SHRI HOTEL ARJUN Vs. REGIONAL PROVIDENT FUND COMMISSIONER

JUDGEMENT

(1.) The short question which falls for determination in this writ petition is whether the petitioner M/s. Shri Hotel Arjun of Harihar is entitled to the benefit of infancy under Section 16(1)(b) pf the Employees' Provident Funds and Miscellaneous Provisions Act, 1951 (hereinafter referred to as the 'Act').

(2.) The undisputed facts are that the premises where the petitioner is now carrying on his business was once used by M/s. 'Shanbhag Hotel'. M/s. Shanbhag Hotel closed its establishment on 15-2-1983. On 18-2-1983 M/s. Sree Enterprises represented by its own partners took over the building on rental basis from one Shri Narayana Ladva and Shri Ambasa Ladva. The previous day the same Sree enterprises purchased the utensils and other articles required for running the Hotel from the partners of M/s. Shanbhag Hotel for a sum of Rs. 1,75,000/-. They renovated the hotel and renamed the Hotel as 'Hotel Arjun' employing its own new employees with effect from 1-7-1983.

(3.) Because the previous management of Hotel Shanbhag was brought within the purview of the Act, the respondent advised the new entrepreneurs to continue the contribution as it was only continuing the earlier business. That was resisted by the petitioner Hotel on the ground that they had nothing to do with the previous establishment and Hotel Arjun was not a continuation of the establishment which was operating under the name and style of Hotel Shanbhag. Overruling that resistance, the order was passed holding that the petitioner is a continuation of the establishment which was run under the name and style of Hotel Shanbhag.