R. MUKHOPADHYAY Vs. UNION OF INDIA

JUDGEMENT

(1.) THESE petitions are being disposed of by this common order, as the petitioners in these petitions have impugned the constitutional validity of Para-61 of the Coal Mines Provident Fund Scheme (for short 'the Scheme') framed in exercise of the powers conferred by Section 3 of the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (for short 'the Act, 1948').

(2.) FOR the purpose of this order, reference is made to the facts of W.P. No. 07/2001 (R. Mukhopadhyay v. Union of India and Ors.).

(3.) CONTENTION of learned Counsel for the petitioners is that the contribution of CMPF amount of the petitioners is to be deposited every month and therefore, they should also be paid interest with effect from the date of deposit. Prior to merger of CCLSPF in CMPF, petitioner-Hari Singh Kunwar was paid interest in the manner of calculation of interest under the General Provident Fund, as per Rule 19 (d) of the CCLSPF Rules. Rule 11 (2) sub-para (iii) of GPF (Central Services) Rules clearly stipulates that interest shall be paid on all sums credited to the subscriber's account after last day of the preceding year from the date of deposit upto the end of the current year. The manner of calculation of interest under the Scheme is given in Para 61 (2) according to which no interest is to be paid to the employee for the monthly contribution from the date of deposit. Where opening balance of the employee is Nil in any particular financial year in that case he will not be entitled for any interest for the whole year though he has regularly deposited the monthly contribution towards provident fund. Under Para 61 (2) of the Scheme the employee suffers recurring loss of interest throughout his service career in this manner. Petitioner-Hari Singh Kanwar was getting interest on his deposits from the date of deposit and interest was calculated in the manner prescribed in Rule 11 of GPF (CS) Rules. After the date of merger of CCLSPF and CMPF, he became entitled for CMPF only after depositing substantial amount with interest to the pension fund, however, the benefit which he was enjoying since joining coal industry was taken away after merger as per the Scheme. Calculation of interest under Para 61 (2) of the Scheme is illegal and arbitrary.