Point of Law : Expression ‘coal mine’ is defined as any premises in or adjacent to and belonging to a coal mine, on which any plant or other machinery connected with a coal mine is situated or on which any process ancillary to work of coal mine is being carried.

JUDGMENT :

Ujjal Bhuyan, J.

This order will dispose of the above writ petitions. As a matter of fact, the above writ petitions are before the Division Bench on a reference made in view of the conflicting decisions of learned Single Benches.

2. We have heard Mr. Y. Pulla Rao, learned counsel for the petitioners; Mr. T. Suryakaran Reddy, learned Additional Solicitor General of India along with Mr. K. Aravind Kumar, learned Central Government Counsel for respondent Nos.1 and 5; and Mr. J. Srinivasa Rao, learned Standing Counsel for respondent No.4 – Singareni Collieries Company Limited.

3. The reference is before Division Bench to answer the following question which has been framed by the learned referral Judge :

Whether a driver employed by a transport contractor engaged by the Singareni Collieries Company Limited for transportation of coal would fall within the definition of the term ‘employee’ under Section 2(d) of the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 or not?

4. The referral order succinctly sums up the controversy in question. However, we will advert to the same a bit later. It may be mentioned that petitioners in all the cases were awarded contract by Singareni Collieries Company Limited for transportation of coal for certain periods. Petitioners commenced transportation work immediately and had executed the work awarded to them by complying with the work order, whereafter bills were raised by the petitioners for payment of contractual dues. According to the petitioners, Singareni Collieries Company Limited (briefly ‘the company’, hereinafter) is insisting on petitioners to pay contribution @ 10.5/6% on behalf of the contractor to the Coal Mines Provident Fund. Petitioners contend that they are not liable to pay the same in as much as provisions of the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 do not apply to contractors who are employed to transport coal from one place to another as per work orders.

5. The referral Bench noticed that one of the first cases which came up before this Court was W.P.No.11107 of 2009 and batch. The said batch of writ petitions was disposed of by a learned Single Judge of this Court vide the common judgment and order dated 30.03.2011. In the said judgment, leaned Single Judge recorded that a serious doubt arose as to whether the activity assigned to the petitioners would be treated as one in ‘coal mine’. Learned Single Judge observed that the necessity for an employer to make contribution to the Coal Mines Provident Fund would accrue only when an employee is made a member of the fund. Parameters for an employee to become a member of the fund are provided in the Coal Mines Provident Fund Scheme. However, learned Single Judge found that there was nothing on record to show that any effort was made by the company to ascertain these facts. Contributions were being deducted merely on the basis of the number of workers that are supposed to be engaged. It is only when such worker is made a member of the fund, that a meaningful contribution can be made. If deduction is made without the worker being a member of the fund, it would amount to an illegal collection which is not contemplated under the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (briefly, ‘the Act’ hereinafter). Learned Single Judge held as follows :

The Act was brought into existence for the benefit of the workers in the coal mines. In exercise of power under the Act, the Central Government framed the Coal Mines Provident Fund, Family Pension, and a Trust, to operate the same. The salient features of the Scheme are that, the employees, who are engaged in the coal mines, are to be made members of the CMPF, and are issued cards, apart from being assigned numbers. That in turn create obligation on the part of the employee and the employer to make contribution to the fund. The benefits arising out of the fund in favour of the members are also enlisted. The allotment of account numb