Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Company Act Employees’ Provident Funds and Miscellaneous Provisions Act 1952 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 – Employees’ Provident Fund Scheme, 1952 – Benefits under the Pawan Hans Employees provident Fund Trust Regulations or under the EPF Act, 1952 and EPF Scheme, 1952 of contractual employees of the Appellant-Company – Entitlement to – Appellant-Company framed and notified the Pawan Hans Employees Provident Fund Trust Regulations for giving provident fund benefits to all its regular employees – The members of the Respondent-Trade Union made several representations to extend the benefit of the PF Trust Regulations since they were directly engaged by the Company on contractual basis – The Company failed to respond to the representations made by the Respondent-Trade Union – Writ Petition by the Respondent- Trade Union – The High Court directed that the benefits under the EPF Act be extended to the members of the Respondent-Trade Union and other similarly situated employees – The Appellant-Company having framed its own PF Trust Regulations, claimed exemption from the applicability of the EPF Act and EPF Scheme – On appeal, held: The Supreme Court in Regional Provident Fund Commissioner v. Sanatan Dharam Girls Secondary School laid down a twin test for an establishment to seek exemption from the provisions of the EPF Act, 1952 – The first, the establishment must be either ‘belonging to’ or ‘under the control of’ the Central or the State Government – Second, the employees of such an establishment should be entitled to the benefit of contributory provident fund or old age pension in accordance with any scheme or rule framed by the Central Government or the State government governing such benefits – In the instant case, the first test is satisfied as the Appellant- Company can be termed as a Government Company u/s. 2(45) of the Companies Act, 2013 – With respect to the second test, the PF Trust Regulations of the Company were not framed by the Central or State Government, nor were they applicable to all the employees of the Company, so as to satisfy the second test – The Company did not satisfy the second test, consequently the exemption u/s. 16 of the EPF Act not applicable to the Appellant - Company – Insofar as the entitlement of the members of the Respondent-Trade Union to the benefit under the PF Trust Regulations or under the EPF Act is concerned, the members were receiving wages/salary directly from the Company without the involvement of any contractor since their date of engagement and their work being of a perennial and continuous nature cannot be termed to be ‘Contractual’ in nature – Therefore, the members of the Respondent Union are entitled to the benefit of the provident fund under the PF Trust Regulations or the EPF Act – Since, the PF Trust Regulations are already in force and are applicable to all employees of the company, the Respondent-Trade Union granted the benefit of provident fund under the PF Trust Regulations so that there is uniformity in the service conditions of all the employees. |
Judge | Hon'ble Ms. Justice Indu Malhotra |
Neutral Citation | 2020 INSC 51 |
Petitioner | M/s. Pawan Hans Limited & Ors. |
Respondent | Aviation Karmachari Sanghatana & Ors. |
SCR | [2020] 1 S.C.R. 728 |
Judgement Date | 2020-01-17 |
Case Number | 353 |
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