Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Service Law |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Service Law: Employees’ Provident Funds and Miscellaneous Provisions Act, 1952: ss. 6A, 7 - Employees’ Pension Scheme, 1995 – Paras 3, 6, 11, 12 and 14 – Certain amendments and modifications made by the Central Government to the Employees’ Pension Scheme, 1995 – Legality of – Changes sought be effected in paragraphs 3, 6, 11, 12 and 14 of the 1995 scheme, whereby s. 6A was introduced to the said Act, which contemplated formulation of a scheme for employees’ pension and the pension fund was to comprise of deposit of 8.33 per cent of the employers’ contribution made towards provident fund corpus and determination of pensionable salary; that the maximum pensionable salary was enhanced from Rs.5000/- to Rs.6500/- by a notification G.S.R. 609(E) dated 22nd August 2014, to be effective from 1 st September 2014; that the Central Government was to contribute to the fund at the rate of 1.16 per cent of the pay of the members, the employees within the changed pension regime drawing more than Rs.15000/- per month have to also contribute at the rate of 1.16 % on salary exceeding Rs.15000/- as additional contribution each month under the amended provisions; fresh option was to be exercised by the member within a period of six months, and if not, it would be deemed that the concerned member has not opted for contribution over the wage Ceiling – Several writ petitions filed in different High Courts seeking invalidation of this notification – Writ petitions also filed u/Art. 32 challenging the Notifications – Held: Provisions contained in the notification no. G.S.R. 609(E) dated 22nd August 2014 are legal and valid – Amendment to the pension scheme brought about by the notification would apply to the employees of the exempted establishments in the same manner as the employees of the regular establishments – 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, would be guided by the amended provisions of paragraph 11(4) of the pension scheme – Members, 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 – 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 – Time to exercise option under paragraph 11(4) of the scheme, under these circumstances, shall stand extended by a further period of four months – Employees who had retired prior to 1st September 2014 without exercising any option under paragraph 11(3) of the pre-amendment scheme have already exited from the membership thereof, thus, they would not be entitled to the benefit of this judgment – 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 – Requirement of the members to contribute at the rate of 1.16 per cent of their salary to the extent such salary exceeds Rs.15000/ - per month as an additional contribution under the amended scheme is held to be ultra vires the provisions of the 1952 Act – Operation of this part of its order is suspended for a period of six months – No flaw is found in altering the basis for computation of pensionable salary – View taken by the Division Bench in the case of R.C. Gupta’s case so far as interpretation of the proviso to paragraph 11(3) (preamendment) pension scheme is concerned, is upheld – Fund authorities to implement the directives contained in the said judgment within the stipulated period – Impugned judgment modified accordingly – Constitution of India – Arts. 14 and 142.Constitution of India: Art. 14 – Reasonable classification – Provident Funds Employees’ Pension Scheme, 1995 – Employees of the pension scheme – Held: Cannot be considered as a homogenous group – No distinction can be made among different categories of employees based on their monthly salary to determine for whom the scheme shall operate in a particular manner – It is within the power and authority of the statutory authorities to reasonably classify different sets of employees and categorise them for the nature of benefits they might get from an existing scheme – Classification of the employees made by the authorities on the basis of the salary drawn in the 2014 amendment meets the test of reasonable classification contemplated in Art. 14. |
Judge | Hon'ble Mr. Justice Aniruddha Bose |
Neutral Citation | 2021 INSC 422 |
Petitioner | The Employees Provident Fund Organisation & Anr. Etc. |
Respondent | Sunil Kumar B. & Ors. Etc. |
SCR | [2022] 11 S.C.R. 959 |
Judgement Date | 2022-11-04 |
Case Number | 8143 |
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