# UNION OF INDIA & ANR v. OGA,LE GLASS WORKS - **Citation:** [1972] 1 S.C.R. 525 - **Court:** Supreme Court of India - **Decided:** 1971-09-01 - **Case number:** Civil Appeal No. 2591 of 1966 - **Bench:** G. K. Mitter, C. A. Vaidialingam, P. Jaganmohan B Reddy - **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/union-of-india-anr-v-oga-le-glass-works-5390 - **Pages:** 23 ## Headnote c D E F G Employees' Provident Fund Act, 1952-Scope of s. t9A of the A ct-Whether decision under s. 19A of the Act by the Central Governn1e111 is final in the facts and circurnsu1nces of the case. The respondent c·ompany was manJJfactu'ring various articles ip.ch~ding Lc1ntern and Safety Stoves etc. Jn N9vember I 952, _Employees ~rov1~ent Fund Act, \Vas passed -and 'the conipany was making regular contnhu- ,tion;~ to the Provident Fund for all employees. After sometime another establishment which was carrying on si1nilar business filed a writ petition in Bombay High Court contesting the claim of the Regional Provident Fund Commissioner. that the Act applied to all sections of the glass works. The Bombay High Court held that the Act and the scheme applied only to such sections of tJie company as we~e covered by Sch. I of the Act and not to all sections. Against this dec_:- sion. an appeal was preferred before this Court and the Court reversed'- thc decision of the High Court and held that the Act and the scheme applied to nil employees working under the said glass works. Regio'nai Provide~t f"und Com1nissioner, Bombay v. Shree Krishn(f. Metal Manufact~ring Co., Bliandra, [1962] Supp. 3 S.C.R. 815. The respondent, altfiougb was making contributions in respect of all its employees, discontinued to do so after the decision of the High Court in the above matte'r, except for those empJoy~es who were working#in the Lantern and Stove Sections. Thereafter, the employees raised a dispute, and the dispute was referred to the Industrial Tribunal, Maharashtra and the Industrial Tribunal gave its award against the management but eJ1-r~ght to reopen. t~e quesnon. of habtlt!y of .the respondent. On appeal. the folk>wing qtieslions H arose for ~onstderation : (t) Whether there has been a decision· ol the Central Government under s. 19A of the Act. (ii) the effect of the ·Awa':"-P:"sed by the .Industrial !dbunal exempting the company, from contQbutmg for-certau.i years; (m) whether the company is liable .to pay the .administrative..charges for t:tie exempted periods. Allowing th.e appeal,. l S-1340 Sup. Cl/71 . . , SUPREME COURT REPORTS [1972] 1 S.C.R. HELD : ( 1) From the evidence it is clear that there has been no· A final decision by the Central Government under s. !9A of the Act. It was only a Lmited decision not to apply the Act and the scheme in view of the 1udgment of the Bombay High Court and till the final decision of the .appeal by this Court. After the matter is finally disposed of by this Court, the appellants arc perfectly justified in demanding contributions for all employees from the respondent in terms of the demand notice. ,f545 EJ ( 2) Although the Award passed by the Industrial Tribunal exempted the manag.!ment from contribut:ng for a certain number of years, it is not relevant for the purpose of applying the Act an,d the scheme. Moreover, the appellants were not parties to the award. Since the Act and the schome applie ## Text _Characters 0–38,810 of 63,363. This is a partial read: ask again with offset=38810 for what follows._ 525 A UNION OF INDIA & ANR. v. OGA,LE GLASS WORKS September 1, 1971 [G. K. MITTER, C. A. VAIDIALINGAM AND P. JAGANMOHAN B REDDY, JJ.] c D E F G Employees' Provident Fund Act, 1952-Scope of s. t9A of the A ct-Whether decision under s. 19A of the Act by the Central Governn1e111 is final in the facts and circurnsu1nces of the case. The respondent c·ompany was manJJfactu'ring various articles ip.ch~ding Lc1ntern and Safety Stoves etc. Jn N9vember I 952, _Employees ~rov1~ent Fund Act, \Vas passed -and 'the conipany was making regular contnhu- ,tion;~ to the Provident Fund for all employees. After sometime another establishment which was carrying on si1nilar business filed a writ petition in Bombay High Court contesting the claim of the Regional Provident Fund Commissioner. that the Act applied to all sections of the glass works. The Bombay High Court held that the Act and the scheme applied only to such sections of tJie company as we~e covered by Sch. I of the Act and not to all sections. Against this dec_:- sion. an appeal was preferred before this Court and the Court reversed'- thc decision of the High Court and held that the Act and the scheme applied to nil employees working under the said glass works. Regio'nai Provide~t f"und Com1nissioner, Bombay v. Shree Krishn(f. Metal Manufact~ring Co., Bliandra, [1962] Supp. 3 S.C.R. 815. The respondent, altfiougb was making contributions in respect of all its employees, discontinued to do so after the decision of the High Court in the above matte'r, except for those empJoy~es who were working#in the Lantern and Stove Sections. Thereafter, the employees raised a dispute, and the dispute was referred to the Industrial Tribunal, Maharashtra and the Industrial Tribunal gave its award against the management but eJ1-r~ght to reopen. t~e quesnon. of habtlt!y of .the respondent. On appeal. the folk>wing qtieslions H arose for ~onstderation : (t) Whether there has been a decision· ol the Central Government under s. 19A of the Act. (ii) the effect of the ·Awa':"-P:"sed by the .Industrial !dbunal exempting the company, from contQbutmg for-certau.i years; (m) whether the company is liable .to pay the .administrative..charges for t:tie exempted periods. Allowing th.e appeal,. l S-1340 Sup. Cl/71 . . , SUPREME COURT REPORTS [1972] 1 S.C.R. HELD : ( 1) From the evidence it is clear that there has been no· A final decision by the Central Government under s. !9A of the Act. It was only a Lmited decision not to apply the Act and the scheme in view of the 1udgment of the Bombay High Court and till the final decision of the .appeal by this Court. After the matter is finally disposed of by this Court, the appellants arc perfectly justified in demanding contributions for all employees from the respondent in terms of the demand notice. ,f545 EJ ( 2) Although the Award passed by the Industrial Tribunal exempted the manag.!ment from contribut:ng for a certain number of years, it is not relevant for the purpose of applying the Act an,d the scheme. Moreover, the appellants were not parties to the award. Since the Act and the schome applies to all sections of the respondent, the respondent is liable to make contributions at the rate specified in the Act. The rate 'Pecified by the Industrial Tribunal is not in accordanc::c with the Act. Therefore, the award of the Industrial Tribunal lloes not stand in the way of the appellant's demand for the period in question. [545 G-546 CJ ( 3) Once the employer is held liable for payment of its share of Provident Fund contribution for the period in question, it will also be Jiable to pay the administrative charges. [546 HJ B c CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2591 of 1966. D Appeal from the judgment aill.d order dated September 17, 1965 oJ' the Bombay High Court in Special Civil Application No. 380 of 1964. R. H. Dhebar, Ram Panjwani, S. P. Nayar and P. R. Ram Asish, for the appellants. · .v. M. Tarkunde and K. R. Chaudhuri, for the respondent. The Judgment of the Court was delivered by Vaidialingam, J. This appeal, on certificate, by the Union of India and the Regional Provident Fund Commissioner. Maharashtra State, is directed against the judgment and order dated September 17, 1965 of the Bombay High Court allowing Special Civil Application No. 380 of 1964 filed by the respondent ·company under Art. 226 of the Constitution and quashing the notice of demand dated May 22, 1963 issued by the Regional Provident Fund Commissioner. The circumstances under which the writ petition was filed by the respondent may be stated : The respondent a limited company having its Head Office at Ogalawadi in Satara District was manufacturing at the relevant time Glassware, Stoves, Lanterns and Enamel wares. It had several sections in its factory, namely, (I) Glass Manufacturing Section, (2) Lantern and Safety Stoves Section, ( 3) Enamel Section, ( 4) General Section and ( 5) Canteen Section. In or about 1946 the Company had introduced a Provident Fund Scheme for its workers under which it paid 12 pies in a rupee as the employer's contribution towards the said E F G H A B c D • .. E F G H UNION OF INDIA v. OGALE GLASS WORKS (Vaidia/ingam. !.) 527 fund. IA 1951 the Provident Fund Scheme was amended and the Company agreed to make contributions to the fund only if it made profits. On November I, 1952, The Employees' Provident Fund Act, 1952, Act No. XIX of 1952 (hereinafter to be referred to as the Act), came into force and it made applicable to certain scheduled industries. There is no controversy. that the Act was made applicable to the respondent on October 6, 1952 and the Company had been paying its contribution to the Employees Provident Fund from November I, 1952. For the purpose of the Fund, a scheme had been framed under the Act. According to the Regional Provident Fund Commissioner. the Act and the Scheme framed thereunder applied to the entire body of employees working under the respondent. Though the Company then raised objections on the ground that only the employees in the Lantern and Stoves Section were covered by the Scheme and that it was bound to make contributions only in respect of those employees, nevertheless, the Company continued to make its share of contribution to the Provideht Fund even in respect of other employees working in other sections . In the mean while, another establishment in the area, the Nagpur Glass Works, which was carrying on a business similar to that of the respondent company filed a writ petition before the Nagpur Bench of the Bombay High Court under Art. 226 of the Constitution, being Miscellaneous Petition No. 122 of 1956 contesting the claim of the Regional Provident Fund Commissioner that the Act applied to all sections of the Glass Works. In the said writ petition the contention was that the Act and the Scheme will apply only· to the Lantern and Stove Section. Though this claim was contested by the Department, a Division Bench of the Bombay High Court, by its decision dated March 7, 1957 reported in The Nagpur Glass Works Ltd., v. Regional Provident Fund Commission#r(1) upheld the contentions of the Nagpur Glass Works that the Act and the Scheme applied only to such sections or departments of the Company as were covered by Schedule I. The respondent before us continued to make its contribution in respect of all the employees. There was some correspondence between the Company and the Department, to which we will refer later. The Department had challenged the decision of the Bombay High Court before this Court. The decision of the Borribay High Court was reversed by this Court on March 14, 1962 in the decision reported in The Regional Proilident Fund Commissioner, Bombay v. Shree Krishna Metal Manufacturing Co., Bhandara(2). This Court after refering to the relevant provisions of the Act including s. 2A which had been introduced by an amendment in 1960 held that the Act applied to composite factories and that the Glass ------.--- (I) I. l. R. [1958) Born. 444. (2) [1962] Supp. 3 S. C. R. 815, 528 SUPREME COURT REPORTS tl972] 1 S~C.R. Works therein was commercially engaged in a Scheduled industry among others and hence the Act was applicable to it. On this basis. this Court held that all the employees. working under the said Glass Works were covered by the Act and the Scheme. To resume the· narrative, after the decision of the Bombay High Court, the respondent began to discontinue making contributions in respect of the employees, other than those working in tl1e Lantern and Stoves Section. '.fhe employees raised a dispute regard;ng tl:e discontinuance of the Provident Fund Scheme and in con,equence the, State Government referred the dispute to the Industrial Tribunal, Maharashtra, being Reference No. I.D. 29 o:• 191\0. The Industrial Tribunal, by its award dated June 24, 1 960. after considering the financial position of the Company, held that for the years, 1951, 1957, 1958' and 1959, the Company should make contributions to the Provident fund at the rate of S! pe.r cent of the basic wages to the workers uncovered by the Scheme under the Act and that the Company need not make any contributions for the years 1950 and 1952 to 1956, as during those years they have suffered loses. It ga.ve a further direction that from March I, 1960 the Company is to make contribution at 6t p~r cent of the wages and Dearness Allowance. The Referenc~ also related to the claim for Dearness Allowance and the Tribunal had adjudicated on that aspect also. After the decision of this Court, referred to above, rendered on March 14, 1962, the Regional Provident Fund Commissioner, by his letter dated March 2Z, 19.63 called upon the respondent to make its share of the Proviaent Fund contributions at the statutory rate for the period November 1, 19.52 to December 31, 1960 together with administrative charges for the said period. The Company made representations protesting against the demand made by the Regional. Provident Fund Commissioner. In parti: cular. they pleaded th~t there has been already a decision by the Central Government under s. 19A of the Act holding that the Act and the Scheme apply only to the Lantern and Stoves Section and on the basis of that decision the contributions made by them, under protest, with regard to the employees working in the other sections had been refunded and therefore the department was not entitled to call upon the Company to make contributions for the years in question. They further contested the claim of the department on the ground that the· question regardlhg the liability of the Company to make contributions to the provident fund was the subject of adjudication under the Awa.rd of the Industrial Tribunal dated June 24. 1960 and this Award precluded the department from claiming contributions for the identical period. The Company raised a further objection that even on the basis of the decision of this Court, the Act does not apply to its other sections. A B c D F G H A B c I) E F UNION OF INDIA v. OGALE GLASS WORKS (Vaidia/ingam, J.) 529 These objections raised by the Company were negatived by the department which threatened to take coercive steps to coiled the contributions if the demand, under the order dated May 22, 1963 was not complied with. The respondent, in consequence filed the writ petition in the Nagpur Bench of the Bombay High Court challenging the demand made by the Regional Prmident Fund Commissioner by his order dated May 22, 1963 and sought relief for restraining the officers concerned from enforcing the demand and for quashing the said order. The appellant contested 1he writ petition on various grounds. but it is only necessary to note that their main plea was that there has been no decision of the Central Government under s. l 9A of the Act to the effect that the Act and the Scheme apply only to the Lantern and Stove Section of the respondent. On the other hand, their plea was that the Act and the Scheme had been made applicable to the entire establishment of the r2spondent comprising ail its sections and covering the entire body of workmen employed in the said establishment. The respondent has been making contributions as per the scheme framed under the Act. But in view of the decision of the Bombay High Court, which they had to respect and obey, they had provisionally decided that the contributions will b~ collected from the respondent only in respect of those sections, which have been held by the High Court to be governed by the Act. This decision was a purely provisional and tentative one pending the adjudication by this Court regarding the correctness of the decision of the Bombay High Court, which was being challenged by the appellants. It was in view of the Bombay High Court's judgment that the amounts by way of contributions collected from the respondent in respect of the workmen who were held not to be goverened by the Act, were either refunded or adjusted towards his future contributions in respect of those workmen to whom the Act applied. In this connection the appellants relied on the correspondence that passed between them and the respondent as well as the correspondence that the appellant had with the employees' Union. But after the decision of this Court holding that the Act applies even to a composite establishment, the appellants necessarily had to take up the matter from the stage a1 which G it was left because of the Bombay High Court's decision and in consequence made demands on the respondent to comply with the provisions of the Act and the Scheme. The appellants forth.er pleaded that the award of the Industrial Tribunal had no relevancy in considering the statutory liability of the respondent under the Act. Further, it was pointed out by them that the principles o~ which the adju.dication was given were not at all in conformity with the Act. Fmally, th~. appellants pleaded that they, having H a duty to enforce the prov1S1ons of the Act, which was a benevo, lent measure in the interest of the worlqnen, issued the demand 530 SUPREME COURT REPORTS [ 1972J l S.C.R. dated May 22, 1963 which is in conformity with the decision of this Court. The High Court, by its judgment and order under appeal, has held that the letter dated August 19, 1959 sent by the Central Provident Fund Commissioner, New Delhi, to the Regional Provident Fund Commissioner read with the letter dated September 21, 1959 sent by the latter to the respondent clearly shows that there has been a decision under s. l 9A of the Act that only the Lantern ;md Stoves as well as Enamel Sections of the respondent Company would be covered by the provisions of the Act and that the order A B of the Central Government having become final, the appellants have no right to have the question of liability of the respondent in respect of the other sections reopened. In this view, the High C Court did not consider it necessary to go into the question whether the decision of the Central Government as contained in the two letters referred to above, was inconsistent with the provisions of the Act, nor did it think it necessary to consider the effect of the award in I.D. No. 29 of 1960. The High Court rejected the claim of the appellants that the decision not to enforce the Act in D respect of the other sections was only a tentative one pending adjudication by this Court regarding the correctness of the Bombay High Court's judgment. Though it was contended by the respondent that even on the basis of the decision of this Court, the Act and tlie Scheme will not apply to all sections of its establishment, the High Court rejected that contention on the ground that the manufacture of glass wares, the enamel wares and the E lantern and stoves was the industrial activity of the respondent and that to such a case the decision of this Court will apply and that the respondent Company -will be governed by the provisions of the Act and the Scheme. Ultimately, the High Court quashed the demand made under the order dated May 22, 1963 and gave directions to the appellants not to enforce the said demand. On behalf of the appellants Mr. R. H. Dhebar, learned counF sel, very strenuously urged that the High 9ourt has committed a very serious error in construing the letters dated August 19, 1959 and September 21, 1959 as indicating that there has been a decision by the Central Government under s. 19A, accepting the contentions of the res1_JOndent. The counsel pointed out that the G entire correspondence clearly shows that in view of the decision of the Bombay High Court, the respondent's Claim for adjustment of the amount paid by them was provisionally accepted pending the appellants' appeal in this Court challenging the decision of the Bombay High Court. The counsel further urged that the award o[ the Industrial Tribunal has no relevancy or bearing in conH sidering the statutory liability of the respondent under the Act. · The appellants were not parties to the award and they have gol a statutory duty to enforce the provisions of the Act in the interest A B c D E F G H uNION OF INDIA V. OGALE GLASS WORKS (Vaidialingam. J.) 531 of the employees. On facts, the counsel urged, there can be no controversy regarding the application of the Act to all the activities of the respondent. Therefore, he pointd out that the demand made by the Regional Provident Fund Commissioner on May 22, 1963 was justified and the demand in any event are for the peri~ not covered by the industrial adjudication. Mr. V. M. Tarkunde, learned counsel for the respondent, has supported the judgment of the High Court in full as also the reasons given by the High Court for holding that there has been a decision by the Central Government under s. 19A. In this connection he referred to certain passages contained in the communications that passed between the appellants and the respondent. The counsel further urged that when the Central Government took a decision under s. 19A, as is evidenced by the letter: dated August 19, 1959 ·and September 21, 1959, that decision was not in any manner inconsistent with the provisions of the Act. The said decision by the Central Government was not a provisional one to abide the adjudication by this Court regarding the Bombay High Court's judgment. On the other hand, the said decision was a totallyfodependent one taken under s. 19A by the Central Government in respect of the respondent's establishment in view of the contentions raised by it before the appropriate authorities. The counsel further urged that the liability of the respondent for the period now covered by the demand dated May 22, 1963 was the subject of adjudication by the Industrial Tribunal on a dispute raised by the employees. The award has considered all aspects and has exempted tb,e respondent from making any contribution for certain years. That decision is binding on the workmen and the award is still in force. The claim made by the appellants is really an attempt made by the employees indirectly to circumvent the decision in I.D. No. 29 of 1960. Finally, the counsel urged that even on the principles laid down by this Court regarding· the applicability of the Act, the respondent's objections regarding their liability in respect of certain sections are valid. We can straightaway dispose of the last point urged oy Mr. Tarkunde that the Act does not apply to all sections of the respondent's establishmc:nt. We have already referred to the decision of_ the High Court r~jecting the contentions of the respondent in this regard and holdmg that the manufacture of glass material, enamel and lantern and stoves, was the industrial activity of . the respan~ent and that the decision of this Court squarely applies which, m consequence, makes the Act and the Scheme applicable to all sections of the respondent. That is a decision recorded by the High Court on facts and we see no error in this conclusion reached by the High Court. 532 SUPREME COURT REPORTS [1972] l S.C.R. Mr. Tarkunde, however, contended that this Court in the case of The Regional Provident Fund Commissioner, Bombay v. Shree Krishna Metal Manufacturing Co., Bhandara(1) has held that the Act and the Scheme apply to all the sections of the glass works on the basis of s. 2A, which was inserted ill the Act, with effect from December 31, 1960 by the Employees Provident Fund (Amendment) Act, 1960 (Act 46 of 1960). Section 2A is as follows : "2A-Establishment to include all departments and branches: For the removal of doubts, it is hereby declared that where an establishment consists of different departments or has branches, whether situate in the same place or in different places, all such departments or branches shall be treated as parts of the same." As the said section takes effect only from December 31, 1960, the counsel argued, that the decision of this Court does not apply to the respondent for the years in respect of which the demand is made. We are not inclined to accept this contention of the learned counsel. This Court has elaborately considered the various provisions of the Act, and having due regard to the activities of the Company with which they were qealing held that . the Act applies to a composite factory. No doubt this Court has also referl'~d to s. 2A, which has been added by the Amendment Act 46 of 1960 only for the purpose of emphasising that the said provision makes it clear that an establishment may ·consist 'Of different departments or may have different branches, whether situated in the same place or in different places and yet all such departments or branches shall be treated as parts of tlie same establishment. Reference to this Section has been made only for the purpose of giving an additional reason for negativing the contention that the establishment under s. 1(3) (a) does not contemplate a composite factory. Therefore, it follows that the Act and the Scheme fully apply to a composite establishment like that of the respondent, as held by this Court, in the decision referred to above. Two questions now fall, to be considered in this appeal, namely, (i) whether there has been a decision of the Central Government under s. 19A of the Act as contended by the respondent, and (ii) the effect of the award in l.T. No. 29 of 1960. In order to appreciate the contentions of the learned counsel on both sides, it is necessary to refer to the material provisions of the Act and also to the correspondence that passed between the appellants and the respondent. The Act, as its preamble shows is to provide for the institution of provident fund for the employees in factories and other establishments. Sub-section 3 of s. I provides for the applicability (I) [19621 Supp. 3 S.C.R. 815. A B c D E F G H A B c D UNION OF INDIA v. OGALE GLASS WORKS (Vaidialingam, !.) 533 of the Act to the establishments referred to therein. There is no controversy that the Act has been made applicable. to the respondent Company on October 6, 19S2 and the Company has been paying its share of contribution to the emJ?loyees provident fund from November 1, 19S2. Section 2 defines the various expr§ssi_ons. In particular four expressions require to be noticed, namely, "contribution" "scheme" "1fiember' 'and "fund". Under s. 2(c) "contribution" means a contribution payable in respect of a member under a Scheme. Under s. 2(1) "Scheme" means a Scheme framed under the Act. Under s. 2(j) "member" means a member of the fund and under s. 2(h) "Fund" means the provident fund established under a Scheme. We have already pointed out that s. 2A has also been referred to by this Court in The Regional Provident Fund Commissioner, Bombay v. Shree Krishna Metal Manufacturing Co., Bhandara(I) for holding that the Act applies to a composite establishment. Section 5 deals with the framing of a Scheme by the Central Government called "Employees Provident Fund Scheme". Under sub-s. 2 of s. 5, a scheme framed under sub-section (I) can provide that any of the provisions shall take effect either prospectively or retrospectively from such date as may be specified in this behalf in the Scheme. Sections 5A to SC deal with the constitution of the Central Board, the State Board and treating the E Board of Trustees a body corporate, Section SD ( i) empowers the Central Government to appoint a Central Provident Fund Commissioner who is to be the Chief Executive Officer of the Central Board and to work subject to the general control and superintendence of the Central Board. Sub-section (2) of s. 5D simiF G H larly empowers the Central Government to appoint Provident Fnnd Commissioners, Regional Provident Fund Commissioners and other officers to assist the Central Provident Fund Commissioner in the discharge of his duties. Section SE provides for the Central Board, with the prior approval of the Central Government and a State Board with the prior approval of the State Government to delegate to its Chairman or any of its officers such of its powers and functions under the Act as are necessary for the efficient administration of the Scheme. Section 6 deals with the contributions to be paid by the employer to the fund. It is to be at 6!% of the basic wages and Dearness Allowance and Returning Allowance, if any, for the time being payable to the employees. It also provides for the emplo- '!ees contribution to be equal to 1the contribution payable by the employer. At this stage ~t may be mentioned . that during the period for which the demand has been made contribution is to be (1) [1962] Supp. 3 S.C.R.815. 534 SUPREME COURT REPORTS fl 972] l S.C.R. made at 6 l % of the basic wages including Dearness Allowance, though the expression "Basic Wages" under s. 2B excludes Dearness Allowance. In I.T. No. 29 of 1960 the Tribunal, even for the years for which the contribution has been directed to be made, has fixed it only on the basic wages excluding Dearness Allowance. A Under s. 7 A the officers mentioned therein have been emB powered to determine the amount due from any employer under any provision of the Act or of the Scheme. Section 8 deals with the manner of recovery of the amount due from the employer. Section 19 provides fo~ the apropriate government delegating any power, authority or jurisdiction exercisable by it under the Act or the Scheme to the appropriate offices mentioned therein. Section J 9 A, under which, according to the respondent, a decision has been taken by the Central Government regarding non-applicability of the Act to some of its sections, disputed by it, runs as follows : "l 9A. Power to remove difficulties : If any difficulty arises in giving effect to the provisions of this Act, and in particular, if any doubt arises as to: ( i) whether an establishment which is a factory is engaged in any industry specified in Schedule I; (ii)· whether any particular establishment is an establishment falling within the class of establishments to which this Aot applies by virtue of notf.. fication under clause (b) of sub-section 3 of section 1; (iii) the number of persons employed in an establishment; (iv) the number of years which have elapsed from the date on which an establishment has been set up; or (v) whether the total quantum of benefits to which an employee is entitled has been reduced by the employer, the Central Government may, by order, make such provision or give such direction, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for the removal of the doubt or difficulty; and. the order of the Central Government, in such cases; shall be final." It may also be stated that according to the respondent a controversy arose whether its establishment is one falling within the class of establishment to which the Act applies by virtue of notic D E F G H A B c D E F G H UNION OF INDIA v. OGALE GLASS WORKS (Vaidialingam, /.) 535 fication under cl. (b) of sub-section (3) of s. 1 and it is in view of that controversy that the Central Government took a decision accepting the respondent's contention. Such a dispute raised by the respondent squarely comes under cl. (2) of s. 19A, and that decision has become final. It is not necessary to refer to the Scheme as there is no dispute that if the Act applies, the Scheme framed thereunder does not violate any provision of the Act. From a review of the sections, it will be seen that the Act is. essentially a measure 'for the welfare of the employees; and if the Act applies and a Scheme has been framed for an establishment, the employer is bound to make the contributions as provided for under s. 6, There is a statutory liability on an employer to pay the contribution at the rate mentioned in s. 6. Stringent provisions have been made for non compliance with the requirement of '!he statute and very drastjc powers have been given to the authorities to recover the contribution due from an employer. Though there i• a hierarchy of officials, nevertheless, it is only the Central Government that has been given power under s. 19A to ·give a direction not inconsistent with the provisions of the Act, if any doubt arises regarding one or other matters referred to in Cls. (i) to ( v) ; and that power is to be exercised when any difficulty or doubt arises in giving effect to the provisions of the Act. While the contention of the respondent is that the letter dated August 19, 1959 read with letter dated September 21, 1959 constitutes a direction given by the Central Government under s. 19A, according to the appellants no such direction has been given because the Central Government had no occasion to consider the matters mentioned under cl. (ii) of s. 19A. Now the question arises whether there was any occasion for the Central Government to give a direction under s. 19A in. the case of the respondent. In order to understand the context in which the letters dated August 19, 1959 and September 21, 1959 relied on by the respondent came to be written and to understand their full implication, it is necessary to refer to the correspondence that passed between the appellants and the respondent, both prior and subsequenJ to August 19, 19S9. The judgment of th>~ Bombay High Couprt in the Nagpur Glass Works' case( 1) was rendered on March 7, 1957. The respondent in its letter dated December I 0, 1957 addressed to the Regional Provident Fund Commissioner, Bombay, after refering to the Act having been m·ade applicable to its es~ablishment, gave a list of its activities, as well as the number of the employees working in the various sections. The number of employees to whom the Provident Fund .. Scheme under the Act applied has also been stated. The respondent then refers to a representation made to the Regional Provident Fund, Commissioner stating that the Act applied only to 0) I. L. R. [1958] Born. 444. 536 SUPREME COURT REPORTS [l 9 72] l S.C.R. some of its sections, but this representation was rejected by the A -officer concerned as early as March 31, 1953. The Company .then states that the view of the Regional Provident Fund Commissioner as expressed in his letter dated March 31, 1953 that the Act applies to all sections of the establishment is erroneous in view of the decision of. the Bombay High Court rendered on March 7, 1957 in the case of Nagpur Glass Works('). After refering to the material part of the judgment of the High Court, the respondent states that in view of the said decision, the Act, which has .been made applicable to all the employees working under the respondent can be made applicable legally only to those employees l!ngaged in the manufacture of Hurricane Lanterns and non pressure stoves. On this basis, the Company further makes a request to the Regional Provident Fund Commissioner to reconsider his previous view expressed in the letter of March 31, 1953 and grant suitable relief to. The Company winds up the letter by making a request to the Officer that the contributions made by it all along even in respect of the employees not covered by the Act as per the Bombay High Court decision, may either be refunded or adjusted towards future contributions payable by them in respect of employees to whom the Act will apply under the said decision. Two circumstances emerge from this letter of the Company : (i) that from the very beginning 'the Act has been applied to all the employees of the respondent working in all its sections and that a representation made by it to revise the Scheme was not accepted by the Department even as early as March 31, 1953 and the Company has been making provident fund contributions. for all its ·employees; and (ii) the letter dated December 10, 1957 is necessaciated, as expressly mentioned therein because of the judgment of the Bombay High Court dated March 7, 1957 and it is on the basis of that judgment that the Department was being asked to reconsider its previous view regarding the applicability of the Act to all the employees of the Company. Therefore, even the very earlier letter written by the Company asking for modification of the Scheme is really rested on the judgment of the Bombay High Court. On November 28, 1958 the Regional Provident Fund Commissioner, Bombay wrote a letter to the Company. In that letter he referred to the Company's letter of September 1, 1958 where the latter appears to have stated that it "would be justified in withholding the payment of employer's share till final decision from Supreme Court is obtained "The officer then refers to the General Secretary for the employee's Union having met him and represented that the respondent was recovering the employees share of provident fund contribution every month. On inquiry, the officer states, that the said amount is not being remitted or credited towards the employees· share for the months for which the (l) I.LR. [1958] Born. 444. B c D E F G H 'I A B c UNION OF INDIA v. OGALE GLASS WORKS (Vnidia/ingam, J.) 537 amounts have been collected by the respondent. The officer makes a request to the respondent to remit the amounts collected by it as early as possible. This letter of the Regional Provident Fund Commissioner again indicates that the respondent itself has been taking up the position that it will be justified in not making contribution to the provident fund till a final decision is given by the Supreme Court. That clearly indicates that the Department had taken up in appeal the judgment of the Bombay High Court to this Court and the respondent was fully aware of the same. This letter further shows that it was not as if the employer, the respondent, was totally denying its liability under all circumstance>. lt limits it only till a final decision regarding the correctness of the Bombay High Court's view is given by this Court. On December 22, 1958, the respondent again sends a letter to the Regional Provident Fund Commissioner stating that they have never disputed their liability to pay the workers and Company\ contriuution so far as the LaQ.tern and Glass Departments were concerned. However the Company affirms that they are dispuring D their liability to contribute in respect of the workers in the Glass, Enamel and. other Departments. The Company gave an account of the total amount contributed by it from November 1, 1952, the. date when the Act was made applicable to the Company, till October 31, 1958. The Company further says: "We have so far remitted to you Rs. 7,06,914.87 np. E i.e. we.have paid you in excess a sum of Rs. 1,11,940/- since employees in Glass, Enamel and other Departments are not covered by the Act according to the decision of the High Court and the matter is now under consideration of the Supreme Court of India." The Company makes a request to the Officer to adjust, what F according to them, were excess payments. Tue Company further states : G H "The excess amount of Rs. 1,11,940/ .. after adjusting all dues upto 31-10-58 may be retained with you till the Supreme Court finally decides tr~ matter." This letter further emphasises thaf the respondent was raising a dispute regarding their non-liability to contribute in respect of certain sections mainly on the basis of the Bombay High Court decision. Tuey also specifically referred to the appeal against the decision of the Bombay High Court pending in this Court. It is on this basis that the respondent states that the excess amounts that have been paid by them may be retained till this Court finally decides the matter. Therefore, the non-liability pleaded by the respondent is again based upon the judgment of the Bombay High Court and the period during which the non-liability is sought to . be extended is till this Court finally adjudicates upon the matter. 538 SUPREME COURT REPORTS [1972) l S.C.R. Then we come to the two crucial letters dated August 19, 1959 and_September 21, 1959. The first is a letter written by the Central Provident Fund Commissioner, New Delhi to the Regional Provident Fund Commissioner, Bombay. Obviously, after the judgment of the Bombay High Court, some correspondence seems to have taken place between the officers concerned and the Regional Provident Fund Commissioner sought clarification from the Central Provident Fund Commi~sioner. The Central Provident Fund Commissioner in this letter states : "We have since been advised by the Government of India that the "enamel" and "lanterns and stoves" sections of the Ogale Glass Works Ltd., will continue to be covered under the Employees Provident Fund Act, 1952. The Provident Fund contributions deposited by the management in respect of the remaining sections of the factory viz., (i) general, (ii) glass, and (iii) canteen may be refunded to them." The second letter dated September 21, 1959 was addressed to the respondent by the Regional Provident Fund Commissioner after getting clarification from the Central Provident Fund Commissioner.