The High Court of Karnataka dismissed the Regular Second Appeal filed by the Regional Provident Fund Commissioner. The Court held that the statutory organization failed to prove payment of the PF amount and its witness admitted no limitation on claiming it, leading to affirmation of the lower court decree.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
NC: 2024:KHC:9435 RSA No. 1466 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 6TH DAY OF MARCH, 2024
BEFORE
THE HON'BLE MR JUSTICE M.G.S. KAMAL REGULAR SECOND APPEAL NO. 1466 OF 2023 (INJ)
BETWEEN:
THE REGIONAL PROVIDENT FUND COMMISSIONER II, EMPLOYEES PF ORGANISATION, BHAVISHYANIDHI BHAVAN, GAYATHRIPURAM 2ND STAGE, MYSURU- 570 017
…APPELLANT
(BY SMT. M.R.SHALAMALA, ADVOCATE)
AND:
Digitally signed by SUMA B N Location: High Court of Karnataka
SRI. B.T.SHIVANANJAIAH, S/O LATE B.THIMMAIAH, AGED ABOUT 59 YEARS, R/AT. DOOR NO.743/S, 25/8TH CROSS, HEBBAL 2ND STAGE, MYSURU- 570 017
…RESPONDENT
THIS RSA FILED UNDER SECTION 100 OF CPC., AGAINST THE JUDGMENT AND DECREE DATED 21.03.2023 PASSED IN RA NO.186/2022 ON THE FILE OF THE IV ADDITIONAL SENIOR CIVIL JUDGE AND JMFC, MYSURU, DISMISSING THE APPEAL AND CONFIRMING THE JUDGMENT AND DECREE DATED 27.07.2022 PASSED IN OS NO.985/2013 ON THE FILE OF THE III ADDITIONAL CIVIL JUDGE AND JMFC, MYSURU.
THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, THE COURT DELIVERED THE FOLLOWING:
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JUDGMENT
This appeal is by the Regional Provident Fund Commissioner, who was defendant in O.S.No.985/2013, which suit was filed by the respondent/plaintiff seeking direction to the appellant-organisation to pay the PF amount with such accrued benefits if any standing in the account of the plaintiff’s PF No.KN/7143/154. The said suit was decreed as prayed for by the judgment decree dated 27.07.2022 passed on the file of III Addl.Civil Judge and JMFC, Mysuru (hereinafter referred to as the “Trial Court”), being aggrieved with the same appellantorganization filed regular appeal in R.A.No.186/2022 on the file of IV Addl. Senior Civil Judge, Mysuru (hereinafter referred to as “The First Appellate Court”) by judgment and order dated 21.03.2023, the First Appellate Court dismissed the appeal filed by the appellant-organisation and confirmed the judgment decree passed by the Trial Court. Being aggrieved by the same, the appellantorginisation is before this Court.
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the respondent/plaintiff contending that he was an employee of M/s.Kasturi Food and Chemical, Mysuru which was later changed as M/s.Vasavi Soft Drinks. The plaintiff was a member of EPF Scheme, 1952 and Family Pension Scheme 1971 vide his PF account No.KN/7143/154. The said factory was locked out on 26.01.1991 and the plaintiff continued to be the member of both the PF schemes. He has not received any amount and he was not aware as to the status of the account.
the plaintiff by name Manjunath also had a PF account No.KN/7143/149, who had applied for his PF amount to the defendant and the defendant paid him the sum of Rs.91,908/- by depositing the same in his bank account. This prompted the plaintiff to apply to the defendantorginisation seeking his PF amount for which the defendant-orginisation has stated that the PF amount has already been settled on 12.01.1989. Plaintiff being
surprised and shocked about the said response of the defendant-orginisation sought for furnishing of details of they having settled the PF amount of the plaintiff as the plaintiff had never received any amount as contended. The plaintiff finding no other alternate, filed the suit for Mandatory Injunction, directing the defendant to pay his PF amount with such accrued benefits, as may have credited to his account.
orginisation appeared and filed the written statement denying the plaint averments and contended that the suit was barred by limitation and also contended that the plaintiff was an employee of M/s.Kasturi Food and Chemical which was locked out on 26.01.1991 and under
para No.69(1)(d) of EPF Scheme, 1952 he was entitled to claim his provident fund money on or before the year 1991. That the claim of the plaintiff was finally settled on 12.12.1989 as per Form No.9 maintained by the defendant. That the plaintiff had complained about non
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receipt of his amount for nearly twenty years, as such there was no cause of action for the suit.
exhibited 6 documents marked as per Exs.P.1 to P.6. One Sri.Narayana Rao S, Enforcement Officer of the defendantorginisation examined himself as DW.1 and exhibited 7 documents marked as per Exs.D.1 to D.7.
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9. On re-appreciation of the matter, First Appellate
Court answered point Nos.1 and 2 in the negative and consequently dismissed the suit. Aggrieved by the same defendant-orginisation is before this Court.
of he not receiving the PF amount. It is her further submission that the Trial Court and the First Appellate Court without appreciating this legal aspect of the matter have erred in decreeing the suit.
has filed a memo dated 06.03.2024 along with a photocopy of the Manual Of Accounting Procedure and a photocopy of the hand written purported Form No.9 maintained at the office of the appellant-orginisation. She further submits that the defendant-orginisation had even furnished the details of the cheques that was issued in favour of the plaintiff before the Trial Court. That these evidence could indicate the appellant-orginisation was required to maintain the account only for the period of three years, that apart the said documents would also evidence payment and settlement of the account of the plaintiff and this not having been appreciated by the Trial Court and First Appellate Court has resulted in the passing of perverse judgment and decree. Thus, she submits that
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the same gives raise to substantial question of law requiring consideration at the hands of this Court.
plaintiff being member of EPF scheme have held, that the plaintiff has discharged his initial burden of he being a member of EPF scheme.
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said Form No.9 would indicate at Sl.No.154 name of the plaintiff Shivananjaiah is shown. There are three columns on the right hand side which have remained blank. While the similar columns against the names at Sl.No.150, 153, 155 to 161 seem to have been filled. Except this there is no other material evidence produced by the appellantorginisation.
NC: 2024:KHC:9435 RSA No. 1466 of 2023
there is no limitation fixed for obtaining the PF amount. He has also admitted that in Ex.D.1, there is no seal and signature of the employer. He has also admitted that Ex.D1 does not disclose about disbursing of
PF amount to the plaintiff. He has also admitted that he has not produced Form No. 9 and 10 (c). He has also admitted that in Ex.D.3-register there is no endorsement for having issued PF amount to the plaintiff. He has further admitted that he has not produced the statement of bank for having debited the amount towards the plaintiff’s PF amount. The said evidence and the admission of the defendant witness has been taken note by the Trial Court at para No.24 of its judgment.
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appellant-defendant is not required to maintain beyond three years.
GSR, List No.: 2 Sl No.: 17
Sd/JUDGE
2 issues framed by the court
Whether the appellant-organisation is required to maintain PF settlement records beyond three years to bar the plaintiff's late claim?
Whether the appellant has discharged the burden of proving payment and settlement of the PF amount given the primary witness's admissions?
Regional Provident Fund Commissioner II, Employees PF Organisation
Sri. B.T. Shivananjaiah
M.G.S. Kamal
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
