Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
Smart Summary

Judgment Summary — R.K. Choudhary, J. (with C.J. V. Ramaswami concurring)

Factual and Procedural Background

The writ application arises from prosecutions under Section 14 of the Employees' Provident Funds Act, 1952 (the Act) read with paragraph 76 of the Employees' Provident Funds Scheme, 1952 (the Scheme). Petitioner No. 2 is Dhalbhum Trades and Industries Ltd., a company manufacturing high‑pressure incandescent lamps (and other businesses), and Petitioner No. 1 is a shareholder of that company and Managing Director of the managing agents. The company failed regularly to submit monthly returns and to deposit employees' provident fund contributions and administrative charges; deposits had been made up to November 1953 but not for December 1953–May 1954, and returns for January–May 1954 were not submitted.

A criminal complaint was filed against Petitioner No.1; the Sub‑Divisional Magistrate took cognizance and the trial court convicted him. On appeal the Additional Sessions Judge acquitted Petitioner No.1 on the grounds that (a) sanction for prosecution had not been given by a competent authority and (b) the prosecution involved more than three offences of the same kind within twelve months in contravention of Section 234 of the Criminal Procedure Code. The Additional Sessions Judge nevertheless held on the merits that the Act and Scheme applied because the company employed fifty or more persons and engaged in an industry specified in Schedule I of the Act.

The Regional Provident Fund Commissioner (opposite party No.1) filed fifteen further complaints under Section 14 for the period June 1954 to July 1955. Some prosecutions are pending before the Sub‑Divisional Officer (opposite party No.2) and others before a Magistrate 1st Class (opposite party No.3).

The petitioners sought writs under Article 226 of the Constitution to quash criminal proceedings before opposite parties No.2 and No.3 and to restrain opposite party No.1 from demanding or realising contributions. The Government Pleader filed a counter‑affidavit opposing the application.

Legal Issues Presented

  1. Whether the Employees' Provident Funds Act, 1952 applies to the petitioner‑company — specifically (a) whether fifty or more persons are employed in the company for the purpose of Section 1(3) of the Act, and (b) whether the company is engaged in an industry specified in Schedule I of the Act.
  2. Whether the prosecutions are invalid for want of sanction by a competent authority as required by Section 14(3) of the Act.
  3. Whether, because the petitioners had raised a dispute about applicability (number of employees and classification under Schedule I), the Central Government was obliged under Section 19A to give a direction before enforcement could proceed.
  4. Whether Petitioner No.1 (a managing agent / person in charge) is liable to be prosecuted under Section 14A of the Act.
  5. Whether a single writ petition can be maintained to quash multiple (fifteen) separate prosecutions.

Arguments of the Parties

Petitioners' Arguments (as advanced by Mr. Ghosh)

  • The Act does not apply to the petitioner‑company because it (a) is not engaged in an industry specified in Schedule I and (b) does not employ fifty or more persons as required by Section 1(3).
  • The returns and letters produced (Annexures A, B, C) show that the number of employees drawing basic wages of Rs.300 or less was always less than fifty; employees drawing more than Rs.300 are excluded under paragraph 2(f) of the Scheme and thus need not be counted for Section 1(3).
  • No competent authority gave sanction for prosecution; where the industry is not a controlled industry, the Secretary in the Ministry (or the persons who gave sanction) lacked authority.
  • Because the petitioners repeatedly raised the dispute about applicability, Section 19A required the Central Government to settle the dispute before enforcement; the Central Government has not done so.
  • Petitioner No.1, personally, could not be prosecuted (implied challenge to application of Section 14A to him).

Opposite Party's Arguments (Regional Provident Fund Commissioner and Government Pleader)

  • The company manufactures high‑pressure incandescent lamps and therefore is engaged in an industry covered by Schedule I — specifically under item 3 (“electrical, mechanical or general engineering products”) and item 4 (“iron and steel”), with item (16) of the Explanation (which includes hurricane lanterns) supporting inclusion of incandescent lamps.
  • All employees (including those drawing more than Rs.300 basic wages) must be counted to determine whether fifty or more persons are employed under Section 1(3).
  • Sanctions for prosecution were validly given: notifications and appointments of authorised officers (including Sri B.P. Singh, I.A.S., and Sri S. Neelakanthan) and later state notifications demonstrate that the authority who granted sanction was properly empowered by the appropriate Government (Central Government for controlled industries; subsequently State specified authority for Bihar).
  • Section 14A renders persons in charge and responsible to the company (such as the managing agent) liable for offences; therefore Petitioner No.1 can lawfully be prosecuted.
  • Separate prosecutions cannot simply be consolidated into a single writ application to quash all proceedings; precedent supports that a joint application to quash several orders is not maintainable.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ram Lal Gura Mad Textile Mills v. Regional Provident Funds Commissioner, Punjab (1957‑1958) 12 FJR 115 Interpreted Section 19A — held that Section 19A does not provide for an inquiry or opportunity to present the case before the Central Government and that the Central Government need not consider the factory's claim if it does not feel any difficulty or doubt. The Court held this case supports the opposite party: Section 19A does not entitle a party to compel the Central Government to inquire simply because the party raises a dispute; it only empowers the Government to act when it (or the authority dealing with the matter) has a doubt or difficulty.
Annamalai Mudaliar and Bros. v. Regional Provident Fund Commissioner, Madras, AIR 1955 Mad. 387 Held that Section 19A provides specific machinery for determination of disputes as to whether a factory falls within Section 1(3) and that the High Court could issue writ where the Central Government's order had not been sought. The Court disagreed with the reasoning of that decision, stating it had read into Section 19A something not present; the present Court refused to follow Annamalai to the extent it suggested a party could compel reference to the Central Government absent a doubt in the authority's mind.
Bishwaranjan Bose v. Honorary Secretary, Ramkrishna Mission, Vivekanand Society, Jamshedpur, MJC No. 187 of 1957, Dated 29‑1‑1958 (Pat) Principle that a joint application for quashing several different orders (or prosecutions) is not maintainable. The Court applied this principle as a preliminary ground to hold that one writ application to quash fifteen prosecutions was not maintainable and supported dismissal of the application on that ground as well.
Shanmuga Rajeswara Sethupathi v. State of Madras, AIR 1957 Mad 570; Mandir Thakar Dawara, Dhuri v. State of Pepsu, AIR 1955 Pepsu 159; Inder Singh v. State of Rajasthan, AIR 1954 Raj 185 Cases cited in support of the principle that joint or multiple challenges in a single writ may be impermissible / the same view on maintainability of joint applications to quash multiple independent orders. The Court cited these authorities as supporting the conclusion that the petitioners' single application to quash multiple prosecutions was not maintainable.

Court's Reasoning and Analysis

The Court proceeded in a stepwise legal analysis based strictly on the pleadings, documents and the statutory text:

  1. Applicability of Section 1(3) — number of employees:
    • The Court analysed Annexures A, B and C (letters and returns): these documents, the Court found, concerned the number of employees drawing basic wages of Rs.300 or less; the petition itself also made statements indicating the figures related to employees drawing Rs.300 or less.
    • The petitioners' argument that employees drawing more than Rs.300 are excluded (under paragraph 2(f) of the Scheme) and thus are not to be counted for the purpose of the threshold in Section 1(3) was rejected as based on a confusion. The Court read Section 1(3) plainly: for determining whether a factory is within the Section, the total number of all employees (whether drawing more or less than Rs.300 basic wages) must be taken together; only if the total of all employees is less than fifty would the Act be inapplicable.
    • The Additional Sessions Judge had found that fifty or more persons were employed; the petitioners did not place on record materials showing a contrary total. The Court therefore accepted (for purposes of the writ challenge) that fifty or more employees were employed.
  2. Applicability of Schedule I — nature of industry:
    • The company manufactures high‑pressure incandescent lamps. The Court interpreted items in Schedule I: item 3 ("electrical, mechanical or general engineering products") and item 4 ("iron and steel") were invoked by the opposite party.
    • The Court observed that the term "electrical, mechanical or general engineering products" is wide and that the Explanation (item (16)) expressly includes "hurricane lanterns." After considering dictionary definitions of "lamp" and "lantern" and the structure of the Schedule, the Court concluded that "hurricane lanterns" as used in the Explanation includes incandescent lamps and, separately, incandescent lamps can be regarded as manufactured products of iron and steel. Thus the petitioner company is engaged in an industry specified in Schedule I.
  3. Sanction for prosecution under Section 14(3):
    • Section 14(3) requires prior sanction from an authority specified by the appropriate Government. The Court considered the definition of "appropriate Government" in Section 2(a) (Central Government for controlled industries and industries connected with mines or oilfields; State Government for others).
    • Under the Industries (Development and Regulation) Act, 1951, iron & steel and hurricane lanterns are listed in the First Schedule; Explanation 1 states manufactured products of iron & steel are included. The Court held the petitioner's business falls within those items and therefore is a controlled industry, making the Central Government the appropriate Government for specification of the sanctioning authority.
    • The Court examined notifications: appointment of Sri B.P. Singh as Inspector for controlled industries (Gazette notification), specification of the Commissioner for Employees' Provident Funds as the authority under Section 14(3), and appointment of Sri S. Neelakanthan as Central Provident Fund Commissioner — together with later notifications delegating certain powers to State Governments and Bihar's specification of its Secretary, Labour Department, as the relevant authority.
    • On this basis the Court concluded that the sanctions given in the present case (by Sri B.P. Singh and Sri S. Neelakanthan as recorded) were valid and the petitioners' objection on grounds of absence of competent sanction was without substance.
  4. Section 19A argument (dispute resolution by Central Government):
    • Section 19A empowers the Central Government to make an order when difficulty or doubt arises in giving effect to the Act, specifically including whether a factory is within Schedule I or whether fifty or more persons are employed.
    • The petitioners contended their letters raising the points required the Central Government to give directions under Section 19A. The Court rejected this, reasoning that Section 19A contemplates action by the Central Government where the authority dealing with the matter feels difficulty or doubt; it does not provide that a party's mere raising of a dispute triggers a mandatory reference or inquiry by the Central Government. The Court therefore found no obligation on the Central Government to issue directions at petitioners' instance absent a doubt in the authority's mind.
    • The Court reviewed two authorities: Ram Lal (which, the Court held, supported the opposite party's position) and Annamalai Mudaliar (which supported the petitioners). The Court explicitly declined to follow Annamalai Mudaliar's reasoning that Section 19A creates a party‑driven mechanism, calling that an incorrect reading of the statute.
  5. Liability of Petitioner No.1 — Section 14A:
    • Section 14A(1) provides that where an offence is committed by a company, every person who at the time of the offence was in charge of and responsible to the company for the conduct of the business shall be deemed guilty. Petitioner No.1 was the managing agent (and on his own showing resident where the company is located and the managing agent), and therefore is liable to prosecution under Section 14A.
  6. Maintainability — single writ to quash multiple prosecutions:
    • The Court found a further, independent, preliminary ground of failure: the petitioners sought to quash fifteen separate prosecutions by a single writ application. Citing Bishwaranjan Bose and other authorities, the Court held that a joint application for quashing several distinct orders or proceedings is not maintainable.

Holding and Implications

Holding: The writ application is dismissed. The Court concluded that (a) the petitioner company is covered by the Employees' Provident Funds Act, 1952 (because fifty or more employees are to be counted and the industry is specified in Schedule I), (b) sanctions for prosecution were validly given by competent authorities, (c) Section 19A does not entitle a party to compel the Central Government to decide the dispute absent a doubt in the authority's mind, (d) Petitioner No.1 is liable under Section 14A, and (e) the single joint writ to quash fifteen prosecutions was not maintainable.

Direct Implications for the Parties:

  • The prosecutions against the petitioners may proceed; the application to quash those prosecutions is refused.
  • Petitioner No.1 remains subject to prosecution as a person in charge and responsible to the company under Section 14A.
  • The petitioners were ordered to pay costs: hearing fee of Rs. 100 (and costs generally as indicated).

On precedent or law‑making: The Court expressly declined to follow Annamalai Mudaliar to the extent it suggested Section 19A creates a party‑driven right to have the Central Government adjudicate applicability; the decision rests on statutory interpretation rather than the creation of a novel legal principle. The Court applied existing statutory interpretation and cited authorities on procedural maintainability.

Disposition

The application is dismissed with costs. Hearing fee: Rs. 100. (V. Ramaswami, C.J. agreed.)

This summary is limited to and derived solely from the contents of the provided opinion. No information beyond the text of the opinion has been introduced.

    Bankim Chandra Chakravarty And Another v. Regional Provident Fund Commissioner And Others Opposite Party.

    R.K Choudhary, J.:— The facts giving rise to the presentation of this writ application are as under:

    2. Petitioner No. 1 is a share-holder in the Dhalbhum Trades and Industries Ltd., petitioner No. 2, a company registered under the Indian Companies Act, 1913 (hereinafter to be referred to as the company), and the Managing Director of the firm of B. Chakravarty and Co. (Private) Ltd., which are the managing agents of the company. It appears that the company was required to submit monthly returns and deposit the contributions and administrative charges as provided by the Employees' Provident Funds Act, 1952 (hereinafter to be referred to as the Act), read with the provisions of the Employees' Provident Funds Scheme, 1952 (hereinafter to be referred to as the Scheme). As it was not regular in submitting the monthly returns and depositing the contributions, notices were issued to if, from time to time for complying with the requirements, and it appears that subsequently the company made the deposits up to November, 1953. The deposits for the months of December, 1953 to May, 1954, were, however, not made, and monthly returns for the months of January to May, 1954, were not submitted.

    3. Consequently, a complaint was filed against petitioner No. 1 and cognizance was taken by the learned Sub-Divisional Magistrate of offences under S. 14 of the Act read with paragraph 76 of the Scheme and Petitioner No. 1 was put on trial. He was convicted by the trial court, but on appeal the learned Additional Sessions Judge acquitted him because he held that sanction for the prosecution had not been given by any competent authority as required by the law and that the prosecution being in respect of more than three offences of the same kind committed within the space of twelve months, the trial was in contravention of Section 234 of the Cr PC.

    4. On the merit of the case, however, he definitely held that the facts disclosed in the case attracted the provisions of the Act and the Scheme as there were fifty or more persons employed in the company and it engaged in an industry specified in Sch. I of the Act. As the petitioners failed to deposit the contributions for subsequent periods, the Regional Provident Fund Commissioner, opposite party No. 1, filed fifteen petitions of complaint under S. 14 of the Act read with paragraph 76 of the Scheme for the period from June, 1954 to July, 1955.

    5. Some of the cases are pending before the Sub-divisional Officer, opposite party No. 2, and the others are pending before Mr. P.N Sen, Magistrate 1st Class, opposite party No. 3. It is also alleged that opposite party No. 1 is demanding contributions for subsequent periods also. In those circumstances the petitioners filed the present application under Article 226 of the Constitution of India for issue of an appropriate writ to quash the criminal proceedings pending before the opposite party Nos. 2 and 3, and to restrain opposite party No. 1 from demanding or realising any contribution. The application has been opposed by the learned Government Pleader on behalf of opposite party No. 1 who has shown cause by filing a counter-affidavit.

    6. The company, namely, petitioner No. 2, as the statement in the application shows, is carrying on business at Ghatsila in the district of Singhbhum in manufacture of high pressure incandescent lamps, besides mines, fisheries hat, etc.

    7. On behalf of the petitioners Mr. Ghosh has contended that the provisions of the Act do not apply to this company. In support of this contention he has drawn our attention to S. 1(3) of the Act which runs as follows:

    “Subject to the provisions contained in S. 16, it applies in the first instance to all factories engaged in any industry specified in Sch. I in which fifty or more persons are employed, but the Central Government may, after giving not less than two months' notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act, to all factories employing such number of persons less than fifty as may be specified in the notification and engaged in any such industry.”

    8. If is contended that the petitioner-company is not engaged in any industry specified in Schedule I of the Act and that less than fifty persons are employed in it and, as such, under the above section the Act has no application to the petitioner-company. On the above contention, two questions have to be determined, namely, (1) whether there are fifty or more persons employed in the company and (2) whether it is engaged in any industry as specified in Schedule I of the Act.

    9. So far as the question of there being fifty or more persons employed in the company is concerned, reliance has been placed on behalf of the petitioners on Annexures “A”, “B” and “C” attached to the petition. Annexure “A” is a letter, written by the Inspector, Employees' Provident Funds, Bihar, to the petitioner-company, dated 14-H-1952, inviting its attention to sub-s. (3) of S. 1 of the Act and asking it to give, month by month, the number of employees on rolls, inclusive of clerical staff, watch and ward, etc., drawing Rs. 300 or less per month as basic wages from October, 1951 to October, 1952.

    10. It is contended with respect to this letter that by this letter the Inspector wanted the company to give the number of only those employees who were drawing Rs. 300 or less per month as basic wages. In reply to that letter, therefore, the company wrote on 28-11-1952, giving the number of the employees who were drawing less than Rs. 300 per month as basic wages and the figures so given for the period from October, 1951 to October, 1952, showed that the number of such employees had always been less than fifty.

    11. This is Annexure “B”. Annexure “C” Is dated 16-2-1955, by which again the petitioner company raised the point that the Act did not apply to it as it did not employ fifty or more persons in its business and it gave figures for the period from December, 1953 to January, 1955, showing that the employees engaged in the business including the number of casual labourers had always been less than fifty, in this letter, however, it was stated that the list submitted in November, 1952, included all persons employed casually or on a permanent basis.

    12. But in paragraph 10 of the writ petition the petitioners have made specific statements that the petitioner-company did not employ, at any time, fifty or more persons other than those who have been described as excluded employees. It is also stated in paragraph 12 of that petition that the reply that was sent, namely, Annexure-“B”, gave a full list of the employees whose basic wages did not exceed Rs. 300 per month, and in paragraph 13 it is stated that likewise in the letter, Annexure “C”, the figures for the period from December, 1953 to January, 1955, were given.

    13. The use of the word “likewise” in this paragraph makes it perfectly clear that the figures given in the letter related to the employees-whose basic wages did not exceed Rs. 300 per month as has been stated in paragraph 12 of the petition referred to above. In a rejoinder filed on behalf of the petitioners it has been stated that the petitioners made it clear in Annexure “C” that the list submitted in November, 1952, included all persons employed casually or on permanent basis, and on this statement in Annexure “C” Mr. Ghosh has contended that the list given in that document included all employees drawing more or less than Rs. 300.

    14. In face of the statements referred to above in the writ petition itself, it is not possible to accept the contention of Mr. Ghosh and it rnust be held that the figures given in those letters related to only those employees who were drawing Rs. 300 or less as basic wages.

    15. It has been contended by Mr. Ghosh that the employees, who were drawing more than Rs. 300 as their basic wages, are, under paragraph 2(f) of the Scheme, excluded employees, and, therefore, they must be excluded from making the total number of fifty or more persons as employees for the purpose of S. 1(3) of the Act. The argument is based on confusion. A plain, reading of the above section makes it perfectly manifest that for the purpose of the application of the Act to a particular factory, all employees, whether drawing more or less than Rs. 300 as their basic wages taken together, must be 50 or more persons.

    16. Thus where the number of all such employees is less than fifty, then only the provision of the Act is inapplicable. In my view, therefore, the employees drawing more than Rs. 300 as their basic wages must be taken into account for the purpose of reaching the number of fifty or more.

    17. It has then been contended by Mr. Ghosh that in the present case there is no material on the record to show that the employees engaged in the petitioner company were fifty or more. The judgment of the learned Additional Sessions Judge, which is annexure (g) to the counter-affidavit, shows that the learned Judge took the view that fifty or more persons were employed in that company.

    18. Even after this finding, the petitioners do not make any statement in their writ petition as to the total number of such employees. It was for them to have brought on the record materials on which they wanted to base their prayer for an issue of writ, and, if they have failed to do: so, it may be assumed that there must have been fifty or more employees engaged in the company.

    19. The next question is whether the petitioner company is engaged in any industry specified in Schedule I of the Act. As already stated, the petitioner company manufactures high pressure incandescent lamps. Item 3 of Schedule I of the Act is electrical, mechanical or general engineering products and item 4 of that schedule is iron and steel. It is contended on behalf of the opposite party that the business in which the petitioner company is engaged comes both under items 3 and 4 referred to above.

    20. In my opinion, the expression “electrical, mechanical or general engineering products” is wide enough to include high pressure incandescent lamps. Moreover, by item (16) of the Explanation appended to the above schedule, it has been laid down that the expression “Electrical, mechanical or general engineering products” includes hurricane lanterns. It has, therefore, been argued on behalf of the opposite party that the business of the petitioner company is included in the term “hurricane lanterns”.

    21. It has also been argued on their behalf that the business comes under the above item 4 of the schedule, namely, “Iron and Steel”, which term, as I will presently show while dealing with another point, includes any manufactured products of iron and steel. The argument is, in my opinion, well founded and must prevail. Lamp means, according to the Webster's dictionary, a vessel with a wick used for the combustion of oil or other inflammable liquid to produce artificial light, and by extension, any or various vessels, instruments, or devices for producing light or heat, as, an are lamp, an incandescent lamp, a safety lamp, whereas lantern means something inclosing a light and protecting it from wind, rain, etc. sometimes portable, as a closed vessel or case of horn, perforated tin glass, oiled paper, or other material, having a light within.

    22. Thus, it appears that the word “lantern” is a case inclosing a light, whereas a “lamp” is a vessel with oil and wick for giving light. In my opinion, therefore, the term “hurricane lanterns” used in item (16) of the Explanation of schedule I of the Act includes incandescent lamps in manufacturing which the petitioner company is engaged. Apart from that the expression “incandescent lamps” can also be included in the term “any manufactured products of iron and steel” I referred to above.

    23. That being the position, the petitioner company must be held to be engaged in an industry specified in Schedule I of the Act. In that view of the matter, the contention of Mr. Ghosh that S. 1(3) of the Act is not applicable to the petitioner company on the ground referred to above must fail.

    24. The next point taken in support of the application is that no sanction for prosecution has been given by any competent authority and, therefore, the same is bad in law. S. 14(3) of the Act lays down that no court shall take cognizance of any offence punishable under this Act or under any Scheme except on a report in writing of the facts constituting such offence made with the previous sanction of such authority as may be specified in this behalf by the appropriate Government, by an Inspector appointed under S. 13.

    25. In this case the sanction for prosecution for the period after 20-11-1954, has been given by Sri B.P Singh, I.A.S and for the period before that date by Sri S. Neelakanthan, Deputy Secretary, Ministry of Labour, Government of India, and the complaints have been lodged by the Regional Provident Fund Commissioner, opposite party No. 1. It is contended on behalf of the petitioners that the industry in which the petitioner company is engaged not being a controlled industry, Sri S. Neelakanthan had no authority to accord sanction for the prosecution.

    26. As S. 14(3) quoted above provides for the sanction to be given by an authority as may be specified in this behalf by the appropriate Government, it has to be seen whether or not in this case Sri S. Neelakanthan was authorised to give sanction by the appropriate Government. Section 2(a) defines “appropriate Government” to mean (i) in relation to a factory engaged in a controlled industry or in an industry connected with a mine or an oilfield the Central Government, and (ii) in relation to any other factory, the State Government.

    27. Section 2 of the Industries (Development and Regulation) Act, 1951, declares that it is expedient in the public interest that the Union should take under its control the industries specified in the First Schedule and in that schedule item (4) is iron and steel and item (31) is hurricane lanterns. Explanation 1 to that schedule says that in item (4), ‘iron and steel’ shall include any manufactured product of iron and steel.

    28. I have already held that the business in which the petitioner company is engaged comes under these two items and is, therefore, a controlled industry. That being the position, the appropriate Government authorizing any person to give sanction is the Central Government.

    29. By notification No. PF 516(28) published in the Gazette of India, dated 19-7-1952, at pages 1130-1 in part II, Section III, the Central Government in exercise of the powers conferred by sub-section (1) of Section 13 of the Employees' Provident Funds Act appointed Sri B.P Singh, I.A.S, Bihar, to be an Inspector for the State of Bihar for the purposes of the said Act and of any Scheme made thereunder in relation to factories engaged in controlled industries and industries connected with mine or an oilfield.

    30. This is annexure (a) to the counter-affidavit. By notification No. PF 516(55) published in the Gazette of India, dated 29-11-1952, at page 1750, the Central Government, in pursuance of sub-section (3) of Section 14 of the Employees' Provident Funds Act, specified the Commissioner for the Employees' Provident Funds appointed under sub-paragraph (1) of paragraph 19 of the Employees' Provident Funds Scheme, 1952, as the authority for the purposes of the said sub-section (annexure (b) to the counter-affidavit) and by notification No. PF 516 (175) published in the Gazette of India, dated 10-4-1954, at page 149 (annexure (c) to the counter-affidavit) Sri S. Neelakanthan, Deputy Secretary, Ministry of Labour, was appointed as Central Provident Fund Commissioner, Employees' Provident Funds Scheme at New Delhi with effect from the 1-4-1954, until further orders.

    31. Later on, on the 30-11-1954, the Central Government, by notification published in Part II, S. 3 of the Gazette of India, dated 4-12-1954, directed that the powers exercisable by it as the appropriate Government under sub-s. (3) of S. 14 of the said Act to specify the authority to issue the sanction referred to in the said sub-section shall also be exercisable within each of the States specified in the Schedule annexed thereto by the respective Government of each such States and Bihar is one of those States (annexure (d) to the counter-affidavit).

    32. Thereafter on 10-10-1955, by notification published in the Bihar Gazette, on 2-11-1955, the Government of Bihar specified the Secretary to Government of Bihar, Labour Department, as the authority for the purposes of sub-s. (3) of S. 14 in respect of factories engaged in a controlled industry or in an industry connected with a mine or an oilfield (annexure (f) to the counter affidavit). From these notifications, therefore, it is manifest that the sanction for prosecution given in the present case is perfectly valid and the point taken by Mr. Ghosh has no substance.

    33. The third point taken by Mr. Ghosh in support of the application is that the petitioners have all along been raising a dispute as to whether the provisions of the Act were applicable to the petitioner company, but the same has not been settled by the Central Government as required by S. 19A of the Act. This section reads as follows:

    “If any difficulty arises in giving effect to the provisions of this Act, and in particular if any doubt arises as to—

    (i) whether a factory is engaged in any industry specified in Schedule I; or

    (ii) whether fifty or more persons are employed in a factory; or

    (iii) whether three years have elapsed from the establishment of a factory; or

    (iv) whether the total quantum of benefits to which an employee is entitled has been reduced by the employer, the Central Government may, by order, make such provision or give such direction not inconsistent with the provision of this Act as appear to it to be necessary or expedient for the removal of the doubt or difficulty; and the order of the Central Government, in such cases, shall be final.”

    34. It is submitted that by the letters referred to above the petitioners have raised the point that fifty or more persons were not employed in the company, and that it is not engaged in any industry specified in Schedule I of the Act and, as such, it was incumbent on the Central Government to give directions in that regard. I, however, an unable to agree with this contention.

    35. The section, in my opinion, envisages a direction by the Central Government when any difficulty arises in giving effect to the provisions of the Act, and, if any doubt arises as to the matters referred to in that section in the mind of the authority who has to deal with the matter. If that authority does not feel any difficulty or has no doubt about any of the matters referred to in the section, there is no scope for any direction to be given by the Central Government at the instance of a party who may raise a dispute over the matter. The question of any dispute being raised by the party concerned is foreign to the section.

    36. Mr. Ghosh, however, in support of his contention has relied on the cases of Ram Lal Gura Mad Textile Mills v. Regional Provident Funds Commissioner, Punjab, (1957-1958) 12 FJR 115 (A), and Annamalai Mudaliar and Bros. v. Regional Provident Fund Commissioner, Madras, (S) AIR 1955 Mad. 387 (B). So far as the first case is concerned, I do not think that it is of any assistance to the petitioners and, in my opinion, it supports the contention of the opposite party.

    37. In that case a writ application was made by certain mills for issue of a writ in the nature of mandamus directing the Government not to enforce the provisions of the Act against them. It appears that the Regional Provident Funds Commissioner, Punjab, called upon the mills to deposit the employees' and employers' shares of contributions and administrative charges from May, 1954, onwards. The mills objected to making this deposit on the ground that their employees were less than fifty.

    38. On inspection of the books produced by the mills, the Inspector came to the conclusion that the petitioning mills were governed by the Act and the Regional Provident Funds Commissioner called upon them to deposit the required contributions and administrative charges failing which proceedings were to be taken against them under the provisions of the Scheme and the Act. The mills then represented their case to the Central Government under S. 19A of the Act, but the Central Government informed them to comply with the provisions of the Act as the strength of the employees in the factory was more than fifty persons.

    39. The petitioner thereafter made a writ application and put forward a grievance that the Central Government did not give any opportunity to them under S. 19A of the Act to prove that the number of employees in the factory during the relevant period was less than fifty. The contention was rejected and it was held that section did not provide for any inquiry into the matter and did not lay down that the factory was to be given an opportunity to present its case to the Central Government.

    40. It was further held that the above section merely enabled the Government in case of difficulty or doubt to issue certain directions which are to be considered final and that in that case the Central Government did not consider that there was any difficulty or doubt in giving effect to the provisions of the Act. The writ application was, accordingly, dismissed. The other case, however, fully supports the contention of Mr. Ghosh.

    41. In that case, it was held that the Employees' Provident Funds Act, 1952, provides for a specific machinery in S. 19A for the determination of a dispute as to whether certain factory is a factory within the scope of S. 1(3) of the Act. Raja-gopalan, J. (as he then was), relying on S. 19A of the Act observed that neither the Act nor the Scheme vests any power in the first respondent to adjudge a dispute should one arise, whether the factory is one to which the Act applied, that is, whether it is a factory within the scope of S. 1(3) of the Act and that the order of the Central Government not having been sought, the High Court was justified in issuing a writ.

    42. With utmost respect to his Lordship, I am unable to persuade myself to accept the correctness of that decision. His Lordship has decided the point by reading something into the section which is not there. The section, as already stated, does not contemplate of any dispute raised by the parties concerned, and, in that view of the matter, there is no point in referring the matter to the Central Government for a direction unless the authority concerned feels a doubt or finds a difficulty as provided in the section.

    43. Lastly, it has been contended that the petitioner No. 1, at any rate, could not be prosecuted. The argument has been put forward in ignorance of the provisions of S. 14A of the Act. Sub-section (1) of that section states that if the person committing an offence under this Act or the Scheme made thereunder is a company, every person, who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.

    44. Petitioner No. 1 who is a resident of Ghatsila where the company is located, on his own showing, is the managing agent of petitioner No. 2, the company. That being so, he is, under the above section, liable for prosecution.

    45. The application fails on a preliminary ground as well. As already stated, there have been fifteen prosecutions lodged against the petitioners, but they have made only one writ application for quashing all those fifteen prosecutions. A Bench of this Court in Bishwaranjan Bose v. Honorary Secretary, Ramkrishna Mission, Vivekanand Society, Jamshedpur, MJC No. 187 of 1957, D/- 29-1-1958 (Pat) (C), has held that a I joint application for quashing several orders is not maintainable.

    46. In that case four teachers whose services had been dispensed with by four different orders made one writ application for quashing those orders. It was held that the application was not maintainable. The same view has been taken in other courts also, for example, Shanmuga Rajeswara Sethupathi v. State of Madras, (S) AIR 1957 Mad 570 (D); Mandir Thakar Dawara, Dhuri v. State of Pepsu, AIR 1955 Pepsu 159 (E); and Inder Singh v. State of Rajasthan, AIR 1954 Raj 185 (P).

    47. For the reasons given above, there is no merit in the application, which is, accordingly, dismissed with costs. Hearing fee Rs. 100.

    48. V. Ramaswami, C.J:— I agree.

    D.H.Z

    49. Application dismissed.

    Use AI to get other relevant cases.

    Comments

    Bankim Chandra Chakr... v. Regional Provident F...
    (Feb 11, 1958)