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2024 Supreme(Telangana) 707

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
SUREPALLI NANDA, J.
Osmania University – Appellant
Versus
Employees Provident Fund Organization (EPFO) & others - Respondents
W.P.No.23812 OF 2023
Decided on : 15-04-2024

Advocates:
Advocate Appeared:
For the Petitioner: Mr. G.Vidyasagar, Ld. Senior Designated Counsel, representing Mr.S. Lakshmikanth
For the Respondents: Ms.Ande Vishala, Ms.T.Swetha

IMPORTANT POINT
The court upheld the Tribunal's order requiring the petitioner to deposit 40% of the assessed amount, emphasizing compliance with the Employees Provident Funds Act for employee welfare.

Headnote:

(A) Employees Provident Funds and Miscellaneous Provisions Act, 1952 - Section 7-O - Writ petition challenging the order of the Tribunal directing the petitioner to remit 40% of the assessed amount - The Tribunal's order was deemed arbitrary as it reduced the statutory requirement of 75% deposit without sufficient reasoning - The court emphasized the importance of compliance with the Act for the welfare of employees and the necessity of timely contributions to the provident fund. (Paras 6, 11, 12)

(B) Appeal - The court cannot entertain a writ petition on the same subject while the appeal is pending before the competent authority - The petitioner was granted time to comply with the Tribunal's order. (Paras 10, 12)

ORDER:

Heard learned Senior Designated Counsel Mr.G.Vidyasagar, representing Mr.S.Lakshmikanth, learned Standing Counsel appearing on behalf of the petitioner, Ms. Ande Vishala, learned counsel appearing on behalf of respondent Nos.1 to 3 and Ms. T.Swetha, learned counsel appearing on behalf of respondent No.4.

2. The Petitioner approached the Court seeking prayer as under :

    “To issue a writ, order or direction more particularly one in the nature of Writ of Certioraris or any appropriate writ after calling for the records, quash the Order dated 17.07.2023 in I.A.No.2 of 2023 in EPF Appeal No.23 of 2023 on the file of the Central Government Industrial Tribunal cum Labour Court, Hyderabad in so far as prescribing the Petitioner to remit 40% of the determined amount within the six weeks and pass such other order.”

PERUSED THE RECORD.

3. The averments in the counter affidavit filed by the Respondent No.4, in brief are as under:

a) The respondent is a retired employee at the Osmania University. The petitioner university was established in 1917, but even prior to 1982, except where the employees or workers are entitled to the benefit of contributory provident fund or old age pension in accordance with any scheme or rule framed by the central government or state government governing such benefits as Mentioned in Section 16 of the Employees Provident Fund and Miscellaneous Provisions Act, 1952, the same reads as under:

    16. Act not to apply to certain establishment. – 3[(1) This Act shall not apply- (a) to any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State relating to cooperative societies employing less than fifty persons and working without the aid of power; or 4 [(b) to any other establishment belonging to or under the control of the Central Government or a State Government and whose employees are entitled to the benefit of contributory provident fund or old age pension in accordance with any Scheme or rule framed by the Central Government or the State Government governing such benefits; or (c) To any other establishment set up under any Central, Provincial or State Act and whose employees are entitled to the benefits of contributory provident fund or old age pension in accordance with any scheme or rule framed under that Act governing such benefits;

Since the petitioner establishment never claimed that the said employees are entitled to the benefit of the contributory Provident fund or old-age pension Schemes, as mentioned above Section 16 of EPF & MP Act, 1952, stand applied to the petitioner university. Hence, petitioner’s University comes under the purview of the said Act, 1952 w.e.f. the month of February, 1982.

b) The workers working for or in connection with petitioner University come under the definition of “Employee” under provisions of EPF & MP Act, 1952 which reads as under:

    (f) “employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer, [and includes any person,- (i) Employed by or through a contractor in or in connection with the work of the establishment, (ii) Engaged as an apprentice, not being an apprentice engaged under the Apprentice Act, 1961 (52) of 1961 or under the standing orders of the establishment];

c) Despite aforementioned legal position, the petitioner university has been evading the application of the said law from March 1982 till date, denying the statutory benefits to hundreds of its employees. Since the petitioner failed to start the implementation of the Act, an enquiry under section 7A of the Act, 1952 was instituted, for determining the due under the provisions of the Act, 1952 and summons dated 20-09-2018 were issued to provide due opportunity of being heard by appearance either in person of the employer or through authorised representative on 18.10.2018.

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