Case Note & Summary
This appeal by special leave arose from an order dated November 1, 1989 of the Division Bench of the Patna High Court in C.W.J.C. No.1904 of 1989, dismissing the writ petition of the appellant, a bidi manufacturing company. The appellant challenged the computation of provident fund liability and damages under the Provident Fund Miscellaneous Provisions Act, 1952, contending that no opportunity was given before the Regional Provident Fund Commissioner computed the liability. During the pendency of the appeal, the appellant made a representation to the Regional Provident Fund Commissioner, Bihar, Patna, who in a letter dated September 21, 1993, stated that the payment of the employees' share of provident fund contribution was waived for the period from June 1977 to September 1985 in accordance with existing directions, while other points in the representation remained as before. The Supreme Court noted this waiver and held that the appellant was relieved of the liability to deposit the said amount. The Court also referred to its earlier order dated May 3, 1993 passed in similar matters, where it had directed that the petitioner (appellant) could collect names of bidi workers and furnish them to the Provident Fund Commissioner for verification, after which the Commissioner would calculate the liability on the basis of such verification, with provision for refund of excess or recovery of shortfall. Applying that direction, the Court remanded the case to the Regional Provident Fund Commissioner to compute the liability afresh following the above procedure. The Court further directed that after deducting the waived employee's share amount, the appellant should provisionally pay a further sum of Rs.10 lakhs in addition to the Rs.8 lakhs already paid. After fresh computation, if the liability fell short of the amount already deposited, the appellant would pay the shortfall within a period to be specified; if excess, the Commissioner would refund the amount. The appeal was disposed of accordingly with no order as to costs.
Headnote
A) Provident Fund - Employee's Share Waiver - Letter of Regional Provident Fund Commissioner dated 21.9.1993 waived employee's share of PF contribution for period June 1977 to September 1985 - Provident Fund Miscellaneous Provisions Act, 1952 - Court accepted the waiver and held that the appellant is relieved of the liability to deposit the employee's share for that period, directing the Commissioner to indicate the amount due so it could be deducted. Held that the appellant is relieved of the liability to deposit the employee's share for the specified period. B) Provident Fund - Computation of Liability and Opportunity - Appellant contended no opportunity was given before computing liability and damages - Provident Fund Miscellaneous Provisions Act, 1952 - Court remanded the case to the Regional Provident Fund Commissioner to compute liability afresh after following the directions given in the Supreme Court's earlier order dated 3.5.1993, which required the appellant to furnish names of bidi workers for verification. Held that the liability must be recomputed after verification of workers' names to ensure accuracy. C) Provident Fund - Provisional Payment - Court directed appellant to provisionally pay a further sum of Rs.10 lakhs in addition to the Rs.8 lakhs already paid, after deduction of the waived employee's share - Provident Fund Miscellaneous Provisions Act, 1952 - The final liability would be adjusted after fresh computation, with refund of excess or payment of shortfall as determined by the Commissioner. Held that the appellant shall make provisional payment and final adjustment will follow.
Issue of Consideration
Whether the appellant was entitled to an opportunity before computation of provident fund liability and damages under the Provident Fund Miscellaneous Provisions Act, 1952; whether the Regional Provident Fund Commissioner's letter dated 21.9.1993 validly waived the employee's share of provident fund contribution for the period June 1977 to September 1985; whether the liability should be recomputed after verification of bidi workers' names as directed in the Supreme Court's earlier order in similar matters.
Final Decision
The Supreme Court granted leave, accepted the waiver of employee's share of provident fund contribution for the period June 1977 to September 1985, and remanded the case to the Regional Provident Fund Commissioner to compute liability afresh following the directions in the Court's earlier order dated 3.5.1993. The appellant was directed to provisionally pay a further sum of Rs.10 lakhs in addition to the Rs.8 lakhs already paid, after deducting the waived amount. The Commissioner was to verify names of bidi workers, compute final liability, and either recover shortfall or refund excess. The appeal was disposed of with no costs.
Law Points
- Appellant must be given opportunity before computing provident fund liability and damages
- employee's share of provident fund contribution may be waived by Regional Provident Fund Commissioner
- liability to be computed after verification of bidi workers' names
- provisional payment pending final computation allowable
