DALMIA CEMENT BHARAT LTD Vs. REGIONAL PROVIDENT FUND

JUDGEMENT

(1.) DALMIA CEMENT (BHARAT) LTD, Tiruchirappalli, aggrieved by the order of the Regional Provident Fund Commissioner, Tiruchirappalli, dated December 1/4, 1989, calling upon them to remit Employees' Provident Fund arrears, has filed the above writ petition to quash the same on various grounds.

(2.) The case of the petitioner is briefly stated hereunder: The petitioner-company is engaged in the manufacture of cement and its factory is situated at Dalmiapuram, Tiruchy District. The federation of various unions in cement factories in India made a charter of demands on the management of cement factories in India on May 9, 1986. In the charter of demands, the federation of all the workers' association have claimed increase in basic wages, various allowances and other benefits. It was agreed by both sides for referring the issues to arbitration. Pending the arbitration, the workmen pressed for their demand for interim relief as forming part of the original demand, i.e., demand No. 47. Even for this interim payment, a settlement was arrived at between the workmen and the management on May 10, 1989, under Section 12(3) of the Industrial Disputes Act. As per this agreement, particularly as per Clause I, the interim advance paid from July 1, 1986, to December 31, 1988, will be deemed to be an ad hoc lump sum payment and this will not be adjusted or otherwise recovered and will not qualify for any of the fringe benefits statutorily or otherwise. It is unnecessary to refer to the other Clauses. As per Clause II, on and from January 1, 1989, there will be an increase of Rs. 100 per month in the basic wage of all eligible employees. Thus, as per these two Clauses, the payment made from July 1, 1986, to December 31, 1988, was deemed an ad hoc lump sum payment and that the payment of Rs. 100 from January 1, 1989, to April 30, 1989, as interim payment, which comes to Rs. 400 will be adjusted against the basic wages increase of Rs. 400 payable from January 1, 1989, to April 30, 1989.

(3.) While so, based on the report of the Inspector of Provident Fund, the respondent herein issued a notice on June 16, 1989, for payment of provident fund contributions and administrative charges in respect of those payments. The petitioner sent a suitable reply repudiating their claim. Personal hearing was effected on October 5, 1989, wherein both parties have participated. After hearing both parties, the respondent-Regional Provident Fund Commissioner held that the interim advance paid at the rate of Rs. 100 per month to all the employees of the establishment including the contractor's employees from July 1, 1986, to December 31, 1986, is liable for payment of provident fund contributions and other dues. The respondent has further held that the settlement benefit at the rate of Rs. 50 per month paid to all the employees of the establishment including the contractor's employees from January 1, 1989, and Rs. 40 per month from January 1, 1990, and Rs. 40 per month from January 1, 1991, is liable for provident fund contributions and other dues. After quantifying the amount, the respondent has directed the petitioner to deposit the entire sum within 15 days of the assessment order. The total amount which is directed to be paid comes to roughly Rs. 6.5 lakhs. At this juncture, having no other remedy, has filed the above writ petition.