( 1 ) THE proceedings issued by the respondent in Reference No. AP/6358/enf. I/z-XIV/90/313, dated 7/05/1990 are assailed in this writ petition. In fact the entire matter rests on the interpretation of Section 16 (1) (b) of the Employees Provident Fund and Miscellaneous Provisions Act, 1952.

( 2 ) TO trace out certain essential facts : The petitioner is a Company incorporated under Companies Act in November 1974. It is engaged in fabrication of fibre glass products among other products. The employees were engaged for carrying on the production activity. The unit had been running under heavy losses and therefore the establishment was irrevocably closed down with effect from 22/12/1987, after complying with the formalities under the Industrial Disputes Act. All the workmen employees were paid compensation under Law and all the dues including the Provident Fund account was also settled. While so, one Mr. Ved Prakash came forward to associate with the Company for day to day running of the unit at Balanagar. After settling the terms and conditions, an Agreement was entered into between Mr. Ved Prakash and the petitioner company in July, 1987 providing for running the unit by Mr. Ved Pr

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