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TMI Blog2014 (7) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... ld be applicable and otherwise not. The authorities concerned did say that the said unit is a separate and independent of the principal establishment. It is also not being contended that there is no financial management and functional integrality between the factory and the main establishment. If there is financial, management and functional integrality between the different units and one cannot exist without the other they should be treated as one single unit. Therefore, the allotment of a new Code in respect of the said unit Tungidighi is unsustainable. However, it is made clear this order shall not prevent the Provident Fund Authorities from realizing the dues of the said unit in accordance with law, if it is found that the said unit has not complied with the statutory requirements. It is made clear that this Court has not gone into the merits of the order passed under Section 7A of the said Act in relation to the Tungidighi unit of the petitioner No.1. All consequential steps taken pursuant to allotment of such code number is accordingly set aside. - Writ application disposed of - W.P 15490 (W) of 2000 - - - Dated:- 17-7-2014 - Soumen Sen, J. For the petitioner Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner, West Bengal. The petitioner No.1 duly objected to the extension of the provisions of the said Act separately to the Tungidighi unit of the petitioner Noi.1. The petitioner made a representation on 8th June, 2000 in which it was contended that the establishment of the petitioner is already covered with effect from 1st October, 1985 by reason of coverage letter issued by the authorities concerned dated 26.11.1986 which specifically said that the Act would be applicable to the factory/establishment including all departments/branches whether situated in the same place or in different places with effect from 1st October, 1985. The petitioner further contended that all dues in respect of the said establishment together with Tungidighi branch for the period from 12/1999 to 04/2000 have been deposited centrally and no amount was due and payable for the aforesaid period in respect of the said unit. Notwithstanding the aforesaid representation and objection raised with regard to the application of the said Act to the said unit separately, the authorities concerned proceeded to realize dues for the aforesaid period under the new Code without deciding the objection raised with reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber, 1997. Mr. Gupta, the learned Advocate appearing on behalf of the Provident Fund Authorities submits that Section 1 (3)(a) of the said Act specifically referred to a factory and if the said factory is found to be engaged in any Industry specified in Schedule 1 and in which 20 or more persons were employed within the said factory comes within the purview of the said Act. Section 1 of the Act deals with the application of the said Act and states that the said Act shall be applicable, inter alia, to every establishment which is a factory engaged in any industry specified in Schedule 1 and in 20 or more persons were employed. In order to extend the provisions of the said Act to an establishment, the said establishment has to be a factory engaged in any industry specified in Schedule 1 and must employ 20 or more persons. Section 2A is a removal of doubt clause by which it is clarified that where an establishment consists of different departments or different branches whether situated in the same place or in different places of such departments or branches shall be treated as part of the same establishment. A factory under Section 2A would form a part of the establishment is of wider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the scheduled industries employing 20 or more persons. If the answer is in the affirmative, the provisions of the Act are attracted even if the establishment is run by a larger organization carrying on other additional activities falling outside the Act. The Act, subject to the provisions of section 16, applies to every factory in which twenty or more persons are employed and which is engaged in any industry specified in Schedule I. The relevant consideration is the number of persons employed in the factory and not the industry. In Sri Varadaraj Aswani Transports(P) Ltd. Vs. R. P. F. Commissioner reported in AIR 1966 Mad. 466 an establishment was held to mean an organisation which employs persons between whom and the establishment, the relationship of employee and employer exist. Section 2A clarifies that the Act applies to composite factories (Union of India vs. Ogale Glan Words (1971) S SCC 678. In Eddy Current Controls (India) Ltd. vs. RPF Commissioner 1993 (67) FLR 928 : 1993 LLR 961 the Kerala High Court elaborated the implications of Section 2A of the Act in holding that in order to determine the different parts, units branches and so forth are merely constituents of one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stablishment. It is also not being contended that there is no financial management and functional integrality between the factory and the main establishment. If there is financial, management and functional integrality between the different units and one cannot exist without the other they should be treated as one single unit. It further appears that under paragraph 36A of the Employees Provident Fund Scheme, 1952 every employer in relation to a factory or establishment would be required to furnish to the Regional Provident Fund Commissioner in form No.5A particulars of all the branches and department etc. In paragraph 38(2) of the said Scheme the employer would be required to forward to the Commissioner aggregate amount of recoveries made from the wages of all the members and the aggregate amount contributed by the employer in respect of all such members which necessarily mean that all such amounts are being collected form the employees of different branches and departments. In view of the aforesaid, the allotment of a new Code in respect of the said unit Tungidighi is unsustainable. However, it is made clear this order shall not prevent the Provident Fund Authorities from r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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