Radha Raman Saraswat vs State of M.P.

Heard on I.A. No. 2776/2012, an application for condonation of delay.

There is delay of 56 days in filing the appeal.

Looking to the facts of the case, application is allowed. Delay in filing the appeal is hereby condoned.

Heard on merits of the appeal.

The appellants have filed this appeal against the order dated 09/12/2013 passed by the Writ Court in Writ Petition No. 4755/2013(S).

The Court disposed of the aforesaid Writ Petition with the following directions:-

In the considered opinion of this Court, whether or not there exists a provision for grant of interest, the fact remains that the petitioners'' contribution amount was remained with the Provident Fund Organization for quite some time. Since the contribution amount of the petitioners was retained by Provident Fund Organization for quite some time, in the considered opinion of this Court, the petitioners are entitled for interest for the period the amount was retained by Provident Fund Organization. I deem it proper to command Provident Fund Organization to pay interest as per prevailing rate of saving accounts applicable in the Nationalized Bank. The respondent-Provident Fund Organization shall calculate the amount of interest as per prevailing rate applicable as aforesaid and complete this exercise within a period of three months. The amount of interest shall be disbursed to the petitioners within the aforesaid period.

The petition is allowed to the extent indicated above. No costs.

The grievance of the appellants in this appeal is that the Writ Court has not awarded appropriate interest to the appellants.

Some of the appellants are still working in Higher Secondary School Ambah, District Morena and some have been retired. The school was allotted the employees code number as MP/3901 because it was covered under the provisions of Employees Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred as "Act of 1952"). The school did not submit contribution, therefore, regular proceedings u/s 7-A of the Act of 1952 were initiated. An amount of Rs. 9,74,304/- was deposited by the school with the respondent No. 2. The amount was deposited in pension account.

The Government introduced a scheme named as "Employees Pension Scheme 1995". When the appellants were not paid pension, they filed a Writ Petition before the Writ Court. The Court has issued a direction that if the appellants are not entitled for pension, the amount deposited by the school on behalf of the appellants be returned back.

Consequently, the Provident Fund Organization returned back the amount, which was deposited, however, no interest was paid. Hence, the appellants filed writ petition before this Court. The Writ Court ordered that the appellants are entitled to get interest as per prevailing rate of saving accounts applicable in the Nationalized Bank. From the return filed by the respondent No. 2 the fact is clear that the amount was deposited with the State Bank of India in pension account. Para 26 of Employees Pension Scheme, 1995 prescribes investment of the Employees'' Pension Fund, which reads as under:

Investment of the Employees'' Pension Fund-(1) All moneys accruing to the Employees'' Pension Fund Account except the contribution of the Central Government shall be invested in accordance with the provisions of paragraph 52 of the Employees'' Provident Funds Scheme, 1952.

(2) Net assets of the Family Pension Fund as on the 16-11-1995 shall merge in the Pension Fund and remain invested in the Public Account of the Government of India.

The future Central Government''s contribution accruing to the Pension Fund from 17th November 1995 onwards shall also be invested in the Public Account of the Government of India.

Accordingly, the respondent No. 2 deposited the amount with the State Bank of India, hence, the appellants are eligible to receive the amount of interest, which was received by the respondent No. 2 in the aforesaid account as per the Scheme.

Hence, the appeal is disposed of with the direction that the appellants shall be eligible the amount of interest, which was received by respondent No. 2 from the State Bank of India. The respondent No. 2 shall calculate the amount of interest and pay the same to the appellants within a period of two weeks after calculating the same.

Appeal is disposed of accordingly.

No order as to costs.