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High Court Of Calcutta
Asok Kumar Ganguly, Sailendra Prasad Talukdar
KELVIN JUTE COMPANY LTD. - Appellant
Versus
KRISHNA KUMAR AGARWAL - Respondent
A. P. O. 258 Of 2002
Decided On : 02/16/2006
PROvident FUND - Transfer of account - Kelvin Jute Mills Company Limited had two units namely, Kelvin Jute mills and Waverly Jute Mills Company which was known as Kelvin Broad Loom division. Hooghly Mills Company Limited took over the Kelvin Broad Loom division with effect from 30.06.1986. Kelvin Trust did not transfer the P. F. accumulation in respect of the employees of the transferred unit i.e., Broadloom Division, to the Waverly Trust. - HELD: (1) The trust in question is required to discharge statutory liability in respect of the statutory fund since exempted but recognised by the statute and this leaves no scope for further controversy in that regard. (2) The trustees for the purpose of discharge of their liability in respect of PF as instrumentality and agency of the state are state within the meaning of Article 12 of the constitution of India on the principle laid down in Anadi Mukta Sadguru SMVS trust (supra). As such writ is very much maintainable as against the trustees.
Fact of the Case:
Kelvin Jute Mills Company Limited had two units namely, Kelvin Jute mills and Waverly Jute Mills Company which was known as Kelvin Broad Loom division. Hooghly Mills Company Limited took over the Kelvin Broad Loom division with effect from 30.06.1986. Kelvin Trust did not transfer the P. F. accumulation in respect of the employees of the transferred unit i.e., Broadloom Division, to the Waverly Trust. Employees filed writ petition for recovery of the sum of Rs. 2,02,98,353,02 (principal amount) which was admittedly due to the Waverly Fund from Kelvin Fund.
Finding of the Court:
The trust in question is required to discharge statutory liability in respect of the statutory fund since exempted but recognised by the statute and this leaves no scope for further controversy in that regard. The trustees for the purpose of discharge of their liability in respect of PF as instrumentality and agency of the state are state within the meaning of Article 12 of the constitution of India on the principle laid down in Anadi Mukta Sadguru SMVS trust (supra). As such writ is very much maintainable as against the trustees.
Issues: Whether the writ petition is maintainable? Whether the trust in question is a public trust and it could not come within the scope and ambit of Article 12 of the Constitution and that the reliefs were essentially sought for from the present appellants.
Ratio Decidendi: The trust in question is required to discharge statutory liability in respect of the statutory fund since exempted but recognised by the statute and this leaves no scope for further controversy in that regard. The trustees for the purpose of discharge of their liability in respect of PF as instrumentality and agency of the state are state within the meaning of Article 12 of the constitution of India on the principle laid down in Anadi Mukta Sadguru SMVS trust (supra). As such writ is very much maintainable as against the trustees.
Final Decision: Writ petition is maintainable. Judgment and order under challenge does not suffer from any such infirmity which calls for any interference by this Court. Accordingly, the present two cases be dismissed on contest. Directions given in the judgment and order of the Learned Single bench are to be complied with in letter as well as in spirit within a period of three months from the date.
( 1 ) TALUKDAR, J.-Consistent indifference, if not painful inaction, over a protracted period of time on the part of the Provident Fund authorities and other respondents, left the petitioner, Krishna Kumar Agarwal, with no choice but to approach the Court for necessary redress.
( 2 ) THE petitioner, as President of the Waverley Jute Mills Workers' provident Fund, filed an application under Article 226 of the Constitution with the following grievances :-Kelvin Jute Mills Company Limited had two units namely, Kelvin Jute mills and Waverly Jute Mills Company which was known as Kelvin Broad Loom division. Hooghly Mills Company Limited took over the Kelvin Broad Loom division with effect from 30. 06. 1986.
( 3 ) PRIOR to such transfer, the Provident Fund used to be managed by kelvin Jute Mills Company Ltd. Workers' Provident Fund Trust. It was a fund exempted under Section 17 of the Provident Fund and Miscellaneous Provisions act, 1952. It consisted of P. F. Accounts of all the workers employed in the said two units. After being taken over by Hooghly Mills, an exempted fund of the workers including those who came along with the transfer of the transferred unit was formed in the name of Waverly Jute Mills Workers Provident Fund.
( 4 ) IN terms of the condition of transfer certain amount of P. F. arrear dues in respect of the workers of the transferred unit, was paid by Hooghly Mills to the newly formed Trust, hereinafter referred as to the Waverly Trust. The P. F. . account of the workers of the Waverly unit, as maintained by the earlier Trust, remained with it and may be referred to as the Kelvin Trust.
( 5 ) REGIONAL Provident Fund Commissioner by letter dated 01. 09. 1988 requested Kelvin Trust to transfer P. F, accumulation in respect of the employees of the transferred unit i. e. , Broadloom Division, to the Waverly Trust. By letter dated 15. 11. 1989, Regional Provident Fund Commissioner asked Kelvin Trust to explain why such transfer was not made. On 1. 4. 1991, Kelvin Trust was again asked by the P. P. authority to give effect to the said transfer in favour of waverley Trust. But the P. P. accumulation in respect of the employees of Waverly who were earlier members of the Kelvin Trust was not transferred.
( 6 ) ON 5. 7. 1991, Regional Commissioner, P. P. , requested the Chairman, kelvin Trust to attend a meeting on 24. 7. 1991. Further request was made by the letter dated 1. 8. 1991 for taking steps in the matter for transfer. A meeting was convened on 9. 9. 1991 for reviewing the progress. But Kelvin Trust did not attend the meeting. This was followed by further request for transfer on 3. 10. 1991 and then again, on 1. 6. 1992.
( 7 ) BY letter dated 05. 05. 1992, Regional Provident Fund Commissioner informed Waverly Trust that steps were being taken for transfer of the fund by initiating action under the provisions of Provident Fund Act. On 24. 3. 1993, Kelvin trust requested Waverly Trust to accept the sum of Rs. 2,00,98,363. 02 being the amount of P. P. accumulation from Kelvin Trust to Waverly Trust as on 30. 6. 1986. In absence of any concrete results, this was followed by Regional Provident fund Commissioner's threat of action by letter dated 5. 4. 1993 as the ground of sickness of Kelvin unit was untenable.
( 8 ) REGIONAL Provident Fund Commissioner conducted negotiations on 15. 6. 1993 but without any fruitful result.
( 9 ) WITH all doors practically closed, grievances of the unfortunate, helpless workers were ventilated by filing writ application.
( 10 ) SUCH writ petition was filed by K. K. Agarwal, as President of the waverly Jute Mills Workers' Provident Fund seeking necessary redress. It was for recovery of the sum of Ps. 2,02,98,353,02 (principal amount) which was admittedly due to the Waverly Fund from Kelvin Fund. Prayer was made for issuance of writ of mandamus directing Regional Passport Commissioner to take steps available under the Employees' Providen
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