Date of Filing:24.08.2021

Date of Disposal:29.04.2024

BEFORE THE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)

DATED:29.04.2024

PRESENT

HON’BLE Mr JUSTICE HULUVADI G RAMESH : PRESIDENT

Mr K BSANGANNANAVAR : JUDICIAL MEMBER

Mrs DIVYASHREE M : LADY MEMBER

,

APPEAL No.624/2021

The Regional Provident Fund Commissioner,
Regional Provident Fund Office,

Sri Karthik Plaza,

2^nd Floor, Durgigudi Main Road,

Shivamogga -  577 201.
(By Mrs M R Shalamala, Advocate)                                     Appellant

(Appellant is same in all these Appeals)

             -Versus-

Mr Srikanth M K
S/o Mr Krishnappa,

Aged about 62 Years,

Retired Bank Employee,

R/o Srigandha,

1^st Main, 1^st Cross,

Lakshmipura Extension,

Vinobhanagara,

Shivamogga – 577 201.                                                   Respondent
(By Mr. Nagendra Naik, Advocate)

  : ORDER :

Mr JUSTICE HULUVADI G RAMESH : PRESIDENT

01.     This Appeal is filed under Section 41 of Consumer Protection Act 2019 by OP, aggrieved by the Order dated 30.06.2021 passed in Complaint No.90/2020 on the file of District Consumer Disputes Redressal Commission, Shimoga (for short, the District Commission).

02.     None appears for parties to the Appeal, hence, arguments of the learned counsel for Appellant and Respondent is taken as heard. Perused the Impugned Order, grounds of Appeal and documents on record.

03.     The District Commission after enquiring into the matter, allowed the Complaint in part and directed the OP to pay interest at the rate of 12% p.a on Rs.31,229/- from 01.03.2007 till 1^st September 2019, to the Complainant within 45 days from the date of receipt of the Order.  Further directed OP to pay Rs.10,000/- for mental agony and Rs.5,000/- towards cost of the litigation, to the Complainant etc.,

04.     Feeling aggrieved by the Order, OP is in Appeal inter-alia contending amongst other grounds, that Government of India has declared the rate of interest at 8.5% p.a for the year 2006-07 by issuing a Notification and as per the provisions laid down, the Regional Office Hubballi had complied the Annual Accounts for the year 2006-07 during December 2007.  Further the Regional Office, Shivamogga has transferred the residual EPF balance in respect of 102 employees during July 2019, before filing of the Complaint in DCDRC, Shivamogga during August 2020 including Complainant, duly crediting the interest upto 31.03.2011 to M/s Pragathi Gramin Bank, Bellary, wherein, the Regional Office of EPFO, Bellary maintains their EPF accounts.  The Regional Office, Shivamogga has informed the Complainants that in so far as crediting of interest is concerned, they may approach Regional Office, Bellary and inspite of this. the Complainant filed the Complaint before the DCDRC Shivamogga.   The Regional Office, Bellary shall credit the interest from 2011-12 onwards as per the provisions laid down in sub para 6 of Para 60 and sub Para 6 of Para 72 EPF Scheme 1952, depending upon the EPF contributions credited to each employees of M/s Pragathi Gramin Bank, Bellary wherein transfer effected two times i.e., during April 2007 and July 2019.  Further contended that the Regional Office, Bellary has credited the interest from 2011-12 onwards as per the eligibility to all the 102 employees of the erstwhile M/s Sahyadri Gramin Bank, Shivamogga and the District Commission failed to consider the same.  The EPFO being a Social Security Organisation and having a well framed scheme in place, cannot operate the Fund beyond the laid down provisions.  The crediting of the interest twice, will affect the Fund leading to its erosion.  The Regional Office, Shivamogga already transferred the funds by crediting interest upto 2010-11 to Regional Office, Bellary and there is no amount at credit in the PF account of the Complainants. The Complainants should have approached the Regional Office, Bellary and claimed their dues.  Since, they have not claimed PF amount from Regional Office, Bellary, they are not even aware whether Regional Office, Bellary will credit interest or not and settle their claims.  If Regional Office, Bellari do not credit interest and settle their claims, then only a case is made out, otherwise there is no case. Therefore, OP seeks to set aside the Impugned Order by allowing the Appeal.

05.     The grievance of the Complainant before the District Commission is that, he joined as an officer in Sahyadri Gramin Bank on 25.02.1985; subsequently, the said Bank was amalgamated with Praghathi Gramin Bank and now Pragathi Gramin Bank is functioning under the name & style as ‘Karnataka Gramin Bank’.  Initially, the Bank was remitting PF amount recovered to its Hubli Provident Fund Office and after the establishment of Regional PF Office at Shivamogga, the account was transferred to OP office at Shivamogga.  The Provident Fund account of the Complainant, after transfer to Bellary office and while transferring the balance PF account, OP retained PF amount upto the year 2007 and not transferred the entire amount to the new account maintained at its Bellary Office of the Complainant. The allegation of the Complainant is that OP not responded properly and enquiries made went in vain. During September 2019 only, OP transferred the amount of Rs.31,229/- the PF account of Complainant maintained at Bellary, without any interest, hence, he sustained monetary loss in respect of accrual of interest on his PF contribution. Therefore, alleging deficiency in service on the part of OP, lodged the present Complaint.

06.     The OP in his Version, pleaded that during the year 2007, as per the transfer application received, the then Sub-Regional Office, Hubli had transferred the contributed amount standing in the account of the Complainant in the month of April 2007, without crediting the interest for the year 2006-07, as the interest as per the Notification from Govt. of India, New Delhi issued at that time, regarding the transfer of EPF Accumulations.  Further OP pleaded that, on declaring the rate of interest at 8.5% and Notification issued by the Govt. of India, New Delhi, the Annual Accounts for the year 2006-07 was complied with on 31.12.2007 by the Sub Regional Office, Hubli by crediting the respective amounts to the Complainant’s account and issued the PF Slips to the Complainant’s Employer, with a request to disburse the same amongst their EPF members. Further, OP contended that in accordance with the EPFO, Head Office, New Delhi guidelines dated 11.03.2011, which states that no interest shall be credited to the account of a member, from the 1^st day of its becoming in-operative from 37^th month, as the EPF contribution is NIL from 28.02.2006 and as such the OP has credited the interest upto 2010-11. Hence, there is no deficiency in service on his part.

07.     It is not in dispute that, the Complainant joined as an Officer in Sahyadri Gramin Bank on 25.02.1985; after amalgamation of Sahyadri Gramin Bank with Praghathi Gramin Bank, the Head Office of the Bank was shifted to Bellary, as a result, the PF account of the Complainant was supposed to be transferred upto date, amount with interest to Bellary Office. The allegation of the Complainant that, while transferring the PF amount to Bellary in the year 2007, Shimoga PF office not transferred the entire balance amount of his PF account and kept pending PF amount of Rs.31,229/- till September 2019, hence, he is claiming interest on the said amount.  It is also not in dispute that during the year 2007, as per the transfer application received by the OP, the then Sub-Regional office, Hubli had transferred an amount of Rs.2,85,013/- in the month April 2007, without the interest for the year 2006-07.  Further, as per the guidelines of EPFO, Head Office, New Delhi dated 11.03.2011, no interest shall be credited to the account of a member from 1^st day of its becoming in-operative i.e., from 37^th month, as the EPF contribution is NIL from 28.02.2006 and as such OP credited the interest upto 2010-11 and EPF amount became Rs.31,229/- as on 31.03.2011.  Hence, OP had taken a stand that the existing accumulated fund of the Complainant was fully transferred, without any pending.

08.     The observation of the District Commission in Para 15 and 16 of its Impugned Order that OP has not explained the reason for delayed payment and not produced any document to show that he has paid the interest upto 31.03.2011. Non-payment of balance amount in time definitely causes mental agony to the Complainant. Hence, OP is liable to pay interest from 01.03.2007 to 1^st September 2019.

09.     Thus, OP failed to prove that they have paid up-to-date interest on the PF account for the year 2006-07 of the Complainant by producing substantial & acceptable evidence.  Thus, certainly this act of Appellant in non-crediting of interest amount definitely amounts to deficiency in service and claiming of interest on it by the Complainant is proper.  We therefore find no illegality or infirmity or perversity in the Impugned Order. However, in our view, awarding of interest @ 12% p.a is slightly on higher side and reducing the same to 8.25% p.a, would meet the ends of justice. Accordingly, Appeal is allowed in part and consequently, the Impugned Order dated 30.06.2021 passed in Complaint No.90/2020 on the file of District Consumer Disputes Redressal Commission, Shimoga is hereby modified only in so far as interest awarded by the District Commission is concerned and rest of the award of the District Commission remains un-disturbed.

10.     The statutory deposit in this Appeal is directed to be transferred to the District Commission for further needful.

11.     Send a copy of this Order to the District Commission as well as to the parties concerned, immediately.

Lady Member                   Judicial Member                           President

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