ORIENT PAPER MILLS Vs. REGIONAL PROVIDENT FUND COMMISSIONER

JUDGEMENT

(1.) By this petition filed under Articles 226 and 227 of the Constitution of India, the petitioner has sought for quashment of order dated July 9, 1991 passed by respondent No. 1 (Annexure P/13) whereby the petitioner establishment has been held to be liable under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (for brevity the Act) and has been directed to extend its benefit to the eligible employees of transporters engaged by the petitioner for supply of raw material of regular production of establishment. The petitioner by amendment has further prayed to restrain respondent No. 1 from quantifying the liability of the petitioner pursuant to the order Annexure P/13 dated July 9, 1991.

(2.) In brief the case of petitioner is Orient Paper Mills (hereinafter referred to as 'the Company') is a mill established at a village Amlai in Shahdol District. The erstwhile Part C State of Madhya Pradesh invited entrepreneurs to establish a paper mill within the State for utilisation of bamboos and other forest produce The proprietors of the petitioner accepted the offer and entered into agreement. Under the agreement a right was created in favour of the petitioner to exploit bamboos and salai trees for manufacture of paper at a paper mill established at Amlai in district Shahdol. On the formation of new State of Madhya Pradesh with effect from November 1, 1956, the new State of Madhya Pradesh also continued the agreement and in accordance with the stipulations in the agreement, a paper mill was constructed and established at Amlai in Shahdol District.

(3.) In order to manufacture paper, the Company need raw material in the shape of bamboos and other forest produce. For procuring the supplies the company established a Forest Organisation and independent establishment of the company at Shahdol. The bamboos in the State belong to the State of Madhya Pradesh. The forest organisation of petitioner company buys the bamboos from the State Madhya Pradesh by paying the requisite price of it in advance according to the terms of agreement between the company and the State of Madhya Pradesh.