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2005 Supreme(MP) 850
High Court Of Madhya Pradesh
A. K. SHRIVASTAVA
ORIENT PAPER MILLS - Appellant
Versus
REGIONAL PROVIDENT FUND COMMISSIONER - Respondents
M. P. 2341 Of 1991
Decided On : 08/17/2005
A.M.MATHUR, Akash Mukerjee, Ashutosh Upadhayaya, R.K.GUPTA, Rajneesh Gupta, S.C.SHARMA
The court established that the definition of 'employee' under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is comprehensive and includes workers engaged by contractors, making the establishment liable for extending benefits to such employees.
Headnote:
Employees' Provident Funds - Liability of Establishment - Employees' Provident Funds and Miscellaneous Provisions Act, 1952 - Section 1(3), Section 2(f)
Fact of the Case:
The petitioner, Orient Paper Mills, sought to quash an order holding the establishment liable under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (the Act) for extending benefits to eligible employees of transporters engaged for the supply of raw material. The petitioner argued that the Act did not apply to the establishment as it had no control over the transporters' employees.
Finding of the Court:
The court dismissed the petition, holding that the Act applied to the establishment and its liability to extend benefits to the transporters' employees was valid.
Issues: The main issue was whether the establishment was liable under the Act to extend benefits to the transporters' employees.
Ratio Decidendi: The court analyzed the provisions of the Act, particularly Section 1(3) and Section 2(f), to determine the applicability of the Act to the establishment and the definition of 'employee' under the Act. The court concluded that the transporters' employees fell within the definition of 'employee' under the Act, making the establishment liable to extend benefits to them.
Final Decision: The petition was dismissed, and the establishment was held liable under the Act to extend benefits to the transporters' employees.
( 2 ) IN brief the case of petitioner is Orient paper Mills (hereinafter referred to as 'the company') is a mill established at a village amlai in Shahdol District. The erstwhile Part c State of Madhya Pradesh invited entrepreneurs to establish a paper mill within the State for utilisation of bamboos and other forest produce The proprietors of the petitioner accepted the offer and entered into agreement. Under the agreement a right was created in favour of the petitioner to exploit bamboos and salai trees for manufacture of paper at a paper mill established at Amlai in district Shahdol. On the formation of new State of Madhya Pradesh with effect from November 1, 1956, the new State of Madhya Pradesh also continued the agreement and in accordance with the stipulations in the agreement, a paper mill was constructed and established at Amlai in Shahdol District.
( 3 ) IN order to manufacture paper, the company need raw material in the shape of bamboos and other forest produce. For procuring the supplies the company established a Forest Organisation and independent establishment of the company at Shahdol. The bamboos in the State belong to the State of madhya Pradesh. The forest organisation of petitioner company buys the bamboos from the state Madhya Pradesh by paying the requisite price of it in advance according to the terms of agreement between the company and the State of Madhya Pradesh.
( 4 ) THE company gets bamboos from the forest Depot situated in various districts of the state of Madhya Pradesh through its forest organisation. The bamboos and other forest produce in the shape of raw material are transported either by road or by rail. The railway wagons are unloaded at the mill siding in the company. The raw materials are also transported by road in trucks and goods m transport vehicles i e public carriers. The railways and goods transport vehicles including trucks are common carriers as defined in the carriers Act, 1965. The railways as well as motor transport establishment which do the business of transporting raw materials of the petitioner carrying on their independent business of transporting goods and the petitioner is not at all concerned with those establishments. The petitioner is not having any control over either the motor vehicles of the transporters or the workmen engaged by such transporters who carry on the bamboos and raw materials for manufacturing the paper.
( 5 ) THE transporting establishments in order to bring bamboos and raw materials, engaged by petitioner is not regular. The transporters are free to hire their labourers m order to carry the bamboos to the mill of the company. According to the petitioner, the company is not obliged to engage any or for any period of any transporter Any truck passing from the Forest Depot and coming towards the factory can load the bamboo and transport it to the factory side at a fixed rate. The petitioner does not keep any record of the drivers, conductors, cleaners or labourers in the truck. Meaning thereby the transportation of bamboo is done by the available and willing public carriers at the time of requirement at a fixed rate. The transporters are not engaged exclusively for the Company and after unloading the bamboos from the truck, they are free to perfor
