Citation : 2021 Latest Caselaw 10042 Guj
Judgement Date : 30 July, 2021
C/SCA/10044/2019 ORDER DATED: 30/07/2021
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
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PARABATSINH JIGAJI CHAVDA
Versus
THE AHMEDABAD MUNICIPAL CORPORATION
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Appearance:
AAKASH D MODI(7449) for the Petitioner(s) No. 1
MR KAMAL TRIVEDI, SR ADVOCATE with MR PARTH PATEL, ADVOCATE
for MR ANUJ K TRIVEDI(6251) for the Respondent(s) No. 1,2
MS E.SHAILAJA(2671) for the Respondent(s) No. 3
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CORAM:HONOURABLE MR. JUSTICE A.S. SUPEHIA
Date : 30/07/2021
ORAL ORDER
1. Heard learned advocate Mr. Aakash Modi, learned Senior Advocate Mr. Shalin Mehta with learned advocate Mr. Hemang Shah for the respective petitioners, learned Senior Advocate Mr. Kamal Trivedi with learned advocate Mr. Parth Patel, advocate for Mr. Anuj Trivedi for the respondent No.1 and learned advocate Ms. E. Shailja for the respondent no.3.
2. The present group of petitions emenate from the judgment and order dated 17.10.2016 passed in Special Civil Application No.3711 of 2014 and allied matters. From the facts as recorded by the Coordinate Bench in the said judgment, it appears that there are three rounds of litigations between the employees of the respondent Municipal Corporation and the petitioners on the issue of grant of benefits of the GPF scheme.
C/SCA/10044/2019 ORDER DATED: 30/07/2021
It is not disputed that the employees / petitioners have continued as members of EPF Scheme. After examining the issue threadbare and hearing all the respective parties, the aforesaid writ petitions were disposed of by the Coordinate Bench by making following observations and clarifications:
"(i) It will be open to the petitioners to submit appropriate application seeking shift from the scheme under the to the scheme of the corporation and application seeking exemption from the scheme under the Act, under section 17(2) of the Act or under such other provisions as may be permissible under the ACT.
(ii) The petitioners will submit such application on or before 30.11.2016.
(iii) After the Provident Fund Organization receives such applications from the individual employees of the corporation, the Provident Fund Organization will consider the said applications as expeditiously as possible and preferably within four months after the receipt of the applications, however, without being influenced by the communication dated 12.3.2004 and shall decide the applications independently on their merits and in light of the provisions of the Act.
(iv) If upon such consideration of the application, the Provident Fund Organization comes to the conclusion that the request by the employees to shift from the scheme under the Act to the scheme of the corporation and for exemption deserves to be granted, then appropriate orders will be passed by the Provident Fund Organization.
(v) If, on account of the provisions under the Act or the Rules or the scheme, the process invites any cost or other expenses and administrative charges and if such decision entails loss of interest to any extent, it will be borne by the employees/applicants and not the corporation and the employees shall pay such expenses, costs, etc. to the Provident Fund Organization within time which may be
C/SCA/10044/2019 ORDER DATED: 30/07/2021
mentioned by the Provident Fund Organization.
(vi) If any administrative formalities are required to be completed by the corporation, then the corporation would take such necessary administrative steps as may be required for the said purpose.
(vi) The benefits of this arrangement will not be available to the employees who have already retired from the service before 10.10.2016. With the aforesaid clarifications and directions, the petitions are disposed. The petitions are partly allowed. Rule is made absolute to the aforesaid extent."
3. It is pertinent to note that the petitions were disposed of on the statement made by the learned advocates for the petitioner that the petitioners would submit applications seeking exemption from Provident Fund Scheme/ Pension scheme under the Act of 1952 and will also submit request to permit them to shift / join the scheme of the Corporation. A statement was also made that the expense/cost administrative charges would be borne by them in case such shifting is permitted. It appears that thereafter, there were inter-se communications between the Regional Commissioner and the Corporation with regard to the clarifications issued by this Court. The most relevant communication would be dated 30.03.2017, which was addressed by the Regional P.F. Commissioner to the Municipal Commissioner. The relevant portion of such communication is extracted herein below:
"So far as the petitioner's contention to the effect that the scheme was made compulsory for employees employed after 1.1.1983, the corporation has tried to counter the said contention on the ground that the said provision was with regard to the employees who are not covered /governed by the Factories Act and the Provident Fund Act whereas the petitioners are governed by the provisions under the Factories
C/SCA/10044/2019 ORDER DATED: 30/07/2021
Act and the Provident Fund Act and therefore, they were covered under the statutory scheme and consequently, the option was offered.
Be that as it may, the fact remains that the petitioners remained silent and inactive for almost 9 years and during that period of 9 years, they continued to be the member of statutory scheme. The petitioners have relied on the instances where the Provident Fund Organisation granted exemption to about 18 employees of Workshop Department.
However, in that context, the petitioners conveniently overlook the fact that when the said 18 employees applied for exemption and when P.F. Organization granted exemption, the petitioners did not submit individual applications seeking exemption from statutory scheme and shifting to the corporation's scheme.
Another relevant aspect which emerges from the corporation's reply and submission is that the corporation itself was never opposed to extending the benefit of the scheme to the petitioners. The corporation claims that actually, it was the corporation who thought of framing its own pension scheme and made it available to its employees and that, therefore, there could not be any reason for corporation to not grant /extend the benefit to its own employees in the Workshop Department, however, despite the opportunity to exercise option, the petitioners did not opt for corporation's scheme and that, therefore, any fault cannot be found with the corporation. There is some substance and justification in the corporation's contention."
4. From the aforementioned communication, it appears that the Commissioner has proceeded on the premise that under Section 17 of the Employees Provident Funds and Misc.
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Provisions Act, 1952, the Provident Fund shall vest in the Board of Trustees, the trust would be accountable to the EPFO for maintaining proper accounts and the receipts for payment of the Provident Fund to the employees and the balance would be in their custody. It appears that the respondent- Corporation, has expressed its inability to form the Trust and accordingly the applications of the petitioners, have remained undecided. From the communication it is also revealed that the entitlement of the present petitioners seeking exemption from the scheme under the EPF is yet not decided because of the administrative predicament.
5. Today, when the matters are taken up for hearing, learned senior advocate Mr. Trivedi appearing for the Corporation has expressed that in case, any decision is taken against the Corporation, it would be burdened with huge financial liability. I may clarify that the Coordinate Bench has observed that the employees, who have retired before the year 2016 will not get such benefits. He has submitted, on instructions, that the Corporation is ready and willing to forward the applications of the petitioners after attesting the same to the Regional Provident Fund Commissioner.
6. Under the circumstances and in view of the fact that the applications with regard to the entitlement of the petitioners have remained unforwarded, hence undecided, it is directed that the respondent Corporation shall forward the applications of the petitioners after duly attesting them to the Regional Provident Fund Commissioner, within a period of 8 weeks from the date of receipt of the present order. The Regional Provident Fund Commissioner after receipt of such attested
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applications shall decide the entitlement of the petitioners for GPF Scheme in accordance with law. It is directed that before any final decision is taken by the Regional Provident Fund Commissioner, all the concerned parties shall be afforded an opportunity of hearing to put forward their case. After hearing all the affected parties, the Regional Provident Fund Commissioner shall take a final decision within a period of further 2 months and communicate the same to the concerned parties. It is clarified that the aforesaid decision shall be without prejudice to the rights and contentions of all the stake holders. It would be further open for either of the parties to challenge such decision if it is adverse to them before the appropriate forum by initiating appropriate proceedings. In view of the above, the writ petitions are disposed of. Notice is discharged.
7. It is also directed that all the parties shall fully cooperate with the Regional Provident Fund Commissioner. It is observed that since the petitioners are huge in number, it would be open for them to appoint their representatives to represent their case before the Commissioner.
8. Registry to place a copy of this order in each connected matters.
(A. S. SUPEHIA, J) MAYA S. CHAUHAN
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