( 1 ) THE only question that requires to be considered in this, appeal is whether an exempted establishment under Section 17 of then employees' provident funds and miscellaneous Provisions Act, 1952 (hereinafter referred to as 'the act') is bound to pay interest at the statutory rate at par with the scheme framed as per the Provisions of the act.

( 2 ) THE brief facts are: the appellant is a limited company having two textile mills, one in Madras and the other in Bangalore. The Bangalore mill is a separate company known as Bangalore woollen, cotton and silk mills company limited. This company and certain other companies were amalgamated in the year 1969 and after such amalgamation the new company is known as binny limited. Prior to its amalgamation the Bangalore mill had its own provident fund which was managed by separate trustees and was exempted under Section 17 from the Provisions of the act. The exemption was granted by the government of India on 31st july, 1953 with effect from 1st november, 1952. It has been asserted by the appellant that from the inception of the fund, the trustees of the funds have been investing money received by the fund in accordance with