SUPREME COURT OF INDIA
Vineet Saran, Dinesh Maheshwari, JJ.
The Assistant Provident Fund Commissioner, Meerut & Ors. - Appellants
Versus
M/S. Bagpat Co-Operative Sugar Mills Limited, Bagpat - Respondent
Civil Appeal No(s). 2857/2019 (Arising out of SLP (C) No.1078/2015)
Decided On : 22-07-2021
Employees’ Provident Funds & Miscellaneous Provisions Act - Cooperative Society - The court quashed the order of the High Court and remanded the matter for fresh decision, emphasizing the need for the High Court to consider arguments that were not previously addressed and to allow the appellants to present their case.
Fact of the Case:
The appeal was filed against the order of the High Court, which had allowed the Writ Petition filed by the respondent-Cooperative Society in an ex-parte decision due to the absence of the appellants' counsel.
Finding of the Court:
The court quashed the order of the High Court and remanded the matter for fresh decision, emphasizing the need for the High Court to consider arguments that were not previously addressed and to allow the appellants to present their case.
Issues: The absence of the appellants' counsel during the High Court proceedings and the need for the High Court to consider arguments that were not previously addressed.
Ratio Decidendi: The court emphasized the importance of allowing both parties to present their arguments and ensuring that all relevant issues are considered before reaching a decision.
Final Decision: The appeal was allowed, and the order of the High Court was quashed, with the matter remanded for fresh decision before the High Court, with the appellants required to deposit costs before the Registry of the High Court.
ORDER :
1. Leave granted.
2. This appeal is filed against the order of the High Court dated 19.02.2014, whereby the Writ Petition filed by the respondent- Cooperative Society has been allowed. Before the High Court, the learned counsel for the appellants herein (respondents before the High court) did not appear and the matter was decided ex-parte.
3. Shri Abhishek Vikas, learned counsel for the appellants has submitted that two decisions relied upon by the High Court being Ghaziabad Zila Sahkari Bank Ltd. Vs. Addl. Labour Commissioner & Ors. (2007) 11 SCC 756 and M/s Pradhan Prabhandak, Kisan Sahakari Chini Mills, Nanauta, Saharanpur Vs. State of U.P. & Ors. (2012) 4 All.LJ 591, do not relate to the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 (for short ‘Act’), whereas the same relate to Labour Court/Industrial Disputes Act and as such the said decisions would not be applicable to the facts of the present case.
3. It is submitted that Section 16 of the Act provides for the cooperative societies employing not less than 50 persons and working with the aid of power would be covered under the provisions of the said Act and as such, since these conditions are fulfilled in the case of respondent, the Act would be applicable to the Respondent-Cooperative Society.
4. Per-contra, Shri Jatin Mahajan, learned counsel for the respondent has submitted that the judgment of the High Court is fully applicable to the facts of the present case, inasmuch as Section 16(1)(c) of the Act clearly provides that the provisions of the Act would not be applicable to establishments set up under the State Act and where the employees are entitled to the benefit of the Contributory Provident Fund. It is submitted that the respondent-cooperative society is established under the UP Cooperative Societies Act, 1965, which is a State Act and by virtue of the said Act, the Contributory Provident Fund is established.
5. Be that as it may, since these arguments, as submitted before us, have not been considered before the High Court, we are not inclined to enter into the same, as we would like to have the benefit of the decision of the High Court on these issues.
6. Accordingly, since the Order of the High Court does not deal with the aforesaid questions, and also mainly because learned counsel for the appellants herein was not present at the time of hearing before the High Court, we quash the order of the High Court and remand the matter for fresh decision before the High Court, but on payment of costs of Rs. 50,000/-, which may be deposited by the appellants herein before the Registry of the High Court within three weeks from today. On such deposit being made, prior to the commencement of the hearing before the High Court, the respondent herein shall be entitled to withdraw the said amount of costs.
7. The High Court is requested to decide the matter afresh, after hearing the learned counsel for the parties.
8. The appeal stands allowed as indicated above.
Ghaziabad Zila Sahkari Bank Ltd. Vs. Addl. Labour Commissioner & Ors. (2007) 11 SCC 756 [Para 3]
The importance of ensuring that all relevant arguments are considered and allowing both parties to present their case before reaching a decision.
The court confirmed that a Co-operative Society registered under its own Act is not subject to the Employees Provident Fund provisions if its employees opt for a state pension scheme.
The court emphasized the need for the EPF authorities to determine the applicability of the EPF Act to the petitioner Cooperative Society under Section 16(1)(a) and proceed with the determination of ....
The validity of an order must be judged by the reasons mentioned in the order itself and cannot be supplemented by additional grounds.
The Act does not apply to Cooperative Societies employing less than 50 persons without the aid of power, as per Section 16.
The applicability of the Employees Provident Funds and Miscellaneous Provisions Act to a Cooperative Society is subject to the conditions specified in Section 16, and reliance on specific sections or....
The term 'without the aid of power' under Section 16(1)(a) of the Employees Provident Fund and Miscellaneous Provisions Act, 1952, implies power used in the manufacturing process or generating income....
An establishment is disqualified from the Section 16(1)(a) EPF Act exemption if it utilizes power for its core operations, as that constitutes 'working with the aid of power,' distinguishing it from ....
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