HCL/I.C.C. EX. EMPLOYEES ASSOCIATION Vs. UNION OF INDIA
LAWS(JHAR)-2019-10-41
HIGH COURT OF JHARKHAND
Decided on October 16,2019

HCL/I.C.C. Ex. Employees' Association Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

- (1.) The present writ petitions have been filed for quashing the circular/order dated 31.05.2017 (Annexure-1 to the writ petition) issued by the Ministry of Labour and Employment, Government of India, whereby differentiation has been made between exempted establishments and non-exempted establishments in the light of order dated 04.10.2016 passed by the Hon'ble Apex Court in the case of "R.C. Gupta & Ors. Vs. Regional Provident Fund Commissioner, Employees Provident Fund Organization & Ors." [Civil Appeal No. 10013-10014 of 2016]. A further prayer has been made for issuance of direction upon the respondents to declare that the members of the petitioner-Union are entitled to get the benefit of EPS, 95 on the basis of pensionable salary reckoned in accordance with their actual salary from the date of their joining the pension scheme under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act , 1952 in terms with the law laid down by the Hon'ble Apex Court in the aforesaid judgment. The petitioners have also prayed for issuance of direction upon the respondent nos. 2 to 5 to transfer their respective Provident Fund Accounts including the arrears of contribution payable by them based on their actual salary i.e., Basic Pay + D.A., ignoring the ceiling limit, to the pension account of the respective members of the petitioner-Union and all other similarly situated employees. The petitioners have also prayed for issuance of direction upon the respondents to seek return of all such amount that the members of the petitioner-Union and all other employees have taken from the provident fund account so as to grant consequential benefits to the members of the petitioner-Union.
(2.) The learned counsel for the petitioners submits that the impugned circular/order dated 31.05.2017 issued by the Ministry of Labour and Employment, Government of India was challenged before the High Court of Delhi and vide judgment dated 22.05.2019 passed in W.P.(C) No. 5678 of 2018 and CM Appeal No. 22108 of 2018 in the case of "Bhartiya Khadya Nigam Karamchari Sangh & Anr. Vs. Union of India & Ors.", the said circular has been quashed with following observation: "4o. We, thus, allow the present petitions and quash the circular dated 31.05.2017. We hold that the petitioners would be entitled to higher monthly pension on the basis of their contributions on the actual salary, without any cutoff date and de hors the ceiling limit. We deem it fit to pass the following directions to resolve the issues as expeditiously as possible: i. The petitioners being employees of the exempted establishment would be entitled to the benefit of enhanced pension on the basis of their contribution to the provident fund on the actual salaries received by them. ii. The EPFO is at liberty to seek return of the higher provident fund contribution received by the petitioners with simple interest at the rate of 6% p.a. from the date of receipt of provident fund amount till the date of payment. iii. The respondent Nos. 4 and 5 are directed to cooperate with the EPFO and render all assistance in quantifying the amount to be refunded by each of the petitioners, with interest @ 6% p.a. on such return. The Trust has already remitted 8.33% of the contribution of the petitioners on the ceiling amount. The balance corpus comprising of the remaining contributions on the actual salary @ 8.33% would be transferred by the Trust to the Pension Fund of the EPFO with all gains and the interest accrued so far. iv. On refund of the above-mentioned amounts, the EPFO shall calculate and disburse enhanced pension to the petitioners on the basis of the actual salaries. The arrears of pension falling due to the petitioners from the date of their respective retirement will be cleared by the EPFO and the EPFO shall continue to pay the monthly pension henceforth at the enhanced rates. v. The entire exercise shall be completed by respondent no.4 and 5 and the EPFO within a period of six months from the date of receipt of a copy of this order."
(3.) The learned counsel for the petitioners while putting reliance on a judgment rendered by the Hon'ble Supreme Court in the case of "Kusum Ingots & Alloys Ltd. Vs. Union of India & Anr." reported in (2004) 6 SCC 254, submits that if the central legislation has been quashed by any High Court, it will have the effect throughout the territory of India subject to the applicability of that Central legislation.;


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