SHAMSHUDDIN ALI MULLAJI v. THE ASSISTANT COMMISSIONER OF EMPLOYEES PROVIDENT FUND COMMISSIONER ( PENSION) AND ORS
Prohibition of Dual Pensions under EPS 1995 - Recovery of Excess Payments Permitted in Cases of Misrepresentation and Non-Disclosure of Previous Employment Status.
Court: Bombay High Court
Citation: 2026:BHC-AS:11568-DB
Decision Date: 05-03-2026
List of Laws
Employees’ Provident Funds and Miscellaneous Provisions Act, 1952; Employees’ Pension Scheme, 1995; Constitution of India, Article 226; Equity and Law regarding "Clean Hands" in Litigation; Recovery of Excess Payments and Pension Law
- Facts: The Petitioner was employed with Poyasha Pvt. Ltd. from 1978 to 1994. In 1997, he joined a second employer, A. S. Moloobhoy and Sons. While actively working in this second employment, the Petitioner applied for and began receiving an early pension related to his first employment. Upon reaching superannuation in his second job in 2009, he applied for a second pension using Form 10-D. Crucially, he left Clause 16 of the form blank, failing to disclose that he was already drawing a pension under the Employees’ Pension Scheme (EPS), 1995. This non-disclosure resulted in the Petitioner receiving dual pensions. Upon discovering this, the Provident Fund (PF) Department halted payments to recover the excess amount of Rs. 88,727/-.
- Procedural Posture: The Petitioner approached the High Court of Bombay under Article 226 of the Constitution of India via a Writ Petition, challenging the PF Department's decision to halt his pension and seeking the release of accumulated arrears.
- Issue: Whether a member of the Employees’ Pension Scheme, 1995, is entitled to draw dual pensions by suppressing information about previous employment and whether the PF Department is entitled to recover excess payments made due to such misrepresentation.
- Holding: No, the Petitioner is not entitled to dual pensions. The court held that the Petitioner systematically defrauded the system through non-disclosure. However, based on the Petitioner's confession, remorse, and senior citizen status, the court allowed the recovery of the principal excess amount from his arrears without imposing interest.
- Reasoning: The Court reasoned that Clause 12 of the EPS, 1995, does not contemplate dual pensions. An employee should either seek a "Scheme Certificate" to club services from different employments or apply for a single pension after final superannuation. By leaving Clause 16 of Form 10-D blank, the Petitioner engaged in "misrepresentation" and "non-disclosure of material information". While the court cited precedents like Kishore Samrite and Bhaskar Laxman Jadhav regarding litigants who do not come with "clean hands", it balanced equities because the Petitioner admitted his mistake and sought mercy. The court ordered the PF Department to club the two service periods, recalculate the single pension entitlement, and deduct the excess principal amount from the accumulated arrears.
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