# CASE DETAILS M/S MATHOSRI MANIKBAI KOTHARI COLLEGE OF VISUAL ARTS v. THE ASSISTANT PROVIDENT FUND COMMISSIONER

- **Citation:** 2023 INSC 909
- **Court:** Supreme Court of India
- **Decided:** 2023-10-12
- **Case number:** Civil Appeal No. 4188 of 2013
- **Bench:** Hima Kohli, Rajesh Bindal
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/case-details-m-s-mathosri-manikbai-kothari-college-of-visual-arts-v-the-37178
- **Pages:** 13

## Headnote

Issue for consideration: Clubbing of two Institutions run by the same
Society for the purpose of coverage under the EPF Act.
The Employees' Provident Funds and Miscellaneous Provisions
Act, 1952 - Coverage under the EPF Act by clubbing of two Institutes
run by the same Society - Society ran two institutions including the
appellant, in the same campus - One had 8 employees and the other
had 18 - Report of the Enforcement Offi cer that there being total 26
employees working in both the Institutes, managed by the same Society
and within the same premises, the establishment would be covered under
the provisions of the EPF Act - Order passed by the Commissioner
u/s.7-A of the EPF Act - Challenged by the appellant - Appeal dismissed
by the Tribunal - Writ Petition fi led by the appellant also dismissed -
Order upheld in writ appeal:
Held: Appellant had taken the case very casually - Material
on record suffi cient to non-suit the appellant - Even the documents
produced by the appellant themselves show that it is not an independent
establishment but an arm of the Society - Under the provisions of the
EPF Act, if any establishment employs 20 or more persons, the same
shall be covered under the provisions of the EPF Act for grant of various
benefi ts thereunder to the employees working there, the EPF Act being
a welfare legislation - The mere fact that two Institutes, managed and
controlled by the same management, off er diff erent courses or were
established at diff erent times is not relevant for their clubbing under the
539
EPF Act - The fact that one of the institutes receives 100% grant-in-aid
from the government while the other is receiving to the extent of 70%,
is also not relevant - After coverage of the establishments, the benefi ts,
as determined for the purpose of assessing dues under the EPF Act, was
already assessed by the Commissioner - Both the Institutes are being run
by the same Society - The Ideal Institute was set up in the year 1965,
whereas the appellant was set up in the year 1985-86 - If the employees
employed in both the institutes are added, the total number of employees
would be 26, which will be suffi cient for coverage in terms of s.1(3)
(b) of the EPF Act, stipulating that an institute employing 20 or more
persons is liable to be covered under the provisions of the EPF Act - It
is also not in dispute that both the institutes are being run in the same
campus - There is fi nancial integrity between the Society of the appellant
as well as the other Institute as substantial funds were advanced to the
Institutes by the Society - Further, both the Institutes are functioning
from the same premises. [Paras 15, 16, 19, 21-23]
LIST OF CITATIONS AND OTHER REFERENCES
Management of Pratap Press, New Delhi v. Secretary, Delhi
Press Workers' Union Delhi etc., AIR 1960 SC 1213; L.N. Gadodia
& Sons v. Provident Fund Commissioner, [2011] 11 SCR 508 : (2011)
13 SCC 517; Noor Niwas Nursery Public School v. Regional Provident
Fund Commissioner and others, [2000] 5 Suppl. SCR 478: (2001) 1
SCC 1; Shree Vishal Printers Limited, Jaipur v. Regional Provident
Fund Commissioner, Jaipur and another, [2019] 12 SCR 146 : (2019)
9 SCC 508; Associated Cement Co. v. Workmen, [1960] SCR 703 :
AIR 1960 SC 56; Regional Provident Fund Commissioner v. Naraini
Udyog, [1996] 3 Suppl. SCR 202 : (1996) 5 SCC 522 - referred to.
OTHER CASE DETAILS INCLUDING IMPUGNED
ORDER AND APPEARANCES

## Text

[2023] 16 S.C.R. 538 : 2023 INSC 909
538
CASE DETAILS
M/S MATHOSRI MANIKBAI KOTHARI COLLEGE OF
VISUAL ARTS
v.
THE ASSISTANT PROVIDENT FUND COMMISSIONER
(Civil Appeal No. 4188 of 2013)
OCTOBER 12, 2023
[HIMA KOHLI AND RAJESH BINDAL, JJ.]
HEADNOTES
Issue for consideration: Clubbing of two Institutions run by the same
Society for the purpose of coverage under the EPF Act.
The Employees' Provident Funds and Miscellaneous Provisions
Act, 1952 - Coverage under the EPF Act by clubbing of two Institutes
run by the same Society - Society ran two institutions including the
appellant, in the same campus - One had 8 employees and the other
had 18 - Report of the Enforcement Offi cer that there being total 26
employees working in both the Institutes, managed by the same Society
and within the same premises, the establishment would be covered under
the provisions of the EPF Act - Order passed by the Commissioner
u/s.7-A of the EPF Act - Challenged by the appellant - Appeal dismissed
by the Tribunal - Writ Petition fi led by the appellant also dismissed -
Order upheld in writ appeal:
Held: Appellant had taken the case very casually - Material
on record suffi cient to non-suit the appellant - Even the documents
produced by the appellant themselves show that it is not an independent
establishment but an arm of the Society - Under the provisions of the
EPF Act, if any establishment employs 20 or more persons, the same
shall be covered under the provisions of the EPF Act for grant of various
benefi ts thereunder to the employees working there, the EPF Act being
a welfare legislation - The mere fact that two Institutes, managed and
controlled by the same management, off er diff erent courses or were
established at diff erent times is not relevant for their clubbing under the
539
EPF Act - The fact that one of the institutes receives 100% grant-in-aid
from the government while the other is receiving to the extent of 70%,
is also not relevant - After coverage of the establishments, the benefi ts,
as determined for the purpose of assessing dues under the EPF Act, was
already assessed by the Commissioner - Both the Institutes are being run
by the same Society - The Ideal Institute was set up in the year 1965,
whereas the appellant was set up in the year 1985-86 - If the employees
employed in both the institutes are added, the total number of employees
would be 26, which will be suffi cient for coverage in terms of s.1(3)
(b) of the EPF Act, stipulating that an institute employing 20 or more
persons is liable to be covered under the provisions of the EPF Act - It
is also not in dispute that both the institutes are being run in the same
campus - There is fi nancial integrity between the Society of the appellant
as well as the other Institute as substantial funds were advanced to the
Institutes by the Society - Further, both the Institutes are functioning
from the same premises. [Paras 15, 16, 19, 21-23]
LIST OF CITATIONS AND OTHER REFERENCES
Management of Pratap Press, New Delhi v. Secretary, Delhi
Press Workers' Union Delhi etc., AIR 1960 SC 1213; L.N. Gadodia
& Sons v. Provident Fund Commissioner, [2011] 11 SCR 508 : (2011)
13 SCC 517; Noor Niwas Nursery Public School v. Regional Provident
Fund Commissioner and others, [2000] 5 Suppl. SCR 478: (2001) 1
SCC 1; Shree Vishal Printers Limited, Jaipur v. Regional Provident
Fund Commissioner, Jaipur and another, [2019] 12 SCR 146 : (2019)
9 SCC 508; Associated Cement Co. v. Workmen, [1960] SCR 703 :
AIR 1960 SC 56; Regional Provident Fund Commissioner v. Naraini
Udyog, [1996] 3 Suppl. SCR 202 : (1996) 5 SCC 522 - referred to.
OTHER CASE DETAILS INCLUDING IMPUGNED
ORDER AND APPEARANCES
CIVIL APPELLATE JURISDICTION : Civil Appeal No.4188 of 2013.
From the Judgment and Order dated 30.09.2011 of the High Court of
Karnataka at Gulbarga in WA No.10133 of 2011.
M/s MATHOSRI MANIKBAI KOTHARI COLLEGE OF VISUAL ARTS v. THE
ASSISTANT PROVIDENT FUND COMMISSIONER
540
SUPREME COURT REPORTS
[2023] 16 S.C.R.
Appearances:
Basava Prabhu S Patil, Shailesh Madiyal, Mr./Ms. Geet Ratan Ahuja,
Vinayaka S. Pandit, Samarth Kashyap, V. N. Raghupathy, Advs. for the
Appellant.
Nachiketa Joshi, Ms. Himadri Haksar, Ms. Sucheta Joshi, Yash Singh,
Narayan Dev Parashar, Advs. for the Respondent.
JUDGMENT / ORDER OF THE SUPREME COURT
JUDGMENT
RAJESH BINDAL, J.
1. The order dated 30.09.2011, passed by the Division Bench of the
Gulbarga Bench of the Karnataka High Court in a Writ Appeal1 has been
impugned by the appellant before this Court. Vide aforesaid order, the
Division Bench has upheld the order dated 10.06.2011, passed by the learned
Single Judge in Writ Petition2. The Single Judge upheld the order3 passed
by the Tribunal4 dated 24.12.2010 and also upheld the application of EPF
Act5 to the appellant's institution.
2. Briefl y the facts, available on record, arethat the Ideal Fine
Arts Society6 runs two institutions, namely, the 'Ideal Institute of Fine
Arts'7 and 'Mathosri Manikbai Kothari College of Visual Arts'8. Both,
the Ideal Institute as well as the Arts College are being run in the same
campus. The Ideal Institute was set up way back in the year 1965, off ering
Diploma Course in drawing and painting, whereas the ArtsCollege was
set up in the year 1985-86, off ering Degree and Post-Graduate Degree
in drawing and painting. It was claimed that the Ideal Institute employed
8 persons, whereas the Arts College had 18 employees. The issue arose
1
Writ Appeal No. 10133 of 2011.
2
Writ Petition No. 80995 of 2011.
3
In ATA No.03/06/2006
4
Employee Provident Fund Appellate Tribunal.
5
The Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
6
For short, 'Society.
7
For short, 'Ideal Institute'.
8
For short, 'Arts College'.
541
with reference to their coverage and application of the EPF Act. Based on
the report of the Enforcement Offi cer dated 01.07.2003, it was reported
that there being total 26 employees working in both the Institutes, which
are managed by the same Society and within the same premises, the
establishment would be covered under the provisions of the EPF Act
w.e.f. 01.03.1988. Thereafter, a notice was issued to the establishment
and after aff ording an opportunity of hearing, an order was passed by
the Commissioner9 on 23.09.2005, under Section 7-A of the EPF Act,
assessing the amount of contributions to be made by the appellant under
various schemes of the EPF Act. The aforesaid order was challenged by
the appellant through statutory appeal before the Tribunal, which was
dismissed vide order dated 24.12.2010. Thereafter, the appellant fi led
a Writ Petition challenging the order passed by the Tribunal before the
High Court, which was dismissed by the learned Single Judge vide order
dated 10.06.2011. In writ appeal, the order of the learned Single Judge
was upheld by the Division Bench of the High Court.
3. Learned counsel for the appellant, submitted that the impugned
orders passed by the Commissioner, the Tribunal, as well as the High Court
are not legally sustainable. The appellant submitted that both the Institutes,
namely, Ideal Institute and Arts College are independent from each other
and are merely being managed by the same Society. There is no fi nancial
integrity between the two Institutes and both the Institutes are off ering
diff erent courses, having permission/affi liation from diff erent authorities.
The Ideal Institute is getting 100% grant-in-aid, whereas the Arts College
is getting 70% grant-in-aid from the Government of Karnataka. The Ideal
Institute was set up in the year 1965, whereas the Arts College was set up
in the year 1985-86. Furthermore, the appellant submitted that, since both
the Institutes are independent from each other and are not employing 20 or
more persons, their clubbing for coverage under the provisions of the EPF
Act,is totally illegal and deserves to be set aside. In support of his arguments,
reliance was placed by the appellant upon Management of Pratap Press,
New Delhi v. Secretary, Delhi Press Workers' Union Delhi etc., AIR
1960 SC 1213.
9
The Assistant Provident Fund Commissioner.
M/s MATHOSRI MANIKBAI KOTHARI COLLEGE OF VISUAL ARTS v. THE
ASSISTANT PROVIDENT FUND COMMISSIONER [RAJESH BINDAL, J.]
542
SUPREME COURT REPORTS
[2023] 16 S.C.R.
4. On the other hand, the learned counsel for the respondent submitted
that, if the tests laid down by this Court in L.N. Gadodia& Sons v.
Provident Fund Commissioner, (2011) 13 SCC 517,are applied in the
present case, it will be evident that there is no error in the orders passed by
the Commissioner, the Tribunal or the High Court, directing coverage of
both the Institutes run by the Society, under the EPF Act. The respondent
submitted that it is a case in which neither the appellant nor the Ideal Institute
or the Society, which is managing the aff airs of the Institutes, had placed
any material before the Commissioner, the Tribunal or even the High Court
to dislodge the facts found by the Enforcement Offi cer and established that
both the Institutes are independent and have no common management.
The audit report which has been placed on record before this Court is for
the year ending March 2011, which was fi nalised on 16.08.2011. The same
was not even placed on record before the High Court, though the appeal
was decided on 30.09.2011. No argument referring to the audit report was
raised before the High Court.
5. The learned counsel for the respondent further submitted that, once
the notice was issued to the establishment regarding application and coverage
under the provisions of the EPF Act by clubbing the two Institutes being run
by the Society, the onus was on the establishment to controvert the same, by
placing relevant material on record. In fact, even before the Commissioner,
the appellant failed to produce any record and appear regularly. The Tribunal
also adjudicated the appellant's appeal in its absence. The Single Judge
of the High Court had also noted that the appellant had failed to produce
any material to support the claim that there is no common supervisory or
fi nancial management and that the two Institutes were distinct with separate
management and not interconnected. The fact remained that both are being
run by the same Society. The respondent further submitted that copy of the
statement of bank account,placed on record by the appellant before this
Court, shows that the account was opened on 07.07.2004. Thus, the same will
not establish that both the Institutes are not being run by the same Society
and are independent. The respondent also submitted that just because the
two Institutes are off ering diff erent courses,having permission from diff erent
authorities, will not exclude the coverage under the EPF Act. Even the fact
that one of the Institutes is getting 100% grant-in-aid whereas the other is
getting 70%, is also not relevant. The respondent submitted that there is no
543
merit in the present appeal and the same deserves to be dismissed. Reliance
was placed by the respondent upon judgments of this Court in Noor Niwas
Nursery Public School v. Regional Provident Fund Commissioner and
others, (2001) 1 SCC 1and Shree Vishal Printers Limited, Jaipur v.
Regional Provident Fund Commissioner, Jaipur and another (2019) 9
SCC 508.
6. We have heard learned counsel for the parties and perused the
relevant referred record.
7. The undisputed facts on record are that the Society had initially set
up 'Ideal Institute' in the year 1965 and later it set up 'Arts College' in the
year 1985-86. Both the Institutes are being managed by the Society. It is also
an admitted fact that the Ideal Institute employed 8 persons, whereas the
Arts College employed 18 persons. Under the provisions of the EPF Act, if
any establishment employs 20 or more persons, the same shall be covered
under the provisions of the EPF Act for grant of various benefi ts thereunder
to the employees working there, the EPF Act being a welfare legislation.
8. The issue which requires consideration in the present appeal is
regarding the clubbing of two Institutions being run by the same Society
i.e., Ideal Fine Arts Society. In case the two Institutions are interconnected,
these can be clubbed for the purpose of coverage under the EPF Act.
9. Before we deal with the arguments raised by the learned counsel
for the parties, we deem it appropriate to refer to the settled legal position
with reference to clubbing of diff erent institutes for the purpose of coverage
under the EPF Act.
10. In Pratap Press's case (supra), this Court referred to the earlier
judgment of this Court in Associated Cement Co. v. Workmen, AIR 1960
SC 56, wherein it was opined that it is impossible to lay down any one test as
absolute and invariable for all cases to determine the issue regarding clubbing
of two establishments for the purpose of coverage under the EPF Act. The
real purpose is to fi nd out true relations between the two establishments and
fi nally opine thereon. In one case, 'unity of ownership, management and
control' may be an important test whereas in another 'functional integrity' or
'general unity' may be important. There can also be a case where the test can
be of the 'unity of employment'. Relevant para 5 thereof is extracted below:
M/s MATHOSRI MANIKBAI KOTHARI COLLEGE OF VISUAL ARTS v. THE
ASSISTANT PROVIDENT FUND COMMISSIONER [RAJESH BINDAL, J.]
544
SUPREME COURT REPORTS
[2023] 16 S.C.R.
"5. In Associated Cement Co. v. Workmen [AIR 1960 (SC) 56] this
Court had to consider the question whether the employer's defence
to a claim for lay-off compensation by the workers of the Chaibasa
Cement Works that the laying off was due to a strike in another part
of the establishment viz. limestone quarry at Rajanka was good. In
other words the question was whether the limestone quarry of Rajanka
formed part of the establishment known as the Chaibasa Cement Works
within the meaning of Section 25-E(iii) of the Industrial Disputes Act.
While pointing out that it was impossible to lay down any one test as an
absolute and invariable test for all cases it observed that the real purpose
of these tests would be to fi nd out the true relation between the parts,
branches, units etc. This Court however mentioned certain tests which
might be useful in deciding whether two units form part of the same
establishment. Unity of ownership, unity of management and control,
unity of fi nance and unity of labour, unity of employment and unity
of functional "integrity" were the tests which the Court applied in that
case. It is obvious there is an essential diff erence between the question
whether the two units form part of one establishment for the purposes
of Section 25-E(iii) and the question whether they form part of one
single industry for the purposes of calculation of the surplus profi ts for
distribution of bonus to workmen in one of the units. Some assistance
can still nevertheless be obtained from the enumeration of the tests
in that case. Of all these tests the most important appears to us to be
that of functional "integrity" and the question of unity of fi nance and
employment and of labour. Unity of ownership exists ex hypothesie.
Where two units belong to a proprietor there is almost always
likelihood also of unity of management. In all such cases therefore the
Court has to consider with care how far there is "functional integrity"
meaning thereby such functional interdependence that one unit cannot
exist conveniently and reasonably without the other and on the further
question whether in matters of fi nance and employment the employer
has actually kept the two units distinct or integrated."
(emphasis supplied)
11.Similar was the position in Regional Provident Fund
Commissioner v. Naraini Udyog, (1996) 5 SCC 522, wherein this Court
545
found the functional integrity with common management of two diff erent
establishments controlled by the same Hindu Undivided Family (HUF) and
having a common head offi ce, even though located at a distance of three
kilometres. Merely fact of having separate registration under the Factories
Act 1948, Sales Tax Act 1956 and the ESI Act 1948, was held to be nonrelevant for the purpose of clubbing and coverage under the EPF Act.
12. The Pratap Press's case (supra) was also referred in Noor Niwas
Nursery Public School (supra) wherein this Court held that no straight
jacket formula or test can be laid down for the purpose of clubbing of the
two establishments and coverage under the EPF Act. Relevant para 5 therein
is extracted below:
"5. In the present case, when two units are located adjacent to one
another and there are only two teachers with an aaya, a clerk and a peon,
it is diffi cult to believe that the society which runs 30 schools would run
a separate school consisting of such a small number of staff . If the unit
of the appellant School was not part of the unit of Francis Girls Higher
Secondary School, the Head Clerk, Mrs Wadhavan could not have been
in possession of the particulars of the appellant School and could not
have furnished such particulars to the Inspector when he visited the
school in connection with the grant of a code number. Undisputedly,
the two units are run by the same society and they are located in one
and the same address thereby establishing geographical proximity and
nothing worthwhile has been elicited in the cross-examination of the
Inspector in regard to inquiries made by him from Mrs P. Wadhavan.
Mrs P. Wadhavan was not examined before the Provident Fund
Commissioner. All these facts clearly point out to one factor that the
two units constitute one single establishment. After all the appellant
School caters to nursery classes, while the higher classes are provided
in Francis Girls Higher Secondary School. Thus, the link between the
two cannot be ruled out. In the facts and circumstances of the case,
we hold that the view taken by the Provident Fund Commissioner as
affi rmed by the High Court in this regard is correct."
(emphasis supplied)
13. The facts of the case in Noor Niwas Nursery Public School
(supra) are almost identical to the case in hand. Therein, two educational
M/s MATHOSRI MANIKBAI KOTHARI COLLEGE OF VISUAL ARTS v. THE
ASSISTANT PROVIDENT FUND COMMISSIONER [RAJESH BINDAL, J.]
546
SUPREME COURT REPORTS
[2023] 16 S.C.R.
institutions were being run by the same society. One institution was the
Higher Secondary School and another one was the Nursery School (the
appellant therein). The appellant contended that since the two institutions
have separate and independent accounts and are managed by the two diff erent
managing committees, thus both the institutions can't be treated as one
establishment for the purpose of clubbing and coverage under the EPF Act.
The issue before this Court was to determine how far there is functional
integrity between the two units and whether one unit can exist conveniently
and reasonably without the other. This Court after pursuing the material
available on record, held that two institutions were run by the same society
and are located in one premises having same address, thereby, establishing
geographical proximity, hence, were rightly clubbed for coverage under
the EPF Act.
14. In L. N. Gadodia & Sons's case (supra), the issue under
consideration before this Court was regarding the clubbing of two
companies namely, Delhi Cattle Farming Pvt. Ltd and Delhi Farming and
Construction Pvt. Ltd. It was argued by the appellant therein, that both these
companies were independently incorporated at diff erent times and there
was no connection between their activities or the business. However, the
Enforcement authority argued that both the companies had their registered
offi ce at the same place wherein some of the directors were also common.
There were fi nancial transactions between the two companies. Both the
companies had the same telephone number and were using the same
gram number. The issue before this Court was as to whether these two
companies, despite having separate legal entities, common management,
fi nancial integration and workforce proximity,should be considered a
single establishment under the EPF Act. This Court held that despite being
separate entities, both the institutions were eff ective branches of the same
establishment because they were run by the same management, workforce
and have common fi nancial integrity. Hence, the Court held that the EPF
Act will be applicable and both the companies will be regarded as one
establishment for the purpose of coverage under the EPF Act.
15. Now coming to the facts of the case in hand, as had already been
noticed above, both the Institutes are being run by the same Society. The
Ideal Institute was set up in the year 1965, whereas the Arts College (the
547
appellant) was set up in the year 1985-86. If the employees employed in
both the institutes are added, the total number of employees would be 26,
which will be suffi cient for coverage in terms of Section 1(3)(b) of the EPF
Act, which stipulates that an institute employing 20 or more persons is liable
to be covered under the provisions of the EPF Act. It is also a fact not in
dispute that both the institutes are being run in the same campus.
16. From a perusal of various orders and documents produced on
record, it is evident that the appellant had taken the case very casually. After
the inspection of the institute, report was submitted by the Enforcement
Offi cer on 01.07.2003, wherein it was stated that there being total 26
employees working in both Institutes, being managed by the same Society
and within the same premises, the establishment would be covered under the
provisions of the EPF Act w.e.f. 01.03.1988. It is the date from which the
EPF Act was made applicable to the educational institutions. The coverage
was confi rmed vide order dated 12.08.2003. There is nothing pointed out
by learned counsel for the appellant, that the aforesaid two orders clubbing
both the establishments provisionally and thereafter fi nally was challenged
by the appellant. If yes, the same was not presented before this Court. The
proceedings in the present case started after an order was passed by the
Commissioner on 23.09.2005under Section 7-A of the EPF Act, which
provides for determination of the dues payable under the EPF Act, for the
benefi ts of the employees. The Commissioner's order begins with the line
that the establishment has been covered under the provisions of the EPF Act
and Schemes framed there under. Further, it recorded that the management
had responded to the notice issued by the Commissioner on 30.06.2004
vide its letter dated 14.12.2004, disputing the applicability of the provisions
of the EPF Act. The order passed by the Commissioner also recorded that
on various dates when the matter was listed, either no one appeared on
behalf of the management or only adjournment was sought. It was also
recorded that the management had failed to produce the relevant records.
The Enforcement Offi cer had to visit the establishment for the inspection.
The report mentions that there were total 26 employees. Thereafter, the
establishment had pointed out that, 8 out of the 26 employees were working
in the aided Institute i.e., Ideal Institute, thus, these ought to be excluded
for the purpose of calculation of dues under the EPF Act. The issue raised
in the present appeal is not regarding the calculation of dues under the EPF
M/s MATHOSRI MANIKBAI KOTHARI COLLEGE OF VISUAL ARTS v. THE
ASSISTANT PROVIDENT FUND COMMISSIONER [RAJESH BINDAL, J.]
548
SUPREME COURT REPORTS
[2023] 16 S.C.R.
Act, rather it is regarding the coverage of the EPF Act by clubbing of two
Institutes. In fact, no arguments were raised regarding calculation.
17. After verifi cation of all the documents, the Commissioner passed
an order wherein it determined the amount due under various schemes of
the EPF Act. The appellant fi led a Review Petition under Section 7-B of
the EPF Act, which was rejected by the Commissioner vide order dated
14.11.2005. Aggrieved by the orders, the appellant fi led an appeal before
the Tribunal. However, no one appeared when the appeal was taken up for
hearing. The Tribunal while considering the merits of the case, recorded
that the onus to prove that the employees were less than 20 for exclusion of
the applicability of EPF Act before the Commissioner, was on the appellant
and the appellant had failed to discharge the same. Thus, there was no error
in the order passed by the Commissioner under Section 7-A of the EPF Act.
18. Still aggrieved, the appellant fi led a Writ Petition before the High
Court. The learned Single Judge of the High Court held that since both
the Institutes were run by the same management and there was common
supervisory and fi nancial control within the Institutions, thus both are
inter-connected. It was also noted that the appellant had failed to produce
any material to dislodge the aforesaid facts. The learned Single dismissed
the Writ Petition. The Division Bench also upheld the order passed by the
Single Bench and dismissed the Writ Appeal.
19. Though the aforesaid material is suffi cient to non-suit it, to be fair
to the appellant, we will deal with the documents which have been placed on
record by the appellant before this Court but not before any of the authorities
under the EPF Act or the High Court. The fi rst one is the letter dated
09.12.1987 from the University Grants Commission conveying the Registrar,
Gulbarga University, Gulbarga, about the inclusion of the appellant college
in the list of the approved colleges under the non-Government colleges,
teaching upto Bachelor's degree. The name of the college is mentioned as
'The Ideal Fine Arts Society's College of Visual Art', a copy of which is
also endorsed to the Principal of the aforesaid College. It shows that the
College is nothing but an extended arm of the Society. The next document
is the certifi cate of accreditation issued by the National Assessment and
Accreditation Council on 04.11.2004. This accreditation has been issued
in the name of 'The Ideal Fine Art Society's Mathosri Manikbai Kothari
549
College of Visual Arts'. This document again belies the stand of the appellant
that both the institutes are independent. The documents produced by the
appellant themselves show that it is not an independent establishment but
an arm of the Society.
20. The next document is the audit report of the Ideal Fine Arts
Society's Mathosri Manikbai Kothari College of Visual Arts for the year
ending March 2011. The accounts were fi nalized on 16.08.2011. Though, it
may not be relevant considering that the two establishments managed and
run by the same Society were clubbed way back in 2003 and the assessment
order under Section 7-A of the EPF Act was passed by the Commissioner
on 23.09.2005, still a perusal of the balance sheet of the appellant clearly
shows deposits from both the Society and the Ideal Fine Arts Trust. It shows
fi nancial integrity of the appellant with the Society which is running both the
Institutes. Schedule No.4 attached to the Income and Expenditure Account
shows details of the capital receipts. It mentioned Hand Loan from Ideal
Fine Arts Trust and the Ideal Fine Arts Society. Similar accounts of the Ideal
Institute have been withheld from the Court, as the same would have certainly
undermined the appellant's case of fi nancial integrity with the Society, which
manages both the Institutes, and therefore, the management thereof. What
has been placed on record with reference to the Ideal Institute is the Receipt
&Payment Accounts for the years ending 31.03.2009 and 31.03.2010. Even
these statements show loan from Ideal Fine Arts Trust. A certifi cate from
the Corporation Bank dated 03.06.2009, has also been produced, before this
Court, showing that the account was opened on 07.07.2004, in the name of
the Ideal Institute. The name of the introducer for opening the account is
shown as the 'Ideal Fine Arts Trust'. No other documents for the period from
1988 till the Commissioner's order, were submitted. Even the documents
pertaining to the subsequent period weaken the appellant's case.
21. Even the judgment of this Court in Pratap Press's case (supra)
relied upon by the learned counsel for the appellant does not come to the
rescue of the appellant. In that case, this Court upheld the order passed by
the Tribunal on appreciation of the material produced before it, wherein
it was opined that both the units are distinct and separate industrial units.
The matter was examined in the light of the principles laid down in the
Associated Cement's case (supra).
M/s MATHOSRI MANIKBAI KOTHARI COLLEGE OF VISUAL ARTS v. THE
ASSISTANT PROVIDENT FUND COMMISSIONER [RAJESH BINDAL, J.]
550
SUPREME COURT REPORTS
[2023] 16 S.C.R.
22. The mere fact that two Institutes, managed and controlled by the
same management, off er diff erent courses or were established at diff erent
times is not relevant for their clubbing under the EPF Act. The fact that one
of the institutes receives 100% grant-in-aid from the government while the
other is receiving to the extent of 70%,is also not relevant. After coverage of
the establishments, the benefi ts, as determined for the purpose of assessing
dues under the EPF Act, have already been assessed by the Commissioner.
23. From a perusal of the material available on record and the settled
position of law, it can be safely opined that there is fi nancial integrity between
the Society of the appellant as well as the Ideal Institute as substantial
funds have been advanced to the Institutes by the Society. Further, both the
Institutes are functioning from the same premises.
24. For the reasons mentioned above, the appeal is dismissed. There
shall be no order as to costs.

Headnotes prepared by:
Appeal dismissed.
Divya Pandey