KARNATAKA HANDLOOM DEVELOPMENT CORPORATIONLIMITED BANGALORE Vs. REGIONAL PROVIDENT FUND COMMISSIONER KARNATAKA BANGALOREEMPLOYEES PROVIDENT FUNDS AND MISCELLANEOUS

JUDGEMENT

(1.) THIS petition stands referred to a Division Bench under section 9 of the Karnataka High Court Act, 1961 (for short 'the act' ).

(2.) THE petitioner is a Corporation engaged in the promotion, growth and development of handloom industry as one of its activities. It claims that it extends organisational support to weavers, who are outside the co-operative fold and to prevent exploitation of such un-organised weavers at the hands of master Weavers, The Corporation also provides financial assistance to the handloom industry and is engaged in allied incidental activities. It is stated that in order to achieve the main objectives of the Corporation several schemes have been formulated and under their scheme the weavers are provided with 100% raw material and marketing assistance besides infrastructural facilities to enable them to carry on weaving activity uninterruptedly and they are paid remunerative charges for the products woven by them. The Corporation provides facilities to weave at their dwelling places thereby providing employment opportunities at the village level and avoiding migration to the towns and cities in search of employment. The corporation has set up 19 silk production centres throughout the state, 113 cotton and polyester production centres, apart from 6 woolen production centres. The production activities of the corporation cover all the Districts in the State except Kodagu. The Corporation has also established 12 dyeing houses in various centres in the State. It has also established a chain of retail outlets inside and outside the State. Large number of weavers possess basic skill of weaving wide varieties of fabrics including silk, polyester, casement and so on. The Corporation assists them to equip themselves with better techniques to diversify their production with ultimate objective of improving their earning capacities. The professional weavers are given advanced training. The Corporation also provides assistance under the Integrated Handloom, Development Projects, export-oriented projects and Centrally sponsored modernisation schemes. The Corporation intends to give a fillip to the handloom industry in the State and to improve the living conditions of the weavers.

(3.) A notice was issued on 25-1-1990 by the respondent to the petitioner stating that it has failed to enroll the weavers, who are working throughout the State, as Members of the Provident fund and failed to remit the provident fund dues under the employees' Provident Funds and Miscellaneous Provisions Act, 1952 (for short 'the Act' ). An inquiry was sought to be held as provided under Section 7-A of the Act. In reply to the notice the petitioner contended that the weavers are not employees of the corporation and they are not paid wages or salaries; they are paid charges for conversion of yarn into fabrics depending upon the type of fabric; weavers are not working in the premises of the corporation; they have no fixed hours of work and there is no control or supervision over them nor any contract of employment exists between the weaver and the Corporation.