Societies Employees Self Financing Pension Scheme 1994 and the amendments made to the scheme in 2001 and 2003, which affected the eligibility of employees retired during specific periods. The court highlighted the discriminatory treatment of employees retired between 4.6.1993 and 31.3.1998 and declared the relevant provisions unconstitutional, arbitrary, and discriminatory.
Fact of the Case:
The deceased petitioner, a retired employee of a cooperative society, was denied pension under the Kerala Co-operative Societies Employees Self Financing Pension Scheme 1994 due to insufficient qualifying service. The petitioner's legal heirs continued the petition, challenging the exclusion of a small group of retired employees from the pension scheme.
Finding of the Court:
The court found that the exclusion of retired employees who served between 4.6.1993 and 31.3.1998 from the pension scheme, based on the requirement of minimum qualifying service, was unconstitutional, arbitrary, and discriminatory. The court directed the government to extend the pension scheme benefits to the affected class of retired employees.
Issues: The issues revolved around the denial of pension to retired employees based on the period of retirement and the requirement of minimum qualifying service, leading to discrimination and violation of Article 14 of the Constitution of India.
Ratio Decidendi: The court held that the classification of retired employees based on the period of retirement and the imposition of minimum qualifying service for pension eligibility was arbitrary and discriminatory, violating Article 14 of the Constitution of India. The court emphasized that equal treatment should be provided to all retired employees under the pension scheme.
Final Decision: The writ petition was allowed, and the legal heirs of the deceased petitioner were declared entitled to the benefits under the pension scheme, irrespective of the number of years of qualifying service. The government was directed to take appropriate action to extend the pension scheme benefits to the affected class of retired employees, and effective steps were ordered to disburse the pension due to the petitioners within three months from the date of the judgment.
P.V. Asha, J.
This writ petition was originally filed by deceased Chellappan Pillai (hereafter referred to as 'petitioner). On his death, his legal heirs got impleaded as additional petitioners. The question raised in this writ petition is as to the exclusion of a small group of persons retired from the services of the co-operative societies in the State from the purview of the Kerala Co-operative Societies Employees Self Financing Pension Scheme 1994 ('Pension Scheme' for short).
2. The petitioner retired from service on 31.07.1995, while working as Secretary in charge in Kodukulanji Kared Service Cooperative Society Ltd. No.2640 ('society' for short) after rendering 24 years of service commencing from 1.7.1971. The contributory provident fund scheme was implemented in the society on 1.1.1988 and petitioner joined the same with effect from 1.1.1988. In the year 1995 a pension scheme was introduced for the employees in cooperative societies in the State under the name of Kerala Co-operative Societies Employees Self Financing Pension Scheme 1994 (hereinafter referred to as "the Scheme 1995"), which was notified as per G.O.(P) No.44/95/CO.OP dated 4.3.1995. The scheme was introduced by the Government in exercise of its powers conferred under section 80A of the Kerala Co-operative Societies Act, 1969 as a self financing pension scheme for establishment of pension fund for the purpose of payment of pension to the employees of co-operative societies.
3. The Scheme came into force with effect from 03.06.1993. Chapter III of this scheme provides for eligibility of pension. Clause 18 of the Scheme provides that every employee of the society to which this scheme applies shall be eligible for pension. The relevant portion of clause 18 of the Scheme reads as follows:
"(1) Every employee of a society to which this scheme applies shall, subject to the other provisions of the Scheme, be eligible pension under this Scheme:
Provided that an employee, who has received the contributory Provident Fund shall be eligible for pension only on the refund of that portion of the employees' contribution in the Contributory Provident Fund together with interest thereon to Pension Fund before applying for pension.
Xxxx xxxxxxxx xxxxxxxxxxxxxxxxxxxxxx
(2) An employee who has been dismissed or removed for misconduct, insolvency or inefficiency shall not be eligible for pension.
Xxxxx xxxxx xxxxxxx:"
4. Thus it can be seen that employees of all the societies to which the scheme applies, are eligible for pension under the scheme. In the case of those who got Contributory Provident Fund ("CPF" for short), they would be eligible for pension, only on refund of the portion of their contribution in the CPF along with interest on it to the Pension Fund. Qualifying service for pension is dealt with in clause 19. The provisions in clause 19 which are relevant for the purpose of this case reads as follows :
"19. Qualifying Service. Qualifying service for granting pension under the Scheme shall be-
(1)(a) in the case of an employee who was in the service of a society on the date of application of this Scheme to that society the length of service commencing from the date of joining the Contributory Provident Fund:
3[Provided that the qualifying service shall be limited to the period for which the employer's contribution towards the Provident Fund has been fully paid by the Society in respect of that employee.
Xxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxx
Provided further that where the employee was a Subscriber to any pre-existing Provident Fund Scheme implemented in that Society and contribution made thereon has been transferred to the Pension Fund, such period will also qualify for pension.
Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx.
5. Clause 20 after amendment in 2001, which came into force with effect from 1.4.1998, provides for the following :
S. 20 : [Superannuation Pension.
(1) Every employee shall be eligible for superannuation pension on attaining the age of superannuation.
(2)
