Skip to main content

PF denial costs bank Rs 3 lakh

The state consumer commission recently ordered the Bank of Baroda to pay compensation of Rs 3 lakh to a former employee for refusing to pay its contribution towards his provident fund. The commission also directed the bank to pay P Unnikrishnan Rs 1.33 lakh of the provident fund amount due to him.

Unnikrishnan filed the appeal in the Maharashtra State Consumer Disputes Redressal Commission in 2005 after a district forum, while directing the bank to pay interest on the provident fund, rejected his plea with respect to the contribution of the bank towards the provident fund.

In his appeal, the complainant said that he was an employee of the bank and his services were terminated. His provident fund as far as his contribution was concerned was given by the bank, but it was delayed. The officials refused to disburse the contribution of the bank towards his provident fund.

Unnikrishnan filed a complaint for interest on the amount which was given late by the bank. He also sought the contribution of the bank towards the provident fund.

The bank cited the forfeiture clause covered by the Bank of Baroda Provident Fund Rules that says an employee's contribution can be forfeited if it is established that the employee committed financial misconduct and caused large financial losses.

Unnikrishnan's lawyer pointed out that the final order of removal passed by the assistant general manager, disciplinary authority, was to the effect that his removal should not be a disqualification for future employment. The lawyer said there was no observation about financial loss.

"We find that forfeiture clause in the Bank of Baroda Provident Fund Rules cannot be invoked in the present case, which was wrongly invoked by the district forum," the commission said.

It held that Unnikrishnan was entitled to the contribution and the interest amount.

Article referred: http://webcache.googleusercontent.com/search?q=cache:http://timesofindia.indiatimes.com/city/mumbai/PF-denial-costs-bank-Rs-3-lakh/articleshow/35032231.cms

Comment:

This a perfect example of a case in favour of taking utmost care while dealing in any legal matters. In this case from the final order of the AGM, it would appear that the Bank is sympathetic to the problem of the disqualified employee and does not really appear to be blaming him for the loss. Under the circumstances, the stand taken by the State Commission is absolutely correct and if the Bank intended to codemn the employee, then it was botched up.

Comments

Most viewed this month

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...

Property can be sold on power of attorney - Delhi High Court

As reported in the Hindusthan Times on 5th May:-  http://www.hindustantimes.com/India-news/NewDelhi/Property-can-be-sold-on-power-of-attorney/Article1-1054964.aspx In a judgment that will benefit lakhs of Delhi residents living in co-operative housing societies and DDA flats, the Delhi High Court has quashed a Delhi government circular banning property sale in the Capital through general power of attorney (GPA). The court found that the directions in the circular, issued by the revenue department on April 27 last year, were contrary to the Supreme Court judgment dated October 11, 2011. The HC order will increase the number of saleable properties in Delhi and could bring down the value of freehold properties. According to realty watchers, on an average, around 20% of properties are registered through GPA transfers — a common way of selling leasehold properties and those that don’t have a clear title. The judgment came on a petition filed by a company, Pace Developers and ...

Vanishing promoters and languishing shareholders

Over Rs 60,000 crore of shareholders’ wealth is stuck in 1,450 companies suspended by the stock exchanges. More importantly, near 100 per cent pledging of promoter holding appears to be common in many of these companies. This, almost rules out any chance of the companies bouncing back. The suspension is for non-compliance of the listing norms. Vanishing Companies - Definition As per the definition stipulated by SEBI, any listed company, which raised moneythrough initial public offer and, thereafter, stopped operations, did not file returnseither with the RoC or SEBI and did not exist on the registered premises wastermed as vanishing.There are provisions under Companies Act under which companies are termedvanishing companies on satisfying certain conditions. it is provided a companywould be deemed to be a vanishing company, if it satisfies all the conditions given below : a) Failed to file returns with Registrar of Companies (ROC) for a period of two years; b) Failed to fil...