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TMI Blog1996 (6) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... ne constitutes ₹ 76 lakhs. Sale of leather cloth is mainly to dealers in the market and bulk consumers such as furniture makers. The remaining sales of ₹ 9 lakhs is of other items like Marble flooring, tiles, wall fabric covering wall paper, floor covering sheets etc., to outside dealers, contractors and bulk consumers, out of 9 lakhs, approximately 1/10th of the sales to Mody Sales and Services. 3. M/s. Mody Sales and Services was constituted on December 16, 1983, which is also a partnership firm, registered under Indian Partnership Act. Petitioners 2 and 3 are partners in the said firm. At the relevant point of time, the firm was engaged in sale of Marblex tiles, wall paper and wall fabric covering and laying and fixing of those products. The main business activity of the firm seems to be servicing of wall paper and tiles. 4. Provisions of the P.F. Act were made applicable to M/s. Devesh and Sandeep Associates and M/s. Mody Sales and Services both are situated in the same premises with effect from June 1, 1985. On the combined strength of the employees of the two units exceeded during the month of May, 1985 and the establishment also satisfied the other conditio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner by his order dated September 8, 1986, being of the view that both units are one single integral unit, directed petitioners 2 and 3 to deposit certain amounts towards provident fund contribution, towards Family Pension Fund contribution, towards deposit Linked Insurance contribution for the period from August 1, 1985 to July, 1986. Aggrieved by this order, petitioners are before this Court. 6. In the writ petition, petitioners have raised several issues only to point out that the two firms are separate, different and distinct units and for no reason, they could be clubbed together to bring it within the net of Provident Fund Act. The learned Counsel appearing for petitioner did not only reiterate the grounds urged in the writ petition but also submitted that the first respondent has not adverted to the test of functional integrality and if he had adverted to this aspect, he would not have come to the conclusion that the two units are in reality one, and the departments of one another. In support of his contention, the learned Counsel would strongly rely on the decision of Apex Court in the case of Associated Cement Companies Ltd., Chaibasa Cement Works, Jhinkpani v. Their W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts proved, having regard to the scheme and object of the statute. Thus in one case, the unity of ownership, management and control may be the important test, in another case functional integrity or general unity may be the important test; and in still another case, the important test may be the unity of employment. Indeed, in a large number of cases several tests may fall for consideration at the same time. The difficulty of applying these tests arises because of the complexities of modern industrial organisation; many enterprises may have functional integrity between factories which are separately owned; some may be integrated in part with units or factories having the same ownership and in part w or plants which are owned. In the midst of all these complexities it may be difficult to discover thread of unity. In an American decision, Donald L. Nordling v. Ford Motor Company, 1950 28 ALR 2d 272, there is an example of an industrial product consisting of 3,800 or 4,000 parts, about 900 of which came out of one plant, some came from other plants owned by the same company and still others came from plants independently owned, and a shutdown caused by a strike or other labour di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uradha Mody and Sri Ashok Mody as partners. Smt. Anuradha Mody is the wife of Sri Ashok Mody. Sri T. B. Mody and Shri Ashok Mody are also the partners in Devesh Sandeep Associates. Thus it is seen that the set of persons who are family members are partners of the two concerns. Both the units are located in the same premises. Thus not only its functional integrality is established but unity of Management and Control and Geographical proximity is also established which further fortifies my decision that the two units are in reality one and the departments of one another . 12. To answer and to satisfy the test of functional, integrality, the respondent has applied only the fact of common ownership of the two units and the location of two units in the common premises. In my view, the fact recorded and the test applied by respondent 1 is not the relevant test to consider the applicability of Section 2-A of Provident Fund Act. The predominant test as enunciated by Supreme Court and this Court in Ganapathy Bhandarkar's case (supra), is whether subsequent unit viz., M/s. Mody Sales and Service could survive on closure of M/s. Devesh Sandeep Associates and whether in matters of finan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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