Rule. Rule made returnable forthwith.

2. Heard both the counsel.

3. The question that arise for consideration in this petition is whether, Chairman of a company can be said to be an employer within the meaning of Explanation 2 to Section 405 read with Section 406 Indian Penal Code so as to make him liable for prosecution under Section 406 Indian Penal Code for non-deposit with the Provident Fund Authorities of the provident fund dues deducted from the employees salary.

4. The facts set out in the petition can be briefly stated as follows. The petitioner is the Non-Executive Chairman of a company by name M/s. Precision Fasteners Ltd. The company was declared a sick industrial unit in terms of Section 3(1)(4) of the Sick Industrial Companies (Special Provision) Act, 1985 (hereinafter referred to as 'SICA') and a scheme of its revival 'passed under Section 19(3) and 18(4) of SICA. The company has 54 employees and it's day to day management, administration and control is vested in the Managing Director and CEO of the Company, Shri. Dilip Singh Lodha. Mr. T. M. Vishwanathan, a whole time Executive Director was looking after the overall function of the company till 15th January, 200