Supreme Court upheld the division bench’s order directing the employer to release the pension

On May 08, 2023, the Supreme Court bench heard the matter Calcutta State Transport Corporation & Ors. vs. Ashit Chakraborty & Ors. The bench declared that “Merely because there were some wrong deductions from his salary and he was treated as a member of the CPF Scheme, cannot be permitted to be raised as a ground to defeat his rightful claim.” In this case, the decision of the single bench directing the employer to release the pension of Ashit Chakraborty and others was upheld by the division bench. The matter was mentioned before the Supreme Court bench consisting of Justice Rajesh Bindal and Justice Abhay S Oka. While giving the judgment, the top Court dismissed an appeal against the High Court’s division bench decision of 5 March 2021. 

The claim of the respondent (Ashit Chakraborty) was sought to be defeated on the ground that even after exercising the option, the contribution was being deducted from his salary in terms of the membership in the CPF scheme to which he never objected. Further, the plea was sought to be raised that there were a large number of similarly situated employees who will raise this claim. It was found that the Corporation was at fault for not acting upon the option exercised by Ashit Chakraborty. The Supreme Court said, “direction was given to the respondent no.1 (Ashit Chakraborty) to refund the employer share of provident fund as well as the amount of gratuity paid in excess to the Corporation along with interest @ 6% per annum within two weeks.”  

The bench further said that it was not in dispute that Ashit Chakraborty had exercised his right to receive a pension under the 1990 Regulations in the year 1991. Thereafter, it was the duty of the Corporation to have given effect to the same. It added, “The argument that there are a number of similarly situated employees who will also stake their claims, will not deter the Supreme Court in granting the relief to the respondent, which is legitimately due to him Technical objections are sought to be raised, which are not tenable.” Lastly, the top Court mentioned that for any fault on the part of the Corporation, the employees cannot be made to suffer and the appeal was dismissed.

Also Read: Supreme Court Updates