ISHWARBHAI GOKULBHAI SURTI Vs. K M BHATT

JUDGEMENT

(1.) The petitioner, in this petition under Article 226 of the Constitution of India, has challenged the constitutional validity of Section 7-A and 19A of The Employees Provident Fund and Miscellaneous Provisions Act, 1952 [hereinafter referred to as "the Act"] as offending Articles 14, 19(1)(f) and 19(1)(g) of the Constitution of India. The petitioner has further challenged the order dated 21.7.1983 passed by the Regional Provident Fund Commissioner, Gujarat State, Ahmedabad, respondent No.1 in the matter of enquiry under Section 7A of the Act confirming his earlier order dated 15.9.1982 passed under Section 7A of the Act. The petitioner has further challenged the order dated 23.9.1983 passed by the Legal Adviser, Ministry of Labour and Rehabilitation, Department of Labour, Government of India, New Delhi, respondent No.2 herein under Section 19A of the Act dismissing the revision made by the petitioner challenging the orders dated 15.9.1982 and 21.7.1983 passed by the 1st respondent.

(2.) Before we deal with the aforesaid challenges made by the petitioner in this petition, it is necessary to set out relevant facts leading to the controversies arose between the parties. One Mr. Ishwarlal Gokulbhai Surti, the petitioner herein has filed this petition in the capacity of Sole Proprietor of M/s. Lovely Tailors. The said concern has started its business in the year 1958 at Wada Pole Naka, Khadia, Ahmedabad. Thereafter, the said proprietory concerned was converted into a partnership firm having Shri Ishwarbhai Gokulbhai Surti and Smt. Vasantiben Ishwarbhai Surti as partners. It appears from the partnership deed dated 14.5.1975 that the said partnership firm was formed with a view to make expansion in trade in clothes and to do tailoring work, washing and sale of ready-clothes which was originally carried on by Shri Ishwarbhai Gokulbhai since long. Subsequently, with effect from 20th October 1979 Shri Ishwarbhai Gokulbhai has become the sole proprietor of the said firm.

(3.) During subsistence of the partnership firm of M/s. Lovely Tailors, one another firm, namely M/s. S. Lovely and Company was started in the year 1975 at the same place and same premises where M/s. Lovely Tailors was doing the business. The said M/s. S. Lovely and Company was having three partners namely, Smt. Savitaben Ishwarbhai Surti, Shri Hirabhai Ishwarbhai Surti and Smt. Vasantikaben Ishwarbhai Surti. All the three partners of this firm are related with each other. Smt. Savitaben Ishwarbhai Surti was wife of Shri Ishwarbhai Gokulbhai Surti who was initially a Proprietor and thereafter a partner of M/s. Lovely Tailors. Hirabhai Gokulbhai Surti is brother of Ishwarbhai Gokulbhai Surti and Smt. Vasantikaben Ishwarbhai Surti is daughter of Shri Ishwarbhai Gokulbhai Surti. Smt. Vasantikaben Ishwarbhai Surti is common partner both in M/s. Lovely Tailors and M/s. S. Lovely and Company and the premises of both the firms are the same. From the partnership deed of M/s. S. Lovely and Company dated 14.5.1975, it appears that the said partnership firm has been constituted with a view to carry on the business of cloth, tailoring of cloth and washing and to sell readymade clothes. During the course of the inquiry, it was found that M/s. S. Lovely and Company has brought its capital from Lovely Tailors. It was also found from the ledger account of M/s. Lovely Tailors that M/s. S. Lovely and Company has been financed by M/s. Lovely Tailors.