SATYA NARAIN KAPOOR Vs. STATE OF BIHAR

JUDGEMENT

(1.) APPELLANTS , who were employees of a Sugar Mill, which was taken over under the Bihar State Sugar Undertakings (Acquisition) Act, 1985 and which, upon such take over, became Hathwa Unit of the Bihar State Sugar Corporation, filed a writ petition seeking payment of gratuity by the said Corporation and provident fund dues payable to them under the Employees ' Provident Funds and Miscellaneous Provision Act, 1952.

(2.) THE writ court directed the appellants to file applications in proper form before the Assistant Provident Fund Commissioner, Employees ' Provident Fund, Muzaffarpur to obtain their provident fund dues to the extent they are entitled. We are told that at least appellant no. 1 has received his provident fund dues pursuant to the said direction of the writ court. That state of affairs clearly indicates that Provident Fund accounts of the employees of the said Unit were maintained by the Assistant Provident Fund Commissioner, Employees ' Provident Fund, Muzaffarpur, and, accordingly, to the credit of the employees of the said Unit provident fund is lying in the accounts of the employees of the said Unit maintained by the said Assistant Provident Fund Commissioner, Employees ' Provident Fund, Muzaffarpur, if not withdrawn by them or some of them.

(3.) THE writ court decided that in view of Sections 3 and 4 of the Act, the Corporation has no liability to pay gratuity for the period the employees of the said Unit worked prior to its take over. That is the lis in the present appeal. Sec. 11 of the said Act, to the extent we are concerned here, is as follows: - "11. Management etc. of the scheduled undertakings. -The general superintendence, direction, control and management of the affairs of the business of a scheduled undertakings, the right, title and interest of the owners and occupiers in relation thereto, which are vested in the State Government under Sec. 3, shall be - (2) Every person who is a workman within the meaning of Industrial Disputes Act, 1947 (Act 14 of 1947) and has been in the employment of the scheduled undertaking on or before the 29th day of October, 1978 shall become, on and from the appointed day an employee of the State Sugar Corporation/Government company, as the case may be, in which the right, title and interest of scheduled undertakings have vested under this Act and shall hold office or service in the scheduled undertaking with the same right to pension, gratuity and other matters as would have been admissible to him if the rights in relation to such a scheduled undertaking has not been transferred to and vested in the State Government/Corporation and continue to do so unless and until his employment in the scheduled undertakings is duly terminated or until his remuneration, terms and conditions of employment are duly altered by the State Government/Corporation: Provided that the State Government may enquire about the genuineness of the workmen at any time whether the workman was genuinely employed in the undertaking on or before the 29th October, 1978 and may terminate the services of such workmen who were not so employeed."