Employee Not Liable for Employer’s Failure to Maintain PF Records: Bombay High Court

In a significant ruling reinforcing the protective nature of social welfare legislation, the Bombay High Court has held that an employee cannot be penalised for the employer’s failure to maintain or produce statutory provident fund records. The Court emphasised that pensionary benefits are earned rights and cannot be denied due to administrative lapses beyond the employee’s control.

The judgment in Kiran Rajaram Jadhav v. Employees Provident Fund Organisation & Ors. (2026) underscores a crucial principle that technical deficiencies in employer-side documentation cannot override substantive entitlements of employees under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 and the Employees’ Pension Scheme, 1995.

Facts of the Case

The petitioner, Kiran Rajaram Jadhav, had served as a Pharmacist with a government undertaking for approximately 37 years, from 1987 until his retirement in January 2024. During his service, provident fund contributions were regularly deducted from his salary and deposited with the Employees’ Provident Fund Organisation (EPFO).

Following the Supreme Court’s decision in EPFO v. Sunil Kumar B. (2022), which permitted eligible employees to opt for pension on higher wages, the petitioner exercised his option in September 2023. He submitted all relevant documents, including his EPF account details and contribution records, seeking pension benefits calculated on actual wages rather than the statutory ceiling.

However, the EPFO rejected his application in March 2025. The rejection was based on the employer’s failure to produce key documents such as Form 6A and monthly challans, which were considered necessary for verifying contributions on higher wages.

Aggrieved by this denial, the petitioner approached the Bombay High Court under Articles 226 and 227 of the Constitution.

Issues

The High Court was called upon to determine the following key issues:

• Whether an employee can be denied higher pension benefits due to the non-production of statutory records by the employer.
• Whether Form 6A and challans are indispensable for verification, or whether alternative records can suffice.
• Whether EPFO is justified in rejecting claims solely on technical grounds without examining available evidence.

Arguments by the Parties

Petitioner’s Submissions

The petitioner argued that the responsibility to maintain statutory records such as Form 6A lies entirely with the employer. An employee has neither access to nor control over such records. Therefore, denying benefits on this ground is unjust and contrary to the scheme of the law.

It was further submitted that:

• The petitioner had submitted all available documents, including Form 3A and EPF account statements.
• Form 6A is merely a consolidated statement, and its absence should not defeat claims when equivalent data exists.
• Pension is a statutory right and not a discretionary benefit.
• The EPFO failed to exercise due diligence by not verifying the claim through alternative evidence.

The petitioner also relied on precedents from various High Courts affirming that employer lapses cannot prejudice employees.

Respondents’ Submissions

The EPFO contended that:

• Form 6A and challans are essential for verifying contributions.
• In their absence, it is impossible to confirm whether contributions were made for higher wages.
• The employer failed to furnish complete records despite being given sufficient opportunity.

The employer, on the other hand, supported the petitioner to some extent and submitted that available records, including Form 3A and wage details, had been provided to the EPFO.

Court’s Analysis and Reasoning

1. Nature of Pension as a Right

The Court reiterated that a pension is not a matter of charity or discretion but a right earned through long and continuous service. It forms part of social security legislation aimed at ensuring financial stability after retirement.

Denying pension on technical grounds undermines the very purpose of such welfare schemes.

A person who has worked for several decades and contributed regularly cannot be denied benefit because of gaps in official records.

2. Employer’s Responsibility for Record Maintenance

The Court held that statutory forms like Form 6A are maintained by the employer and remain in its custody. Employees cannot be expected to produce such documents.

Imposing this burden on employees would be inconsistent with the structure of the EPF framework and would lead to unjust outcomes.

3. Alternative Modes of Verification

A key aspect of the judgment is the Court’s emphasis on flexibility in verification. It was observed that:

• Form 3A contains year-wise contribution details.
• EPF account statements reflect continuous deductions.
• Employer communications and wage records provide additional evidence.

Thus, even in the absence of Form 6A, sufficient material existed to verify the petitioner’s claim. The Court criticised the EPFO for adopting a rigid and narrow approach instead of examining the cumulative evidence.

4. Beneficial Interpretation of Welfare Legislation

The Court reiterated the principle that social welfare statutes must be interpreted in a manner that advances their object. A strict, technical interpretation that defeats legitimate claims is contrary to legislative intent.

5. Injustice of Penalising Employees

The Court strongly rejected the idea that employees should suffer due to employer lapses. It held that:

• Employees have no control over statutory filings.
• Administrative failures by employers cannot extinguish accrued rights.
• Authorities must adopt a pragmatic approach in such cases.

6. Duty of Statutory Authorities

The EPFO, being a statutory authority, has a duty to ensure compliance and verify claims fairly. The Court observed that instead of outright rejection, the EPFO should have:

• Sought additional clarification from the employer.
• Verified records through internal systems.
• Considered all available material collectively.

Failure to do so amounted to a lack of due diligence.

Judgment

The Bombay High Court allowed the writ petition and set aside the EPFO’s order rejecting the petitioner’s claim.

The Court directed that:

• The matter be reconsidered by the EPFO.
• All available records, including Form 3A, EPF account statements, and employer submissions, should be taken into account.
• The claim should not be rejected solely due to the absence of Form 6A or challans if entitlement can otherwise be established.
• The entire exercise be completed within a specified timeframe.

Conclusion

The Bombay High Court’s ruling in Kiran Rajaram Jadhav v. EPFO is a landmark affirmation of employee rights under social security law. It sends a clear message that procedural lapses by employers or authorities cannot defeat workers' substantive entitlements.

By prioritising fairness, practicality, and the welfare objective of pension schemes, the Court has reinforced the principle that law must serve justice, not technicality.

In an era where administrative systems are evolving, and records may not always be perfect, this judgment ensures that employees are not left vulnerable due to factors beyond their control. It stands as a crucial precedent in safeguarding the dignity and financial security of retired workers.

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