Discrimination and arbitrary imposition of interest on CPF management share upheld by tribunal, necessitating a refund to applicant.

ORDER

(Pronounced by Hon'ble Mr. M. Swaminathan, Judicial Member)

This OA has been filed by the applicant seeking the following relief:

“a. Call for the original file(s)/record(s) of the 1st respondents authority relating to passing of the impugned memorandum bearing No. F. No. 110125/2018/KVS/PF/Conversion from CPF to GPF/105 dated 13-06-2022 {Annexure A-18} and the 2nd respondent authority's consequential orders bearing Nos. F.17/2022/CPF to GPF/KVS (CHER)5619dated 07.07.2022 (Annexure A-21) & No.F.15(1074)Pension/2015-16/Pension/KVS (CHER)/9837 dated 25.07.2022(Anexure A-23) and quash the portion of imposing interest @ 9% p.a on the CPF management share of the applicant as illegal.

b) For a direction to the 1st and 2nd respondent authorities to refund an amount of Rs.5,36,923/- together with interest @ 9% p.a from 01.09.2022 to till disbursement of the amount discriminately recovered as interest on MSCPF from the applicant while sanctioning of pension benefits.

c) Costs of this Original Application to be paid by the respondents.

d) Pass such further or and other order as may be required in facts and circumstances of the case.”

2. The factual matrix of the case are as follows:

The applicant joined the services of Kendriya Vidyalaya Sangathan (KVS) as a TGT (Library) on 23.10.1983 and became a member of the KVS Contributory Provident Fund (CPF) Scheme, in accordance with the then- prevailing policies. Following the recommendations of the IV Central Pay Commission, the 1st respondent introduced the General Provident Fund (GPF) Pension Scheme through a memorandum dated 01.09.1988. Under this scheme, CPF was discontinued for employees who joined service on or after 01.01.1986. Existing employees were required to exercise their option to continue under the CPF scheme by 31.01.1989; failing which, they were deemed to have opted for the pension scheme. Despite this, the applicant was erroneously continued under the CPF scheme, even after repeated representations and requests since 1993, which went unanswered by the concerned authorities. Due to continued inaction, the applicant filed OA No. 1336/2018, which was disposed of by order dated 09.10.2018. The 1st respondent subsequently issued a memorandum rejecting the applicant’s claim, which was challenged in OA No. 125/2019. This Tribunal, by order dated 06.02.2019, directed the respondents to review the impugned Annexure A-19 order dated 21.11.2018, should the Hon’ble Apex Court decide in favour of similarly placed individuals, and to pass a reasoned and speaking order within two months thereafter.In a related matter involving four other OAs, including OA No. 1382/2018, this Tribunal passed a similar order on 02.04.2019. The respondents challenged the decision before the Hon’ble Madras High Court in WP No. 17165/2020 (Smt. R. Amutha), which was dismissed on merits on 07.12.2020, with a direction for the applicant to refund the CPF amount received. A separate appeal against this applicant in WP No. 19720/2020 was also dismissed by the Hon’ble Madras High Court on 23.12.2020, relying on the earlier order dated 07.12.2020 in WP No. 17165/2020. The applicant thereafter filed Contempt Petition No. 968/2021 for non- compliance of the High Court’s order. The respondents filed an appeal before the Hon’ble Supreme Court, which was dismissed at the admission stage. Subsequently, the respondents complied with the order in favour of Smt. R. Amutha, without charging interest on the management share of the CPF amount paid to her at