UNION OF INDIA Vs. MURUGAN TALKIES

JUDGEMENT

(1.) This appeal by special leave arises from the judgment of the Division bench of the Madras High court in WP No. 12533 of 1986 dated 24/11/19944. The respondent and others challenged the validity of S. 24 and 25 of Cine Workers and Cinema Theatre Workers (Regulation of Employment) Act (50 of 1981 (for short 'the Act') and the notification of government of India bearing No. 35016 issued by Ministry of Labour on 30/4/1986. The division bench while upholding the validity of the Act has given relief to the respondent to pay their share of the contribution w. e. f. the date of judgment dated 24/11/1994.

(2.) The Union of India has filed this appeal. The controversy is no longer res Integra. This court in Distt. Exhibitors' Assn. v. Union of India upheld the validity of the provisions and the rules. However, it was held that the employer's contribution should be made effective from the date of the order setting aside the retrospective operation of the notification. It can thus be concluded that from the date of the notification the owners of the cinema theatre are liable to contribute their share and also entitle to deduct from the wages of the workmen towards their share of provident fund and to have it credited to the account maintained by the appropriate authority in that behalf.

(3.) It is contended for the respondents that the High court has granted the relief taking into consideration that some workmen had retired and it would be inequitable to deduct from the meagre wages of existing employees with retrospective period. Therefore, the High court directed deduction of their share from the date of the judgment. It is needless to mention that since some of the workmen have already retired and from some existing workmen deduction from date of enforcement of the notification would cause great hardship to them, so it cannot be made to bear the burden of their contribution with retrospective effect from the date of the notification towards their share of contribution.