Back
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
AMIT BORKAR
Central Board of Trustee, Employees Provident Fund Organization – Appellant
Versus
Saket College of Arts, Commerce, & Science (Senior) – Respondent
JUDGMENT:
AMIT BORKAR, J.
1. The petitioner invokes Articles 226 and 227 of the Constitution to challenge the legality of the order dated 19 October 2016 passed by the Presiding Officer, Provident Fund Appellate Tribunal, New Delhi in ATA No. 12149(9)2014. By that order, the Tribunal set aside the determination made on 30 October 2014 under Section 7A of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 which had directed the respondent to pay provident fund dues. The petitioner seeks restoration of the order passed by the Authority under Section 7A.
2. The relevant facts are as follows. The petitioner states that the respondent establishment is covered under the EPF and MP Act and allotted Code No. MH/201739. Complaints dated 13 February 2013 and 20 March 2014 were received. An Enforcement Officer submitted a report dated 4 July 2014. On verification of records, it was found that the respondent did not comply with the mandatory provisions of the Act for the period from May 2009 to May 2014. An inquiry under Section 7A was commenced. During the inquiry, the salary registers were examined. It appeared that the respondent split wages in a manner that reduced the base o
The classification of basic wages must genuinely reflect employee remuneration, and artificial wage splitting to avoid statutory contributions is impermissible under the Act.
The main legal point established in the judgment is that HRA and OTA are not included in basic wages under the EPF Act, and there is no enabling power for the Commissioner to adopt notified minimum w....
Payment made under Section 17-B of the I.D. Act does not constitute 'wages' for the purpose of provident fund contribution.
The Supreme Court defined 'basic wage' under the EPF Act, clarifying that only universally paid wages qualify, while variable allowances do not.
Allowances must be universally and necessarily paid to qualify as 'basic wage' under the EPF Act; variable allowances do not meet this criterion.
The Supreme Court established that basic wage does not include leave encashment, impacting provident fund contributions and related damages.
The court upheld the authority's order confirming the eligibility of employees for Provident Fund membership despite their salaries exceeding the statutory limit, emphasizing the welfare nature of th....
Point of Law : Provident Fund is not a tax. It is an amount collectable to the benefit of an individual identified employee as a social welfare measure.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
