Indian Kanoon - Search engine for Indian Law

The above exclusion caused resentment amongst the members of CCLSPF and in these circumstances the Board of Trustees of CCLSPF resolved to merge CCLSPF with CMPF so that the members of CCLSPF could also became eligible for pension and accordingly merger was effected vide gazette notification dated 8.10.2004. In consequence of the above merger all the amount in the credit of the members of CCLSPF was transferred to CMPF and accordingly, petitioner Hari Singh Kanwar also became eligible for pension subject to compliance of conditions imposed by subsequent gazette notification dated 13.2.2003. After petitioner- Hari Singh Kanwar became member of CMPF, he was paid interest annually in terms of Para-61 of the Scheme.

4. The common grievance of the petitioners in these petitions is that the members of CMPF are denied interest on their deposits towards provident fund from the date the same is deducted from their salary and equal amount is deposited by the SECL in their CMPF account.

5. Contention of learned counsel for the petitioners is that the contribution of CMPF amount of the petitioners is to be deposited every month and therefore, they should also be paid interest with effect from the date of deposit. Prior to merger of CCLSPF in CMPF, petitioner-Hari Singh Kunwar was paid interest in the manner of calculation of interest under the General Provident Fund, as per Rule 19 (d) of the CCLSPF Rules. Rule 11 (2) sub-para (iii) of GPF (Central Services) Rules clearly stipulates that interest shall be paid on all sums credited to the subscriber's account after last day of the preceding year from the date of deposit upto the end of the current year. The manner of calculation of interest under the Scheme is given in Para 61 (2) according to which no interest is to be paid to the employee for the monthly contribution from the date of deposit. Where opening balance of the employee is Nil in any particular financial year in that case he will not be entitled for any interest for the whole year though he has regularly deposited the monthly contribution towards provident fund. Under Para 61 (2) of the Scheme the employee suffers recurring loss of interest throughout his service career in this manner.

6. On the other hand learned counsel for respondents No.2 & 3 submitted that the Scheme has been framed by the Central Government to offer best possible return on provident fund contribution and its investment with maximum security on deposits, at the same time discharging the duties under the Scheme keeping the corpus dependable. Because of prudent investment by the CMPF organization, its subscribers are getting higher rate of interest than the GPF subscribers, as would be evident from the comparative table. The provisions of GPF & CMPF Act cannot be compared. The Scheme under CMPF Act has been framed as industry-specific, whereas, Employees Provident Fund Scheme, 1952 covers around 30 million employees who are paid interest on monthly running basis. The said scheme debars a subscriber to become its member whose monthly salary exceeds Rs.6500/- under Para 2 (f)(ii) of the E.P.F. Scheme, 1952. Whereas, there is no such bar and limitation under the Scheme. Apart from this, the members of the Scheme are getting benefit of 12% matching contribution from the employer. In absence of any ceiling of income, the Senior Executive of Coal Company is getting matching contribution of Rs.7,000/- to 8,000/- per month from their employer apart from the interest that would accrue on such contribution. Under the EPF Scheme, 1952 contribution for some employees is 10% of the gross wage while for others it is 12% of gross wage, whereas, the Scheme provides for 12% contribution across the board, irrespective of class of employees and their earnings.

The Scheme is in force in whole of the country and the same is applicable to all the coal mines workers working under different subsidiaries companies of the CIL. Para-27 of the Scheme provides for rate of contribution towards provident fund by the employee and the employer. Para-29 provides for recovery of member's contribution from his salary. Para-37 cast a duty upon the employer to ask every member of the fund to declare particulars concerning himself and his nominee in Form-A for communication to the Commissioner. Contribution Cards are also issued under the Scheme to the members. Period of currency of contribution card is one year. Para-41 mandates that the employer shall on or before expiration of period of currency prepare a contribution card in respect of each member employee by him or a ledger in the Form-YY. Under Para-42 every employer is to submit to the Commissioner or such other officer subordinate to him, as may be authorized by him on his behalf, contribution cards. Para-42 (5) cast a duty on the employer to submit statement of contribution in Form-VV for currency period calculated on the basis of ledger in Form-YY. Para-50A provides for the manner in which remittance of CMPF amount is to be deposited to the current account of CMPF with the Imperial Bank. Para-54 provides that all the moneys belonging to the CMPF shall be either deposited in the Imperial Bank of India or any such other scheduled banks as may be approved by the Central Government from time to time, or invested in securities mentioned or referred to in Clauses (a) to (d) of Section 20 of the Indian Trust Act, 1882. Sub-para 2 of Para-54 requires that the Board shall prepare a classified summary of the asset of the funds as on 31st March of each year or on such other dates as the Central Government may specify. Para-61 of the Scheme deals with the manner in which the Commissioner shall credit the account of each member, interest in respect of period of currency of the cards expiring in such financial year. Para-61 (2) describes the manner in which interest is to be calculated. The interest for the period of currency of the card is to be credited with effect from the last day of the period on the opening balance at the credit of the member on the first day thereof.