D.CHANDIRASEGAR Vs. UNION OF INDIA

JUDGEMENT

(1.) These six writ petitions have been filed by 86 former employees of BHEL (Bharat Heavy Electricals Limited), Trichy challenging the orders issued b EPFO (Employee's Provident Fund Organisation) to the individual employees on 21/3/2024 wherein the EPFO has recalled a demand notice issued by them for payment of contribution along with applicable interest for higher pension was recalled. The petitioners have also challenged a circular issued by EPFO on 18/1/2025 wherein the exempted establishments were not permitted to amend the Trust Rules with retrospective effect so as to bring the Trust Rules in consonance with the Hon'ble Supreme Court in Sunil Kumar case. The petitioners have also challenged the order of EPFO dtd. 6/2/2025 wherein the joint option request submitted by the employees to avail the benefits of higher pension have been rejected primarily relying upon the Trust Rules applicable to the exempted organisation namely BHEL, Trichy.

(2.) The BHEL, Trichy is admittedly an establishment exempted under Sec. 17 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, from the purview of the Employees' Provident Funds Scheme, 1952. In view of the exemption, the Provident Funds Scheme is being administered by a Trust. The terms and conditions of the exemption are governed by the Appendix 'A' as found in Paragraph 27-AA of the Employees' Provident Funds Scheme 1952. However, the employees of the BHEL are continued to be governed by the Statutory Employees' Pension Scheme, 1995.

(3.) As per Sec. 6 of the Employees' Provident Funds and Miscellaneous Provisions Act, the employee is expected to make his contribution of 12% of the basic wages and the Dearness Allowance and the employer is mandated to contribute an equal sum. However, this mandate is subject to the wage ceiling to be fixed from time to time by notification of the Central Government. If the employee exceeds the wage ceiling, though he would continue to be a member of the scheme, the contribution made by the employer and the employees would be restricted to the wage ceiling fixed by the Central Government.