GLAXO SMITH KLINE PHARMACEUTICALS LIMITED, REGD. OFFICE AT DR. ANNIE BESANT ROAD, WORLI, MUMBAI - 400 020, REPRESENTED BY ITS VICE PRESIDENT MRS. S. PATEL LEGAL AND CORPORATE AFFAIRS Vs. STATE OF KARNATAKA REPRESENTED BY SECRETARY TO GOVERNMENT,

JUDGEMENT

(1.) M/s. Smith Kline Beech am Pharmaceuticals (India) Ltd., an establishment covered under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (for short, 'the Act') with Code No. KN/4108 in the State of Karnataka was granted exemption under S. 17(1)(a) of the Act as per the Notification No. SWL/1/LPF/84 dated 27.8.84. In pursuance of sanction of scheme of amalgamation, the said Company and M/s. Glaxo India Ltd., Mumbai, a Mumbai based Company, merged with effect from 1.1.01. After the amalgamation, the Company has been renamed as "M/s. Glaxo Smith Kline Pharmaceuticals Ltd., Mumbai'', the petitioner herein. M/s. Smith Kline Beecham Pharmaceuticals (India) Ltd., had two provident funds namely (1) Smith Kline Beecham Pharmaceuticals (India) Ltd. - Executives' Provident Fund and (2) Smith Kline Beecham Pharmaceuticals (India) Ltd. - Employees Provident Fund. The said funds feil within the jurisdiction of the 2nd respondent Regional Provident Fund Commissioner, Bangalore. The subscribers of 'SB Executives' Provident Fund' were management staff and other executives at its Corporate Office at Bangalore and the factories at Bangalore and Mysore, in the field. Subscribers to 'SB Employees' Provident Fund' were non management staff and workmen at their Corporate Office at Bangalore and factories at Bangalore and Mysore and field staff employees.

(2.) The employees of M/s. Smith Kline Beecham Pharmaceuticals (India) Ltd., working in the sites were absorbed as employees of the petitioner, upon the merger, with effect from 1.1.01. Employees at Bangalore factory were offered VRS during 2003 and employees working at Mysore factory were offered VRS during 2004. Some of the employees opted for VRS and resigned by accepting the VRS payments and were paid the PF accumulations in the aforesaid funds. Some of the management staff accepted the common terms of employment and joined the petitioner's Corporate Office at Mumbai and field staff employees were absorbed.

(3.) M/s. Smith Kline Beecham Pharmaceuticals (India) Ltd. ceased operations in November, 2003 and its factory at Mysore ceased operations in November, 2004 which fact was intimated to respondent No. 2 on 16.6.04 and 11.3.05 respectively. After settlement of PF accounts of the employees who availed the VRS, certain subscribers left in the said SB provident funds did not accept the common terms of employment and the amounts were not settled and their accounts are still remaining unsettled.