LI Network
Published on: October 19, 2023 at 11:01 IST
The Supreme Court has clarified the legal position concerning the clubbing of different institutions for coverage under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act).
A Division Bench of the Supreme Court examined this issue and determined that when there is financial integrity between two institutions, they can be interconnected and clubbed for the purpose of coverage.
In the case in question, both institutions were operated by the same Ideal Fine Arts Society. The Ideal Institute was established in 1965, while the Arts College was set up in 1985-86. Combining the employees from both institutions resulted in a total of 26, meeting the criteria for EPF Act coverage.
The court observed that substantial funds had been advanced to both institutes by the Society, and they were functioning from the same premises.
The court’s decision was based on a report by the Enforcement Officer, stating that the establishments should be covered under the EPF Act. The court emphasized that the appellant had not challenged this report or the subsequent orders until the proceedings were initiated in 2005.
Ultimately, the court held that the documents provided by the appellant demonstrated that the college was not an independent establishment but an extension of the Society. As a result, the court rejected the appellant’s contentions and dismissed the appeal.
This case clarifies the criteria for clubbing institutions under the EPF Act, taking into account financial integrity and operational proximity.
Case Title: M/S Mathosri Manikbai Kothari College Of Visual Arts V. The Assistant Provident Fund Commissioner, Civil Appeal No. 4188 Of 2013
