IMPORTANT POINTS
The workmen have inherent right to collective-bargaining under the Act. The demands raised by the workmen through their unions are decided by conciliation, settlement or adjudication under the Act. These are time-consuming proceedings. When ultimately the dispute is settled/decided in workers' favour the accrued-benefit may be made available to them from back date. This is what has happened in the present case. The award given in the year 1985 has been made operative from April 1, 1980. Under the circumstances it would be in conformity with the objects of the Fund Act, which is a social welfare legislation, to hold that the revised pay scales have become part of the contract of employment with effect from April 1, 1980.

JUDGMENT :

1. The petitioner herein is a Government owned Company having its registered office at Kollam and is covered under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 ('EPF Act' for short). The company is exempted from EPF Scheme and Employees Deposit Linked Insurance Scheme under the EPF Act as the Company has separate schemes in that regard. The company has however opted for the Employees’ Pension Scheme, 1995 framed under Section 6A of the EPF Act and is operative from the year 1995.

2. W.P.(C) No.26037 of 2019 is filed challenging Ext.P6 order by which the petitioner has been ordered to pay interest under Section 7Q of the EPF Act on belated remittances of dues demanded under Sections 6A and 6C of the Act for the period from 7/2014 to 11/2015. W.P.(C) No.9480 of 2019 is preferred challenging Ext.P13 order by which the petitioner has been ordered to pay interest under Section 7Q of the Act for the period commencing from 01/2009 to 9/2011. The contentions advanced for assailing the orders being similar, these Writ Petitions are heard and disposed of together.

3. As per the provisions of 6, 6A and 6C of the EPF Act r/w. paragraph No.38 of the EPF Scheme, the petitioner herein was required to remit the contribution payable under the Act and the Schemes framed thereunder within 15 days of the close of every month to the Commissioner. The respondent initiated proceedings, when it came to its notice, that the contributions payable for the period from 7/2014 to 9/2015 had not been remitted within the due date. A sum of Rs.73,168/-was accordingly assessed as the amount due under Section 7Q of the Act by Ext.P6 order. In W.P.(C) No.9480 of 2019, the amount demanded u/s. 7Q from the petitioner herein is Rs.24,92,435/-.

4. In W.P.(C) No.26037 of 2019, it is contended that the pay fixation of non-workmen category of employees, viz., officers, is effected every five years subject to approval/sanction from the government. The Dearness Allowance is accordingly paid in accordance with Government Orders. It is contended that the Dearness Allowance w.e.f. 1.7.2014 was revised by the Government by Ext.P1 Order dated 7.2.2015 and the Dearness Allowance w.e.f 1.1.2015 was revised by Ext.P2 order dated 7.8.2015. In terms of the revision, the employees’ pension contribution in respect of Dearness Allowance for the period from 7/2014 to 3/2015 was paid on 20.5.2015. In the same manner, the employees’ pension contribution in respect of Dearness Allowance arrears for the period from 1/2015 to 6/2015 was paid on 12.2.2016. It is contended that the revised Dearness Allowance can only be paid when necessary orders are issued by the Government pursuant to which decisions are to be taken by the Company. On receipt of show cause notice, a representative of the petitioner appeared before the respondent and it was contended that there is no delay as the arrears were payable only when Government issues orders and the petitioner herein has no control over it. However, disregarding the submissions, the impugned order was passed.

5. In W.P.(C) No.9480 of 2019, the petitioner contends that the wage revision of workmen category of employees is effected on the basis of a long-term agreement arrived at once in every four years, subject to sanction/approval from the Government. The long-term agreement for the period from 1/2009 to 12/2012 was entered into only on 11.2.2011. The Government allowed to implement the revision of wages as recoverable advance prospectively from 2/2011 onwards by Ext.P1 order. 80% of the pay revision arrears for the period from 1/2009 to 1/2011 with regard to workmen and 80% of the pay revision arrears for the period from 1/2010 to 1/2011 was disbursed to the employees pursuant to Ext.P2 order. Immediately thereafter, the petitioner remitted pension contribution in respect of full arrears in the month of 11/2011 itself anticipating approval for the remaining 20% of the arrears by Ext.P3 and P4 challans. After obtain