ASHIM KUMAR BANERJEE, J. - (1.) Both these appeals arise out of an identical issue. These are taken up together and disposed of by this common judgment and order. Hindusthan Steelworks Construction Limited (hereinafter referred to as H.S.C.L.) is a public sector undertaking having deep and pervasive control by the Union of India. Short question involved in this appeal is whether H.S.C.L. is entitled to continue to enjoy the exemption granted under paragraph 79 of the Employees Provident Fund Scheme pending consideration of their application for a permanent exemption under Section 17(1) of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (hereinafter referred to as the said Act of 1952)
(2.) The said Act of 1952 empowered to the Central Government to exempt any organisation from the purview of the said Act of 1952, fully or partially. Such power is derived from Section 17 of the said Act of 1952. The Government is entitled to exempt any organisation in case their own Provident Fund Scheme and/or other service benefit are on the whole not less favourable to the employees working therein than the benefits enjoyed by them under the said Act of 1952. In short, the exemption can only be obtained for the welfare of the employee and not for deprivation of the benefit which they are otherwise entitled to get as per the statute.
(3.) H.S.C.L. applied under provisions of Section 17(1) for exemption in 1965. On March 10, 1969 it created a fund for the benefit of the employees by taking subscription from the employees from their salaries. On November 17, 1997 the authority considered the said application and as a temporary measure relaxed the operation of the said Act in terms of paragraph 79 of the said scheme pending consideration of their application under Section 17(1). Such relaxation was given with retrospective effect from September 1, 1965. In this regard, we may refer to paragraph 79 which provided that notwithstanding anything contained in the scheme, the Commissioner may, in relation to a factory or other establishment in respect of which an application for exemption under Section 17 was received, relax pending disposal of the application, the provisions of this scheme in such manner as he may direct. In view of such relaxation H.S.C.L. employees were getting appropriate benefit from their own Provident Fund Trust created on March 10, 1969. In 1999 the company became sick. As per the advice of the Central Government they proposed a Voluntary Retirement Scheme inviting employees to retire prematurely. The Government also provided substantial fund to meet the requirement to pay off the retiral benefits to the employees opting under the said scheme.;