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Corporate Law

Family Pension claim not acceptable if option to join scheme was not exercised

Case Law Details

TaxGuru Citation
2016 taxguru.in 333
Case Name
Ganesh Prasad Mishra Vs Commissioner EPF Organization (Madhya Pradesh High Court at Indore)
Date of Judgement/Order
Only available for paid members
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Brief of the case:

  • The Hon’ble MP High court in the above stated case placing reliance on the decision of Hon’ble Supreme court in the case of Rajasthan State Road Transport Corporation vs. President, Rajasthan Roadways Union & Anr. held that since the petitioner did not exercise the option of joining the family pension  scheme his claim of pension on superannuation is not acceptable because in order to join the scheme the option was mandatorily to be exercised.

Facts of the case:

  • The petitioner (employee) was in the employment of M.P. Road Transport Corporation, working as a driver from 30.4.1969 to 30.6.2000. He was retired on attaining the age of superannuation 58years). He was a member of Employees’ Provident Funds (EPF) scheme framed under Section 6 of the EPF and Misc. Provisions Act, 1952. His contribution to this scheme was regularly deducted throughout the service-tenure and credited to the scheme.
  • Petitioner claim was that he is entitled to ‘Superannuation Pension’ w.e.f. 1.7.2000 as provided in Rule 12(a) of the Employees Pension Scheme of 1995, since he has rendered eligible service of 20 years and more and retired on attaining the age of superannuation for 58 years.
  • The respondent’s (EPF Commissioner) stand was that the petitioner was not the member of the ceased Employees’ Family Pension, 1971 before the commencement of Employees’ Pension Scheme, 1995. As he has not submitted his option form at any point of time and, therefore, he cannot claim to be the member of said pension scheme nor he is entitled for pension under new Pension Scheme, 1995, which has come into force w.e.f. 16.11.1995.
  • Against such rejection of petitioner’s claim of pension ,he filed writ petition in MP High Court.

Contention of the Petitioner:

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Author Info

CA Saurabh Chokhra
Qualification: CA in Job / Business
Location: Hyderabad, Telangana
Articles Published: 243

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