Bombay High Court Examines Applicability of Employees' Provident Funds Act to Pigmy Agents of Cooperative Banks. Writ Petitions Filed by Both Banks and Provident Fund Authorities Challenge Tribunal Orders on Coverage of Such Agents Under Section 18(3)(d) of Industrial Disputes Act, 1947.

High Court: Bombay High Court Bench: NAGPUR
  • 110
Judgement Image
Font size:
Print

Case Note & Summary

A group of writ petitions came before the Bombay High Court, Nagpur Bench, filed by multiple cooperative banks and by the Assistant Provident Fund Commissioner, challenging orders of the Employees Provident Fund Appellate Tribunal and the Assistant Provident Fund Commissioner. The central dispute concerned whether pigmy agents or collection agents engaged by the banks to collect small deposit amounts fell within the scope of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The banks contended that an Industrial Tribunal award made at Hyderabad, as modified by the Andhra Pradesh High Court in Indian Banks Association v. The Workmen of Syndicate Bank and others (1988) and subsequently confirmed by the Supreme Court in Indian Bank Association v. Workmen of Syndicate Bank (2001), had already settled the matter. That award, it was argued, held that such agents were not entitled to provident fund benefits under the 1952 Act, and under Section 18(3)(d) of the Industrial Disputes Act, 1947, the award carried binding force. Consequently, the banks maintained that there was no scope for the Provident Fund Commissioner to claim that the agents were covered by the 1952 Act. The Provident Fund authorities, on the other hand, sought to enforce coverage and levy liabilities. The court heard arguments from both sides and reserved its judgment. However, the text of the judgment as provided is incomplete and does not include the court’s analysis, reasoning, or final decision on the common questions of law. The matters were heard together because they raised the same issues. The judgment was pronounced on 25 April 2019, but the operative part and the detailed determination of rights are not contained in the supplied extract.

Issue of Consideration

Whether pigmy agents/collection agents appointed by banks for collection of small deposit amounts could be covered under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and whether the Provident Fund Commissioner could enquire into the applicability of the Act on such banks and if so, the liability of the banks under the Act.

Subscribe to unlock Issue of Consideration Subscribe Now

Case Details

2019 LawText (BOM) (04) 206

Writ Petition Nos. 5154/2016, 142/2014, 333/2011, 1027/2011, 1106/2009, 1125/2014, 3507/2013, 3654/2010, 3882/2014, 4926/2003, 5032/2003, 5226/2009, 5566/2010, 5576/2015, 5667/2009, 6149/2011, 6191/2005

2019-04-25

Manish Pitale, J.

R.L.Khapre, H.N.Verma, N.R.Saboo, A.S.Kilor, S.S.Ghate, R.S.Sundaram, A.P.Wachasunder, M.V.Samarth, S.R.Bhongade, A.J.Thakkar, R.G.Kavimandam, M.M.Agnihotri

Sanmitra Urban Cooperative Bank Ltd.; Shri Keshav Urban Credit CoOp. Society Ltd.; M/s Baheti Automobiles; The Amravati Zilla Mahila Sahakari Bank Limited; Wardha Nagri Sahakari Adhikosh (Bank) Ltd.; The Akola Merchant Cooperative Bank Ltd.; The Central Board of Trustees; The Agrasen Nagari Sahakari Bank Ltd.; Anuradha Urban Cooperative Bank Ltd.; The Anjangaon–Surji Nagari Sahakari Bank Limited; The Amravati Merchants' Cooperative Bank Limited; The Assistant Provident Fund Commissioner; Jagruti Bigar Shetaki Pat Purwatha Sahakari Sanstha Ltd.; The Vasant Nagri Sahakari Pat Sanstha Maryadit; Bharti Maind Nagri Sahakari Pat Sanstha; Shattarka Nagri Sahakari Pat Sanstha; Bhartiya Sindhu Sahakari Pat Sanstha Maryadit

Assistant Provident Fund Commissioner, Employees Provident Fund Appellate Tribunal, Enforcement Officer, Central Board of Trustees, Regional Provident Funds Commissioner, etc.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petitions challenging orders of EPF authorities and the EPF Appellate Tribunal on the applicability of the Employees' Provident Funds Act to pigmy agents/collection agents of cooperative banks.

Remedy Sought

Banks sought to establish non-applicability of the EPF Act to pigmy agents; EPF authorities sought to enforce coverage. Both sides challenged various orders.

Filing Reason

Dispute over whether pigmy agents are covered under the EPF Act, and whether the Industrial Award barring such coverage is binding.

Previous Decisions

Industrial Tribunal at Hyderabad made an award on this issue, which was modified by Andhra Pradesh High Court in Indian Banks Association v. Workmen of Syndicate Bank (1988) and confirmed by Supreme Court in Indian Bank Association v. Workmen of Syndicate Bank (2001). EPF authorities had issued orders; some challenged before EPF Appellate Tribunal, which passed orders.

Issues

Whether pigmy agents/collection agents appointed by banks are covered under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952? Whether the Provident Fund Commissioner can enquire into the applicability of the Act on such banks? If yes, the extent of liability of the banks under the Act?

Submissions/Arguments

Banks argued that an Industrial Tribunal Award, as modified and confirmed up to Supreme Court, held that pigmy agents are not entitled to provident fund under EPF Act, and said award has binding force under section 18(3)(d) of Industrial Disputes Act, 1947.

Judgment Excerpts

This group of writ petitions, filed by the banks (employer) as also by the Assistant Provident Fund Commissioner challenge orders passed by the Employees Provident Fund Appellate Tribunal as also the Assistant Provident Fund Commissioner, pertaining to the question as to whether pigmy agents/collection agents appointed by the banks for collection of small deposit amounts could be covered under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 On behalf of the banks, learned counsel led by Mr.R.L. Khapre contended that in view of the award of the Industrial Tribunal at Hyderabad concerning specific question referred to the said Tribunal by the Central Government, which stood modified by the judgment of Andhra Pradesh High Court in the case of Indian Banks Association v. The Workmen of Syndicate Bank and others , reported in 1988 (1) LLJ 233 and such modified award stood confirmed by the Hon'ble Supreme Court in its judgment in the case of Indian Bank Association v. Workmen of Syndicate Bank , reported in (2001) 3 SCC 36 , there was no scope for the Provident Fund Commissioner to argue that the pigmy agents/ collection agents of the banks were covered under the provisions of the Act of 1952

Procedural History

The writ petitions were filed before the Bombay High Court, Nagpur Bench, challenging orders of the Employees Provident Fund Appellate Tribunal and the Assistant Provident Fund Commissioner. The matters were heard together due to common questions. The court reserved judgment on 28.02.2019 and pronounced it on 25.04.2019.

Acts & Sections

  • Employees' Provident Funds and Miscellaneous Provisions Act, 1952:
  • Industrial Disputes Act, 1947: 18(3)(d)
  • Maharashtra Co-operative Societies Act, 1960:
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows Writ Petition Challenging Refusal to Appoint Recommended Candidate for Judicial Service — Failure to Disclose Adverse Material Violates Natural Justice. The Court Quashed Communications Denying Appointment and Directed Reco...
Related Judgement
High Court Bombay High Court Upholds Life Conviction for Murder Based on Circumstantial Evidence and Motive. Appellant convicted under Section 302 IPC for killing his wife with an axe, relying on last seen evidence, recovery of weapon, and motive of suspicion o...