CHELLAPPAN Vs. STATE OF KERALA

JUDGEMENT

(1.) THE appellant conducted business in four toddy shops in the years 1987-88. He was governed by the Kerala Toddy Workers' Welfare Fund Act, 1969, under which he was bound to pay certain contributions to the Toddy Welfare Fund, in his capacity as an employer. A scheme has also been framed under the Act. Demands have been made for the amounts due by the appellant towards the employer's contribution and revenue recovery proceedings have been initiated. At that stage, he filed O. P. No. 6033 of 1989 challenging the validity of the Act itself. A learned single Judge of this Court dismissed the writ petition and hence this appeal.

(2.) THE only contention urged by counsel for the appellant is that Sections 4 and 5 of the Kerala Toddy Workers' Welfare Fund Act, Act 22 of 1969, impose a tax which is beyond the legislative competence of the State legislature. He submits it is a compulsory exaction of money partaking the character of a tax and as there is no entry in List II enabling the State to levy a tax of this nature, the tax levied under the Act will fall under the residuary entry, entry 97 of List I only and thus Parliament alone and not the State legislature has the competence to enact the law.

(3.) AT one time a challenge was made on the ground that this Act was is conflict with the Employees' Provident Fund Act and cannot, therefore be enforced in the State. That contention was repelled by this Court in the decision reported in K. K. Bhaskaran and Ors. v. State of Kerala (1973-I-LLJ-204), in which it was held that both the Kerala Toddy Workers' Welfare Fund Act and the Employees' Provident Fund Act were measures intended for the welfare of labour covered by entires in the Concurrent List and as the State Government had obtained the assent of the President, it is valid and enforceable.