- (1.) Petitioner is aggrieved of order dated 17.06.1988 passed by the Regional Provident Fund, Commissioner Haryana imposing a liability of Rs. 90,258.58 on account of provident fund contributions, administrative charges, EPF contributions, EDLI contributions and EDLI administrative charges.
(2.) Briefly stated the facts as emerge from the record are that Excelsior Plants Corporation Limited, a Limited Company, incorporated under Indian Companies Act, 1956 secured a loan from industrial Finance Corporation of India, New Delhi (hereinafter referred to as 'IFCI'). The said Company defaulted in payment of loan. IFCI initiated proceedings under Section 30 of the Industrial Finance Corporation Act, 1948 against the company in the Delhi High Court. The Delhi High Court appointed a Receiver and directed the sale of the properties and assets of Excelsior Plants Corporation Limited. In response to the notice issued by the Receiver appointed by the Delhi High Court M/s Driplex Water Engineering Private Limited made an offer to purchase the properties and assets of Excelsior Plants Corporation for a consideration of Rs. 30 lacs. The offer was accepted by the Delhi high Court vide its order dated 06.12.1979. On acceptance of the offer, the Receiver conveyed the acceptance to M/s Driplex Water Engineering Private Limited vide its letter dated 08.01.1980 on the conditions and stipulations contained in the acceptance letter (Annexure P1). Consequently, a conveyance deed was executed on 18.03.1981 by the Registrar of the Delhi High Court in favour of the purchaser M/s Driplex Water Engineering Private Limited. One of the conditions for sale of the property incorporated in letter dated 08.01.1988 was as under :- "The properties and assets will be transferred to you free from encumbrances." After acquiring the assets M/s Driplex Water Engineering Pvt. Ltd. leased out the factory premises including the land, building, plant and machinery existing at Plot No. 1, Western Extension, Industrial Area, Sector 11, Pali Road, NIT, Faridabad in favour of the petitioner-Company namely M/s Driplex Water Engineering (International) Pvt. Ltd. The petitioner applied to the Industries Department of Haryana for registration as small scale industry and it was duly registered as a small scale industrial unit with the Directorate of Industries, Haryana. It is alleged by the petitioner that the petitioner- Company was registered to manufacture water treatment plants, D.M. softening plants and their components, parts and equipments. This line of manufacturing was entirely different from the manufacturing activities being carried out by Excelsior Plants Corporation Limited in the same factory. The said company was manufacturing different kind of goods. It is further specifically alleged that all the workmen employed by M/s Excelsior Plants Corporation Limited left their jobs and the petitioners started their activity afresh with new staff and labour recruited for the purpose of manufacturing a different line of products and no employee of the erstwhile company was re-employed who was in the service of M/s Excelsior Plants Corporation Limited. The new manufacturing activity commenced w.e.f. 08.05.1981. Vide impugned order, petitioner has been asked to pay the provident fund contributions, family pension contributions, insurance fund contributions, administrative charges of EPF Scheme, 1952, EDLI Scheme 1976 for the period 9/75, 1/76, 2/76, 6/76, 7/76, (A/C-I, II and X), 8/76 (A/C 21 and 22), 9/76 to 3/77, 4/77 to 5/77 (AC-I, II and X), 7/77 to 4/78 (A/C-I, II and X), 7/78, 12/85, 2/86, 4/86, 5/86, 9/86 to 10/86, 1/87, 2/87, 6/87, 8/87 and 9/87.
(3.) The petitioner claims to have applied for a separate Provident Fund Code number and on the request of the petitioner, a report was sought from the Provident Fund Inspector, Grade-I, Faridabad. The said office vide his report dated 09.06.1983 informed the Regional Provident Fund Commissioner, Haryana that present factory at Faridabad was opened on 01.05.1981 by the petitioner- M/s Driplex Water Engineering (International) Private Limited which is a different company incorporated on 27.12.1979. The registered office of the company is covered separately under Employees Provident Fund and Miscellaneous Provisions Act, 1952 under the Code Number DI 6595 w.e.f. 01.07.1981. It was also communicated that the petitioner-Company was coverable under the Act w.e.f. the date of their functioning i.e. 01.05.1981. It was also mentioned that the firm is complying with the provisions of the EPF Act w.e.f. 01.07.1981 and dues are remitted with the State Bank of India, Faridabad without any code number. The Regional Provident Fund Commissioner, however, vide its letter dated 24.05.1983 informed the petitioner to comply with the provisions of the Act from the date (01.05.1981), it took over the charge under the code No. PN/3941 already allotted to M/s Excelsior Plant Corporation Limited by changing their names. In response to this, the petitioner wrote to the Regional Provident Fund Commissioner that the petitioner-Company has not taken over the charge of M/s Excelsior Plant Corporation Limited, Faridabad and has taken over only their assets and some portion of building and some machinery have been leased out to M/s Driplex Water Engineering Pvt. Ltd. and requested for allotment of a separate code number. However, the request of the petitioner was rejected vide letter dated 08.03.1988 and petitioner was asked to represent the case in person. The petitioner was informed of the delayed payments and the damages under Section 14B. The petitioner again represented against the aforesaid letter vide its communication dated 22.03.1988 and finally the impugned order has been passed by the respondents. The petitioner has challenged the impugned order primarily on the following grounds :- (i) that the petitioner is not the successor of M/s Excelsior Plants Corporation. (ii) that the plant and machinery and premises purchased by the M/s Driplex Water Engineering Pvt. Ltd. from M/s Excelsior Plants Corporation through the Court Receiver was free of all encumbrances. The petitioner being the lessee of the premises, plant and machinery etc. of M/s Driplex Water Engineering Pvt. Ltd. has no liability whatsoever particularly when the lessor had acquired unencumbered right. (iii) The case of the petitioner is not covered under Section 16(i)(d) of the Provident Fund Act and it has no liability whatsoever to pay any amount on account of PF contributions and other charges etc. prior to 01.07.1981.;