THIRU AROORAN SUGARS LTD Vs. ASSTT PROVIDENT FUND COMMISSIONER ENF EMPLOYEES PROVIDENT FUNDS ORGANISATION

JUDGEMENT

(1.) IN all these writ petitions, the short question that arises for consideration is whether the contribution for leave encashment expenditure is covered within the definition of basic wages under Section 2 (b) of the employees' Provident Funds and miscellaneous Provisions Act, 1952 (for short PF Act" ).

(2.) SECTION 2 (b) of the Employees' provident Funds and Miscellaneous Provisions act, 1952 reads as follows:

(3.) IT is the stand of the respondent/pf department that the leave encashment given to the workman is covered by the term of basic wages. In support of their stand, they were relying upon the judgment of the Bombay High court as well as the Karnataka High Court. Therefore, all the petitioners/managements herein are bound to make contribution in terms of the leave encashment given to the workman as part of the basic wages. This was given pursuant to the letter written by the petitioner in w. P. (MD) No. 8075/2005. Therefore, the petitioners have come forward with these Writ petitions seeking to challenge the various summons issued by the Department for producing their leave encashment register for making appropriate calculation of PF dues to be paid to the Department.