BEFORE THE DISTRICT FORUM: KURNOOL
Sri. K.V.H. Prasad B.A., L.L.B, President
Smt. C.Preethi M.A., L.L.B, Member
Thursday the 7th day of September 2006
CC No. 28/2006
U. Venkobanna, S/o.Hanumanthappa (Late)Retired Sanitory Inspector,
Kurnool Municipal Corporation,
H.No.5-1-2, Gurukrupa, Mamatha, Nagar, Near Banjara Colony,
Kurnool-518006
… Complainant
-Vs-
The Commissioner, O/o The commissioner,
Adoni Municipality, Adoni, Kurnool Dist,
… Opposite parties
This complaint coming on this day for orders in the presence of Sri G.Naga Ramesh, Advocate, Kurnool for complainant and Sri P.Siva Sudarshan, Advocate, Kurnool for opposite party, and stood over for consideration till this day, the Forum made the following.
O R D E R
(As per Sri K.V.H.Prasad, Hon’ble President)
1. This Case of the complainant is filed U/s 12 of CPC, Act seeking direction on the Opposite Party to pay to the complainant Rs. 11,782/- and interest thereon along with Rs.5,000/- as compensation and costs of this case alleging deficiency of service and negligence on the part of the opposite party in transferring to Kurnool Municipality, consequent to his transfer from Adoni to Kurnool municipality of the provident fund amounts deducted from his salary from the months of July 1974 to August 1981 at the rate of Rs. 25 per month and accrued interest thereon and ultimately paying an amount of Rs. 2,425/- only while the amount payable till retirement with interest is Rs.14,207/-.
2. In pursuance of the receipt of the notice of this Forum as to this case of the complainant the opposite party has caused its appearance through its counsel and contested the case filing a written version denying of its liability to the claim of the Complainant and pleading resjudicata of decision of Upa-Lokyakth passed on 26.8.2005 as to the claim of the Complainant for the same and alleging further the amount of Rs. 2,425/- paid to the Complainant was correct as per their records.
3. In substantiation of contentions while the Complainant side has relied upon documentary record marked in Ex A.1 to A.7 and the sworn affidavit of the complainant and replies to the interrogatories, the opposite party has taken reliance on Ex B.1 and sworn affidavit of the opposite party and replies to the interrogatories.
4. Hence, the point for consideration is whether the Complainant has made out alleged deficiency of service on the part of the Opposite Party and their by the later’s liability for the claim of the complainant.
5. The opposite party side contend taking reference to the Ex B.1 – Order of Upa-Lokyakth as to be claim of this complaint – that the said Order stands as resjudicata against the complainant and there by the case of the complainant is vitiated. The perusal of the said order makes it clear that the said authority is not expressing its mind as to the entitleness or other wise of the interest the complainant claiming on his PF contributions but on the otherhand enables the complainant to resort to appropriate Civil Court for setting right of his grievance.
6. Sec. 13(4) of CP Act enclothes the District Forum with the power of Civil Courts and Sec. 13(5) of CP Act deems the District Forum as a Civil Court. Hence, there appears any tenability in the contentions of the opposite party in this regard and hence, Ex B.1 his held as creating any resjudicata against the complainant.
7. The Ex A.1 is letter dated 21.2.2005 of opposite party to complainant envisaging the encloser there to a demand draft bearing No. 417743 dated 21.2.2005 for Rs. 2,425/- in favour of the complainant towards final settlement of PF account of the complainant. As this being not denied by the opposite party side the said document remaining proved as to the facts its contents speaks.
8.The Ex A.2 is the office copy of letter dated 18.7.2005 addressed by the Complainant to the Opposite Party alleging therein a contribution of Rs.25 per month from July 1974 to August 1981 when he worked in opposite parties office at Adoni and non transfer of said contribution account along with accrued amounts of interest to Kurnool Municipality consequent to his transfer from Adoni and so the liability of the opposite party to pay with interest the contributions of said period till the date of his retirement and his expressing dis- satisfaction in the conduct of the opposite party making payment of Rs. 2,425/- only while the amount accrued amounts to Rs. 14,207/- and there by making demand for making good of the residuary balance of Rs. 11,782/- within 15 days of the receipt of the said demand or otherwise he will be constrained to resort to legal recourse. The said demand made in Ex A.2 was acknowledged by the opposite party under a postal acknowledgement in Ex A.3. The Ex A.4 is reminder letter dt 25.10.2005 of the complainant to the Opposite Party renewing his demand made in Ex A.2 the Ex A.5 is courier receipt under which the Ex A.4 was sent to the opposite party. As none of the above has been responded by the opposite party it constrained the complainant to cause a lawyer’s notice dated 5.1.2006 in Ex A.6 to the opposite party reminding the demand made earlier. The Opposite Party has acknowledged the receipt of said notice in Ex A.6 under a postal acknowledgment in Ex A.7 but the opposite party never choosen to cause any suitable reply to the complainant to believe any malafidees in the claim of the complainant.
9. Even in written version pleading also the opposite party is not clear as to how the figure of Rs. 2,425/- was arrived at to feel any consistency in his stand and any unreaonableness in the claim of the complainant for contributed amounts of with accrued interest permissible to said provident fund contribution. Nor does the opposite party side placed any rules regulations governing the PF contribution and the interest payable on such contributions and to feel any justifiability in the amount of Rs. 2,425/- paid to the Complainant towards final settlement of PF contributions recovered form the Complainant salary during a tenure of his working in opposite party office.
10 But from R 15 (1) of the rules for the working of the provident fund maintained by municipal councils – as seen from the certified copy of Order of Lokayath dated 16.7.2001 in complaint No. 1532/ 2000/B2 delivered as to similar point the complainant alleges in this complaint – it appears that the municipal councils shall pay to the credit of the account of a subscriber the interest at such a rate as it may from time to time fix with the approval of examiner of local fund accounts on the amounts at his credit in the fund and the rate has been fixed by the government at 4% in the first instance and its shall hold good until it is altered by the municipal councils under this sub -rule and as per its R.2 this interest shall be credited with effect from 31 march of each year as per the manner indicated therein.
11. Hence, the light of the rule position stated under R.15 (1) governing the provident fund maintained by the municipal councils it is remaining clear that the employee who contributed to the PF during his employment is entitled to interest accruable on such contributions.
12. Neither the Complainant side nor the opposite party side has placed any material as to the any change in interest of 4% permitted at first instance under supra stated R. 15 (1). Hence, the complainant remains entitled to the interest of 4% on the amounts of contribution to the PF account during the said alleged period.
13. R. 21 of the supra stated rules, as seen from supra stated Lokyakth Order, obligates the employer of unit of said municipality, where from the employee is transferred to another municipal unit, to transfer the amount to his credit in the provident fund of the former body along with interest therein till the date of actual transfer to later body and such transfer shall be effected at the earliest possible date so as not to cause any loss of interest to either of the local bodies.
14. The contentions of the complainant is that consequent to his transfer form Adoni municipality to Kurnool municipality his PF amount with accrued interest thereon was not transferred to Kurnool municipality as contemplated under supra stated rule. The said facts remained unrebutted from the Opposite Party by its conduct of the final payment of PF amount to the complainant. If the opposite party has effected any transfer of account of Complainant as contemplated under supra stated R.21, the said amount payable to the complainant for the said period would have been paid by the Kurnool Municipality itself and the very fact of payment of PF amount under final settlement by the opposite party vide Ex A.1 itself indicates that the opposite party has not transferred the PF account of the complainant to Kurnool municipality consequent to transfer of complainant from Adoni Municipality, as contemplated under supra stated R.21 which contemplates the said transfer at earliest possibility to avoid any loss of interest to either of the local bodies.
15. As the said transfer of PF account of complainant with its contributions and periodical interest accrued thereon is not transferred by the opposite party as contemplated under supra stared R.21 the liability for the interest accrued subsequent thereon on said PF account of complainant lies with opposite party till the date of final settlement.
16. Neither the complainant is able to place any cogent material as to how his contribution fetched a total of Rs. 14,207/-, nor the Opposite Party side has placed any cogent material justifying the amount of Rs.2,425/- paid to the complainant towards final settlement and the discussion supra paras making an entitleness of 4% interest on the PF contributions made in Municipal institutions accounting them on 31 march every year, the liability of the opposite party remains to that amount which the accrued PF contributions of complainant made during 7/74 to 8/81 at the rate of Rs.25 per month at 4% interest compounded yearly till the date of final settlement works out and for the rest of residuary amount, on adjustment of Rs2,425/-, at 4% interest compounded yearly on the 31st march of every year from the date of ExA.1 payment till realization of residuary amount.
17. As deficiency of service of the opposite party towards is employee- complainant, in transferring the PF account to Kurnool from Adoni is being made out and the said conduct of the opposite party being in-consistent to the supra stated R.21, the deficiency of opposite party towards complainant being made out the complaint is allowed directing the opposite party to pay the workable amount as stated in earlier para to the complainant with in the time given.
18. As the opposite party by his indifferent conduct at his employee driven the complainant for his legal remedy to the Forum besides causing mental agony to the Complainant the opposite party shall be liable to pay Rs.5,000/- as compensation to the complainant along with costs of Rs.1,000/- to the complainant within the time given.
19.Hence, the sum up of the above discussion the opposite party shall pay the supra stated award amount with in a month of receipt of this order and in default the award amount shall be payable by the opposite party with an interest of 4% till realization.
Dictation to the Stenographer, transcribed by her, corrected and pronounced in the Open Court this the 7th day of September, 2006.
APPENDIX OF EVIDENCE
Witnesses Examined
For the complainant : Nil For the opposite parties :Nil
List of exhibits marked for the complainant:-
Ex.A1 Letter, dated 21.02.2005 of opposite party to complainant (for Rs.2,425/-).
Ex.A2 Complainant notice to opposite party dated 18.07.2005.
Ex.A3 Postal Acknowledgement.
Ex.A4 Complainant notice to opposite party, dated 25.10.2005.
Ex.A5 Courier Receipt No.H.22590759.
Ex.A6 Legal notice to opposite party dated 05.01.2006.
Ex.A7 Postal Acknowledgement by opposite party on 09.01.2006.
List of exhibits marked for the opposite parties:-
Ex.B1 UPA-Lokayukta order copy C.No.307/2004/B2 dated 26.04.2005.
MEMBER PRESIDENT
Copy to:-
1. Sri G.Naga Ramesh, Advocate, Kurnool.
2. Sri P.Siva Sudarshan, Advocate, Kurnool.
Copy was made ready on:
Copy was dispatched on:
Copy was delivered to parties:
