Back
1982 Supreme(Gau) 16
GAUHATI HIGH COURT
K.N.Saikia, N.Ibotombi Singh, JJ.
Socklatinga Tea Company (P) Ltd., Calcutta-7 and others -Appellant
Versus
Chairman, Board of Trustees, Assam Tea Plantation Provident Fund (And Pension Fund) Scheme, Gauhati and others. -Respondent
Civil Rule No. 173 and 263 of 1980
Decided On : 02-02-1982
R.C.Choudhury, C.K.S.Baruah, D.P.Chaliha, H.N.Sarma, I.Das, K.K.Bhatra, K.Sarma, M.C.Barthakur, O.P.Sandilya, P.Barthakur, P.K.Kalita, A.R.Barthakur, S.S.Sharma, Saukat Ali, P.C.Kataki, B.Sarma, B.K.Goswami, A.K.Phukan
Headnote:
The Assam Tea Plantations Provident Fund Scheme Act, 1955 (Assam Act X of 1955) was enacted to make provision for the framing of a Compulsory Provident Fund and Pension Fund scheme for employees employed in tea plantations in Assam. The Act was amended by Assam Act IX of 1976, which came into force on 20th May, 1976, and increased the quantum of damage that could be levied under section 16 of the Act from 25% to 100% of the amount of arrears. The petitioner, a tea estate company, defaulted on its contributions to the Provident Fund and was served with a notice by the Chairman of the Board of Trustees, Assam Tea Plantations Provident Fund Scheme, demanding payment of the arrears and imposing a damage of 100% on the amount in arrears. The petitioner challenged the validity of the notice and the subsequent auction sale of its property, arguing that the damage levied was excessive and that the principles of natural justice had been violated. The court held that the damage levied was excessive and that the principles of natural justice had been violated. The court also held that the auction sale was void and that the petitioner was entitled to a refund of the purchase-money.
Fact of the Case:
The petitioner, a tea estate company, defaulted on its contributions to the Provident Fund and was served with a notice by the Chairman of the Board of Trustees, Assam Tea Plantations Provident Fund Scheme, demanding payment of the arrears and imposing a damage of 100% on the amount in arrears. The petitioner challenged the validity of the notice and the subsequent auction sale of its property, arguing that the damage levied was excessive and that the principles of natural justice had been violated.
Finding of the Court:
The court held that the damage levied was excessive and that the principles of natural justice had been violated. The court also held that the auction sale was void and that the petitioner was entitled to a refund of the purchase-money.
Issues: 1. Whether the damage levied was excessive? 2. Whether the principles of natural justice had been violated? 3. Whether the auction sale was void?
Ratio Decidendi: 1. The court held that the damage levied was excessive because the Assam Act IX of 1976, which increased the quantum of damage that could be levied under section 16 of the Act from 25% to 100% of the amount of arrears, was not made to operate retrospectively. 2. The court held that the principles of natural justice had been violated because the petitioner was not given an opportunity to be heard before the damage was levied. 3. The court held that the auction sale was void because it was conducted in violation of the principles of natural justice.
Final Decision: The court allowed the petitions and directed that the purchase-money be refunded to the petitioner under usual terms and conditions. The court also held that the Chairman Board of Trustees may, however, proceed to determine the damage afresh after giving notice to the employer and take further action in accordance with the law.
These two Civil Rules in which common questions of facts and law are involved, are heard together and disposed of by this common judgment.
2. The petitioner in Civil Rule No. 173 of 1980 is a private limited company registered under the Companies Act, 1956, with its registered office at 32, Jamunalal Bajaj Street, Calcutta-7 (for brevity, the 'Company'), which owned, among others, a tea estate consisting of about 2300 acres of land situated within the district of Sibsagar, Jorhat, in the State of Assam. The tea estate employed about 700 employees including clerical staff, and manufactured on the average 3 lakhs kg. of black tea annually.
3. The State Legislature of Assam enacted the Assam Tea Plantations Provident Fund Schema Act, 1955, (Assam Act X of 1955). The Act which received the assent of the President on the 5th June, 1955, was published in the Assam- Gazette on 15th June, 1955, and is hereinafter referred to "The Act". By the Assam Act XVII of 1967, published in the Assam Gazette dated 18.10.67, the words "and Pension Fund” were inserted in the Act. The tea Industry in the State of Assam is excluded from the operation of the Central Act. The Employees Provident Fund and Miscellaneous Provisions Act, 1952 (Act XIX of 1952). As revealed by the preamble, the Act is to make provision for the framing of a Compulsory Provident Fond and Pension Fund scheme for employees employed in tea plantations in Assam. In exercise of the powers conferred by section 3 of the Act, the Governor of Assam, framed a Scheme called the 'Assam Tea Plantation Provident Fund Scheme, 1959, which was published in the Government Notification No. GLR 572/58, dated 30th September, 1959, for brevity "the Scheme". The scheme was superseded by a later Scheme called the Assam Tea Plantations Provident Fund & Pension Fund Scheme, 1967, framed by the Governor of Assam in exercise of the powers conferred by section 3 read with section 5 of the Act. The same was published in Govt. Notification No. GLR 550/65/39 dated 21st July, 1968. The Act envisages creation of a Fond by contributions both by the employer and the employees as defined under clause (d) of section 2 of the Act. Under subsection (3) of section 3, as it originally stood, the contribution by the employer to the Fund was "six and a quarter per cent" of the basic wage and the dearness allowance for the time being payable to each of the employees and the employee's contribution is equal to the contribution payable by the employer in respect of him. By Assam Act No. XXV of 1966, published in Assam Gazette, dtd. 14th October, 1966, the words "six and a quarter percent" in sub-section (3) were substituted by the words "eight per cent".
4. To carry out the object of the Scheme and of the Act, a Board of Trustee is constituted under the Scheme to administer the Fund. The State Government is empowered under section 9 of the Act to appoint persons as it thinks fit to be Inspectors defining their jurisdiction. Their powers are enumerated in sub-section (2). By section 16 of the Act, as it stood before amendment by Assam Act IX of 1976, the Government or any other person authorised by it may recover from the employer such damages not exceeding 25 per cent of the amount of arrears of the contributions to the Provident Fund or charges payable under the said Act or the Scheme framed thereunder, as it may think fit to impose. By Assam Act IX of 1976, which came into force with effect from 20th May, 1976, the quantum of damage was raised from 25 per cant to 100 per cent of the amount of arrears. Section 15 of the Act prescribes the mode for recovery of any amount due from the employer in respect of the contribution payable to the Provident Fund under the Act, and in damages recoverable under section 16, or any charge payable by him under the provisions of the Act or of the provisions of the Schema, if the amount is in arrear, in the same manner as an arrear of land revenue.
5. The petitioner, employer i
