K. N. Seth, J. :- The respondents, who are Directors of the Laxmi Ratan Cotton Mills Company Limited, Kanpur, were prosecuted on a complaint filed by the Provident Fund Inspector, U.P. after obtaining previous sanction of Labour Commissioner U.P. under Section 14(3) of the Employees' Provident Funds Act, 1952 (hereinafter referred to as the Act). It was alleged that respondents failed to invest the employees' and employers' contribution for the months of July, August and September 1965 within the specified period and thereby rendered themselves liable to penalty provided under Sub-section (2-A) of Section 14 of the Act.

2. Pleading not guilty the respondents, inter alia, challenged the validity of the sanction granted by the Labour Commissioner U.P. for the prosecution. It was contended that the Central Government alone was competent to specify the authority to accord sanction for the prosecution and as the Labour Commissioner U.P. had not been so specified by the Central Government, the sanction granted by him was invalid and incompetent and no cognizance could be taken of the offence alleged to have been committed by the respondents. The trial Magistrate repelled this co