HC directive on pension scheme

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Follow us:WhatsappFacebookTwitterTelegram.cls-1{fill:#4d4d4d;}.cls-2{fill:#fff;}Google NewsThe Kerala High Court has asked the Registrar of Cooperative Societies to issue directions to all the cooperative societies in the state to make the pension contribution within the due date. In failing to do so, the secretary or board of directors would be disqualified, the court said. The HC also suggested the imposition of a personal penalty or cost to the defaulters.A Division Bench comprising Justice C N Ramachandran Nair and Justice P S Gopinathan issued the directive while considering an appeal filed by T R Sambasivan Nair of Thiruvalla, an employee of Vallamkulam Service Cooperative Bank, challenging the delay in the payment of pension to him.K R Sunil, standing counsel of Pension Board, submitted that several societies were defaulting on the payment of contribution. Hence, the Board is compelled to initiate revenue recovery proceedings for regaining the arrears.However, the court said that it was unnecessary and that the Board should not resort to revenue recovery proceedings to get back the contribution through coercive methods. The Registrar of Cooperative Societies should ensure the payment in time, along with the release of salary by the employer societies to the employees. “The society secretary or the board of directors should be surcharged for interest payment to the Board for the belated contribution remittance. Under no circumstances, the default interest charged by the Board should be debited to the societies’ account,” the court said. When a society fails to contribute the fund, one has to investigate whether it is a sign of sickness and ultimate insolvency which could lead to a wind up.The Pension Board submitted that the delay in starting the payment of pension to the appellant was due to the fault by the society in remitting the arrears of contribution and also getting the individual code number.first published:August 24, 2012, 11:33 ISTlast updated:August 24, 2012, 11:33 IST
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The Kerala High Court has asked the Registrar of Cooperative Societies to issue directions to all the cooperative societies in the state to make the pension contribution within the due date. In failing to do so, the secretary or board of directors would be disqualified, the court said. The HC also suggested the imposition of a personal penalty or cost to the defaulters.

A Division Bench comprising Justice C N Ramachandran Nair and Justice P S Gopinathan issued the directive while considering an appeal filed by T R Sambasivan Nair of Thiruvalla, an employee of Vallamkulam Service Cooperative Bank, challenging the delay in the payment of pension to him.

K R Sunil, standing counsel of Pension Board, submitted that several societies were defaulting on the payment of contribution. Hence, the Board is compelled to initiate revenue recovery proceedings for regaining the arrears.

However, the court said that it was unnecessary and that the Board should not resort to revenue recovery proceedings to get back the contribution through coercive methods. The Registrar of Cooperative Societies should ensure the payment in time, along with the release of salary by the employer societies to the employees. “The society secretary or the board of directors should be surcharged for interest payment to the Board for the belated contribution remittance. Under no circumstances, the default interest charged by the Board should be debited to the societies’ account,” the court said. When a society fails to contribute the fund, one has to investigate whether it is a sign of sickness and ultimate insolvency which could lead to a wind up.

The Pension Board submitted that the delay in starting the payment of pension to the appellant was due to the fault by the society in remitting the arrears of contribution and also getting the individual code number.