IN THE HIGH COURT OF BOMBAY
Lodha R.M. Mohta Anoop V., JJ.
BASF Indian Limited another .... Appellants.
Versus
M. Gurusamy another.... Respondents.
Appeal No. 472 of 1995 in Writ Petition No. 1891 of 1992, decided on 15-1-2004.
Advocates appeared :
J.P. Cama Sr.C. with G.S. Shetty i/b. Crawford Bayley Co., for appellants.
R.C. Master, for respondents.
2. On 28th December, 1984 the Commissioner issued summons to M/s. B.A.S.F. India Limited (first appellant and hereinafter referred to as "the Company") under section 7-A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (for short "Act of 1952"). In the summons it was recorded that the Commissioner had reason to believe that the company failed to remit the provident fund dues in respect of their establishment covered by the Act of 1952 and the Rules framed thereunder and that provident fund benefits were not extended to the trainees and contractor employees after completion of 60 working days. The company was thereby directed to give evidence and to produce all the records including those mentioned in the summons for conducting an enquiry and determining the amount due from the company. It appears that during the course of hearing of the said proceeding the question arose regarding coverage of drivers appointed by the Managers. By the reply filed by the company on 18th June, 1992 the explanation was submitted by the company to the effect that the personal drivers of the company's Managers were basically their domestic servants; the Managers themselves selected them and employed them; the managers called their domestic servants at any day and instruct them to drive the car at any place with any passengers as per their personal requirements; the drivers were under exclusive supervision and control of the respective managers in their individual capacity and not in the capacity of the company's employees; the company's role was confined only to the extent that as a part of service conditions agreed with the Managers, it will reimburse to the Managers the expenses incurred by them in utilising their personal drivers' services for to and fro drive between the residence and the office or any place outside for official work. The company thus set up the case that there was no master-servant relationship of any kind between the Company and the drivers of the company's managers and that such drivers were not covered within the definition of "employee" under section 2(f) of the Act of 1952. Upon receipt of the reply from the company, the Commissioner on that very day i.e. 18th June, 1992 directed the company to file documents, namely, who were the individuals engaged as car drivers, how long they continued to work ad who paid their wages. In response thereto the company on 6th July, 1992 annexed the list of the drivers indicating period of their engagement and reiterated that the wages of these drivers were paid by the respective managers but the expenses incurred by managers for utilising the services of personal drivers were reimburses to the extent (a) upto Rs. 1,900/- per month if service with the Manager was less than five years and upto Rs. 1,950/- per month if service with the Manager was five years or more; (b) an amount upto Rs. 800/- towards uniforms; footwear, monsoon equipments and winter clothing and (c) an amount for overtime upto Rs. 4.50 per hour if the manager would use his driver for company' duty beyond driver's normal working hours with the manager.
3. The Commissioner after hearing the authorised representative of the company by order dated 8th July, 1992 held that the said drivers were paid wages directly or indirectly by the establishment for the work carried out by them in or in connection with the establishment and therefore they were employees under section 2(f) of the Act of 1952. Aggrieved by the said order the company filed writ petition which came up for hearing before the learned Single Judge. The company heavily relied upon the
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