2002 Supreme(Raj) 250
Rajasthan High Court, Jaipur Bench
Honble M.R. CALLA & K.S. RATHORE, JJ.
U.O.I. & Ors. - Appellant
Versus
M/s. Digamber Jain Secondary School - Respondents
D.B. Civil Special Appeal (Writ) No. 87 of 2002 & 22 Others Writ Petition,
Decided On : February 12, 2002
Narendra Jain, Praveen Jain, N.C. Jain & Gaurav Jain, for Appellants S.M. Mehta, A.G. with Parinitoo Jain, Advocate, for State N.K. Maloo, Mahendra Singh, Prahlad Singh, Akhil Simlot, P.L. Agrawal, A.K. Bajpai, Amitabh Bhatnagar, Mahendra Goyal, Neeraj Bh
Headnote:Employee Provident Funds and Misc. Provisions Act, 1952, Secs. 1(3)(a) and 16 – Rajasthan Non-Government Educational Institutions (Recognition Grant in aid and Service Conditions etc.) Rules, 1993 Rule 2(r) and (s) – Implementation of provisions of Act of 1952 on Non-Govt. aided Educational Institutions employing 20 or more – Held – The Central Act does not apply in cases where there is Scheme or Rule framed by the State Govt. for the benefits available under EPF Act, 1952 – In view of Sec. 16(1)(b) read with definition clause (p) and (q) of Sec. 2 of the Act of 1989 the Central Act does not apply to such institutions. (Paras 16 to 18)
The provisions of Sec.16(1)(b) of the EPF Act, 1952 make it very clear that the Central Act does not apply in cases where there is a scheme or rule framed by the State Govt. for the benefits available under EPF Act 1952. It is established that the State Rules of 1963 were already in force since 1963 and, therefore, the benefits under EPF Act, 1952 were available to the establishments of the institutions who have filed the petitions and the scheme made thereunder was applicable and the same was valid. (Para 16)
The establishments belonging to or under the control of the State Government and their employees were entitled to the benefits of the contributory provident fund in accordance with the rules which were already there in Rajasthan for such benefits and, therefore, there is no question of the applicability of the Central Act so far as such institutions are concerned. (Para 17)
(2). Whereas, all these 23 appeals involve common questions of law based on identical facts, we propose to decide all these 23 appeals by this common judgment and order as under.
(3). Before we proceed to deal with the grounds on which the judgment and order passed by the learned Single Judge has been assailed before us, we may briefly give the history of the relevant enactments and schemes of the rules under consideration.
(4). On 4.3.1952 the Employees Provident Funds and Misc. Provisions Act, 1952 (for short, ``EPF Act, 1952) came into force, Section 1(3)(a) of the EPF Act, 1952, provides that every establishment employing 20 or more persons in any industry specified in Schedule-1 are covered under the provisions of this Act and Sec.3(1)(b) provides that any other establishment employing 20 or more persons or class of such establishments which the Central Govt. may, by notification in the official gazette, specify in his behalf are covered by the EPF Act 1952.
(5). Vide Gazette notification of Govt. of India dated 19.2.1982, the following Educational Institutions were specified u/Sec.1(3)(b) w.e.f. 6.3.1982:
(i) any University,
(ii) any College whether or not affiliated to a University,
(iii) any School, whether or not recognised or Aided by the Central or State Government,
(iv) Any scientific institution,
(v) Any institution in which research in respect of any matter is carried on
(vi) any other institution in which the activity of imparting knowledge or training is systematically carried on.
Prior to 1.8.1998, Section 16 of the Central Act i.e. EPF Act, 1952 was as under:
``6. Act not to apply to certain establishments
(1) This Act shall not apply
(a) to any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other law for the time being in force in any State relating to Co-operative Societies, employing less that fifty persons and working without the aid of power; or
(b) to any other establishment employing fifty or more persons or twenty or more, but less than fifty persons until the expiry of three years in the case of the former and five years in the case of the latter, from the date on which the establishment is, or has been, set up.
Explanation.–For the removal of doubts, it is hereby declared that an establishment shall not be deemed to be newly set up merely by reason of a change in its location.
(2) If the Central Government is of opinion that having regard to the financial position of any class of establishments or other circumstances of the case, it is necessary or expedient so to do