Laxmi Prasad and Others vs Municipal Corporation of Delhi and Another

Pradeep Nandrajog, J.—Grievance of the petitioner is that the General Provident Fund Passbook which is being issued to the Class IV employees working under the Municipal Corporation of Delhi neither bears the signature nor does it bear the stamp of the competent authority issuing the passbook. Further grievance is that Statement of Account showing the opening balance as on the 1st day of April of each year is not being entered in the passbook. The amounts credited or deducted in the accounts during the year are also not being entered in the GPF Account Book which is being issued.

It is stated in the petition that whenever Class IV employees seek withdrawal or at the end of their services when they superannuate, lot of hardship is caused because the employees are not provided with the necessary entries in the passbook when they are in service under the Municipal Corporation of Delhi.

Mandate of Rule 39 of the General Provident Fund (CS) Rules, 1960 casts a statutory obligation on the employer to, as soon as possible, after 31st March of each year send to each subscriber a Statement of Account showing the opening balance as on the 1st of April of the year, the total amount credited or deducted during the years as well as the interest which has been credited as on 31st March of the said year.

Counsel who appears for the Municipal Corporation of Delhi does not dispute that the General Provident Fund (CS) Rules, 1960 stand adopted by the Municipal Corporation of Delhi and that the statutory obligations cast on the Municipal Corporation of Delhi and in particular the statutory obligation under Rule 39 has to be complied with.

In that view of the matter writ petition is allowed. Mandamus is issued to the Municipal Corporation of Delhi to comply with the mandate of Rule 39 of the General Provident Fund (CS) Rules, 1960 in respect of all employees from whose salary provident fund is deducted and is credited in the general provident fund account of the employee. It is directed that after 31st March of each year, within a reasonable period, not exceeding four months, the Accounts Officer of the MCD shall either fill up the passbook or send to each subscriber a statement of his accounts containing the entries as required by Rule 39. Further direction is issued that the passbook issued to the Municipal employees in respect of their General Provident Fund Account would be signed by a duly authorised officer in token of the authenticity of it being issued. The same would also bear the stamp or seal of the Municipal Corporation of Delhi. No order as to costs.