CHRISTIAN ASSOCIATION FOR RADIO AND AUDIO-VISUAL SERVICE CARAVS JABALPUR Vs. REGIONAL COMMISSIONER EMPLOYEES PROVIDENT FUND MAD

JUDGEMENT

(1.) THIS is a petition under Articles 226 and 227 of the Constitution for quashing the order of the respondent holding that the petitioner is governed by the Employees Provident Funds Act, 1952, and the scheme framed thereunder and further directing the petitioner to make payment of rs. 35,644 towards provident fund of its employees.

(2.) THE petitioner is a society registered under the Societies Registration act, 1860. As per Memorandum of Association, its object is to render specialized service to the Christian Churches and Institutions in India in the field of Radio, Television and Audio Visual Aids, mainly to assist Churches and Christian agencies in the total task of church by promoting use of radio, television and audio-visual aids by producing, securing and distributing audiovisual material such as films, non-projected pictures, phonograph records, books and pictures. It is wholly dependant on the benevolence and grants received from several churches and other charitable church related organizations. It is not being run on commercial lines. There are about 42 persons on its permanent employment and each of the employee is contributing at the rate of 1/10 of his basic salary towards provident fund and the petitioner is making equal contribution. The petitioner has already deposited Rs 1 lac 5 thousand in the provident fund account in the Allahabad Bank. Whatever income is derived is applied solely to the promotion of the objects of the society and no portion of it is paid by way of dividend, bonus etc. to its members except the salaries which are paid to its employees. In fact, whatever little income is derived by way of normal service charges is quite inadequate even to maintain the equipments used in service works. The petitioner is a cultural organization and its function is to help churches and other Christian organizations in propagating the Christian religion. The petitioner, therefore, is not trading and commercial organization. However, by memo dated 25-7-1970 the respondent informed the petitioner that the Act and the Scheme framed thereunder are applicable to it from 311-1968 as per Government notification dated 7th March 1962 which came into effect from 30-4-1962. He also requested the petitioner to implement the various provisions of the Act and the Scheme in its establishment with effect from 1-2 1968. The respondent was of the opinion that the petitioner is covered under the Schedule Head 'trading and Commercial Establishment'. The petitioner lodged an objection and contended that the petitioner cannot be brought under the purview of schedule Head 'trading and Commercial Establishment'. It is a non commercial and non-profit making church related organization, but the respondent did not agree with the contention of the petitioner and directed it by memo dated 28-3-1972 to deposit Rs. 35,644 under section 7-A (3) of the Act. The petitioner thereafter filed this petition.

(3.) THE respondent in its return has submitted that as per the declaration given by the petitioner under Form Annexure X dated 2-5-1969, the petitioner-Society besides showing films and producing radio programmes, it sells books and pictures. It also rents out films to members on nominal charges and to non-members on full fees. The petitioner has been rightly brought under the purview of the Act and the Scheme as it is a trading and commercial establishment. The Memorandum of Association of the petitioner is not a deciding factor for applicability of the provisions of the Act. The Act does not make any distinction between a trading establishment run on profit with those running on no profit basis. The applicability of the provisions of the Act have no relation to the nature of the source of income of the petitioner and the provisions of the Act are applicable because of the nature of the work done by the petitioner.