MUMBAI MAZDOOR SANGH Vs. REGIONAL PROVIDENT FUND COMMR

JUDGEMENT

(1.) THIS writ petition under Article 226 of the constitution challenges order dated March 11, 1994, passed by the Regional Provident Fund commissioner (I), Maharashtra and Goa under section 7-A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, hereinafter referred to as "the Act".

(2.) FACTS giving rise to this petition are that the 2nd respondent is a partnership firm duly registered under the Indian Partnership Act. Since last 125 years the firm has been engaged in "trading and commerce activities", having its office at Princess Street, Mumbai. Respondent No. 2 is duly registered under the bombay Shops and Establishments Act. This establishment, hereinafter for brevity's sake, is described as "trading establishment". Respondent No. 2 has been dealing in umbrellas. In or around 1940 respondent No. 2 set up a factory to carry on manufacturing activities in the name and style of "national umbrella". The said factory is situated at Reay road, Mumbai. The factory is registered under the Factories Act and holds separate licenses. The provisions of Section 1 (3) (a) of the Act are applicable only to such factories which are engaged in an industry specified in Schedule 1 in which 20 or more persons are employed. The items manufactured by National Umbrella do not figure in Schedule I to the above referred act. The manufacturing activity of National umbrella factory is a non-scheduled activity.

(3.) SECTION 1 (3) (b) of the Act empowers the Central Government to extend applicability of the Act to any other establishment employing 20 or more persons by issue of requisite notification in the official gazette. On March 7, 1962, the Central Government issued a notification bearing No. GSR-346 in exercise of powers conferred on it under clause (b) of sub-section (3) of Section 1 of the Act. By the said notification the provisions of the Act were made applicable to "every trading and commerce establishment" employing 20 or more persons engaged in purchase, sale or storage of goods, including establishment of exporters, Importers, Advertisers, commission Agents and Brokers and commodity and Stock Exchanges etc. The said notification is applicable to the respondent-establishment. Thus with effect from May 1, 1962 the Act became applicable to respondent no. 2.