Citing Apex Court verdict, High Court orders enhanced Pension

The Madurai Bench of the High Court of Madras, citing the Apex Court verdict in the landmark R.C. Gupta case (2016), has ordered enhancement of pension payable to a litigant found eligible for the revision of pension on higher wages.

The petitioner, B. Dhanasekaran, had joined the Agricultural Cooperative Credit Society in Paramakudi as secretary in 1978 & retired in 2012. He contended that from 1992, he had been remitting the provident fund contribution on the entire salary & not based on the wage ceiling limit.

Under Clause 11(3) of the Employees Pension Scheme, 1995, on the determination of pensionable salary, the maximum pensionable salary was limited to ₹6,500 per month. However, if at the option of the employer & the employee, the contribution paid on the salary exceeding ₹6,500 per month from the date of commencement of this scheme or from the date the salary exceeded ₹6,500, whichever is later, & the 8.33 per cent share of the employer is remitted into the pension fund, the pensionable salary will be based on such higher salary. In 2014, under the Employees Pension (Amendment) Scheme, the maximum pensionable salary was revised to ₹15,000.

No cut-off date

The Top Court ruled in the R.C. Gupta case that there was no cut-off date to determine the eligibility of the employer-employee to indicate their option under Clause 11(3) of the Pension Scheme.

A beneficial scheme ought not to be allowed to be defeated by reference to a cut-off date.

Further, the SC held that in the situation where the deposit of the employer’s share was on actual salary & not the ceiling amount, all that the Provident Commissioner was required to do was adjustment of accounts. He/she could seek the return of all such accounts that employees concerned may have taken or withdrawn from their Provident Account Fund before granting the benefit of Clause 11(3) of the Pension Scheme.

Relying on this, the petitioner sought enhancement of pension. His earlier plea in 2018 was disposed of with a direction to the authorities concerned to consider his representation based on the Supreme Court ruling. As his representation wasn't considered, he filed a fresh petition before the Court.

Justice G.R. Swaminathan took cognisance of the communication sent to the petitioner by The Provident Fund Commissioner, where it was admitted the petitioner was eligible for revision of pension on higher wages.

It directed the Additional Central Provident Fund Commissioner (Pension) & the Provident Fund Commissioner to undertake the exercise as per the SC ruling.

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