Pension Schemes Under KTWWF Act & Kerala Dairy Farmers' Welfare Fund Act Do Not Prohibit Membership Of Two Different Welfare Funds: Kerala High Court

The Kerala High Court recently held that availing of pension from the Scheme under Kerala Dairy Farmers' Welfare Fund Act, 2007 would not prohibit the same person from availing pension from the Scheme under the Kerala Toddy Workers Welfare Fund Act, 1969. 

Justice Murali Purushothaman said neither the KTWWF Act nor the Kerala Dairy Farmers' Welfare Fund Act provides for any prohibition of membership in two welfare funds or in receiving benefits under two welfare fund schemes under two different Acts.

"Separate Fund is maintained and managed by the KTWWF Board and the Kerala Dairy Farmers Welfare Fund Board, two independent Boards established under two State Acts. Every member (employee/farmer) and the employer shall contribute to the fund which is statutorily fixed. Having received the contributions from the member, the Board cannot refuse payment of pension to the member on the ground that he is receiving pension from other Welfare Fund Board," said the court.

It further said that if a person is a member of one or more Welfare Fund Boards and there is no prohibition for being member of one or more Welfare Fund Boards, and such person has paid his contributions to the respective Boards, the respective Boards having received the member's as well as the employer's contributions cannot deny the benefits including pension to the members of the Funds.

The petitioner Sadanandan K.S. had worked as a registered toddy tapper and was a member of the Kerala Toddy Workers Welfare Fund (KTWWF). He superannuated from service on attaining the age of 60 years, after rendering service for a period of 29 years and 3 months. He had paid contributions to the KTWWF as provided under Section 4 of the 1969 Act and on superannuation, he was sanctioned pension.

He was also a dairy farmer and member of the Dairy Farmers Welfare Fund Scheme framed under the 2007 Act. He was receiving pension from this Fund, as well. 

However, the payment of pension from KTWWF was withheld with effect from October 1, 2020, vide an order asking the petitioner to produce certificate of cancellation of pension from the other welfare fund board so as to receive further pension from this fund. The pension from the Kerala Dairy Farmers' Welfare Fund also came to be withheld subsequently, without notice.

It was argued before the court that he is entitled to receive pension from both Welfare Fund Boards in view of the payment of contributions already made by him and the respective employers, to the respective Boards.

The petitioner passed away during the pendency of the case and his legal heirs continued with the litigation.

The counsel representing his legal heirs argued that a separate Fund is established and being managed and maintained by both the Welfare Fund Boards, which are independent Boards established under two State statutes.

Welfare Fund Inspector, KTWWF told the court that the government in the decision dated November 6, 2017 has decided that a person cannot receive pension from various Welfare Fund Boards and it had been instructed that the amount paid as pension to such persons ought to be recovered.

Senior Government Pleader K.M. Faisal argued that as per para 2 (v) of the GO dated November 6, 2017, a person is eligible for only one welfare fund board pension at a time, and the Chief Welfare Fund Inspector, KTWWF Board is competent to cancel the pension once sanctioned, as per the scheme.

In a statement, the government further told the court  while the KTWWF Act and Schemes 1969 do not explicitly prohibit a person in subscribing to any other Welfare Fund or to accept pension from any other Welfare Fund Board, the Government took a policy decision in this regard that a person is eligible to get only one Welfare Fund Board Pension since the State Government provides from Public revenues the fund required for distributing pension to most of the Welfare Fund Boards

"A person is expected to become a member of only one Welfare Fund Board, because he engages in a particular job like toddy tapping/ dairy farming/ agriculture activities etc. and shall not receive dual benefits of any Welfare schemes, particularly those financed from public revenues, on technical grounds alone," said the government.

The Court perused the scheme of the KTWWF Act as well as the Kerala Dairy Farmers' Welfare Fund Act, 2007, and the provisions contained therein. 

It said that unlike in the case of social security pension, pension under KTWW Fund and Dairy Farmers' Welfare Fund are paid under the condition of having paid the required contributions.

The court observed that since the petitioner had paid contribution to both the KTWW Fund Board as well as the Kerala Dairy Farmers' Welfare Fund Board, and both Boards had also received the employers' contribution, they cannot deny pension to the petitioner stating that he was getting pension from the other Welfare Fund Board. 

It observed that Paragraph 2 (v) of the government order which provides that 'a person is eligible for only one welfare fund board pension' at a time, cannot apply where the respective Boards have received contributions from the member.

The Court observed it "...takes away the benefits already conferred to the members of the Funds and is an executive fiat and not a legislation and cannot operate retrospectively".

Accordingly, the Court directed the authorities to disburse the benefits due to the deceased petitioner including the pension withheld, to his legal heirs within a period of 2 months from the date of judgment. 

The petitioners herein were represented by Advocate T.M. Chandran. The KTWWF Board was represented by its Standing Counsel Advocate G. Santhosh Kumar. 

Case Title: Sadanandan K.S. & Ors. v. Kerala Toddy Workers Welfare Fund Board & Ors. 

Citation: 2023 LiveLaw (Ker) 7

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