{"id":36631,"date":"2009-08-17T00:00:00","date_gmt":"2009-08-16T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/b-indira-devi-vs-cherthala-town-service-on-17-august-2009"},"modified":"2015-04-15T09:28:43","modified_gmt":"2015-04-15T03:58:43","slug":"b-indira-devi-vs-cherthala-town-service-on-17-august-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/b-indira-devi-vs-cherthala-town-service-on-17-august-2009","title":{"rendered":"B.Indira Devi vs Cherthala Town Service … on 17 August, 2009"},"content":{"rendered":"
Kerala High Court<\/div>\n
B.Indira Devi vs Cherthala Town Service … on 17 August, 2009<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWP(C).No. 12144 of 2004(U)\n\n\n1. B.INDIRA DEVI, PADINJARE MUNNANKARA\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. CHERTHALA TOWN SERVICE CO-OPERATIVE\n                       ...       Respondent\n\n2. KERALA STATE CO-OPERATIVE EMPLOYEES\n\n3. DISTRICT COLLECTOR, ALAPPUZHA DISTRICT,\n\n                For Petitioner  :SRI.O.V.RADHAKRISHNAN (SR.)\n\n                For Respondent  :SRI.T.R.HARIKUMAR\n\nThe Hon'ble MR. Justice ANTONY DOMINIC\n\n Dated :17\/08\/2009\n\n O R D E R\n                    ANTONY DOMINIC,J.\n               ---------------------\n               W.P.(C).No.12144 OF 2004\n             ------------------------\n          Dated this the 17th day of August, 2009.\n\n                        JUDGMENT\n<\/pre>\n
     The prayer sought for in this writ petition is to quash<\/p>\n
Exts.P13, P16 and P17. Petitioner also seeks a direction to<\/p>\n
the respondents to sanction and pay pension that is due to<\/p>\n
her, without insisting on any further payment from her side.<\/p>\n
A direction to refund an amount of Rs.4,519.50 is also<\/p>\n
sought for.\n<\/p>\n
     2. Facts of the case are that, petitioner retired from<\/p>\n
the service of the first respondent as         Secretary on<\/p>\n
30.11.1994. Subsequent to her retirement, on 14.3.1995,<\/p>\n
Kerala Co-operative Societies Employees Self Financing<\/p>\n
Pension Scheme 1994 was introduced with effect from<\/p>\n
3.6.1993. The petitioner who        had by then received<\/p>\n
Rs.40,844.59 as        employers contribution under the<\/p>\n
Provident Fund Scheme, opted for the pension under 1994<\/p>\n
WP(c).No.12144\/04               2<\/span><\/p>\n
scheme.\n<\/p>\n
      3. Clause(18) of the pension scheme provides that every<\/p>\n
employee of the Society to which the scheme applies shall,<\/p>\n
subject to the provisions of the scheme         be eligible for<\/p>\n
pension under the scheme. In so far as the retired employees<\/p>\n
are concerned, proviso states that such an employee shall be<\/p>\n
eligible for pension only on refund of that part of employers<\/p>\n
contribution under the Contributory Provident Fund together<\/p>\n
with interest thereon to the pension fund before applying for<\/p>\n
pension. On the Petitioner opting for pension, she remit an<\/p>\n
amount of Rs.57,708\/- being the employers contribution to<\/p>\n
the PF, that she had      received along with 6%     interest till<\/p>\n
13.4.2000, as per Ext.P3.\n<\/p>\n
      4. Subsequently, by Ext.P4, she was called upon to remit<\/p>\n
a further sum of Rs.71,141\/- which was disputed by the<\/p>\n
petitioner by filing a representation to the first respondent.<\/p>\n
Later Bank informed the petitioner by Ext.P5 that interest<\/p>\n
payable is at 12% on the dues and that she should remit an<\/p>\n
amount of Rs.58,293.90. That again was disputed by the<\/p>\n
petitioner by filing Ext.P6 to the 2nd respondent. At that stage,<\/p>\n
WP(c).No.12144\/04               3<\/span><\/p>\n
petitioner filed O.P.NO.19613\/2001, which was disposed of<\/p>\n
by Ext.P7 judgment, paragraph 3 of which reads as under.<\/p>\n
                  “Going by the proviso to clause 18, the
\n                  moment a pensioner refunds the contribution
\n                  received from the provident fund along with
\n                  interest, the pensioner becomes eligible.
\n                  Though the pensioner was asked to remit the
\n                  money, according to the petitioner, she could
\n                  not do so. Up to 4.2.1999 the rate of interest
\n                  was 12% and thereafter the re ate of interest
\n                  was 24%. Therefore, the interest will accrue at
\n                  the respective rates of interest till the
\n                  petitioner remits the amount. As and when
\n                  the petitioner remits the Pension contribution
\n                  received at the respective rates of interest,
\n                  namely, 12% from the date of receipt of the
\n                  provident fund contribution up to 4.2.1999
\n                  and thereafter at the rate of 24% the Pension
\n                  Board will accept the amount and the pension
\n                  will be calculated and settled. It is made clear
\n                  that the petitioner needs remit only the
\n                  balance up to the date of Ext.P5. “<\/p><\/blockquote>\n
      5. Petitioner submits that in compliance with the above<\/p>\n
directions in the judgment, by Ext.P8(a) she        remitted    a<\/p>\n
further sum of Rs.19,911\/- . Even thereafter, by Ext.P9 she<\/p>\n
was informed that her balance liability is Rs.71,353\/-. That<\/p>\n
was challenged before      this court in O.P.No.26643\/02 and<\/p>\n
pursuant to the interim order passed in that Original petition<\/p>\n
provisional pension at the rate of Rs.1078\/- was paid to the<\/p>\n
petitioner with effect from 1.1.2003. The Original Petition was<\/p>\n
WP(c).No.12144\/04             4<\/span><\/p>\n
finally   disposed   of   by   Ext.P10   judgment    directing<\/p>\n
reconsideration of the matter.\n<\/p>\n
      6.   Accordingly the matter was reconsidered    and by<\/p>\n
Ext.P13 she was informed that her outstanding liability was<\/p>\n
Rs.81,299\/-. The statement attached to Ext.P13 shows that as<\/p>\n
on 30.11.1994, the amount that was due from the petitioner<\/p>\n
was quantified at Rs.59,825\/-. It also shows that interest has<\/p>\n
been levied for the period subsequent to 13.4.2000, against<\/p>\n
the directions contained in Ext.P7 judgment. Representations<\/p>\n
were made and finally Ext.P16 was issued by the 2nd<\/p>\n
respondent informing that the balance liability of the<\/p>\n
petitioner is Rs.32,505\/-. Along with this demand, notice and<\/p>\n
statement were also enclosed. Subsequently, by Ext.P17, the<\/p>\n
2nd respondent ordered, proportionate pension of Rs.1457\/-<\/p>\n
with effect from 1.4.2000 based on the remittance made by<\/p>\n
the petitioner. Arrears on this basis was also ordered to be<\/p>\n
arranged. It is in this background that this Writ Petition is<\/p>\n
filed.\n<\/p>\n
      7.   The contention raised by the petitioner is that in<\/p>\n
terms of clause 18 of the Pension Scheme 1994, the liability of<\/p>\n
WP(c).No.12144\/04                5<\/span><\/p>\n
a retired employee is to refund that portion of the employers<\/p>\n
contribution in the Contributory Provident Fund together with<\/p>\n
interest thereon. According to the petitioner, the liability for<\/p>\n
interest has been settled by this court in Ext.P7 judgment in as<\/p>\n
much as her liability to pay interest is at the rate of 12% till<\/p>\n
4.2.1999 and 24% till 13.4.2000. It is stated that if interest on<\/p>\n
Rs.40,844.59 is calculated at 12% till 4.2.1999 and 24% till<\/p>\n
13.4.2000, the remittance of Rs.77,619\/- made by her is in<\/p>\n
excess of what was actually due. On this basis the petitioner<\/p>\n
submits that Rs.4,519.50 is liable to the refunded.<\/p>\n
      8.   According to the respondents the liability to pay<\/p>\n
contribution, accrues with the every payment of salary. On<\/p>\n
this basis it is contended that when there is belated payment<\/p>\n
of the contribution due, interest will also fell due, from the<\/p>\n
date when the contribution became due. They are relying on<\/p>\n
Ext.R1-G instructions based on which this calculation is done.<\/p>\n
Clause 5 and 6 of Ext.R1-G being relevant are extracted below<\/p>\n
for reference.\n<\/p>\n
               “Interest rate for Pension Fund will be rate of
\n               interest given by the DCB’s from time to time in
\n               case the fund is invested with the DCB and
\n               appropriate rate for other investments such as<\/p>\n
WP(c).No.12144\/04                 6<\/span><\/p>\n
               FD, Indira Vikas Patra etc, and 12% for the period
\n               in which no investments have been made and the
\n               fund is used for own lending by the Societies.\n<\/p><\/blockquote>\n
               Those who have retired on or after 3.6.1993 and
\n               before coming into force of the pension scheme
\n               and received back the CPF the rate of interest up
\n               to the date of retirement will be the DCB rate and
\n               12% from the date of retirement till the date of
\n               remittance to pension fund. “<\/p><\/blockquote>\n
      9. It is stated that, it is on that basis, the pension<\/p>\n
contribution has been quantified at Rs.59,824\/- as on<\/p>\n
30.11.1994 when she retired from the service of the first<\/p>\n
respondent.\n<\/p>\n
      10. Therefore, all that arises for consideration in this<\/p>\n
writ petition is the correctness of the quantification made by<\/p>\n
the 2nd respondent by adding interest on the             monthly<\/p>\n
contribution that was due from the petitioner.<\/p>\n
      11.    Clause 18 of the Scheme says that a retired<\/p>\n
employee should refund that portion of the employees<\/p>\n
contribution in the Contributory Privident Fund together with<\/p>\n
interest thereon.      It is evident that this clause does not say<\/p>\n
from what date the pension fund can levy interest on a retired<\/p>\n
person. It is taking advantage of this freedom that Ext.R1-G<\/p>\n
instructions have been issued by the 2nd respondent, and<\/p>\n
WP(c).No.12144\/04                7<\/span><\/p>\n
clause 6 of which states that those who have retired on or<\/p>\n
after 3.6.1999 and received Contributory Provident Fund the<\/p>\n
rate of interest up to the date of retirement will be the rate<\/p>\n
paid by the District Co-operative Bank and 12% from the date<\/p>\n
of retirement till their date of remittance to the pension fund.<\/p>\n
Ext.R1-G is not under challenge and this is the          uniform<\/p>\n
pattern that is adopted in the pension scheme.<\/p>\n
      12. Having regard to the fact that it is permissible for the<\/p>\n
pension fund to realize the interest from the retired employees<\/p>\n
and in the absence of any challenge to Ext.R1-G, I cannot find<\/p>\n
fault with the 2nd respondent in quantifying the petitioner’s<\/p>\n
liability adding interest     at the rate specified, on the<\/p>\n
contribution that is due with interest from every month when<\/p>\n
such liability has fallen due.\n<\/p>\n
      13. Counsel for the petitioner relied on Ext.P7 judgment<\/p>\n
where this court has directed that on the petitioner remitting<\/p>\n
12% interest till 4.2.1999 and 24% interest thereafter pension<\/p>\n
shall be paid. However, a closer reading of paragraph 3 of the<\/p>\n
judgment shows that this court while specifying the rate of<\/p>\n
interest and directing that her liability will be limited up to<\/p>\n
WP(c).No.12144\/04               8<\/span><\/p>\n
13.4.2000, did not say that the pension Board shall not be at<\/p>\n
liberty to levy interest in terms of Ext.R1-G. If that be so, the<\/p>\n
contention relying on Ext.P7, which does not advance the<\/p>\n
petitioner any further.\n<\/p>\n
      14. For these reasons, I do not find any thing irregular<\/p>\n
in the quantification done by the Board and the petitioner’s<\/p>\n
liability as on 30.11.1994.\n<\/p>\n
      Needless to say, if the petitioner makes payment of the<\/p>\n
amount due within 8 weeks from today, the Pension Board will<\/p>\n
accept the petitioner’s contribution and disburse the dues in<\/p>\n
terms of the scheme.\n<\/p>\n<\/p>\n
                                     (ANTONY DOMINIC)
\n                                           JUDGE
\nvi\/<\/p>\n
WP(c).No.12144\/04    9<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court B.Indira Devi vs Cherthala Town Service … on 17 August, 2009 IN THE HIGH COURT OF KERALA AT ERNAKULAM WP(C).No. 12144 of 2004(U) 1. B.INDIRA DEVI, PADINJARE MUNNANKARA … Petitioner Vs 1. CHERTHALA TOWN SERVICE CO-OPERATIVE … Respondent 2. KERALA STATE CO-OPERATIVE EMPLOYEES 3. DISTRICT COLLECTOR, ALAPPUZHA DISTRICT, For Petitioner :SRI.O.V.RADHAKRISHNAN (SR.) […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-36631","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nB.Indira Devi vs Cherthala Town Service ... on 17 August, 2009 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/b-indira-devi-vs-cherthala-town-service-on-17-august-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"B.Indira Devi vs Cherthala Town Service ... on 17 August, 2009 - 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