Employee can't be denied pension on wrong deductions: SC

In its appeal, the corporation contended that there were regular deductions from the salary of the employee towards contributory PF

The Supreme Court on Monday declared that an employee can't be deprived of his due in the form of pension without a conscious abandonment of right to receive it.

A bench of Justices Abhay S Oka and Rajesh Bindal said that an employee can't be denied pension due to him just because there were some wrong deductions on the part of employer.

In its judgement, the court dismissed an appeal filed by the Calcutta State Transport Corporation and others against the High Court's division bench decision of March 5, 2021.

The division bench had upheld the single bench 's order directing the employer to release pension of Ashit Chakraborty and others.

In its appeal, the corporation contended that there were regular deductions from the salary of the employee towards contributory provident fund. The statements were being sent to him. However, he never objected to it. He raised the issue only after his retirement. In such circumstances, he should not be allowed to avail the benefit of the pension scheme.

The employee, for his part, submitted he had made his option for availing the pension scheme. Thereafter, it was the duty of the employer to have properly calculated his salary and made the deductions under different heads. In case any error was committed by the Corporation, he should not be made to suffer on that account.

Concurring with the employee's submission, the bench said, "Merely because there were some wrong deductions from his salary and he was treated as member of the CPF Scheme, cannot be permitted to be raised as a ground to defeat his rightful claim."

The court rejected a plea by the corporation that there are number of similarly situated employees who will also stake their claims, saying this will not deter it in granting the relief to the employee, which is legitimately due to him.