Establishments must demonstrate employment of 20 or more persons to qualify for coverage under the EPF Act, with management control and financial integrity being key considerations in determining applicability.

JUDGMENT

Mr. Harsh Bunger, J.

Central Board of Trustees, Employees Provident Fund Organization and another (petitioners) have filed the instant writ petition under Articles 226/227 of the Constitution of India, seeking quashing of impugned order dated 26.11.2015 (Annexure P-13) passed by the Employees Provident Fund Appellate Tribunal, New Delhi; whereby, the appeal filed by respondent No.2-Army College of Nursing, has been partly allowed by setting aside the order dated 25.11.2010 passed by the Assistant Provident Fund Commissioner, Jalandhar and held that petitioner No.2-Department is entitled to assess the dues from December-2006 to October-2010 instead of 01.12.2004 to October-2010. A further direction was issued to petitioner No.2, herein to adjust the recovered amount for the period from 01.12.2004 to November-2006 towards establishment account, in calculation of future dues.

2. Briefly, respondent No.3-Army Welfare Education Society (AWES), vide its resolution dated 04.06.2003 (Annexure P-1) decided to establish Army Nursing College at Jalandhar Cantt. and the Government of Punjab, vide its letter dated 03.09.2003 (Annexure P-2) granted 'No Objection Certificate' to the Army Welfare Education Society, for starting B.Sc. Nursing Course for 50 seats. Subsequently, vide letter dated 01.03.2006 (Annexure P-3), Baba Farid University of Health Sciences, granted affiliation to Army College of Nursing, Jalandhar for the Session 2005-06.

3. It appears that vide letter dated 20.03.2008 (Annexure P-6), the Army College of Nursing was allocated Provident Fund Code No.PB/JAL/35077 and it was directed to comply with the provisions of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 (in short 'EPF Act') w.e.f. December-2004. As per Annexure P-6, it would be apparent that the Army College of Nursing was sought to be covered under the EPF Act, inter alia, on the ground that the said establishment had employed more than 19 persons on or before 01.12.2004. The Army College of Nursing, did not comply with the provisions of the EPF Act, accordingly, assessment proceedings were initiated under Section 7(a) of the EPF Act by the concerned authority by serving a notice dated 24.06.2008 (Annexure P-7).

4. The representative of the Army College of Nursing, participated in the proceedings under Section 7A of the EPF Act and submitted that their establishment has been covered w.e.f. 01.12.2006, by claiming that the Army College of Nursing was/is being run by the Managing Committee independently out of its own sources and finances and the said Committee is not dependent upon any other institution. It was also claimed that the establishment reached the strength of 20 employees in December-2006 and accordingly, the establishment/Army College of Nursing would be covered under the EPF Act w.e.f. December-2006.

5. The Assistant Provident Fund Commissioner, vide order dated 25.11.2010 (Annexure P-8) came to the conclusion that the establishment (Army College of Nursing) is run under the Army Welfare Education Society and thus, the establishment has been rightly covered under Section 2(a) of the EPF Act w.e.f. 01.12.004. Accordingly, an amount of Rs.2,81,589/- was assessed, to be payable by the establishment (Army College of Nursing).

6. Thereafter, the establishment-Army College of Nursing, sought review of the afore-said order, which was also dismissed by the Assistant Provident Fund Commissioner, vide its order dated 05.01.2011 (Annexure P-10).

7. Being dis-sati