Disputes relating to contracts cannot be agitated under Article 226 of the Constitution of India, and a writ court cannot usurp the jurisdiction of the Civil Court in such matters.

1. This writ petition is filed by the Thanthi Periyar Transport Corporation Limited, Employees Provident Fund Trust, presently known as Tamil Nadu State Transport Corporation, Villupuram Limited, represented by its Chairman.

2. In this writ petition, the petitioner Trust seeks for a direction by issuance of a writ in the nature of mandamus to the respondents to jointly or severally to refund the investment amount of Rs.20 lakhs together with accrued interest from 01.05.2002 to till the date of payment.

3. It is seen from the records that the petitioner Trust is an exempted Trust from the provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 and they got exemption under Section 17 of the Act. The Petitioner Trust collects provident fund from the employees nearly 6500 workers working in the Tamil Nadu State Transport Corporation, having its headquarters at Villupuram.

4. Para 27A of the Employees Provident Funds Scheme, 1952, deals with the exemption of class of employees. Para 27AA deals with terms and conditions of exemption. It shall be subject to the terms and conditions as given in Appendix A.

5. Para 17 of Appendix A reads as follows:-

"(17.) The Board of Trustees shall invest the monies of the provident fund as per the directions of the Government from time to time. Failure to make investments as per directions of the Government shall make the Board of Trustees separately and liable to surcharge as may be imposed by the Central Provident Fund Commissioner or his representative."

6. Similarly, in paragraphs 19,20 and 21 of Appendix A, it was directed as follows:-

"(19.) All such investments made, like purchase of securities and bonds, should be lodged in the safe custody of depository participants, approved by Reserve Bank of India and Central Government, who shall be the custodian of the same. On closure of establishment or liquidation or cancellation of exemption from EPF Scheme, 1952, such custodian shall transfer the investment obtained in the name of the Trust and standing in its credit to the RPFC concerned directly on receipt of request from the RPFC concerned to that effect.

(20.) The exempted establishment shall intimate to the RPFC concerned, the details of depository participants (approved by Reserve Bank of India and Central Government), with whom and in whose safe custody, the investments made in the name of trust, viz., Investments made in securities, bonds, etc have been lodged. However, the Board of Trustees may raise such sum or sums of money as may be required for meeting obligatory expenses such as settlement of claims, grant of advances as per rules and transfer of members P.F. accumulation in the event of his/her leaving service of the employer and any other receipts by sale of the securities or other investments standing in the name of the Fund subject to the prior approval of the Regional Provident Fund Commissioner.

(21.) Any commission, incentive, bonus or other pecuniary rewards given by any financial or other institutions for the investments made by the Trust should be credited to its account."

7. It is claimed by the petitioner that the Central Government by their notification dated 27.03.1997 directed the Board of Trustees of the exempted Funds to invest the accumulation of amounts collected under the Provident Fund as per the pattern indicated by them. The investment pattern and the percentage of amount to be invested was stated as 25% in Central Government Securities, 15% in Government Securities and other negotiable securities, 40% in respect of Bonds/Securities of public Financial institutions and 20% to be invested in any of the 3 categories set out above.

8. According to the petitioner, they decided to invest the amounts under the first respondent company viz., Madhya Pradesh State Industrial Development Corporation (for short MPSIDC) having office at Bhopal in Madhya Pradesh utilising the agency viz., the third respondent M/s.Karvy Consultant