• PF And Pension amount not release by Company

My uncle worked in central government undertaking company. 
After 25 years of service he opted volentry Retirement option and the company accepted his retirement. At the same time some of the money lenders with whom he has taken loan have approached the local court and got attachment orders on his VR benifits.
Since 2002 onwards the amount is lying in the company.
6 months back he applied for release of pension and PF amount but they are not released by the company stating that they cannot be released until court provide no objection to release any amount.
We came to know that PF and pension amount is not attachable as per law.

Please guide us to what needs to be done now?
Asked 8 years ago in Labour

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6 Answers

1)Section 60(g) CPC contain exempts the following amounts from attachment:-

"stipends and gratuities allowed to pensioners of the Government (or of a local authority or of any other employer), or payable out of any service family pension fund notified in the Official Gazette by (the Central Government or the State Government) in this behalf, and political pension;"

2)

Section 11 of the Pensions Act reads thus:-

"Exemption of pension from attachment- --No pension granted or continued by Government on political considerations, or on account of past services or present infirmities or as a compassionate allowance."

3) Sections 3 and 4 of the Provident Funds Act protects the provident fund deposit from being assigned or charged and shall not be liable to attachment under any decree or order of any civil, revenue or criminal court. Section 10(2) of the Employees' Provident Funds & Miscellaneous Provisions Act is as follows:-

"Any amount standing to the credit of a member in the Fund or of an exempted employee in a provident fund at the time of his death and payable to his nominee under the Scheme or the rules of the provident fund shall, subject to any deduction authorised by the said Scheme or rules, vest in the nominee and shall be free from any debt or other liability incurred by the deceased or the nominee before the death of the member of the exempted employee (and shall also not be liable to attachment under any decree or order of any court.)"

4) your uncle can file application before CAT to direct PSu to release his provident fund and pension dues

Ajay Sethi
Advocate, Mumbai
99971 Answers
8159 Consultations

you should approach the high court against the order of attachment. according to section 60 of the code or criminal procedure PF cannot be attached. this attachment order is illegal.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

you should file a writ before the high court under article 227 of the constitution of India and vacate the attachment.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

1.I am not sure why your uncle waited so long for this.

2.Since it is a Givt.company he could have accessed speedy remedy of constitutional jurisdiction of high court.

3.Anyway ask your uncle to file writ petition of Mandamus and see how fast he gets his money with interest.

Devajyoti Barman
Advocate, Kolkata
23659 Answers
538 Consultations

PF cannot be attached even in execution of a decree. If any such order has been passed it can be assailed in the High Court through a revision.

Ashish Davessar
Advocate, Jaipur
30843 Answers
982 Consultations

No doubt PF and pensions amount cannot be attached in the judgment in the money recovery suit.

If there is a stay or attachment on the same, then you may have to approach court alone and not the company.

The company cannot do anything to release the amount held up by them due to court order.

Contact your advocate and proceed as per his advice on all such further issues.

T Kalaiselvan
Advocate, Vellore
90173 Answers
2506 Consultations

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