HOTEL MAHAVEER Vs. REGIONAL PROVIDENT FUND COMMR

JUDGEMENT

(1.) THIS appeal at the instance of the appellants-employers impugns the order passed by the learned single Judge in W. P. No, 35106 of 1994 holding that the two businesses carried on by them constitute one establishment.

(2.) THE facts relevant for the disposal of this appeal are set out below: the appellants run two businesses viz. Hotel New Abiruchi Restaurant and Mahaveer lodge from the same premises in Hassan. The respondent, Provident Fund Commissioner, taking into consideration the combined employee strength of these two businesses called upon the appellants to comply with the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as 'the Act' ). The appellants disputed the applicability of the Act on the ground that the two businesses are two distinct and separate establishments and the employee strength of each unit, separately, never exceeded 19 and, therefore, the Act is not applicable to either of the establishments. The matter was then enquired into by the respondent under Section 7-A of the Act. The commissioner held that the At is applicable to the two businesses as they are, for the purposes of the Act, one and the same establishment. Having thus held on the question of applicability of the act, the respondent called upon the appellants to comply with the Act and also quantified the total dues payable by them. Aggrieved, the appellants moved the learned single Judge who dismissed the petition filed by them. Hence, the present appeal by the appellants.

(3.) WE have heard the learned counsel on both sides.