JUDGMENT

A. S. Chandurkar, J. - This Letters Patent Appeal filed under Clause-15 of the Letters Patent Appeal raises a challenge to the judgment of learned Single Judge dated 07/07/2011 in Writ Petition No.5672/2010. By that judgment the writ petition preferred by the respondent herein has been allowed and after setting aside the order passed by the Employees Provident Fund Appellate Tribunal, New Delhi, the proceedings have been remanded to the said Tribunal to consider the matter afresh in accordance with law.

2. The facts giving rise to the present proceedings are that ACC Nihon Castings Ltd. (for short, ANCL) is a Company incorporated under Companies Act, 1956. Pursuant to an order passed on 01/04/2008 by the Calcutta High Court, ANCL stood merged with Hindustan Udyog Ltd., the present appellant. It is the case of ANCL that it is a subsidiary Company of Associated Cement Companies Ltd. (for short, ACCL) which deals in manufacture and sale of cement. ANCL was incorporated on 10/02/1992. ACCL is one of the shareholders in the equity capital of ANCL. ANCL constructed and erected its plant at Butibori in the year 1992-93. The trial production of Alloy Steel Castings started from 24/11/1993 and its commercial production started from 12/04/1994.

3. The Regional Provident Fund Commissioner on 02/12/1996 informed ANCL that the provisions of the Employees Provident Fund and Misc. Provisions of Act, 1952 (for short, the Act of 1952) would be applicable to the establishment from 01/11/1996 on completion of infancy period under Section 16(1)(d) of the Act of 1952. ANCL was accordingly issued a Code number for complying with the provisions of the Act of 1952. On 02/12/1999 the Regional Provident Fund Commissioner issued a show cause notice to ANCL stating therein that being a subsidiary Company of ACCL which was exempted under para 27-A of the Employees Pension Scheme, 1952, it was likely that the subsidiary concern was enjoying unity of ownership, management control, functional integrality and general unity of employment with ACCL. According to the said Authority there was ground to believe that the establishment should be covered from the date of commencement of production which was 24/11/1993 in view of provisions of Section 2-A of the Act of 1952. Hence ANCL was called upon to show cause as to why its establishment should not be covered under Section 2-A of the Act of 1952 from 24/11/1993. ANCL was accordingly called upon to show cause to the aforesaid.

4. ANCL submitted its reply to the aforesaid show cause notice and stated that it was wrong to conclude that ANCL and ACCL would constitute "one establishment" under the Act of 1952. Various factors required for determining the integrality of business were absent. Manufacture of Alloy Steel Castings undertaken by ANCL was not connected with the cement manufacturing activity of ACCL. Recruitment of employees was distinct and separate and so were the terms and conditions of service, amenities and benefits of employees of ANCL. Both establishments were independent and there was no supervisory control nor any functional integrality between the two Companies. It was further stated that ANCL was maintaining separate balance-sheet and books of accounts. It was thus stated that in absence of any unity in the business, management and control, ANCL and ACCL could not be treated to be "one establishment". It was thus stated that the provisions of the Act of 1952 were applicable to ANCL from 01/11/1996 and not from 24/11/1993.

5. The Assistant Provident Fund Commissioner in proceedings under Section 7A of the Act of 1952 and after considering the submissions made on behalf of ANCL held that ANCL was a subsidiary Company of ACCL. The Provident Fund Rules of ACCL were applied to the employees of ANCL. The Annual Report of ANCL for the year 1995-96 indicated that ACCL and NCC Japan had invested an amount of Rs.8 Crore in the equity capital of ANCL. It had also appointed one Shri K. K. Pathak who was ea