High Court of Delhi
V. KAMESWAR RAO
Daulat Ram College
Versus
Regional Provident Fund Commissioner & Others
W.P.(C) No. 2448 of 1996
Decided On : 21-04-2014
Employees Provident Fund - Affiliated College of Delhi University - Section 7-A of the Employees Provident Fund and Miscellaneous Act, 1952 - Section 16(1)(c)
Fact of the Case:
The petitioner-College, an affiliated College of Delhi University, challenged the order passed by the Regional Provident Fund Commissioner under Section 7-A of the Employees Provident Fund and Miscellaneous Act, 1952, which stated that the Act is applicable to the petitioner-College.
Finding of the Court:
The court found that the petitioner-College, being an affiliated College of Delhi University, is entitled to the benefit of exemption under Section 16(1)(c) of the Act, as its employees are entitled to the benefits of contributory provident fund or old age pension in accordance with the rules framed by the Central Government governing such benefits. The court set aside the order of the Regional Provident Fund Commissioner.
Issues: The main issue was whether the petitioner-College, as an affiliated College of Delhi University, is excluded from the provisions of the Employees Provident Fund and Miscellaneous Act, 1952 under Section 16(1)(c).
Ratio Decidendi: The court held that the Act is not applicable to the petitioner-College, as its employees are entitled to the benefits of contributory provident fund or old age pension in accordance with the rules framed by the Central Government governing such benefits, as per Section 16(1)(c) of the Act.
Final Decision: The writ petition was allowed, and the order of the Regional Provident Fund Commissioner under Section 7-A was set aside. No order as to costs was made.
V. Kameswar Rao, J.
1. The challenge in this writ petition is to the order passed by the Regional Provident Fund Commissioner (‘Commissioner’, in short) under Section 7-A of the Employees Provident Fund and Miscellaneous Act, 1952 (‘Act’, in short) which was communicated to the petitioner-College vide covering letter dated May 27, 1995, whereby the Commissioner was of the view that the petitioner-College having not been set up under any enactment, does not satisfy the criteria for exclusion laid down under Section 16(1)(c) of the Act, and therefore, the Act is applicable to the petitioner-College.
2. The short question which arises in this writ petition is whether the petitioner-College being an affiliated College of Delhi University would be excluded in terms of Section 16(1)(c) of the Act.
3. Some of the relevant facts are that the Delhi University was established under Delhi University Act, 1922, a Central Act (‘DU Act’, in short). The petitioner, an affiliated College of the Delhi University was started under the name of “Pramila College” in the year 1960. Thename of the petitioner-College was changed from “Pramila College” to Daulat Ram College. It is the case of the petitioner that the University of Delhi is a body incorporated under the DU Act. The DU Act defines a ‘College’which includes an affiliated anda constituent College. The teachers imparting instructions in a college and recognized by the University are also the teachers of University of Delhi.
4. The petitioner states that it is affiliated to the Delhi University and is imparting education to the girls upto Post-Graduation. It is one of the constituent colleges of the University. The petitioner-College is bound to follow the provisions of the DU Act and the Statutes and the Ordinances framed thereunder. Section 46 of the DU Act reads as under:
“46.Pension and provident funds-
(1) The University shall constitute, for the benefit of its officers, teachers, clerical staff and servants, in such manner and subject to such conditions as may be prescribed by the Statutes, such pension, insurance and provident funds as it may deem fit.
(2) Where any such pension, insurance or provident fund has been so constituted, [or where any such pension, insurance or provident fund has been constituted by a college under rules which have been approved by the Central Government], the Central Government may declare that the provisions of the Provident Funds Act”.
5. Section 28 of the DU Act enumerates matters which can be provided for by the Statutes. Two such matters being:
(i) The constitution of a pension or Provident Fund and Establishment of an Insurance Scheme for the benefit of the Officers, Teachers and other employees of the University”
(ii) The conditions under which Colleges and other institutions may be admitted to the privileges of the University and the withdrawal of such privileges”.
6. Statute 30 of the Statutes of the University prescribes conditions on the basis of which a college may be admitted to the privileges of the University. One of the conditions being the following:
“The rules relating to the composition and personnel to the Governing body, and those relating to other matters affecting the management of the College shall conform to the Statutes and the Ordinances of the University and Conditions of Government Grant to Colleges. Such rules and personnel will require the approval of the Executive Council”.
7. Yet another condition being the following:
“The service conditions of the administrative and other non-academic staff of every such College shall be in accordance with those laid down by the University for similar posts in the University”.
8. It is the stand of the petitioner, like any other College, whether affiliated or constituent of the University is in receipt of maintenance grant to the extent of 95% grant from the University Grants Commission. The petitioner is bound to comply with the ‘Conditions of Government Grant to Colleges’
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