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The Tax PublishersGeneral Principles regarding Succession to Follow in Absence of any Law
Sanjay Atre
Though nominee of a deceased would be entitled to receive service benefits accredited to the deceased, a divorcee cannot be permitted to continue as nominee of deceased husband. The technicality of law cannot conflict with its very purpose. The same has been elucidated in case Rani Bodheswaran v. Asstt. Provident Fund Commissioner (Pension), Kochi & Ors. (2018) 50 CLL 84 (Kerala-HC).
1. Opening Note
The real purpose of the Employees' Provident Funds & Miscellaneous Provisions Act, 1952 is to provide for the institution of provident funds, pension funds, etc. for employees in factories or other establishments. The Provident Fund Scheme formulated thereunder is obviously a step towards the welfare of employees. Under this Scheme both employer and employee contributes an equal amount towards the fund and the same can be encashed on retirement of the EPF member along with the interest thereon. In other words, it is a saving mechanism that enables employee to store a part of his salary for the upcoming future when he would not be working. EPF member can nominate a person, who on the death of such employee would be entitled to receive the amount of the fund which would be free from any encumbrance.
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