Section 34 in The M.P. General Provident Fund Rules, 1955
34.
If a subscriber to the Fund is subsequently admitted to the benefits of the Contributory Provident Fund (Madhya Pradesh), the amount of his subscriptions, together with interest thereon, shall be transferred to the credit of his account in the Contributory Provident Fund (Madhya Pradesh).Note 1. - Procedure to be adopted when a will is left by a deceased subscriber, which purports to dispose of his accumulations in the Fund or any part of these. - The Government desire that references should be made to them except in the following cases :-(a)when the Accounts Officer, after taking legal opinion, if necessary, is satisfied that the person or persons entitled to receive the money in the Fund, according to the will and the declaration made under the rules are the same, no reference need be made to the Government;(b)when a subscriber dies leaving no family as defined in the rules and without having made any declaration under the rules, the Accounts Officer may make payment, after the advice of the Law Secretary has been taken, without a reference to the Government, to any person, claiming on the authority of a will of which probate has been granted by a competent Court, provided that where the amount involved does not exceed Rs. 500, no probate need be insisted upon and the amount may be paid to such person or persons as the officer making the payment considers to be the proper person or persons to receive it.Note 2. - Payment of deposits on the basis of the award given by a Civil Court. - A doubt was raised whether in the case of a subscriber who died without leaving a nomination, a decree obtained on the basis of the award by a Civil Court directing the payment of the deposits at credit of the subscriber otherwise than in accordance with the provisions of Rule 31 of the Madhya Pradesh General Provident Fund Rules is binding. It has been held in consultation with the Law Secretary to Government of Madhya Pradesh that such a decree has no effect and that the payment has to be made in accordance with the provisions of the Provident Funds Act and rules thereunder.Note 3. - Payment of a provident fund money due to a minor beneficiary of a deceased subscriber. - (a) A guardian appointed by the Court to receive payment on behalf of a minor beneficiary should alone be recognised even where the amount involved does not exceed the limit of Rs. 5,000 specified in Clause (b) of sub-section (1) of Section 4 of the Provident Funds Act, 1925. But if the party pleads inability to incur expenditure for obtaining the guardianship certificate from the Court, the orders of the Government should be obtained for making any payment.(b)Payment may, however, be made without requiring the production of a guardianship certificate from the Court if the share of a minor beneficiary does not exceed Rs. 100-(i)to the natural guardian of such minor beneficiary, or(ii)in the absence of a natural guardian to the person considered fit by the head of the office to receive payment on behalf of such minor beneficiary on such person executing a bond (See Appendix F) signed by two sureties agreeing to indemnify the Government against any subsequent claim which might arise :Provided that the natural guardian may, if it is considered expedient, be required to execute a bond signed by two sureties agreeing to indemnify the Government against subsequent claim which might arise before the payment is made:Provided further that, in cases governed by the Hindu law, payment may be made, without requiring the production of a guardianship certificate from the Court to a Hindu widow of a deceased subscriber on behalf of her minor children other than step-children irrespective of the limit of Rs. 100 specified above. She may, if considered expedient, be required to execute a bond signed by two sureties agreeing to indemnify the Government against any subsequent claim which might arise before the payment is made.Note 4. - Right of a posthumous child to a share in the balance at the credit in the general provident fund of his father. - A man's posthumous child is a member of his family at the time of his death, and, if born alive, should be treated in the same way as surviving child born before the subscriber's death. The case of a posthumous child already born when the case is taken up by the disbursing officer will present no difficulty. For the rest if the existence of a posthumous child is brought to the notice of the disbursing officer, the amount which will be due to the child in the event of its being born alive should be retained, and the balance distributed in the normal way. If the child is born alive payment of the amount retained should be made as in the case of a minor child; but if no child is born or a child is still born, the amount retained should be distributed among the family.Note 5. - (a) (1) It is inconsistent with Section 3 (1) of the Provident Funds Act, 1925, for Government to deduct any amount due to it by a subscriber from his accumulations in the General Provident Fund at the time of his retirement, or from undisbursed General Provident Fund accumulations payable to a subscriber's nominee in the event of the subscriber's death in service or after retirement, as the case may be, even though the consent of the subscriber or nominee may have been obtained.(2)In cases where the subscriber or nominee is willing to repay the amount due to Government, the best course would be to treat the repayment as second transaction. The whole of the money should first be paid intact and without any compulsion. Thereafter the payee may be called upon to make good the Government dues.(b)In view of the express provision in Section 3 of the Provident Funds Ac);, 1925, that the balances in the fund shall be free from any liability incurred by the subscriber or the dependant before the death of the subscriber, it has been decided that the immunity provided by Section 3 (1) of the said Act against deductions from accumulations in a provident fund of any debt incurred or liability owed does not extend to the liabilities incurred by the subscriber's nominee after the subscriber's death. The provident fund balances vesting in a dependant are thus liable to attachment for debts incurred by the dependant after the subscriber's death and where such debts are due to the Government by whom the balances are payable, they could be set off against such balances under the general law relating to the setting off of claims and counter-claims between the two parties.Procedure Rules
