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2023 Supreme(P&H) 3069

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
RAJ MOHAN SINGH, J.
Rajesh Chaudhary – Petitioner
Versus
Union of India & Ors. – Respondents
CWP NO.19985 of 2018 (O&M)
Decided On : 31-05-2023

Advocates Appeared:
Mr. Manohar Lall, Advocate; For the Appellant.
Mr. Rajesh Hooda, Advocate for the Respondents No.2 to 4.
Mr. Padamkant Dwivedi, Advocate for the Respondent No.5.

Headnote:(A) Employees Provident Funds and Miscellaneous Provisions Act, 1952 - Employees Pension Scheme, 1995 - Pension eligibility - Petitioner declared ineligible for enhanced pension based on contributions beyond ceiling limits - Court held that employees may exercise option for enhanced pension irrespective of prior non-exercise - Writ petition allowed, with directions for consideration of eligibility as per law. (Paras 1-9)

(B) Pension Rights - Entitlement to enhanced pension based on actual salary contributions should be recognized irrespective of prior ceilings - No cut-off date for option submission for eligibility for enhanced pension clarified by Supreme Court. (Paras 5-6)

Facts of the case:
The petitioner served for 19 years and retired, claiming ineligibility for enhanced pension due to contributions limited to previous ceiling. Legal arguments emphasized the amendments and interpretations post significant court rulings regarding the pension scheme.

Findings of Court:
Court ordered the impugned order set aside, requiring legal review of the petitioner's entitlement and a timely response.

Issues: Main issues included determination of eligibility for enhanced pension based on actual salary contributions versus historical ceilings.

Ratio Decidendi: The court found that amendments permitted employees who had not submitted options for enhanced pensions to do so, reinforcing the interpretation of the Pension Scheme post-amendments.

Result: Petition allowed, order dated 06.07.2018 set aside.

Table of Content
1. eligibility for enhanced pension (Para 1 , 2 , 3 , 4)
2. right to opt for enhanced pension (Para 5 , 6)
3. acknowledgment of facts and relief consideration (Para 7 , 8)
4. final order and compliance (Para 9 , 10)

JUDGMENT

Mr. Raj Mohan Singh, J.

(Oral) The petitioner has assailed the order dated 06.07.2018 vide which the respondents No.2 to 4 have declared the petitioner ineligible for the enhanced pension.

2. Learned counsel for the petitioner submitted that the petitioner has served in the Haryana Agro Industries Corporation Limited as Manager, Food Processing for 19 years 5 months and 13 days and he retired on 30.04.2015. After his retirement, the petitioner was getting pension on the salary limited to Rs.6,500/- whereas his contribution to the employees provident fund on actual salary was more than Rs.6,500/-.

3. Learned counsel for the petitioner further submitted that the provident fund was created under the Employees Provident Funds Miscellaneous Provision Act, 1952. The Employees Pension Scheme was introduced w.e.f. 16.11.1995. As per Section 6 of the Employees Provident Fund Misc. Provision Act, 1952, the contribution payable by the employer to the fund shall be 10% or 12% of the total salary viz. Basic pay + D.A. + Retaining allowances (if any) payable to the employee. The employees contribution shall be equal to the contribution payable by the employer. If the employee is willing to contribute more than the requisite percentage i.e. 10% or 12% of the Basic pay + D.A, he may do so but it will be subject to the condition that the employee shall not be required to pay over and above his contribution payable under the aforesaid provision of the Employees Pension Scheme.

4. In the present case, the petitioner was contributing 10% of his actual salary under the 1952 Act which was increased to 12% at a subsequent stage towards the employees provident fund on the basis of actual salary received by the petitioner. After introduction of Employees Pension Scheme in 1995, 8.33% was to be deposited out of 12% of the employer's share under the Employees Provident Fund. 8.33% was to be deposited in the Pension Scheme, irrespective of ceiling i.e. Rs.6,500/-. The ceiling limit was increased from Rs.6.500/- to Rs.15,000/- per month w.e.f. 01.09.2014. In this way, both the employer and the employee were contributing 12% of the actual salary in the provident fund and not on the ceiling limit of Rs.15,000/-.

5. Learned counsel for the petitioner further submitted that pension of the petitioner has been fixed on the ceiling amount of Rs.6.500/- which was in existence prior to 01.09.2014. After the decision in R.C. Gupta and others v. Regional Provident Fund Commissioner, Employees Provident Fund Organization and others , (2018) 14 SCC 809 , it was made clear that there was no cut off date prescribed for submitting the option under Clause 11(3) of the Employees Pension Scheme, 1995, therefore, the employee who had not submitted his option was made eligible to give his fresh option under Clause 11(3) of the Pension Scheme for enhanced pension on his actual salary. This provision was made applicable only to the employees, who had retired prior to 01.09.2014. Thereafter in view of decision rendered on 04.11.2022 in The Employees Provident Fund Organisation and Anr. Etc. v. Sunil Kumar B. and Ors. Etc., 2022(4) S.C.T. 674, it was made clear that the members of the scheme, who did not exercise their options as contemplated in the proviso to Clause 11(3) of the Pension Scheme would be entitled to exercise their options under paragraph 11(4) of the post amendment Scheme. The right to exercise option prior to 01.09.2014 already stood crystallized in R.C. Gupta and others' case (supra). It has been clarified that the coverage beyond the ceiling amount is extended by further period of four months from 04.11.2022. In this provision the members of pension fund drawing more than Rs.6,500/- are entitled to exercise their joint options u

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