REGIONAL PROVIDENT FUND CORN MISSIONER BOMBAY IN BOTH APPEALS Vs. KRISHNA METAL MANUFACTURING CO BHANDARA IN C A NO 361OF 59 AND 2 OUDH SUGAR MILLS LTD

JUDGEMENT

(1.) These two appeals have been heard together because they raise a common question of construction of S. 1 (3) (a) of the Employees' Provident Funds Act, 1952 (No. 19 of 1952) (hereinafter called the Act). The Regional Provident Fund Commissioner, Bombay, is the appellant in both the appeals, whereas Shree Krishna Metal Manufacturing Co., and Oudh Sugar Mills Ltd. are the respondents respectively. Shree Krishna Metal Mfg. Co. is a partnership firm which is registered under the Indian Partnership Act. Its business consists of (I) manufacturing brass, copper and 'kasa' circular sheets and the preparation of utensils therefrom; (2) milling paddy, (3) a flour mill and (4) a saw mill. The aforesaid four works are situated in the same compound. For the manufacture of metal circular sheets, the company has a rolling machine. In order to carry on other works, a separate rice mill, flour mill and saw mill have been installed by the Co. The Company's case is that it employs different workers in each section of its activities and these workmen are engaged either on a permanent or on a temporary basis. Some workers such as clerks and watchmen are common to the four sections of the Co.'s works. After the Act came into force, the Co. was required to comply with its provisions. The Co. protested and urged that it was not a factory under S. 1 (3) (a) of the Act and so, it could not be called upon to comply with its provisions. The Regional Provident. Fund Commr., however, took a contrary view. He held that the Co. fell within the meaning of the word "factory" as defined under S. 1 (3) (a) and so, he threatened to use coercive processes to compel the Co. to comply with its requisitions issued under the relevant provisions of the Act. At that stage, the Co. moved the High Court of Bombay at Nagpur by a writ petition under Art. 226 of the Constitution and it prayed that an appropriate writ should be issued restraining the Commissioner from enforcing the relevant provisions of the Act against it. This writ petition has been allowed and an appropriate writ has been issued as prayed for by the Co. It is against this order that the Regional Commissioner has come to this Court with a certificate granted by the High Court. For convenience, the Regional Provident Fund Commissioner would hereafter be referred as the appellant and the Shree Krishna Metal Manufacturing Co. would be called the Company.

(2.) The Oudh Sugar Mills Ltd. which is respondent in C. A. No. 387 of 1959, is a public limited company registered under the Indian Companies Act. It carries on the business of manufacturing hydrogenated vegetable oil named "Vanasada" and its by products, such as soap, oil-cakes, etc. This business is carried on at Akola under the name and style of 'Berar Oil Industries'. The Mills commenced manufacturing its products on October 11, 1948. It also manufactures and markets vegetable oil after completing all the processes at Akola. The oil is then tinned in tin containers of certain sizes. The said tin containers are fabricated by the mills in its own precincts of the oil factory. These tin containers are used only for the purpose of packing vegetable oil and for no other. They are not sold in the market nor are the customers of oil charged separate price for the tins. The work of fabricating these tins began on the 13th October, 1948. In this section of the Works only 31 workmen are engaged, while in the Mills proper 211 workers were working on the manufacture of oil and its by-products on the 1st of November, 1952.

(3.) The Central Government framed a scheme under S. 5 of the Act and this scheme came into force partly on 2-9-1952 and partly on 6-10-1952. Under this scheme, an employer is required to contribute 6 1/4 per cent. Of the total wage bill every year as his contribution towards the Fund and 3 per cent as the administrative charges on the total contribution of the employer and his employees.