Section 7A of the Employees Provident Fund Act, 1952 is ultra vires Article 14 of the Constitution.

( 1 ) THESE two appeals are directed against the judgment of a learned Single Judge of this court who by a common judgment dismissed. the two petitions under Article 226 of the Constitution of India, filed by the Appellants.

( 2 ) THE appellants have been running a factory since 1947. They manufacture wire-netting rolls, wire-netting, wire gauze, wire cloth and jaali , from G. 1. wires. By an order dated February 23, 1965 (Annexure A-l), the Regional Provident Fund Commissioner New Delhi, the first respondent, informed the appellants that on enquiries made by his department it has been revealed that their factory is an establishment to which the Employees Provident Fund Act, 1952, (hereinafter referred to as the Act) and the Scheme framed thereunder (hereinafter referred to as the Scheme) was attracted with effect from January, 1965. A code number allotted to the appellants establishment was communicated and they. were called upon to deposit the arrears of contribution from the date of coverage of the factory [ establishment under the Act and the Scheme at the rates provided in paragraph 29 of the Scheme in respect of all employees who are required and are eligible to become members of the Fund in accordance with paragraph 26/80 (3) of the said Scheme together with administrative charges at the rate of 3 per cent for both employees and employer s contributions (2. 4 per cent if the contributions were paid at the statutory rate of 8 per cent of the basic wages, dearness allowance, retaining allowance and cash value of food concession, if any), administrative charges. from October 1, 1964 at the rate of 0. 37. per cent of pay, into the E. P. F. Account No. I and EPF Account no. II respectively maintained at all the branches of the State Bank of India in Delhi, on the prescribed challans within 15 days of the receipt of the said communication. The appellants were also called upon to submit the various, returns including monthly statements of contributions in Form 12 from the date of coverage and onwards supported by the triplicate copy of challan duly receipted by the bank within 25 days of the receipt of the said communication. It was. pointed out that the employees, employed by or through the contractors were also entitled to the benefits of the scheme with effect from November 30. 1963 and so, contributions in respect of such employees were payable from wages for the month of December. 1963 onwards. The appellants were warned: that default may render them liable to levy of damages for berated. payment. In as much. as. the appellants factoryfestablishment was discovered as covered by the. Act and. the Scheme, only when this communication was. issued. , the appellants were called upon. to deposit both the employer s and employees contributions prior to the period of discovery i. e. prior to January, 1965. IV was clarified that the employees share of contribution may be calculated on the basis of presumptive share. Prior to the issue of this order the factory /establishment of the appellants was inspected by a Provident Fund Inspector on or abont February 3, 1965. The appellants contend that they had made their position clear that their factory/establishment was not covered by the Act. Another communication dated February 23/24 1965 was issued by the first respondent to the appellants to the effect that their factory /establishment had been treated as covered by the Act and the Scheme provisionally from January 1, 1965 but this has been done On the basis of the Inspector s report consequent upon the inspection on Feb- ruary 3,. 1965. In order to decide the question of coverage of the appellants establishment, by this communication, they were called upon to call at the office of the first respondent along with certain records and documents. The appellants filed their objections to the applicability of the Act and the Scheme to their factory /establishment. Allegedly, there were further inspections of rec