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TMI Blog2020 (1) TMI 1504X X X X Extracts X X X X X X X X Extracts X X X X ..... gistrar of Companies, Delhi. The Government of India holds 51% shareholding in the Appellant-Company and the remaining 49% is held by Oil and Natural Gas Company Ltd. (ONGC). The Company was incorporated with the primary objective of providing helicopter support services to the oil sector for its offshore exploration operations, services in remote and hilly areas, and charter services for promotion of tourism. It is classified as a nonscheduled operator under Rule 134 of the Aircraft Rules, 1937. 2.2 On 01.04.1986, the Appellant Company framed and notified the Pawan Hans Employees Provident Fund Trust Regulations (hereinafter referred to as "the PF Trust Regulations") for giving provident fund benefits to all the employees of the Appellant Company. Regulations 1.3 and 2.5 of the PF Trust Regulations are set out hereunder for ready reference: "1.3 These Regulations shall apply to all the employees of the Corporation. 2.5. - "Employee" means any person who is employed for wages/salary in any kind of work, monthly or otherwise, in or in connection with the work of the Corporation and who gets his wages/salary directly or indirectly from the Corporation, and excludes any p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of the EPF Act applicable to aircraft or airlines establishments employing 20 or more persons, excluding aircraft or airlines establishments owned or controlled by the Central or State Government. The Gazette Notification No. SO 746 dated 22.03.2001 ("Notification") is extracted for ready reference: " S.O. 746 - In exercise of the powers conferred by clause (b) of sub section (3) of Section 1 of the Employees Provident Fund and Miscellaneous Provisions Act 1952 (19 of 1952), the Central Government hereby specifies the following establishment employing 20 or more persons as the class of establishments to which the said Act shall apply with effect from 1st April 2001 namely: (i) An establishment engaged in rendering courier services; (ii) An establishment of aircraft or airlines other than the aircraft airlines owned or controlled by the Central or State Government. (iii) An establishment engaged in rendering cleaning and sweeping services." [emphasis supplied] The said Notification was brought into force w.e.f 01.04.2001. 2.8 Correspondingly, amendments were made to the EPF Scheme framed under Section 5 of the EPF Act. Clause 3 (b)(ci) was inserted vide Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide the impugned Judgment & Order dated 12.09.2018 allowed the Writ Petition in terms of prayer (a), with the direction that the benefits under the EPF Act be extended to the members of the RespondentTrade Union, and other similarly situated employees. It was held that a liberal view must be taken in extending social security benefits to the contractual employees. The High Court directed the Company to enrol all eligible contractual employees under the EPF Scheme, and deposit their contribution with Respondent No.3 - Regional Provident Fund Commissioner from the date they became eligible till remittance, and thereafter till they are in employment of the Company. This was to be carried out latest by 31.12.2018. 3. Aggrieved by the impugned Judgment, the Appellant Company filed the present Civil Appeal. This Court vide Order dated 14.01.2019 issued notice and granted stay of the impugned Judgment subject to the Company depositing a sum of Rs. 5,00,00,000/( Rupees Five Crores) within 3 months in this Court. Pursuant thereto, the Company deposited the said amount on 09.04.2019, which has been invested in a Fixed Deposit. 4. We have heard the learned counsel for both the part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by Clause 2.5 of the PF Trust Regulations is widely defined to cover all employees, including those engaged on contractual basis, who are in the direct or indirect employment of the Company. The members of the Respondent Union are in direct employment of the Company, since they have not been engaged through any contractor. The contractual workers are paid directly as evidenced by the pay slips issued by the Company. The benefits under the PF Trust Regulations, or the EPF Act, are required to be provided to even contractual employees from the date of their joining till the date of remittance. b) The Company is not controlled by the Central Government since its affairs are managed and controlled by a Board of Directors. The Company is not a company controlled by the Central Government. The Notification dated 22.03.2001, specified certain establishments including the airlines industry, other than airlines owned or controlled by the Central or State Government, to be covered under the EPF Act. Consequently, the Company was obligated to extend the benefits under the EPF Act to all its employees. c) The EPF Act is a beneficial piece of legislation, which has to be liberally cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verning such benefits, is excluded from the purview of the EPF Act. Subsection (1) of Section 16 reads as: "Section 16. Act not to apply to certain establishment. - (1) This Act shall not apply14 (a) to any establishment registered under the Cooperative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State relating to cooperative societies employing less than fifty persons and working without the aid of power; or (b) to any other establishment belonging to or under the control of the Central Government or a State Government and whose employees are entitled to the benefit of contributory provident fund or old age pension in accordance with any Scheme or rule framed by the Central Government or the State Government governing such benefits; or (c) To any other establishment set up under any Central, Provincial or State Act and whose employees are entitled to the benefits of contributory provident fund or old age pension in accordance with any scheme or rule framed under that Act governing such benefits; (2) If the Central Government is of opinion that having regard to the financial position of any class of establishment or other c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loyees of the Company, so as to satisfy the second test. The Regional Provident Fund Commissioner, Bandra issued letter dated 24.05.2017 addressed to the Company wherein it was stated that the benefit of contributory provident fund was not being provided to contractual/casual employees of the Company; and was directed to implement the provisions of the EPF Act. The relevant extract from the letter is set out hereinbelow: "approximately 370-400 employees have been engaged by M/s Pawan Hans Ltd. on contract basis in various cadres. But no social security benefit is being extended to them. The EPF & MP Act, 1952 under Section 2(f) lays down that any person employed for wages in any kind of work in or in connection with the work of the establishment and includes a worker engaged by or through a contractor. There is no distinction between a person employed on permanent, temporary, contractual or casual basis under Section 2(f) of the EPF & MP Act, 1952. You are therefore, requested to implement the provisions of the EPF & MP Act, 1952 in respect of all the contractual/causal employees engaged by M/s Pawan Hans Ltd. who are still not getting benefits of PF and Pension." [emphasis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n engaged by the Company, and draw their wages/salary directly or indirectly from the Company. 6.5 As per Section 2(f) of the EPF Act, the definition of an 'employee' is an inclusive definition, and is widely worded to include "any person" engaged either directly or indirectly in connection with the work of an establishment, and is paid wages. SubRegional Provident Fund Office v. Godavari Garments Ltd., (2019) 8 SCC 149 : (2019) 2 SCC (L&S) 483; M/s P.M. Patel & Sons and Ors. v. Union of India and Ors (1986) 1 SCC 32. In view of the above discussion, we find that the members of the Respondent Union and all other similarly situated contractual employees, are entitled to the benefit of provident fund under the PF Trust Regulations or the EPF Act. Since the PF Trust Regulations are in force and are applicable to all employees of the Company, it would be preferable to direct that the members of the Respondent Union and other similarly situated contractual employees are granted the benefit of provident fund under the PF Trust Regulations so that there is uniformity in the service conditions of all the employees of the Company. 6.6 The question which now arises is the date from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ligibility of the contractual employees till the date of remittance was not workable, and could not be sustained. 7 After hearing the parties at length, and in light of the peculiar facts and circumstances of this case, we affirm the Judgment & Order dated 12.09.2018 passed by the Bombay High Court in W.P.No.325/2017 holding that members of the Respondent Union are covered by the EPF Act. However, we modify the direction of the High Court to grant the benefits under the EPF Act, and direct that the members of the Respondent Union and other similarly situated contractual employees be enrolled under the Pawan Hans Employees Provident Fund Trust Regulations so that there is uniformity in the conditions of service of all employees of the AppellantCompany. Furthermore, the direction of the High Court to pay the contribution from the date of their eligibility till the date of remittance is also modified in terms of the directions given in this Judgment. 8 We pass the following directions to effectuate the reliefs granted: (i) The interests of justice would be best subserved if the benefit of Provident Fund is provided to the members of the RespondentUnion, and other similarly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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