- (1.) THE petitioner, Niky Tasha (India) Pvt. Ltd. , in the petition which was amended during its pendency, seeks declaring and consequently setting aside proviso to Section 14-B of the amended Employees Provident Fund and Miscellaneous Provisions Act, 1952, as also Section 1 (2) of the amending Act 1988 as ultra vires and violative of Articles 14 and 19 (1) of the Constitution of India. It further seeks issuance of a writ of certiorari quashing order dated October 24, 1 1990, as also show cause notice dated August 21, 1990, and recovery certificate issued on June 10, 1991 the same being arbitrary, illegal and unconstitutional and against the principles of natural justice.
(2.) BRIEF facts giving rise to the case need a necessary mention.
(3.) IT is pleaded that the petitioner is mainly engaged in the manufacture of cooking gas stoves and other domestic gas appliances which are being manufactured at Faridabad and it has been paying employees contribution as well as employer's contribution as also the deposit linked contribution charges besides administrative charges. However, on account of a slump in the market it had to face financial strains and was, thus, not in a position to make the contribution required to be so made under the Act as per time prescribed. It was supposed to make the payments within 15 days the deductions were made but financial difficulties came in its way causing some delay for a few months ranging from one to four months and only in a few cases it was more than four months. As the petitioner was under financial stringencies, it approached Canara Bank that under the sick small scale industries scheme, the petitioner be declared as a sick unit and the said bank issued a letter dated February, 28, 1991, informing it that the Reserve Bank of India was now permitting to release the rehabilitation package and accordingly the sick small scale industries status had been given to it from October 9, 1989. Thereafter another letter was issued on March 21, 1991 by the Canara Bank thereby treating it as a sick unit from April 1, 1989. It is pleaded that the Reserve Bank of India has issued certain other instructions which are applicable to the sick units which fall under the small industries. The scheme has been framed by the Reserve Bank of India for the rehabilitation of sick small scale industries. As per the industries which have been declared sick units under the sick small scale industries get relief from the Central Government, like exemptions from the Central Excise, wholly or partly for a period of time or for deferment of collection or treating the dues as loan repayable on the lines of Sale tax loans from the State Government. Such sick small scale industrial units are also entitled to income tax relief and under Clause (d) deferment of Provident Fund /waiver of penalties, income-tax and Employees State Insurance dues and collection after suitable rephasing should ensure at the same time that there is no deprivation of benefits to the retiring or sick employees. Thus, thereby, it is pleaded, the petitioner is entitled to the benefits under the package deal and the instructions on the subject are annexed to the petition as Annexure P6.;