ALLIED AGENCIES Vs. REGIONAL PROVIDENT FUND COMMISSIONER

JUDGEMENT

(1.) THE question for determination in this writ application is whether certain M/s. Allied Agencies, M/s. Industrial Brush Manufacturing Company and M/s. Sahoo Chemicals can be regarded to form part of one establishment for the purpose of determining whether they come within the purview of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (for short, 'the Act' ). It is an admitted position that if these concerns were not to form part of one establishment, the total number of employees engaged by them would not be 20 because of which the Act would not apply to them. Though there is some dispute that even if these concerns are treated to form part of one establishment, the total number of employees would not come to 20, but then, this being a disputed question of fact and the Regional Provident Fund Commissioner having come to the conclusion on the basis of materials available to him that these concerns at the relevant time had employed 21 persons, we would not re-examine this factual matter. We, therefore, intend to confine our attention to the legal dispute as to whether the aforesaid three concerns form part of one establishment.

(2.) TO examine the aforesaid legal question, we shall have to note in brief the history of these units. M/s. Allied Agencies is a proprietorship concern of opposite party No. 4 Somanath Sahoo and is located at S. 5, Rourkeia. It is a shop wherein opposite party No. 4 carries on sale of electrical goods including refrigerators. It was started in the year 1969 and registered under the Orissa Shops and Commercial Establishments Act, 1956 bearing registration number 565-C1100. M/s. Industrial Brush Manufacturing Company is also a proprietorship concern belonging to opposite party No. 4, It is located in the Industrial Estate, Rourkeia. This unit was started in 1974. It is engaged in manufacture of industrial brushes and was registered as a commercial establishment under the Orissa Shops and Commercial Establishments Act, 1956 bearing registration number: C11-20-297. It was financed by the Orissa State Financial Corporation as well as banks. M/s. Sahoo Chemicals is a registered partnership firm of which opposite party No. 4 and his wife are the partners. It is a small scale industry and is an approved supplier of sodium silicate to the Rourkeia Steel Plant. It commenced its production on August 15, 1980. It was also financed by the Orissa State Financial Corporation.

(3.) THE Regional Provident Fund Commissioner regarded all the aforesaid concerns as part of one establishment and as he was satisfied that the total number of persons employed combinedly in these three concerns exceeded 20, he held that the provisions of the Act were applicable to the aforesaid composite unit with effect from 4/81 and opposite party No. 4 was under statutory obligation to report compliance of the various provisions of the schemes framed under the Act. The legality of this order has been assailed in this application.