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2020 Supreme(All) 921

IN THE HIGH COURT OF ALLAHABAD
ALOK MATHUR, J.
M/s Sahara India Thru. Partner Om Prakash Srivastava & Anr. – Appellants
Versus
U.O.I. Thru Secy. Ministry Of Labour, New Delhi & Anr. – Respondents
Misc. Single No.15298 of 2020
Decided on : 20-10-2020

Advocates:
Advocate Appeared:
For the Appellant : Piyush Kumar Agarwal
For the Respondent: Akhilesh Pratap Singh

Point of law: High Court, does not, therefore, act as a Court of appeal against the decision of a Court or Tribunal, to correct errors of fact, and does not by assuming jurisdiction under Article 226 trench upon an alternative remedy provided by statute for obtaining relief. Where it is open to the aggrieved petitioners to move another tribunal, or even itself in another jurisdiction for obtaining redress in the manner provided by a statute, the High Court normally will not permit by entertaining a petition under Article 226 of the Constitution the machinery created under the statute to be bypassed, and will leave the party applying to it to seek resort to the machinery so set up. The petitioners having failed to make any allegations regarding violation of fundamental rights, violation of principles of natural justice, or violation of any statutory provision, the present writ petition would not be maintainable under Article 226 of the Constitution of India

Headnote:

Constitution of India, 1950 – Article 226 – Employees Provident Fund and Misc. Provisions Act, 1952 – Section 7A – Issue Regarding Provident Fund – By means of present writ petition the petitioners have assailed the validity of orders dated 16.03.2020, 31.07.2020, 24.08.2020, 31.08.2020 and 03.09.2020, passed by the respondent no. 2 in Case No. UPLKO0013539000/7A/07/2013 in proceedings under Section 7A of the Employees Provident Fund and Misc. Provisions Act, 1952 – It is urged by the petitioners that they have deposited the contribution of the Provident Fund with regard to the persons who they consider as their employees, while the Commission Agents, etc. have never been employed/engaged by the petitioners, therefore they have no liability to deposit the contribution on their behalf. – Grievance the petitioners is that they are repeatedly being required to submit various documents, despite the fact that they have already submitted all the documents, as required, by the Provident Fund Commissioner, and as such, requiring the petitioners to furnish further information and documents constitutes harassment and therefore, it is vehemently urged that the impugned orders are clearly illegal and arbitrary and are liable to be set aside.

Finding of the court:

Court is satisfied that the manner in which the orders of the Provident Fund Commissioner are being challenged before this Court without any adverse orders having been passed against the petitioners nor any of the rights of the petitioners having been determined, the petitioners are clearly guilty of abusing the process of the Court. – Writ petition for the reasons recorded hereinabove is bereft of merits and is liable to be dismissed – Provident Fund Commissioner is expected to conclude the proceedings pending before him, expeditiously, say within a period of four months from the date a copy of this order is produced before him. – Petitioners shall produce all the material and documents as directed by the Regional Provident fund Commissioner within a period of one month from today. Subject to the protection given to the petitioners in the various orders passed by this court, the Regional Provident fund Commissioner shall exercise the powers as provided to him under the Act of 1952 to procure all the material necessary for deciding the dispute pending before him, and conclude the proceedings in the time provided by this court in accordance with law after giving the opportunity of hearing to the petitioners within the time provided. – In case the document are not filed, the Provident Fund Commissioner shall close the opportunity to file documents and proceed to hear and pass final orders on the basis of material before him making best assessment judgment.

Result: – Writ Petition Dismissed

JUDGMENT :

1. Heard Sri Sudeep Seth, Senior Advocate assisted by Sri Piyush Kumar Agarwal, learned counsel for the petitioners, Sri Savitra Vardhan Singh, learned counsel appearing for Union of India and Sri Akhilesh Pratap Singh, learned counsel for respondent no. 2, through video conferencing in view of COVID-19 pandemic.

2. By means of present writ petition the petitioners have assailed the validity of orders dated 16.03.2020, 31.07.2020, 24.08.2020, 31.08.2020 and 03.09.2020, passed by the respondent no. 2 in Case No. UPLKO0013539000/7A/07/2013 in proceedings under Section 7A of the Employees Provident Fund and Misc. Provisions Act, 1952 (hereinafter referred to as “the Act of 1952”).

3. Sri Sudeep Seth, Senior Advocate has submitted that petitioner no.1 is a Partnership firm which was constituted on 01.04.2010 and subsequently there was change in the partnership deed and the petitioners firm was again re-constituted on 01.04.2012, while petitioner no.2 is a partner of the firm..

4. Counsel for the petitioners submits that the controversy in the present writ petition relates to the various orders passed by the Regional Provident Fund Commissioner – I, Lucknow (hereinafter referred to as “the Provident Fund Commissioner) in proceedings under Section 7-A of the Act of 1952, for determining the liability of the petitioners as an employer under the Act of 1952.

5. The Provident Fund Commissioner has embarked upon the enquiry under Section 7A of the Act of 1952 by giving notice to the petitioner firm for determining the number of persons in employment with the petitioners. It is submitted that there are number of persons termed as “Commission Agents” “Stringers” and “Motivators” who according to the petitioners do not fall within the definition of “employee” as provided in Section 2(f) of the Act of 1952 and therefore contend that they are not liable to deposit any contribution on their behalf.

6. It is urged by the petitioners that they have deposited the contribution of the Provident Fund with regard to the persons who they consider as their employees, while the Commission Agents, etc. have never been employed/engaged by the petitioners, therefore they have no liability to deposit the contribution on their behalf.

7. The grievance the petitioners is that they are repeatedly being required to submit various documents, despite the fact that they have already submitted all the documents, as required, by the Provident Fund Commissioner, and as such, requiring the petitioners to furnish further information and documents constitutes harassment and therefore, it is vehemently urged that the impugned orders are clearly illegal and arbitrary and are liable to be set aside.

8. Learned Counsels appearing on behalf of Union of India and Provident Fund Commissioner have submitted that the Provident Fund Commissioner has power under Section 7A of the Act of 1952 to hear, inquire into the matter, to determine whether the “Commission Agents” etc. are infact employees of the petitioners or not and for which purpose under Section 7A(2) of the Act of 1952, the Provident Fund Commissioner has sufficient power to enforce attendance, require for production of documents, examine witnesses etc., and perusal of the order sheet would itself indicate that the petitioners have been wholly non cooperative with the Provident Fund Commissioner in as much as they are avoiding producing the record as directed, and are clearly responsible for the pendency of the matter for last more than 7 years. It has been submitted that the petitioners are bound to provide all the documents required by the Provident Fund Commissioner, as the said material is in possession of the petitioners and only on examination of such material can the Provident fund Commissioner determine the status of "Commissioner Agents/Stringers and Motivators" as to whether they fall in the definition of employee" under the Act of 1952 or not.

9. It has further been disclosed in the writ petition that seve

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