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1995 Supreme(P&H) 1446

PUNJAB & HARYANA HIGH COURT
T.H.B.Chalapathi, J.
Punjab Khadi Mandal
Versus
Regional Provident Fund Commissioner
Civil Writ Petition No. 1089 of 1981,
Decided On : DECEMBER 11, 1995

The Act does not apply to the petitioner as there is no master-servant relationship between the petitioner and the weavers.

Headnote:

employer - employee - Employees Provident Fund and Miscellaneous Provisions Act, 1952 - The court analyzed the definitions of 'employer' and 'employee' under the Act and referred to precedents to determine the existence of a master-servant relationship. The court found that there is no control or supervision by the petitioner over the weavers and no evidence of a master-servant relationship. The court held that the Act does not apply to the case.

Fact of the Case:

The petitioner, Punjab Khadi Mandal, is an institution promoting khadi and providing cotton yarn to weavers. The Regional Provident Fund Commissioner directed the petitioner to enroll the weavers as members of the fund. The petitioner argued that they are not an establishment under the Act and there is no master-servant relationship with the weavers. The court analyzed the definitions of 'employer' and 'employee' under the Act. The court found that there is no control or supervision by the petitioner over the weavers and no evidence of a master-servant relationship. The court referred to precedents and held that the Act does not apply to the case. The impugned orders were quashed.

Finding of the Court:

The court analyzed the definitions of 'employer' and 'employee' under the Act and referred to precedents to determine the existence of a master-servant relationship. The court found that there is no control or supervision by the petitioner over the weavers and no evidence of a master-servant relationship. The court held that the Act does not apply to the case.

Ratio Decidendi: The Act does not apply to the petitioner as there is no master-servant relationship between the petitioner and the weavers.

Result: The writ petition is allowed and the impugned orders are quashed.

Judgment

T. H. B. Chalapathi, J.

1. This writ petition is filed against the orders of the Regional Provident Fund Commissioner, Punjab, dated August 24,1977 (Ann. P.3 ). January 1, 1979 (Annexure P.4), confirmed by the 3rd respondent vide order dated October 24,1980 (Annexure P.9 ).

2. The petitioner namely the Punjab Khadi Mandal is an institution with the object of promoting khadi and help the down-trodden and poor people residing in the remote comers of the villages. In order to fulfill the object cotton yarn duly spun is provided to the Bunkers (weavers) as and when they come to the centre from their villages. The weavers take the raw materials and prepare the khadi cloth and return the Khadi cloth to the petitioner who pay the remuneration to the weavers on the basis of the work done by them. The Regional Provident Fund Commissioner issued a notice to the petitioner stating that the petitioner employed 381 weavers and they are employed in relation with the work of the Punjab Khadi Mandal and therefore, directed then, to enroll the weavers as members of the fund under the Employees Provident Funds and Miscellaneous Provision Act, 1952 (for short "act" ). The Regional Commissioner held that the artisans namely the weavers employed by the Punjab Khadi Mandal are working in connection with the work of the establishment and as such they fall within the Employees Provident Funds and Miscellaneous Provisions Act, 1952 and directed the Mandal to file statements for the years 1971-72 to 1978-79 for determination of the provident fund dues in respect of the employees. Against the said orders, of the Regional Commissioner an appeal was preferred to the 3rd respondent who passed an order on October 24.1980, confirming the orders of the Regional Commissioner holding that the weavers are employees of the petitioner. Aggrieved by the same, the petitioner filed this writ petition.

3. According to the learned counsel for the petitioner that Punjab Khadi Mandal is not an establishment within the definition of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and there is no master and servant relationship between the petitioner and the weavers and therefore the weavers will not come within the definition of employees of the Punjab Khadi Mandal and therefore the order of the authority below is liable to be set-aside. It is therefore, to be seen whether the petitioner is an employer within the meaning of Sec.2 (e) and whether the weavers come within the definition of employees under Sec.2 (f) of the Employees Provident Fund and Miscellaneous Provisions Act, 1952.

4. There is no doubt that the petitioner Punjab Khadi Mandal supply cotton yarn to various weavers who became the members of the Mandal. The weavers take cotton yarn to their respective homes in the villages where they weave cloth and bring it to the Khadi Mandal who pays them remuneration according to the work done by them. There is no control or supervision by the petitioner Mandal about the work done by the weavers. Under Sec.2 (e) "employer" means -

(i) in relation to an establishment which is a factory, the owner or occupier of the factory, including the agent of such owner or occupier, the legal representative of a deceased owner or occupier and where a person has been named as a Manager of the factory under Clause (f) of Sub-section (1) of sec. 7 of the Factories Act, 1948, the. person, so named; and (ii) in relation to any other establishment, the person who, or the authority which, has the ultimate control over the affairs of the establishment, and where the said affairs are entnisted to a Manager, Managing Director or Managing Agent, such Manager, Managing Director or Managing Agent. Under Sec.2 (f) "employee" means -any person who is employed for wages in any kind of work, manual or other-wise, in or in connection with the work of (an establishment), and who gets his wages directly or indirectly from the employer, and includes any person- (1) employed by


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