MANAGEMENT OF ALPHA INSTRUMENTS Vs. ENFORCEMENT OFFICER AND ASSISTANT PROVIDENT FUND COMMISSIONER, EMPLOYEES PROVIDENT FUND ORGANISATION

JUDGEMENT

(1.) The Petitioner is an employer. He has come forward to challenge an order of the first Respondent, dated 10.4.2006 and the consequential order of the second Respondent, dated 24.5.2006 and after setting aside the same, seeks to forbear the Respondents from holding any proceedings against the Petitioner claiming contribution in respect of Group Organisation Development Reward payment made to their workmen.

(2.) Notice of motion was ordered on the writ petition on 23.6.2006. Pending the notice, an interim stay was granted. Subsequently, when the matter came up on 27.10.2006, this Court admitted the writ petition and also granted the interim stay with a condition that the Petitioner shall file an affidavit of undertaking stating that he will make good the amount to the department in case they lost the writ petition. No affidavit has been filed by the Petitioner management till date.

(3.) The case of the Petitioner was that it is a manufacturing firm of Semi finished speedo meter, electrical temperature gauges and warning lamps. It is covered by both the ESI and PF Acts. The wages are paid to workmen under different heads. Every year a revision was done during the month of July. Prior to the year 1998, the basic wages and Dearness Allowance constituted 50% of the total wages. On request made by the workmen, it was decided that further increase in wages would be in the form of allowances and they will not attract contribution towards PF, bonus and gratuity. The basic wage and dearness allowance constituted 45% of total emolument and the remaining amount was to be apportioned among HRA and variance allowances as well as to fulfill the production target. 25% of the emolument was given to attendance and that the production target was subject to variation from one worker to another. The production target was named as Group Organisation Development from April 2002.