GAMMON INDIA LIMITED Vs. REGIONAL P F COMMISSIONER

JUDGEMENT

(1.) THE facts leading to the writ appeal are as follows : The Mysore Chemicals and Fertilisers Ltd., (hereinafter referred to as 'the Fertilisers Ltd., ') was a company carrying on the business of manufacture of chemicals and fertilisers at Balgola, Mandya District, Karnataka State. The company had its own land and building where the manufacturing process was carried on with the help of machinery, which machinery also belonged to the company 2. The company was ordered to be wound up by an order of this Court dated 14th of December, 1972. Long prior to this date, the company had stopped its manufacturing operations and discharged all the workmen. The reconstitution of the company failed. Therefore, its assets were sold by public auction held by this Court. The appellant purchased the said assets of the Fertilisers Ltd., consisting of land, building and machinery on 27th of June, 1975 for a sum of Rs. 85,00,000/ -. The sale was confirmed by this Court on 11th of July, 1975. The machinery belonging to the Fertilisers Company had become old and many parts had become worn out, corroded and rusted. As a matter of fact some of them were missing. He had to replace the whole machinery and only in April 1977, it was possible for the appellant to commission it. In the bargain, he had to spend about Rs. 30,00,000/ -. The appellant had to recruit anew fresh workmen to look after the manufacturing unit proposed to be undertaken. At the start of April 1977, it recruited 187 workmen apart from other administrative staff. The number of workmen has now swollen to 287. None of the workmen employed by Fertilisers Company were recruited and only 11 of them had to be re -employed.

(2.) THE appellant secured a new licence under the Factories Act of 1948 in his own name, namely Gammon Fer -Chems, for the manufacturing work since the licence issued in favour of Fertilisers Company would not be effective. Further the appellant had obtained a fresh licence under the Central excise and Salt Act, 1944 for manufacturing Sulphuric Acid and Superphosphate. It had also made fresh deposits for securing new electrical power connection from the Karnataka Electricity Board.

(3.) IT was under these circumstances, on 7th May, 1980 the appellant wrote to the Regional commissioner, Employees Provident Fund, Bangalore seeking infancy benefit and it would give effect to the provisions of the Employees Provident Fund Act, 1952 from April 1980. Concerning this, by letter dated 20th January, 1981 the appellant was asked to attend the enquiry proposed to be held under Section 7A of the Employees Provident Fund and Miscellaneous Provisions Act, 1952. On receipt of this on 2nd of March, 1981, the appellant wrote a detailed letter stating that it would be entitled to benefit of infancy under Section 16(1)(b) of the Employees Provident Fund Act. In any event the enquiry under Section 7A could be postponed till the appellant moved the Central Government under Section 19A. On 2nd May, 1982, the appellant was visited with a letter from the Regional Provident Fund Commissioner calling upon the appellant to comply with the provisions of the Act. Even prior to this, for not complying with the provisions of the Act, a show cause notice proposing to launch prosecution against it was issued on 5th of April, 1982. Then followed a request from the Advocate of the appellant by a letter dated 9th of April, 1982 praying for time to reply the show cause notice. It was at this stage Writ Petition 25969 of 1982 was preferred praying that the letter dated 2nd May, 1982 rejecting the request of the appellant for the grant of infancy protection under Section 16(1)(b) be set aside.