Case Note & Summary
The Central Board of Trustees and other petitioners challenged an order dated 29.08.2005 passed by the Employees Provident Fund Appellate Tribunal, New Delhi, which held that a pigmy agent is not an employee within the meaning of Section 2(f) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The respondent, The Akola Janta Commercial Co-operative Bank Ltd., is a co-operative bank registered under the Multi-State Co-operative Societies Act. The petitioners argued that the issue was covered by the judgment in Sanmitra Urban Co-operative Bank Ltd. v. Assistant Provident Fund Commissioner [2019 (6) Mh.L.J. 567], which held that pigmy agents may be employees, and sought remand for an enquiry under Section 7A. The respondent contended that the Multi-State Co-operative Societies Act excludes the applicability of the EPF Act and that the Sanmitra judgment was per incuriam. The court, after hearing both sides, found that the issue of whether a pigmy agent is an employee requires a factual enquiry into the nature of employment, control, and supervision. The court set aside the Appellate Tribunal's order and remanded the matter to the Provident Fund Commissioner for a fresh enquiry under Section 7A, to be conducted in accordance with the parameters laid down by the Division Bench in The Pachora Peoples' Co-operative Bank Ltd. v. The Employee Provident Fund Organization [2014 (4) Mh.L.J. 436]. The court directed that the enquiry be completed within six months from the date of the order.
Headnote
A) Social Security - Employees' Provident Fund - Definition of Employee - Section 2(f) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 - The issue of whether a pigmy agent falls within the definition of 'employee' under Section 2(f) requires a factual determination based on the nature of employment, control, and supervision. The court held that the Appellate Tribunal's order holding pigmy agent not to be an employee was set aside, and the matter was remanded to the Provident Fund Commissioner for an enquiry under Section 7A in light of the parameters laid down in The Pachora Peoples' Co-operative Bank Ltd. case (Paras 2-5).
Issue of Consideration
Whether a pigmy agent is an employee within the meaning of Section 2(f) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and whether the matter should be remanded for a factual enquiry under Section 7A of the Act.
Final Decision
The court set aside the order dated 29.08.2005 passed by the Employees Provident Fund Appellate Tribunal and remanded the matter to the Provident Fund Commissioner for a fresh enquiry under Section 7A of the Act of 1952, to be conducted in accordance with the parameters laid down in The Pachora Peoples' Co-operative Bank Ltd. case. The enquiry shall be completed within six months from the date of the order.
Law Points
- Pigmy agent may be employee under Section 2(f) of EPF Act
- 1952
- Determination requires factual enquiry under Section 7A
- Multi-State Co-operative Societies Act does not exclude EPF applicability
Case Details
2022 LawText (BOM) (07) 117
Writ Petition No. 6188 of 2005
Shri H. N. Verma for petitioners, Shri R. L. Khapre (Senior Advocate) a/w Shri D. R. Goenka for respondent
Central Board of Trustees and Others
The Akola Janta Commercial Co-operative Bank Ltd.
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Nature of Litigation
Writ petition under Articles 226 and 227 of the Constitution of India challenging an order of the Employees Provident Fund Appellate Tribunal.
Remedy Sought
The petitioners sought to set aside the Appellate Tribunal's order and remand the matter for an enquiry under Section 7A of the EPF Act.
Filing Reason
The Appellate Tribunal held that a pigmy agent is not an employee under Section 2(f) of the EPF Act, 1952.
Previous Decisions
The Employees Provident Fund Appellate Tribunal passed an order dated 29.08.2005 holding that pigmy agent is not an employee.
Issues
Whether a pigmy agent is an employee within the meaning of Section 2(f) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952?
Whether the matter should be remanded for a factual enquiry under Section 7A of the Act?
Submissions/Arguments
Petitioners argued that the issue is covered by Sanmitra Urban Co-operative Bank Ltd. case and sought remand for enquiry under Section 7A in light of parameters laid down in The Pachora Peoples' Co-operative Bank Ltd. case.
Respondent argued that the Multi-State Co-operative Societies Act excludes EPF applicability and that the Sanmitra judgment is per incuriam.
Ratio Decidendi
The determination of whether a pigmy agent is an 'employee' under Section 2(f) of the EPF Act requires a factual enquiry into the nature of employment, control, and supervision. The Appellate Tribunal's order was set aside as it did not conduct such an enquiry, and the matter was remanded for a proper enquiry under Section 7A.
Judgment Excerpts
By this petition under Articles 226 and 227 of the Constitution of India, the petitioners are challenging the order dated 29.08.2005 passed by the Employees Provident Fund Appellate Tribunal, New Delhi holding pigmy agent would not be employee within the meaning of Section 2(f) of the Employees Provident Fund and Miscellaneous Provisions Act, 1952.
Shri H. N. Verma, learned Advocate for the petitioners, submitted that issue involved in the present petition is squarely covered by the judgment of the learned Single Judge of this Court in Writ Petition No. 5154/2016 in the case of Sanmitra Urban Co-operative Bank Ltd. Vs. Assistant Provident Fund Commissioner [2019 (6) Mh.L.J. 567].
Shri R. L. Khapre, learned Senior Advocate submitted that the respondent-bank being registered under Multi-State Co-operative Societies Act, provisions of the Act of 1952 would not be applicable.
Procedural History
The petitioners filed Writ Petition No. 6188 of 2005 under Articles 226 and 227 of the Constitution of India challenging the order dated 29.08.2005 of the Employees Provident Fund Appellate Tribunal, New Delhi. The petition was heard and reserved on 28.06.2022 and decided on 07.07.2022.
Acts & Sections
- Employees' Provident Funds and Miscellaneous Provisions Act, 1952: Section 2(f), Section 7A
- Constitution of India: Articles 226, 227
- Multi-State Co-operative Societies Act:
