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2016 Supreme(MP) 1030

IN THE HIGH COURT OF MADHYA PRADESH
S.C. Sharma, J.
Achyut Bhoraskar - Petitioner
Versus
Employees Provident Fund Organisation - Respondent
W.P. No. 7670 of 2014
Decided On : 10-02-2016

The main legal point established in the judgment is that the Employee Pension Scheme, 1995 sets a statutory upper ceiling limit of Rs. 6,500 for pensionable salary, and no contribution can be made by the employer or the Central Government for an amount above this limit.

Headnote:

PENSION - Employee Pension Scheme - 1995 - Section 3, Section 11 - The court discussed the provisions of the Employee Pension Scheme, 1995, particularly Regulation 3 and Regulation 11, which set the upper ceiling limit of Rs. 6,500 for pensionable salary. The court emphasized that no contribution can be made by the employer or the Central Government for an amount above Rs. 6,500, and any excess contribution would be considered erroneous. The judgment highlighted the statutory limit for making contributions and the modality of calculation of pensionable salary under the scheme.

Fact of the Case:

The petitioner, a retired employee, sought enhancement of pension based on the contention that the employer had deducted less than 12% from his salary towards contribution payable under the Employee Pension Scheme, 1995.

Finding of the Court:

The court found that the petitioner was not entitled to any relief as the provisions of the Employee Pension Scheme, 1995 clearly set the upper ceiling limit of Rs. 6,500 for pensionable salary, and no contribution could be made by the employer or the Central Government for an amount above Rs. 6,500.

Issues: The main issue was whether the petitioner was entitled to an enhancement of pension due to the alleged under-deduction by the employer towards the Employee Pension Scheme, 1995.

Ratio Decidendi: The court's decision was based on the interpretation of the provisions of the Employee Pension Scheme, 1995, particularly Regulation 3 and Regulation 11, which established the upper ceiling limit of Rs. 6,500 for pensionable salary and the limitations on contributions by the employer and the Central Government.

Final Decision: The court declined the admission of the petition, concluding that the petitioner was not entitled to any relief under the Employee Pension Scheme, 1995.

JUDGMENT :

S.C. Sharma, J.

1. Parties through their counsel.

2. The petitioner before this Court, who is a retired employee of Indore Development Authority has filed this present petition for issuance of an appropriate writ, order or direction directing the employer to hold that the petitioner is entitled for enhancement of pension keeping in view the letter dated 22.11.2006 (Annexure P-4), as the employer has deducted less than 12% from his salary towards contribution payable under the Employees Pension Scheme, 1995. The contention of the learned counsel is that under the Scheme, 12% amount of the salary has to be deducted by the employer and contribution to the extent of 12% has to be made by the employer towards the employees fund. His contention is that out of the 12%, only 8.33% has been deposited in the pension fund and 3.67% has been deposited in the provident fund and the employer has deducted 8.33% and, therefore, the pension being granted to the petitioner is less than his entitlement.

3. The aforesaid controversy has been decided by this Court in the case of Devendra Kumar Sharma & Others v. Sant Ravidas Madhya Pradesh Hastshilp Evam Hathkargha Vikas Nigam Ltd. & Others, (W.P. No.3368/2014) and the order passed in the aforesaid matter reads as under:-

"The petitioners before this Court who are the employees of Sant Ravidas Madhya Pradesh Hastshilp Evam Hathkargha Vikas Nigam Limited have filed this present petition for issuance of an appropriate writ, order or direction directing the Regional Provident Fund Commissioner, Bhopal and Regional Provident Fund Commissioner, Indore to deduct the contribution in respect of Employees' Pension Scheme, 1995 beyond the ceiling limit of Rs.6,500/- per month.

The Employees' Pension Scheme, 1995 was enacted by the Central Government in exercise of power conferred under Section 6-A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and has come in to force w.e.f. 16/11/1995.

The contention of learned counsel appearing for the respondent is that the present writ petition is not maintainable before this Court as the provident fund accounts are maintained at Bhopal by the Regional Provident Fund Commissioner, Bhopal, however, he has also argued the matter on merits and his contention is that as per the regulations of the Employees' Pension Scheme, 1995 the upper ceiling limit has been prescribed as Rs. 6,500/- per month and even if the pay of member exceeds Rs. 6,500/- per month the contribution payable by the employer and the Central Government has to be limited to the pay of Rs.6,500/- per month only. He has placed reliance on Regulation 3 and 11 of the Employee's Pension Scheme, 1995.

Heard learned counsel for the parties and perused the record.

This Court has carefully gone through the statutory provisions governing the field.

It is true that the Central Government has framed Employee's Pension Scheme, 1995 in exercise of power conferred under Se.6-A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The Regulation 3 and Regulation 11 of the Pension Scheme reads as under:-

3. Employees pension fund."

(1) From and out of the contributions payable by the employer in each month under Section 6 of the Act or under the rules of the Provident Fund of the establishment which is exempted either under clauses (a) and (b) of sub-section (1) of Section 17 of the Act or whose employees are exempted under either paragraph 27 or paragraph 27-A of the Employees' Provident Fund Scheme, 1952, a part of contribution representing 8.33 per cent of the Employee's pay shall be remitted by the employer to the Employees' Pension fund within 15 days of the close of every month by a separate bank draft or cheque on account of the Employees' Pension Fund contribution in such manner as may be specified in this behalf by the Commissioner. The cost of the remittance, if any, shall be borne by the employer.

(2) The Central Government shall also contribute at the rate of 1.16 per


















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