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Report No. 137

2.5.2. Stalling payment on mere objection by a third party.-

The employers often stop the payment of the amount of Provident Fund and other retirement benefits on mere objection of a third party and instead of deciding the issue so raised, they direct the parties to get their dispute settled from a court of law. To illustrate the point, the case of Shri M. Krishnan of Central Warehousing Corporation can be quoted. The employee died while in service on March 3, 1988. Intimation of death was received by the employer on March 4, 1988.

The nominees, namely the two sons of the deceased, submitted the claim forms. While the case was being processed, the second wife of the deceased on July 23, 1988 raised a dispute regarding the entitlement of the nominees to receive the amount of provident fund. The employers thereupon in October 1988 directed the nominees to produce Succession Certificate instead of leaving the objector to file a suit and obtain a stay order if so desired. The case was found pending at the time of inspection of record in March 1989 by the officers of the Commission.

Need for creating Office of Ombudsman and for Evolving Legislative - Administrative measures Inter alia to relieve hardships caused by Inordinate Delays in settling Provident Fund claims of Beneficiaries Back

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