ICON DAIRY FOODS LTD Vs. EMPLOYEES PROVIDENT FUND

JUDGEMENT

(1.) HEARD counsel for the parties.

(2.) THE petitioner is aggrieved by the order no. JH/SRO/JSR/JH/J P/5694/2081 dated 14th August 2006 whereby the review petition filed by the petitioner under section 7B of E.P.F. and M.P. Act, 1952 for review of the order dated 20th July 2006 was rejected. The petitioner has also challenged the order no.JH/ SRO/ JSR/ 7A/JH/5694/ 2006/1587 dated 20th July 2006 passed under section 7A of the Act of 1952 whereby the Assistant Provident Fund Commissioner, Jamshedpur (Respondent No.2) has determined the amount of liability of Rs. 3,75,957/ - due from the establishment and a sum of Rs. 2,27,660/ - under section 7Q of the Act of 1952 and directed the petitioner to pay the same within 15 days from the date of the order.

(3.) COUNSEL for the petitioner submits that the petitioner establishment was manufacturer of Ice Creams under an agreement with M/s. Kwality Ice Creams Limited, Calcutta on 21st January 1986. This arrangement continued till 1995, whereafter, M/s. Kwality Ice Creams Limited made alliance with M/s. Brook Bond Lipton India Limited on 2nd June 1995. Consequently, the petitioner signed a deed of cancellation with M/s. Kwality Ice Creams Limited, a deed of assignment of marketing assets with Brook Bond Lipton India Limited and a deed of sourcing with Brook Bond Lipton India Limited. This agreement was entered between the respective parties on 6th November 1995. Under the deed of cancellation between the M/s. Kwality Ice Creams Limited and the petitioner dated 21st January 1986, manufacturing of ice cream in the brand name of Kwality was cancelled. Further, all rights of marketing, assets and the distribution of the said products, vending licences were transferred in favour of Brook Bond Lipton India Ltd. As per the petitioner, under the sourcing agreement, the petitioner company was permitted to manufacture the Ice cream under the Kwality brand exclusively at the instruction and requirement of Brook Bond Lipton India Limited having no right to market the same. Learned counsel for the petitioner submits that because of such arrangement, the petitioner company did not have any right for marketing of manufactured Ice cream, in terms of earlier agreement with M/s. Kwality Ice Creams Limited which led to the petitioner company to withdraw its sales related staff from the field and services of respondent no.3 -Krishna Das @ Kisto Das was terminated on and from 22nd November 1995. This fact was informed to the official respondent in Form -10 that Krishna Das was the permanent employee of the petitioner company having his P.F. Account No. BR -5694 -28. Subsequently, it is the case of the petitioner that Brook Bond India Limited engaged M/s. Kwality Ice Creams Enterprises to market and distribute its products and the respondent no.3 was employed by M/s. Kwality Ice Creams Enterprises and his salary was paid by Brook Bond India Limited through M/s. Kwality Ice Creams Enterprise. Later on, on account of some dispute, the agreement between the Brook Bond India Limited and the petitioner company were cancelled in the year 2000 and the petitioner company thereafter began manufacturing Ice cream in its own brand name. However, the respondent no.3 remained employee of M/s. Kwality Ice Creams Enterprises and the petitioner company have no relationship with the said M/s. Kwality Ice Creams Enterprises. The respondent no.3 was thereafter terminated by his employer for which gratuity was also paid by Life Insurance Corporation. However, he was again appointed by the petitioner company from 1st September 2004 and a new provident fund account was duly obtained by the petitioner company in his name being BRJP -5694 -57 with effect from 1.9.2004.