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IN THE HIGH COURT OF DELHI AT NEW DELHI

Date of Decision: 17^th September, 2021

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W.P.(C) 5952/2021 & CM APPLs. 18786/2021 & 32165/2021,

32239/2021

ASSOCIATION OF INDUSTRIES AND

INSTITUTIONS

..... Petitioner

Through:

Mr. Sudhir Kumar Gupta & Mr.

Puneet Gupta, Advocates.

versus

UNION OF INIDA & ANR.

..... Respondents

Through:

Mr. Siddharth & Mr. Amit Kumar,

Advocates for EPFO/R-2.

CORAM:

JUSTICE PRATHIBA M. SINGH

Prathiba M. Singh, J. (Oral)

1. This hearing has been done through video conferencing.

Brief Facts

2.

The Petitioner is an association of various entities and persons stated

to be owning and running industrial/commercial establishments, factories,

institutions, etc. The Petitioner-Association has filed the present petition

challenging the circular dated 1^st June, 2021 issued by the EPFO, by which

the seeding of Aadhaar number along with the Universal Account Number

(hereinafter ‘UAN’), generated under the Employees Provident Fund &

Miscellaneous Provisions Act, 1952 (hereinafter, ‘EPF Act’), in respect of

employees, has been made mandatory.

3.

On the last date i.e., 14^th September, 2021, Mr. Gupta, ld. Counsel for

the Petitioner, sought time to file a list of its members and also file an

amended memo of parties, impleading some of its members who are

affected by the impugned order of the EPFO dated 1^st June, 2021. Parties

2021:DHC:2921

were also directed to place on record the circulars being relied upon by

them. Further to the last order dated 14^th September, 2021, an amended

memo of parties has been filed by the Petitioner, impleading three

companies who are members of the Petitioner-Association, namely, M/s T C

Global India Private Ltd., M/s Jindal ITF Limited and M/s Lifting

Equipment Engineer. The said amended memo of parties is taken on record.

4.

In August/September, 2020, the Central Government enacted four

labour codes, namely:

(a) Code on Wages, 2019;

(b) Code on Social Security, 2020;

(c) Code on Industrial Relations, 2020; and

(d) Code on Occupational Safety, Health and Working Condition,

2020.

5. The abovementioned Codes were notified but are stated to have not

yet come into effect. The Rules etc. under the said Codes are yet to be

framed and notified. The only provision in the Code on Social Security,

2020, which has been notified is Section 142.

6.

Pursuant to the notification of Section 142 of the Code on Social

Security, 2020 on 30^th April, 2021, the impugned circular was issued by the

EPFO on 1^st June, 2021. As per the said circular, the EPFO has made it

mandatory that the Aadhaar number of each employee be seeded and

verified with the UAN, with effect from 1^st June, 2021.

7.

It is pertinent to note that under the EPF Act, whenever deposits are

made in respect of any employees, an Electronic Challan-cum-Receipt

(hereinafter “ECR”) is generated. The said ECR acts as the proof of deposit

of the provident fund (hereinafter, “PF”). It is the case of the Petitioners that

2021:DHC:2921

if the ECR is not generated, the employer would be liable to pay various

penalties and suffer consequences of non-deposit of dues. The impugned

circular dated 1^st June, 2021 mandated that no PF deposit would be made or

accepted without Aadhaar numbers being seeded with the UAN. Thus, in

effect, seeding of Aadhaar numbers was made mandatory to obtain an ECR.

8.

Pursuant to the impugned notification, the Petitioner-Association

made a representation to the Ministry of Labour & Employment, Govt. of

India, in view of the various difficulties being faced by employers due to

mandatory seeding. It informed the Ministry that though both the employers

and employees intend to effectuate the seeding, there are various technical

issues being faced due to which, the same is not becoming possible in

respect of a large number of people. According to the Petitioner, the EPFO

portal rejects the ECR for t