Employees provident fund

>>IN such cases it shall be appropriate to approach a competent and experienced labor consultant/service lawyer with all facts and records as facts of each case, service rules of the establishment, Conduct and discipline rules, standing orders, PF rules, show cause notice, inquiry report etc and facts of the case would matter for the opinion.

>> The latest judgment seems to cover variety of angles those are usually involved and may help you.

Jharkhand High Court

Nilam Dubey vs State Of Jharkhand & Ors on 10 May, 2013

https://www.indiankanoon.org/doc/146997172/}

12. It   is   admitted   position   that   the   husband   of   the  petitioner   died   on   3.11.1995   during   the   pendency   of   the  departmental   proceeding   initiated   against   him   by   issuing   charge  memo dated 30.07.1990.

It is also not denied that the orders of  recovery from the retiral dues of the husband of the petitioner were  passed after the death of the husband of the petitioner.

15................... It has further been held that if there is  any   disputed   claim   against   an   employee,   after   the   death   of   the  employee such claim can be adjudicated in a civil proceeding and  not by the department itself.  

"13.  It is thus obvious that the applicability of  the   maxim   'actio   personalis   moritur   cum   persona' depends upon the 'relief claimed' and 

the   facts   of   each   case.

25. In   a   given   case   offence/misconduct   committed   by   an  employee may automatically be dissolved on account of his death  however,   in   certain   offences/misconduct   alleged   to   have   been  committed by the employee during his service would not dissolve  him of the liability due to his death.

In a case where an employee  is alleged to have misappropriated funds and before the conclusion  of the inquiry he dies, the legal representatives of the employee are  entitled to defend the case and if it is found that any amount is due  from the employee, the employer can recover the same from the  estate left by the deceased employee.  Similarly if the misconduct is  not   proved,   the   legal   representatives   of   the   deceased   employee  would be entitled for the retiral benefits of the deceased employee.  The   effect   of   the   proceeding   initiated   after   the   retirement   or  dismissal of an employee is different from the proceeding that can  be   initiated   for   misconduct   during   the   lifetime   of   the   employee  before   his   retirement.     In   cases   of   inquiry   initiated   during   the  12

lifetime of the employee before his retirement, the employer would  be at liberty to complete the inquiry even after the death of the  employee in presence of the legal representatives of the deceased  employee and recover the loss from the retiral dues of the deceased  employee.

28. In view of the provisions in various legislations which  permit   the   legal   heir/dependent/near   relatives   of   a   person   to  institute/continue suit/case/appeal, I am of the view that in certain  circumstances   a   departmental  proceeding   can   be   continued  even  after the death of an employee provided : 

31. In the   result,   I   hereby   hold   that   the   recovery   of  Rs. 1,92,000/­ made by the respondents from the retirement dues  of the deceased­husband of the petitioner is not sustainable in law,  because reasonable opportunity was not given to the L.Rs. of the  14

deceased employee. However, it is made clear that the respondents  would   be   at   liberty   to   continue   the   inquiry   after   giving   a   fresh  show­cause notice to the petitioner or her son for recovering the  alleged amount misappropriated by the husband of the petitioner  from   his   retiral   dues.     Needless  to  say   that   the   respondents  can  continue with such inquiry only for the amount which is appearing  from the official records.  Copies of such records would be supplied  to the legal representatives of the deceased employee and sufficient  opportunity would be granted to him/her for contesting the case.  Any inquiry, if initiated, should be completed within a period of six  months from the date of this order.

>> You may also find following thread as relevant;

 https://www.lawyersclubindia.com/forum/P-f-gratuity-90740.asp#.UtlzBdK6a3Z

>> Kindly arrange all docs and record and facts in order and approach your able labor consultant/service lawyer in person.

You have not stated whether it is center or state Govt.  Anyway

Provident Fund

Section 3 of Provident fund act 1925.  Provident fund is immune from attachment. The action of deptt is illegal even if the employee is alive and retired during inquiry. Move to CAT/SAT/HC as applicable.

Inquiry

Since  the employee has died during inquriy and no charges could be proved against him till death no charge can be proved against a dead man.  Deptt cannot stop any benefit (including compassionate appointment if otherwise due)