U P HOTELS LIMITED Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) M/s. U. P. Hotels Limited, Varanasi and Hotel Clarks Amer, Jaipur have filed the present writ petition for issuance of a direction in the nature of certiorari for quashing the orders dated June 16, 1980 (Annexure-VII), October 5, 1983 (Annexure-XI) passed by Respondent No. 2 and order dated May 4, 1981 (Annexure-VIII) passed by Respondent No. 3. M/s. U. P. Hotels Limited (hereinafter called as 'the petitioner') is a company registered under the Companies Act. Its head quarter is situated at New Delhi. It has got hotels at Varanasi, Agra and had also established Hotel Clarks Amer at Jaipur. It is stated that the Petitioner No. 1 is a company with multifarious activities i. e. to lend money, to establish or to promote establishments, in which the company may be interested to enter into any arrangements with the Government or authority and other activities.

(2.) IT is admitted that the hotel and restaurants fall under the provision of Employees' Provident Funds Act. The Petitioner No. 2, Hotel Clarks Amer (hereinafter called as 'jaipur Hotel') is one of such projects sponsored by the Petitioner No. 1 and falls within the meaning of Section 1 (3) (b) of the provisions of the Employees' Provident Funds Act, 1952 (hereinafter called as 'the Act' ). Section 1 (3) (b) of the Act provides that if there are more than twenty persons working in any establishment, that establishment is to be governed by the provisions of the Act. However, Section 16 says that the Act shall not apply to any of the establishments employing fifty or more persons or twenty or more till the expiry of three years in the case of former and 5 years in the case of latter (this was the provision at the relevant time when the Petitioner No. 2 was established ).

(3.) IT is stated that the Company had established Hotel Clarks at Agra which started functioning in the year 1962 and Agra Hotel was granted three years infancy benefit under Section 16 (1) (b) of the Act. The Company had taken second project at Jaipur which was established in the year 1973 and it was similarly entitled to three years infancy benefit under Section 16 (1) (b) of the Act. However, on June 12, 1974 the Regional Provident Fund Commissioner (hereinafter called as the 'commissioner') issued a notice to the petitioner Hotel to furnish information and the Commissioner started the proceedings under Section 7-A of the Act. The notice is attached as Annexure-3 to the writ petition. The Company was directed to comply with the provisions of the Act vide Annexure-4 which was challenged before the Central Government under Section 19-A of the Act and the Central Government had remanded the case back to the Commissioner, Jaipur for completing the proceedings under Section 7-A after giving the party a reasonable opportunity to show cause vide its order attached as Annexure-VI.