- (1.) This is an appeal by Regional Provident Fund Commissioner, Rajasthan, Jaipur and Union of India i. e. respondents in the original writ petition. The judgment and order dated November 6, 1989 passed by the learned single Judge is under challenge whereby the petition of original petitioner Shree Syntex i.e. respondent herein was allowed.
(2.) It is not in dispute that Shree SyntEx is a Factory registered under the Factories Act, 1948 and has been functioning as the unit of Shree Agencies, a registered partnership firm having its registered office at Calcutta. Shree Agencies is a Commercial Establishment under Shops and Commercial Establishments Act since September 3, 1973 and had also established its branch office at Kota in the year 1974. While Shree Agencies is engaged in the activity of trading in goods prepared from Jute and Hessian cloth at Calcutta, Shree Syntex commenced its production on and from June 24, 1980 and is engaged in the manufacture of HDPE woven cloths and bags from HDPE granules. Shree Syntex came with the case that it is an independant manufacturing unit and since it had commenced its production on June 24, 1980, it was entitled to infancy benefit under Section 16 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (for Short EPF Act, 1952) for a period of 5 years but in February, 1984 the number of employees crossed the limit of 50, infancy benefits were available upto February 1984 only and since then, the factory was making compliance of the provisions of the EPF Act on and from March 1984. The Regional Provident Fund Commissioner vide his letter dated March 21, 1984 required that whereas Shree Syntex Ltd. factory had come within the purview of the Act with effect from March 31, 1993, it should deposit provident fund with effect from April, 1983 and as such Shree Syntex Ltd. was not entitled for the benefit of infancy from 1983 onwards. Proceedings under Section 7-A of the Act were commenced. The Commissioner after inquiry passed an order dated March 14, 1988 holding that the factory of Shree Syntex was a branch of Shree Agencies and was not entitled to fresh infancy benefit under Section 16(l)(b) in respect of the factory at Kota, Shree Syntex should deposit the provident fund for employees employed in all the branches of Shree Agencies both at Calcutta and Kota along with employees of Shree Syntex Limited. This order dated March 14, 1988 passed by the Regional Provident Fund Commissioner was challenged through the writ petition, the same had been sustained and the petition had been allowed.
(3.) Mr. Jain learned counsel for the appellants has assailed this order on the ground that in fact Shree Syntex was owned by Shree Agencies and Shree Syntex was under the effective control and supervision of Shree Agencies, the factory of Shree Syntex was only an establishment of Shree Agencies as it was also financed by Shree Agencies and it fulfills all the requirements so as to be treated as an establishment of Shree Agencies and therefore liable to pay contribution towards the provident fund of employees. Mr. Jain while referring to Section l(3)(a), 2-A and 16(l)(b) of the EPF Act submits that in view of the order dated March 14, 1988 passed by the Regional Provident Fund Commissioner, there was no question of any entitlement of the infancy benefits for the period in question. Section l(33)(a), 2-A and 16(l)(b) of the EPF Act, 1952 are reproduced as under: "Section-1 Short title, extent and application. - (1)....... (2)....... (3) Subject to the provisions contained in Section 16, it applies- "(a) to every establishment which is a factory engaged in any industry specified in Schedule I and in which (twenty) or more persons are employed, and" "2-A Establishment to include all departments and branches- For the removal of doubts, it is hereby declared that where an establishment consists of different departments or has branches, whether situated in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment." "16. Act not to apply to certain establishments: (1) This Act shall not apply- (a)....... (b) to any other establishment belonging to or under the control of the Central Government or a State Government and whose employees are entitled to the benefit of contributory provident fund or old age pension in accordance with any scheme or rule framed by the Central Government or the State Government governing all such benefits; or";