The provident fund authorities must act fairly and not unnecessarily saddle petitioners with litigation.

JUDGMENT :

M.V. Muralidaran, J.

Heard Mr. Anant Kr. Shaw, learned counsel for the petitioner, Mr. Sailendra Kr. Mishra, learned counsel for the Union of India and Mr. Satyendra Agarwal for the second respondent and Ms. Madhushri Dutta, learned counsel for the third respondent.

2. The petitioner has filed the writ petition with the following prayers:

“(a) A writ of or in the nature of Certiorari commanding the respondent to certify and transmit all the records pertaining to the letters/memo dated 16.01.19, 01.04.19 and 13.06.19 being Annexures “P-11”, “P-14” and “P-16” respectively to this Hon’ble Court, so that conscionable justice may be done by quashing and/or setting aside the same after careful scrutiny;

(b) A writ of or in the nature of Mandamus commanding the respondents, its agents, servants, assigns to forthwith rescind, cancel, set aside, quash and/or withdraw the impugned letters, memo dated 16.01.19, 01.04.19 and 13.06.19 being Annexures “P-11”, “P-14” and “P-16” respectively.

(c) A writ of or in the nature of Prohibition prohibiting the respondents, its agents, servants, assigns not to give effect the impugned letters dated 16.01.19, 01.04.19 and 13.06.19 being Annexures “P-11”, “P-14” and “P-16” respectively.

(d) Ay other appropriate writ(s) order(s) and/or direction(s).

(e) Rule NISI in terms of prayers (a) to (d) above.

(f) Injunction restraining the respondents from giving effect or further effect to the letters/memo dated 16.01.19, 01.04.19 and 13.06.19 being Annexures “P-11”, “P-14” and “P-16” respectively till the disposal of the rule/application. ….”

3. The case of the petitioner, as could be seen from the averments set out in the writ petition, is as follows:-

The petitioner is a factory engaged in manufacturing of jute products and is covered under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. The petitioner is a Unit of Kelvin Jute Mills. The petitioner has been granted exemption under Section 17 of the said Act. Pursuant to the said exemption, the petitioner had constituted a Board of Trustees and had been depositing contributions of its employees into a trust fund being managed and controlled by the Board of Trustees and to Pension Fund also.

3.1. On 20.10.2005, the Deputy Secretary, Labour Department issued a notice for cancellation of exemption granted to the Kelvin Jute Company Limited in an arbitrary manner without consulting any of the parties. A Special Officer was appointed by the High Court to look after the affairs of the Kelvin Jute Company Limited and all the operating unions of the company by letter dated 23.11.2005 had protested against the cancellation and on receipt of such objection against cancellation, the appropriate authority slept over the matter and did not proceed further in the matter and the functioning of the trust fund was running as if it was under the supervision of the PF authorities.

3.2. In the year 2017, the petitioner on unanimous demand of all the operating unions of the mill surrendered the exemption of the trust fund and had written for withdrawal of the said exemption vide letter dated 17.4.2017. Though the Deputy Secretary, Government of West Bengal remained silent, the second respondent, vide its letter dated 3.5.2017, informed the petitioner that the exemption granted under Section 17 has already been withdrawn by the Government under notification dated 20.10.2005 and the petitioner was directed to transfer the past accumulations. In compliance of the order of the second respondent, the petitioner had written to the second respondent on 18.5.2017 requesting to change the PF Code from exempted to un-exempted unit and solicited advice for smooth transfer of past accumulations. In reply, the second respondent directed the petitioner to furnish past accumulation statement that is aggregative of total accumulations standing to the credit of each subscribers for takeover of the trust fund and the petitioner had also submitted the statement.

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