ABDUL SALAM K.M. Vs. UNION OF INDIA

JUDGEMENT

(1.) I have heard the learned counsel appearing for the petitioners, Sri. N. Nagaresh, the learned Assistant Solicitor General appearing for Union of India and the learned Standing Counsel Smt. T.N. Girija appearing for the Provident Fund Organisation.

(2.) All the petitioners except petitioners 246, 247 and 248 are employees of the 3rd respondent and petitioners 246, 247 and 248 are retired from the 3rd respondent. Admittedly, the petitioners are covered under the Employees Provident Funds and Miscellaneous Provisions Act, 1952 and the Employees Pension Scheme, 1995. The petitioners had salary above Rs.6500/ -, and are stated to have exercised an option under Section 26(6) of the Act. However, the Provident Fund Organization disputes the exercise of joint option by the employer and the employee; and asserts that it has not been done.

(3.) Be that as it may, it is admitted that the contribution to the Provident Fund being 12% of the total salary deducted as employees contribution and the 12% paid by the employer, were remitted to the Organization. As per the provisions of the Pension Scheme 8.33% of the contribution from the employer, is to be deducted and credited to the Pension Fund. However, in making such deduction, the Provident Fund Organization limited it to 8.33% of the maximum salary provided, ie., Rs.6500/ -. The balance contribution made by the employer for the salary in excess of Rs.6,500/ -, was fully retained in the Provident Fund Account itself.