DALGAON AGRO INDUSTRIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) These two matters have since been referred to this larger Bench on the basis of an order dated November 14, 2003 passed in W.P.No. 16037(W) of 2003. The learned single Judge differed with the decisions of this Court passed in three other matters by three other learned single Judges respectively. The learned Fourth Judge, therefore, was of the opinion that a larger Bench should be constituted. On the other hand an appeal was taken against the judgment dated March 21, 2003 passed by one of the learned single Judge in CR No. 11160(W) of 1984. This appeal was being heard by a Division Bench consisting of one of us (D.K. SETH, J.) and Hon'ble R.N. SINHA, J. On July 19, 2004 Mr. Bikash Ranjan Bhattacharya, learned counsel for the respondent, brought to the notice of the said Division Bench that identical point had since been referred to a larger Bench. Therefore by an order dated July 19, 2004 the matter was released from being heard in part by the said Division Bench directing the matter to be placed along with the other matters before the larger Bench. Accordingly these two matters have since been referred to the larger Bench now constituted by the present compliments.

(2.) Mr. Sengupta appearing on behalf of the appellant in Dalgaon Agro Industries Ltd. raised a very interesting question with regard to the liability of a transferee of an establishment in relation to damages contemplated under Section 14-B of the Employees' Provident Funds and Miscellaneous Provisions Act 1952 (1952 Act) in respect of defaults committed by the transferor/employer before the date of transfer in view of the expressions used in Section 17-B of that Act imposing joint liability upon both the transferor and the transferee. In other words Mr. Sengupata wanted us to define the extent of the liability under the fiction created by Section 17-B. In Pratya Nivesh (P) Ltd. similar question was raised namely as to whether a transferee would be liable under Section 14-B in respect of the defaults committed by the transferor employer prior to the transfer of the establishment to the transferee.

(3.) In both the cases the respective establishment was transferred pursuant to certain agreement which includes a condition that the transferee shall not be liable for any dues under the 1952 Act in respect of the period prior to the date of transfer arising after the date of transfer not known or determined on the date when the transfer was effected. However all other known dues were either paid by the transferor or the transferee or were so adjusted within the consideration of the transfer. After such transfer, notices under Section 14-B were since issued upon the transferee. Submission on behalf of the Appellant: