Dismissed

The Malappuram District Co-Operative Bank v. Kerala State Co-Operative Employees Pension Board

Kerala HC24 Nov 2023WP(C)/7523/2023

Case brief

AI extract

What is this about?

The High Court of Kerala dismissed a writ petition challenging a Pension Board order. The Board directed the Bank to pay arrears of employer contributions with interest to former employees. The Court found the Board's order justified under the Scheme and allowed proceedings for recovery.

What did the court decide?

Petitioner Bank directed to pay the balance amount to enable respondents to receive full pension.

The Malappuram District Co-Operative Bank Vs Kerala… — Cooperative Societies | Kerala HC (2023)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT

¶3

THE HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V FRIDAY, THE 24^TH DAY OF NOVEMBER 2023 / 3RD AGRAHAYANA, 1945 WP(C) NO. 7523 OF 2023

¶4

PETITIONER/S:

¶5

THEMALAPPURAMDISTRICTCO-OPERATIVEBANK
(NOWAMALGAMATEDWITHTHEKERALASTATECO-OPERATIVE
BANK),REPRESENTEDBYITSGENERALMANAGER,PBNO.8,
MANJERIROAD,UPHILL,MALAPPURAM,PIN-676505
BYADVP.C.SASIDHARAN

¶6

RESPONDENT/S:

¶7

1KERALASTATECO-OPERATIVEEMPLOYEESPENSIONBOARD
THIRUVANANTHAPURAM,REPRESENTEDBYITSSECRETARY.,
PIN-695014

¶8

2EMPLOYEESPROVIDENTFUNDORGANISATION
SUBREGIONALOFFICE,BHAVISHYANIDHIBHAWAN,
PBNO.1806,ERANHIPALAMP.O.,
KOZHIKODE,PIN-673006
3EJAYAKUMAR
OORVARA,SANTHIGRAMAM,MANJERI,
MALAPPURAM,PIN-676121
4C.BALASUBRAMANYAN
CHERUGOTTILLHOUSE,AANAMGADP.O,
MALAPPURAM,PIN-679357
5PREETHIKUMARIK.G
KARUMANKUZHILHOUSE,KADANJERIP.O.,
MALAPPURAM,PIN-679582
BYADVS.
SRI.ABRAHAMP.MEACHINKARA,SC,EPFO
SMT.JAYASREEK.P.
SRI.JOHNJOSEPH(K/000875/2019)
SRI.NANDAGOPALNAMBIARV.V.,PENSIONBOARD

¶9

THISWRITPETITION(CIVIL)HAVINGCOMEUPFOR
ADMISSIONON24.11.2023,THECOURTONTHESAMEDAYDELIVERED
THEFOLLOWING:

¶10

W.P(C) No.7523 of 2023

¶11

¶12

JUDGMENT

¶13

The petitioner herein is the Malappuram District Co-operative Bank.

¶14

They have approached this Court being aggrieved by the proceedings issued by the Kerala State Cooperative Pension Board ordering the petitioner to pay a sum of Rs.15,34,235/- with 10% annual interest being the arrears of employers' contribution in respect of respondents 3 to 5 who were former employees of the bank.

¶15

Short facts of the case are as under:

¶16

2.1 The State Co-operative Bank and District Co-operative Bank

¶17

Employees Self Financing Pension Scheme 2005, was introduced by the Government of Kerala in exercise of powers conferred under Section 80A of the Kerala Co-operative Societies Act, 1969. The Scheme was introduced for the payment of pension to the employees of the Kerala State Co-operative Bank and District Co-operative Bank. The Scheme was published in the gazette on 02.03.2005. The Government has issued an order dated 30.06.2009 granting exclusion of the Kerala State Co-operative Bank and 14 District Co-operative Banks from the Employees Provident Fund and Miscellaneous Provisions Act, 1952. Consequently, the Kerala State Co-operative Bank and the District Co-operative Banks, including the

¶18

W.P(C) No.7523 of 2023

¶19

¶20

petitioner, have come under the Scheme.

¶21

2.2 As per Clause 29 of the Scheme, on and from the date of commencement of the Scheme, the portion of employer’s contribution with interest accrued thereon standing to the credit of the employees in the EPF and in the Employees’ Pension Trust Scheme shall be transferred and credited by the Bank to the Fund. Clause 29(b) says that if a Bank fails to transfer the employer’s contribution with interest accrued thereon as provided in clause (a) above within a period of one year and six months from the date of publication of the Scheme in the Official Gazette or has transferred only a part thereof, it shall be liable to transfer such amount or part thereof, as the case may be with interest at the rate of 24% per annum. The Government has, however, by invoking its powers under clause 30 of the Scheme, reduced the rate of interest to 10% compound interest.

¶22

2.3 In other words, within one and a half years from 30.06.2009, the date on which the Government passed the exclusion order, the petitioner Bank was bound to transfer the employers’ contribution standing to the credit in the EPF upto 06.2009

¶23

2.4 The respondent Nos.3 to 5 retired from the Malappuram District Co-operative Bank on 31.07.2020, 31.07.2020, and 30.06.2021. Their specific contention is that the Bank did not transfer the employer’s

¶24

W.P(C) No.7523 of 2023

¶25

¶26

contribution within the time stipulated. In the said circumstances, they approached the Pension Board and remitted the amounts together with interest at 8.5%. This was done to enable them to receive the pension. As stated earlier, it was the responsibility of the Bank to remit the amount with 10% interest if the amounts were not paid within a period of one year from 06/2009.

¶27

2.5 The respondents 3 to 5 seeking full pension approached this Court and filed writ petitions. The petitioner Bank also approached this Court challenging the demand notices issued by the Pension Board requesting them to pay the amounts outstanding together with interest. By judgment dated 11.07.2022 in W.P(C) No.16014 of 2022 and connected cases, this Court directed the competent authority of the Pension Board to hear all concerned and to take a decision as to the amounts to be remitted by them under the Scheme.

¶28

2.6 In terms of the directions issued by this Court the Pension Board heard all the parties and directed the Bank to pay a sum of Rs.15,71,262/being the arrears due till 28.02.2023. Immediately thereafter Ext.P4 recovery notice was issued. The above order as well as the notice are under challenge.

¶29

I have heard Sri.P.C Sasidharan, the learned counsel appearing for the petitioner, Sri. Nandagopal Nambiar, the counsel appearing for the

¶30

W.P(C) No.7523 of 2023

¶31

¶32

Pension Board and Smt. Jayasree K.P, the counsel appearing for

¶33

respondents 3 to 5.

¶34

I have considered the submissions advanced.

¶35

Clause 29 of the State Co-operative Bank and District Co-operative Bank Employees Self Financing Pension Scheme 2005 reads as under:

¶36

Special Provision for transfer of funds from the Employee Provident Fund Trust and Employees Provident Fund Scheme:- On and from the date of commencement of this Scheme.-

¶37

(a) the portion of employers contribution with interest accrued thereon standing to the credit of the employees in the Employees Provident Fund and in the Employees Pension Trust Scheme shall be transferred and credited by the Bank to the Fund and

¶38

(b) if a Bank fails to transfer the employer‟s contribution with interest accrued thereon as provided in clause (a) above within a period of one year and six months from the date of publication of the scheme in the official gazette or has transferred only a part thereof, it shall be liable to transfer such amount or part thereof, as the case may be, with interest at the rate of 24% per annum.

¶39

It is undisputed that it is pursuant to the exclusion order dated

¶40

30.6.2009 that the petitioner Bank was granted exclusion from the EPF Act, 1952. Under clause 29(b), the petitioner was bound to transfer the employer’s contribution with 10% interest within one year from 06/2009. Ext.R3(m) is dated 18.12.2020 and issued by the petitioner to the Secretary, Pension Board. The relevant portion of Ext.R3(m) reads as

¶41

W.P(C) No.7523 of 2023

¶42

¶43

under:

¶44

‘നിലവിൽ റി�യർ െചയ് ത ജീവന�ാർ അവ�െട മാസാ� െപൻഷൻ �ട�ാതിരി�ാൻ അവ�െടമ�റി�യർെമ�് ആ��ല��ളിൽ നി�ംപണംകെ��ിയാണ് 06/2009 വെര�� PF �ടി�ിക�ംഅതിേ��പലിശേയാമല�റംശാഖയിെല SB അ�ൗ�ിേല�് അടവാ�ി െചലാൻ െപൻഷൻ േബാർഡിേല�് സമർ�ി�ു�തിന്ബാ�ിൽ നൽകു�ത്. ബാ�് PF വിഹിതംഅതാ�സമയ�്തെ� അടവാ�ിയതിനാൽ (EPFO) വീ�ം ഈ സംഖ� അടവാ�ാ�ം പലിശ നൽകാനും ബാധ��ര�.’

¶45

The Bank in the above commission has accepted that the employees themselves have been paying the contribution together with interest at the rate of 8.5% from 06/2009 from their retirement benefits to ensure that they continue to receive their pension. What was being done is that the amounts are remitted in the SB account maintained with the Bank and the said amount is later transferred to the Pension fund. The party respondents in their counter has asserted that the arrear amounts have been paid by them together with 8.5% interest. The provision clearly says that if the amount is not transferred within a period of one year, the same would carry compound interest at the rate of 10%. The petitioner clearly has not acted in tune with Clause 29(b) of the Scheme and it is for the said reason that the Pension Board has directed the petitioner to pay the balance amount so that the party respondents receive the full pension to which they are entitled.

¶46

I find that insofar as the employees of Thiruvananthapuram

¶47

W.P(C) No.7523 of 2023

¶48

¶49

District Co-operative Bank are concerned, which also stands merged with the Kerala Bank, an identical situation had arisen. The Pension Board calculated the pension fund arrears of 36 employees and had issued Ext.R1(a) order on 26.11.2022 directing the Bank to remit a sum of Rs. 1,08,97,662/-. The said amount has already been remitted. In that view of the matter, there is no justification in not paying the arrears in so far as the petitioner Bank is concerned.

¶50

In view of the discussion above, I find that the order passed by the Pension Board is in order and does not warrant any interference. This writ petition is dismissed. It would be open to the Pension Board to initiate all necessary steps, including initiation of proceedings under Clause 28 of the Scheme to realise the amounts with interest.

¶51

Sd/- RAJA VIJAYARAGHAVAN V, JUDGE

¶52

¶53

W.P(C) No.7523 of 2023

¶54

¶55

APPENDIX OF WP(C) 7523/2023

¶56

PETITIONEREXHIBITS:

¶57

ExhibitP1THETRUECOPYOFTHEJUDGMENTOFTHISHON'BLE
COURTINW.P.(C)NO.16014OF2022DATED
11/07/2022
ExhibitP2THETRUECOPYOFTHEORDERISSUEDBYTHE
PENSIONBOARD,NO.P.B.L.O/8429/2022/MPMDATED
26/11/2022
ExhibitP3THETRUECOPYOFTHEPROCEEDINGSOFTHEKERALA
STATECO-OPERATIVEEMPLOYEESPENSIONBOARD,
NO.PB/P3/161/MPM-DCBDATED04/02/2023
ExhibitP4TRUECOPYOFTHEDEMANDNOTICEDATED
04.02.2023
RESPONDENTEXHIBITS:
ExhibitR3(a)ATRUECOPYOFTHELETTERDATED:21/01/2021
ExhibitR3(b)ATRUECOPYOFTHEDEMANDNOTICE
DATED:07/12/2020ISSUEDBYTHE1STRESPONDENT
ExhibitR3(c)ATRUECOPYOFTHEORDERNO.PPO/161/MPM/DCB
DATED:3/02/2023
ExhibitR3(d)ATRUECOPYOFTHEERRATUMISSUEDBYTHE1ST
RESPONDENTBYWAYOFANORDER
NO.PPO/161/MPM/DCBDATED:10/02/2023
ExhibitR3(e)ATRUECOPYOFTHEORDERNO.PPO/160/MPM/DCB
DATED:10/02/2023SANCTIONINGELIGIBLEFULL
PENSIONTOTHE4THRESPONDENT
ExhibitR3(f)ATRUECOPYOFTHEORDERNO.PPO/170/MPM/DCB
DATED:10/02/2023SANCTIONINGELIGIBLEFULL
PENSIONTOTHE5THRESPONDENT
ExhibitR3(g)TRUECOPYOFTHEJUDGMENTINCONCASE(C)
NO.456/2023OFTHISHONOURABLECOURT

¶58

W.P(C) No.7523 of 2023

¶59

¶60

`Exhibit`	`R3(h)`	`TRUE COPY OF THE G.O (P) NO.44/95/CO-OP` `DATED:14/03/1995`
`Exhibit`	`R3(i)`	`A TRUE COPY OF THE CIRCULAR NO.44/2012` `DATED:19/11/2012 ISSUED FROM THE OFFICE OF` `REGISTRAR OF CO-OP SOCIETY`
`Exhibit`	`R3(j)`	`A TRUE COPY OF THE ORDER NO.PBLO/8429/2022` `DATED:26/11/2022`
`Exhibit`	`R3(k)`	`A TRUE COPY OF THE ORDER NO.PPO/418/TPM/DCB` `DATED:19/01/2023 PASSED BY THE 1ST RESPONDENT`
`Exhibit`	`R3(l)`	`A TRUE COPY OF THE ORDER NO.PPO/387/TPM/DCB` `DATED:19/01/2023 PASSED BY THE 1ST RESPONDENT`
`Exhibit`	`R1(a)`	`A TRUE COPY OF THE ORDER NO. PB/LO/8429/2022` `DATED 26/11/2022 OF THIS DEPONENT`
`Exhibit`	`R3(m)`	`A TRUE COPY OF THE LETTER DATED 18.12.2020` `ISSUED BY THE PETITIONER BANK TO THE SECRETARY` `OF 1ST RESPONDENT BOARD`

The Malappuram District Co-Operative Bank v. Kerala State Co-Operative Employees Pension Board

Case brief

What is this about?

What did the court decide?

The Malappuram District Co-Operative Bank v. Kerala State Co-Operative Employees Pension Board

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Jenny Jose.M. Vs State of Kerala

Johny Joseph Vs High Court of Kerala

Ramlath K., Vs State of Kerala

Dr.Thomas Koilparambil, Vs State of Kerala

Sivanandan.M Vs M/S India Telephone Industries Limited

K.Venugopal Vs Kerala State Road Transport Corporation Ksrtc