Ashutosh Kumar, J.—Heard Mr. Satish Chandra Jha No.3, learned advocate for the appellant and Mr. Jay Prakash Verma for the Respondent/Central Board of Trustees, EPF.

2. The Central Board of Trustees, EPF through the Assistant Provident Fund Commissioner, EPFO, Muzaffarpur came up before this Court vide CWJC No. 16336 of 2010 against the order dated 24.11.2009 passed in ATA No. 681(3) of 2006 passed by the Presiding Officer, Employees Provident Fund Appellate Tribunal, New Delhi, whereby the order passed by the Assistant Provident Fund Commissioner, Muzaffarpur under Section 7A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (for short “EPF & MP Act, 1952”) by which the appellant herein was directed to pay the entire outstanding dues of Rs. 57,96,695/-, had been quashed.

3. The learned Single Judge, on perusal of Section 16 of the EPF & MP Act, 1952 found that the appellant/organization was not exempted from making payments to the EPF as there was no declaration of exemption by the Central Government by notification in official gazette either prospectively or retrospectively from the operation of the Act to the aforesaid organization. On such findings, the order passed by the Tribunal was set aside, restoring the order of the Provident Fund Commissioner directing for payment of Rs. 57,96,695/- with the EPF.

4. The appellant viz. Gandak Area Development Agency (in short “GADA”) has challenged the aforesaid order of the learned Single Judge on various grounds.

5. From the pleadings of the parties, it appears that the GADA was constituted under Section 3 of the Bihar Agriculture and Rural Area Development Agency Ordinance, 1974 as an independent agency and a body corporate under Section 3(1) (c) of the Act. This agency was constituted for various districts in the State of Bihar. Presently, the controlling department of GADA is the Water Resources Department of the Government of Bihar.

6. It is the specific case of the appellant that the Board of Director of GADA, Muzaffarpur had approved the Employees Contributory Provident Fund Regulation, 1978 which was implemented in the organization with effect from 01.04.1979. This was with the consent of the employees. Ever since, the Contributory Provident Fund Regulation is in force in GADA, Muzaffarpur. In terms of the aforesaid regulation, the Contributory Provident Fund is being deposited in a nationalized bank, in the individual account of the employees of GADA and such amount is pledged in the name of Drawing and Disbursing Officer of the agency. The amount gets paid to the individual employees on their superannuation.

7. Mr. Jha, learned counsel for the appellant, has further informed this Court that there are two circles where this agency operates. The litigation in the present case concerns the Planning and Investigation Division of Raxaul. The decisions and rules are equally in force for all circles/divisions/sub-divisions as different circles, divisions or sub-divisions do not have their specific independent identities of their own. We further find from the records that GADA was initially under the financial control of the State Government in its Agriculture Department but later, the Water Resources Department became the nodal department for controlling the affairs of GADA.

8. As an agency under the statute, associated with a Department of the Government, there was no way in which the directions of the Government could have been avoided to be carried out. Since the base organization i.e. GADA, Muzaffarpur operated under the statute framed by the Legislature and controlled by a government Department, the employees in all such divisions/sub-divisions were getting equal facilities and, therefore, none of the units were liable to pay the provident fund contribution as the exemption under Section 16(1) (a), (b) and (c) of the Act applies to such units of the organization proprio vigore.

9. Some correspondence between the Assistant Provident Commissioner, EPF, Muzaffar