IN THE HIGH COURT OF JUDICATURE AT MADRAS RESERVED ON : 09.07.2022 PRONOUNCED ON : 29.09.2022 CORAM:

THE HONOURABLE MR.JUSTICE J.SATHYA NARAYANA PRASAD W.P.No.20930 of 2010 and W.M.P.No.1 of 2010 The Management of Sree Mangalambigai Cotton Mills Private Limited, Represented by its Director, V.Venkatachalapathy Seelanickenpatty Post, Salem – 636 201.

Salem District.

… Petitioner Vs.

1.The Assistant Provident Fund Commissioner, Employees Provident Fund Organization, S.J.Shopping Plaza, Anna Salai, Swarmapuri, Salem – 636 004.

Salem District.

2.The Appellate Tribunal, Employees Provident Fund, New Delhi.

… Respondents Prayer:

Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorari, calling for records of the 2^nd respondent in ATA No.37 (13) 2003 dated 08.07.2010 confirming the order of the 1^st respondent in No.TN/SL/ENF/SAL-

111/17469/7A/2002 dated 17/25.10.2002 and quash the same.

For Petitioner : Ms.Nalini Chidambaram Senior counsel for Mr.M.Kamalanathan For Respondents : Mr.M.Palanimuthu for R1 ORDER This Writ Petition has been filed challenging the order of the

2^nd respondent in ATA No.37 (13) 2003 dated 08.07.2010 confirming the order of the 1^st respondent in No.TN/SL/ENF/SAL-

111/17469/7A/2002 dated 17/25.10.2002 and quash the same. 2.The case of the petitioner is that the petitioner Mill namely Sri Mangalambigai Cotton Mills (P) Limited along with M/s.S.V.Spinning Mills and M/s. Annamalai Cotton Mills were jointly managed as Group concern upto March, 1997, there was a partition in their managements. As per the partition, Sree Mangalambigai Cotton Mills Private Limited and M/s.S.V.Spinning Mills Private Limited were allowed the present Management of M/s.Mangalambigai Cotton Mills Private Limited.

3.The petitioner mill is engaged in manufacturing cotton and during the partition, many goods, materials, machineries, spares and other item inclusive of books of accounts, and registers and records like standing orders were misplaced during the transit from one mill to another. The respondent initiated proceedings during the year 2000 against the petitioner as an establishment covered under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and the claim of the petitioner therein with effect from 01.03.1984. Thereafter, it was alleged that the petitioner establishment had also failed to remit the Provident Fund, Family Pension, Employees Deposit Link Insurance, Contribution and Administrative charges for the period from 01.11.1990 to 31.01.2000 and the respondent issued notice to the petitioner mill for appearance on 31.07.2000 for an enquiry under Section 7A of the Employees Provident Fund and Miscellaneous Provisions Act, 1952. The petitioner establishment contended that while they were managed as group concern, they got their common Standing Orders certified by the Joint Commissioner of Labour, Coimbatore on 11.07.1983 which was made applicable to all their group concerns though the said Standing Orders were certified in the name of the Annamalai Cotton Mills Private Limited. As per the above Standing Order so certified provides that right to the establishment to engage Apprentices for a period not exceeding 36 months. The alleged workers were all Apprentices and as such there is no need to subscribe them for Provident Fund. The petitioner mill and their group concern recruited freshers as apprentice trainees and they got training in their mills for 3 months and after learning work to some extent they joined in some other mills as trained workers for higher wages on regular basis.

4.The petitioner further submitted that the amount of stipend paid to the apprentices cannot be treated as wages and as such the establishment is not liable to pay any amount by way of Provident Fund Contribution as stipend amount paid to the apprentices engaged in the mill. Moreover, the apprentices are not workers within the meaning of the Section 2(F) of the Employees Provident Fund and Miscell