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2025 Supreme(KER) 868

IN THE HIGH COURT OF KERALA AT ERNAKULAM
MURALI PURUSHOTHAMAN, J.
Bhuvanedran Nair K.P. - Appellant 
Versus 
Employees Provident Fund Organization - Respondents 
WP(C) No. 25 of 2025
Decided on : 03-02-2025

Advocates:
Advocate Appeared:
For the Appellant : BY ADVS. S.KRISHNA MOORTHY(ERNAKULAM) BALAGOPALAN B. V.KRISHNAN KUTTY PRABHAKARAN MARAR K.V. SREEDEVI RADHAKRISHNAN
For the Respondent: SRI. SAJEEVKUMAR K. GOPAL, SC

The amended pension scheme applies to all eligible employees, allowing those who did not exercise options before 1st September 2014 to do so, with a time extension granted for compliance.

Headnote:

(A) Employees Provident Fund and Miscellaneous Provisions Act, 1952 - Notification No. G.S.R. 609(E) dated 22nd August 2014 - The Supreme Court directed that the provisions of the amended pension scheme apply equally to employees of exempted establishments and regular establishments, allowing those who did not exercise options prior to 1st September 2014 to do so under the amended provisions. (Paras 1, 2, 3, 4, 5, 6, 7, 8, 9)

(B) Jurisdiction under Article 142 - The court exercised its jurisdiction to extend the time for employees to exercise their options under the amended scheme, ensuring compliance with the directives of the Supreme Court. (Paras 1, 2)

Facts of the case:
The petitioners, retired employees, sought directions for processing their Joint Option Forms in light of the Supreme Court's judgment regarding the pension scheme.

Findings of Court:
The court directed the competent authorities to process the Joint Option Forms within five months in accordance with the Supreme Court's judgment.

Issues: The main issue was the processing of Joint Option Forms for employees who retired after 1st September 2014.

Ratio Decidendi: The court reaffirmed the applicability of the amended pension scheme to all eligible employees and extended the time for exercising options.

Result: Writ petition disposed of.

JUDGMENT :

The petitioners were employed under the 5th and 6th respondents. They retired from service subsequent to 01.09.2014. They have filed this writ petition for direction to respondents 1 to 4 to process the Joint Option Forms preferred by them in the light of the judgment of the Hon’ble Supreme Court in Employees Provident Fund Organisation and another v. Sunil Kumar B. and others [ 2022 (7) KHC 12 ], within a time frame to be fixed by this Court. The Hon’ble Supreme Court in Employees Provident Fund Organisation and another (supra), held as follows:-

“We accordingly hold and direct:-

(i) The provisions contained in the notification no. G.S.R. 609(E) dated 22nd August 2014 are legal and valid. So far as present members of the fund are concerned, we have read down certain provisions of the Scheme as applicable in their cases and we shall give our findings and directions on these provisions in the subsequent sub-paragraphs.

(ii) Amendment to the pension Scheme brought about by the notification No.G.S.R. 609(E) dated 22nd August 2014 shall apply to the employees of the exempted establishments in the same manner as the employees of the regular establishments. Transfer of funds from the exempted establishments shall be in the manner as we have already directed.

(iii) The employees who had exercised option under the proviso to paragraph 11(3) of the 1995 Scheme and continued to be in service as on 1st September 2014, will be guided by the amended provisions of paragraph 11(4) of the pension scheme.

(iv) The members of the scheme, who did not exercise option, as contemplated in the proviso to paragraph 11(3) of the pension scheme (as it was before the 2014 Amendment) would be entitled to exercise option under paragraph 11(4) of the post amendment Scheme. Their right to exercise option before 1st September 2014 stands crystalised in the judgment of this Court in the case of R.C. Gupta (supra). The scheme as it stood before 1st September 2014 did not provide for any cutoff date and thus those members shall be entitled to exercise option in terms of paragraph 11(4) of the Scheme, as it stands at present. Their exercise of option shall be in the nature of joint options covering pre-amended paragraph 11(3) as also the amended paragraph 11(4) of the pension Scheme.

There was uncertainty as regards validity of the post amendment Scheme, which was quashed by the aforesaid judgments of the three High Courts. Thus, all the employees who did not exercise option but were entitled to do so but could not due to the interpretation on cut-off date by the authorities, ought to be given a further chance to exercise their option. Time to exercise option under paragraph 11(4) of the Scheme, under these circumstances, shall stand extended by a further period of four months. We are giving this direction in exercise of our jurisdiction under Article 142 of the Constitution of India.

Rest of the requirements as per the amended provision shall be complied with.

(v) The employees who had retired prior to 1st September 2014 without exercising any option under paragraph 11(3) of the preamendment Scheme have already exited from the membership thereof. They would not be entitled to the benefit of this judgment.

(vi) The employees who have retired before 1st September 2014 upon exercising option under paragraph 11(3) of the 1995 scheme shall be covered by the provisions of the paragraph 11(3) of the pension Scheme as it stood prior to the amendment of 2014.

(vii) The requirement of the members to contribute at the rate of 1.16 per cent of their salary to the ₹ extent such salary exceeds 15,000/- per month as an additional contribution under the amended Scheme is held to be ultra vires the provisions of the 1952 Act. But for the reasons already explained above, we suspend operation of this part of our order for a period of six months. We do so to enable the authorities to make adjustments in the Scheme so that the additional contribution can be generated from some oth

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