SUNDARAM MOTORS LTD Vs. EMPLOYEES PROVIDENT FUND

JUDGEMENT

(1.) THE petitioner in W.P.No.6763 of 2008 is M/s.Sundaram Motors Limited represented by its General Manager. In that writ petition, they have challenged an order passed by the respondent Employees Provident Fund Department, dated 3.3.2008.

(2.) BY the impugned order, the petitioner company was informed that exemption under Section 17(1)(a) of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 was granted to M/s.Sundaram Motors Private Limited with effect from 1.7.1960 by G.O.Ms.No.1725, Labour, dated 20.3.1963. However, subsequently, by an order dated 24.12.1970, this Court had permitted the said establishment to be amalgamated with M/s.T.V.Sundaram Iyengar and Sons Limited. BY the said order, this court ordered that all the assets of M/s.Sundaram Motors Private Limited including immovable and movable properties, investments in shares, workshop tools, goods in transit, advances of monies of all kinds, etc., stood transferred and vest with M/s.T.V.Sundram Iyengar and Sons Limited and the existence of M/s.Sundaram Motors Private Limited, Chennai-6 came to an end. Because of the amalgamation of M/s.Sundaram motors Private Ltd., the said company had lost its separate legal entity with effect from 1.4.1970. In terms of condition No.29 stipulated under para 27AA of the Employees Provident Funds Scheme, for the grant of exemption under Section 17 of the Employees Provident Funds and Miscellaneous Provisions Act, in case of any change of legal status as a result of merger, demerger, the exemption will stand revoked. Therefore, no exemption can be granted to the petitioner company, which is the division of M/s.T.V.Sundaram Iyengar and Sons Limited. The petitioner was directed to merge the Sundaram Motors Provident Fund Trust with the main Provident Fund Trust of M/s.T.V.Sundaram Iyengar and Sons Limited with effect from 31.3.2008 by transferring all the monies and securities held in the name of M/s.Sundaram Motors Provident Fund Trust to the name of Provident Fund trust of M/s.T.V.Sundaram Iyengar and Sons Limited along with previous accumulation statement after passing a resolution by its Board of Trustees. It was also informed that the petitioner M/s.Sundaram Motors Private Limited will be treated as a branch unit of M/s.T.V.Sundaram Iyengar Sons and Limited, which is also a covered and exempted establishment under the Act, as per Section 2A of the PF Act with effect from 1.3.2008.

(3.) HEARD the arguments Mr.Sanjay Mohan, learned counsel appearing for M/s.S.Ramasubramaniam Associates for the petitioner in both writ petitions and Mr.K.Ramu, learned Standing Counsel for the EPF Department.