JAI KRISHNA AGARWAL Vs. REGIONAL P F COMMISSIONER

JUDGEMENT

(1.) The petitioners arc assailing the legality of certain orders passed by the Regional Provident Fund Commissioner, Kanpur, purporting to determine moneys stated to be due from the petitioners under Section 7-A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The amounts which have been determined payable by the petitioners are claimed to be due for the period August 1975 onwards.

(2.) Shortly stated, the petitioners' case is that they were carrying on the business of manufacturing glass bottles of different shapes and sizes at their factory situate at Naini, district Allahabad. A number of workmen were employed in that establishment which was governed by the Industrial Disputes Act, the Employees' Insurance Act and the Employees' Provident Funds and Miscellaneous Provisions Act. For reasons beyond their control the petitioners were compelled to close down their factory in March, 1975. Thereafter the petitioners gave a notice of closure under S.25-FFA of the Industrial Disputes Act on 17th May 1975 to the Secretary, Department of Labour, Government of Uttar Pradesh. Copies thereof were also forwarded to the Labour Commissioner, Uttar Pradesh and the Regional Conciliation Officer, Allahabad. In this notice the petitioners stated that they have decided to close down their factory namely, M/s. Tribeni Glass Works, with effect from 21st July, 1975, for reasons explained in an annexure to that notice and consequently the services of their workmen numbering 169 would have to be terminated. Pursuant to that notice an agreement was reached before the Regional Conciliation Officer between' the petitioners and their workmen for the settlement of the claims of compensation of the workmen affected by the closure. In pursuance of that agreement compensation amounting to Rs. 32,47,093 was paid to the workmen. A registered notice of closure was also sent to the Regional Provident Fund Commissioner, informing the latter that the petitioners' establishment had been closed down with effect from 21st July, 1975. However, notwithstanding this closure the Regional Provident Fund Commissioner sent a notice dt. 1st Nov. 1976 to the petitioners stating that he intended to hold an enquiry for the determination of dues outstanding against the petitioners for the period August 1975 to September 1976. The petitioners immediately sent a reply bringing to the notice of the Regional Provident Fund Commissioner the fact that the petitioners' establishment was lying closed since March 1975 and that the petitioners had also obtained the requisite permission of the concerned authorities required for the closure of an undertaking under the Industrial Disputes Act. It was further stated that production in the petitioners' factory had totally stopped since March 4, 1975 due to general power cut. A request for postponement of the hearing of the case was also made on behalf of the petitioners on the ground that their proprietor was unwell and hence would not be able to attend to the case on the date fixed.

(3.) The Regional Provident Fund Commissioner, however, did not accede to this request and by an ex pane order dt. 14th Dec. 1976 held that the petitioners were liable to pay provident fund and family pension fund dues amounting to Rs. 2,076/-as well as Rs. 47.95 as administrative charges for the period August ,1975 to Sept. 1976. The Regional Provident Fund Commissioner was of the opinion that inasmuch as the petitioners were retaining the security staff consisting of 4 workmen notwithstanding the closure of the establishment its liability under the Employees' Provident Funds and Miscellaneous Provisions Act had not ceased with effect from 21st July 1975. Similar orders were passed by the Regional Provident Fund Commissioner for the subsequent periods also. After determining the dues the Regional Provident Fund Commissioner appears to have issued recovery certificates to the Collector, Allahabad, for the realization of the same as arrears of land revenue.