New Delhi: The Kerala High Court’s recent judgement on depravation of pension grant for EPFO Pensioner entitled to higher pension due to technical or procedural error will come as a huge relief.
In a landmark judgement, the Kerala HC had said that the retirement fund body can’t deny higher pension to EPF pensioner solely on the ground that the contributions were made in bulk and not on a monthly basis.
The Employees’ Provident Fund Organisation (EPFO) was introduced in the year 1995 under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 with the objective of providing retirement savings and social security for employees in India.
“In light of the Supreme Court’s landmark judgment in EPFO v. Sunil Kumar (Supra), the Hon’ble Kerala High Court has reaffirmed the principle of natural justice—that procedural irregularities should not defeat the ends of justice. The Court held that when the EPFO has accepted contributions from both the employee and the employer in accordance with the requirements of paragraph 26(6) of the EPF Scheme, 1952, employees are entitled to a higher pension. Substantial benefits cannot be denied on the grounds of procedural errors,” Sunil Tyagi, Maging Partner, Zeus Laws told Zee News.
Tyagi said that this recent judgement by Hon’ble Kerala High Court’s deals with a frequently faced issue, and its decision is a positive step towards the protection of employee pension rights.
Four retired employees of co-operative society named Thiruvananthapuram Regional Co-operative Milk Producers Union had filed writ petitions before the Kerala High Court. The ruling, favoured the petitioner, saying EPFO must pay higher pension to people who contributed on their full salary during service, irrespective of the fact whether payments were made in bulk or delayed.
“This ruling reaffirms the need for fair pension rule interpretation, guaranteeing employees the benefits they’ve earned through their contributions. It’s a major victory for workers and promotes a fairer pension system,” he added.
Tyagi said that the ruling shall have widespread ramifications and has a potential to bring far reaching benefits for thousands of pensioners since it prioritizes the substance of the contributions over procedural technicalities.
“This landmark ruling offers much needed relief for those have been denied higher pension claims or experienced delays or lump-sum contributions due to EPFO procedural shortcomings despite having contributed to the pension scheme beyond the minimum requirements. This decision would also encourage other High Courts to focus on employee interests while interpreting such cases,” he added.