BIRLA COTTON SPINNING AND WEAVING MILLS LIMITED Vs. UNION OF INDIA
HIGH COURT OF DELHI
BIRLA COTTON SPINNING AND WEAVINGMILLS LIMITED
UNION OF INDIA
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SACHAR, J. -
(1.)This group of petitions were heard together. All of them are directed against the respective orders of Respondent, Regional Provident Fund Commissioner imposing damages under Section 14-B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter to be called Act). Many of the points raised are common and will stand decided in all the petitions by the decision given in one of the petition. We shall however deal with each petition separately, also.
(2.)Section 5 of 1952 Act empowers the Central Government to frame a scheme to be called Employees Provident Fund Scheme for the establishment of Provident Funds under the Act, . . . and there shall be established, after the framing of a scheme a Fund. Section 6 of the 1952 Act provides for payment of contributions by the employer to the Fund of six and a quarter percent of the basic wages payable to the employee and employee's contribution, which shall be equal to the contribution payable by the employer in respect of him. Section 2(h) of the Act defines "Fund" to mean the Provident Fund established under a Scheme.
(3.)Employee's Provident Fund Scheme 1952 was published on 2nd September, 1952. Para 30 of the Scheme provides that the employer shall in the first instance pay both the contributions payable by himself, referred to as employer's contribution and also on behalf of the member employed by him the contribution payable by such member. Para 32 provides that notwithstanding the provisions of the Scheme or any law for the time being in force, the amount of a member's contribution paid by the the employer shall be recoverable by means of deduction from the wages of the member, and not otherwise. Para 32 (3) provides that any sum deducted by an employer from the wages of an employee under this Scheme shall be deemed to have been entrusted to him for the purpose of paying the contribution in respect of which it was deducted.
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