AMICUS PHARMACEUTICAL PVT. LTD. Vs. REGIONAL PROVIDENT FUND

JUDGEMENT

(1.) This petition under Article 226 of the Constitution of India has been preferred by the petitioner being aggrieved by the order dtd. 20/10/2005 (Annexure P/24) passed by the respondent. The petitioner has also challenged the order dtd. 31/3/2006 (Annexure P/31) passed by the respondent whereby the review preferred against the order dtd. 20/10/2005 has been dismissed.

(2.) As per the petitioner, it is engaged in the business of manufacturing and selling of pharmaceutical products. It has taken on rent premises situated at 44/A-45, Rambali Nagar, Industrial Area, Indore and a rent note was also entered into between the landlord and petitioner. In 1996, petitioner obtained a license for manufacturing drugs and pharmaceutical products under the Drugs and Cosmetics Act, 1940. It got the petitioner factory registered under M.P. Shops and Establishments Act, 1958 as well as under the Central Sales Tax Rules, Central Income Tax Rules and State Sales Tax Rules.

(3.) The petitioner received a notice dtd. 13/9/1996 from the respondent, wherein it was advised to report compliance of the Employees Provident Fund Act in respect of the employees under the code number allotted to M/s. Abril Pharmaceuticals Private Limited. Subsequently, the petitioner also received a summon under Sec. 7-A of the Act. The petitioner submitted reply stating that its establishment is a newly set up unit and the provision of the said Act is not applicable under the purview of Sec. 1 of the Act. It is entitled to infancy benefit as provided under Sec. 16 of the Act. An officer of the respondent visited the factory of the petitioner and prepared an inspection note dtd. 10/12/1996 recording that from April, 1996 to October, 1996 total strength of the employees of the petitioner company's factory was between 9-11. He however incorrectly advised the petitioner to deposit the Employees Provident Fund dues from April, 1996 to October, 1996. Relying upon this report and without taking into consideration the objections preferred by the petitioner, the Assistant Provident Fund Commissioner passed an ex-parte order under Sec. 7(A) of the Act on 4/4/1997 under the code No.MP/5300 allotted to M/s Abril Pharmaceuticals Pvt. Ltd. It held the petitioner company liable for payment of Employees Provident Fund of Rs.14,798.00 for the period April, 1996 to September, 1996.