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IN THE HIGH COURT OF DELHI
Dinesh Kumar Sharma, J.
NTPC Limited - Appellant
Versus
Regional Provident Fund Commissioner-II - Respondent
W.P.(C) 6398 of 2011
Decided On : 16-11-2022




The principal employer under the Employees Provident Funds Act is liable for provident fund contributions, regardless of the claimant’s employment status with a subordinate entity.

Headnote:(A) Employees Provident Funds and Miscellaneous Provisions Act, 1952 - Section 2, Section 7-I - Writ petition challenging the order of Employees Provident Fund Appellate Tribunal and Regional Provident Fund Commissioner regarding liability of NTPC to pay provident fund contributions. The tribunal held that NTPC is the principal employer liable for contributions, reflecting on the employment relationship of the claimant with the BTPS Club. (Paras 1-4, 10-16)

(B) Jurisdiction of appellate tribunal and court - The court in writ jurisdiction can set aside tribunal findings if they are contrary to the record or relevant laws and should only intervene in cases of illegality or perversity. The onus is on the claimant to establish employment status. (Paras 10, 14)

Facts of the case:
The claimant made a complaint regarding employment and provident fund contributions with a history of disputes between NTPC and BTPS Club, culminating in the tribunal's reassessment of employment status and liability for provident fund deductions based on misattributed responsibility. (Paras 1-4)

Findings of Court:
The court found that the prior conclusions made by the Regional Provident Fund Commissioner and the EPFAT contradict existing findings regarding the claimant's employer, hence invalidated their rulings. (Paras 16-17)

Issues: The main issues concerned the determination of the claimant’s employment with NTPC or BTPS Club and the implications for provident fund contributions. (Paras 4, 14)

Ratio Decidendi: The court ruled that findings of the tribunal must align with established legal requirements; thus, as the claimant was not an employee of NTPC, the determinations regarding NTPC's liability were rendered invalid. (Paras 16-17)

Result: The petition is allowed, and the findings of the Regional Provident Fund Commissioner and EPFAT are set aside.

Table of Content
1. nature of employment and employer relationship (Para 1 , 2 , 3 , 4 , 5 , 6)
2. status of club regarding employees (Para 7)
3. legal arguments on employer liability (Para 8 , 9 , 10 , 11 , 12)
4. scope of judicial review in employment disputes (Para 13 , 14)
5. reaffirmation of prior findings on employment (Para 16)
6. disposal of petition with right to challenge (Para 17 , 18)

JUDGMENT

Dinesh Kumar Sharma, J. (Oral)--Present writ petition has been filed challenging the order dated 13.07.2011 passed by the Employees provident Fund Appellate Tribunal (hereinafter referred to as `the learned Tribunal) in ATA No.869 (4)09 under Section 7-I of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 wherein the learned tribunal inter alia held that NTPC being the principle employer is liable to pay provident fund contribution to the claimant/workman. The petitioner has assailed this finding that this finding of the learned tribunal as well the finding of the Regional Provident Fund Commissioner (RPFC) on the ground that they are contrary to the record and orders of the CGIT passed in ID No.25/2009 titled as Umesh Kumar Mishra vs. General Manager, BTPS.

2. The facts in brief compass are that initially an industrial dispute was raised by the claimant/workman on 11.02.2008 and reference was made by the appropriate authority on 06.02.2009, which is as follows:

    "Whether the action of the management of the Badarpur Thermal Power Station, New Delhi in terminating the services of their workman Umesh Kumar Mishra w.e.f January, 2008 is legal and justified? If not, to what relief the workman is entitled to?"

3. The NTPC being aggrieved by said reference filed W.P.(C) 8531/2009. The writ petition was disposed of vide order dated 28.04.2009. Pursuant to the order passed in the writ petition, the Central Government modified and sent the reference dated 20.05.2009 to the learned CGIT for adjudication. The modified reference is as follows:

    "Whether the applicant (Umesh Kumar Mishra) is an employee of BTPS or BTPS Club?

    Whether the action of management in terminating the services of Umesh Kumar Mishra w.e.f. September 2008 is just, fair and legal? If not, to what relief the workman concerned is entitled to and from which date?"

4. The CGIT on the basis of this reference, returned a finding vide its award dated 07.03.2011, in which, as per the appellant, it was inter alia held that the claimant/workman is an employee of BTPS Club and not the NTPC. However, learned CGIT further held that since the claimant/workman is an employee of the club, the appropriate authority would be the state government and not the central government.

5. Against the award, the claimant/workman filed a writ petition being W.P.(C) 7622/2011 before this Court. This court remanded the matter back to the learned CGIT for adjudication of the remaining part of reference i.e. "Whether the action of management in terminating the services of Umesh Kumar Mishra w.e.f. September 2008 is just, fair and legal and the grant of consequential relief". It was also directed that since BTPS Club was held to be the employer and was not represented before the learned CGIT, a notice may be issued to the club for participating in the proceedings before the learned CGIT. These proceedings are still pending before the CGIT.

6. While the matter rested thus, the claimant/workman Umesh Kumar Mishra filed a complaint under Section 14 read with Section 14 (AB) of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 before the Regional Provident Fund Commissioner, New Delhi. The claimant/workman has also impleaded the club in the said complaint. This complaint came to be disposed of by the Regional Provident Fund Commissioner vide order dated 11.12.2019, wherein Regional Provident Fund Commissioner inter alia held as under:

    Analysing and examining the contents of the submissions of all the parties involved, including that of the complainant and on applic

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