SPRINGDALE SCHOOL Vs. REGIOAL PROVIDENT FUND COMMISSIONER

JUDGEMENT

(1.) WP(C) No. 2528/1996 The petitioner No. 3, namely, Patel Education Society is running Springdales School, who is petitioner No. 1. The petitioner No. 2 is the Managing Committee of the school. These petitioners have filed this petition challenging the order passed by the Regional Provident Fund Commissioner (RPFC) under Section 7-A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as 'the PF Act') which was conveyed to the petitioners vide covering letter dated March 8, 1996.

(2.) Admittedly, the petitioner No. 1 is covered under the provisions of the PF Act and is paying contribution in respect of its employees. The RPFC, however, wanted to cover the employees of the transporter to whom the school had given the contract and this move of the RPFC was opposed by the petitioners. The question which arose for determination was as to whether the employees of Bakshi Transport Company (hereinafter referred to as 'the transporter'), from whom buses were hired by the school would be treated as employees oi the school for the purchase of their coverage under the provisions of the PF Act. The RPFC in his impugned order has held that the employees employed by the said transporter shall be treated as employees of the school under Section 2(f) of the PF Act and directed the school to pay the PF contribution qua them as well.

(3.) To determine the validity of this order, basic facts need to be noted which are as under: The petitioners entered into an agreement dated March 16, 1989 with the transporter for providing contract carriage buses with a carrying capacity of 49 adults each for the conveyance of children and staff of the school. Copy of the said agreement is filed along with this petition as Annexure 2. The relevant terms and conditions of this agreement are reproduced below: