IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.5968 of 2008 Gram Swarajya Sangh, Head Officer : Bariarpur, P.S.- Bariarpur, District- Munger, through its Secretary, Vinay Kumar Singh, Son of Late Ram Narayan Singh, Resident of Bariarpur, P.S. Bariarpur, District- Munger. Versus 1. The Union Of India through Ministry of Labour, Welfare and Administrative Reforms, Shram Shakti Bhawan, New Delhi. 2. The Regional Commissioner, Employees Provident Fund Organization, R.Block, Road No.6, Patna- 800001. 3. The Asstt. Commissioner, Employees Provident Fund Organisation, Sub-Regional Office, Adampur Chowk, Bhagalpur. 4. The Recovery Officer, Employees Provident Fund Organization, Sub- Regional Office, Adampur, Chowk Bhagalpur. 5. The Director, Khadi Co-ordination, Khadi and Village Industries Commission, 3 Irla Road, Vile- Parle (West) Mumbai- 400006. 6. The Director, State Office, Khadi & Village Industries Commission, Near B.V.College, Sheikhpura, Patna- 800014. 7. The Khadi Poly Vastra Shilpi Kalyan Aewam Pension Nyas (Trust), Bihar, through its Chairman, Head Office, Sarvoday Gram Muzaffarpur-2, District- Muzaffarpur. 8. The Secretary, Khadi Poly Vastra Shilpi Kalyan Aewam Pension Nyas (Trust) Bihar, Head Office, at present Sarvoday Gram Muzaffarpur-2, District- Muzaffarpur. ----------- For the petitioner:- Mr. Sunil Kumar, Adv. For the E.P.F, respondent nos. 2 to 4:- Mr. R.S. Pradhan, Adv. For the K.V.I.C.:- Mr. Dharmendra Choubey, Adv. 04. 09.08.2011 Heard learned counsels for the petitioner and the respondents. The present writ application has been filed for following reliefs:- 2 (i) for quashing the order dated 18.01.2007, passed by respondent no. 3, as contained in Annexure-5, by which the E.P.F dues amount has been assessed to the tune of Rs. 2,71,753/- under Section 7A and Rs. 29,966/- under Section 7Q of the Employees‟ Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as „the EPF & MP Act‟), with regard to self employed persons i.e., weavers and spinners. (ii) for quashing the order dated 29.03.2007 passed by the respondent no. 3, as contained in Annexure- 7, under Section 7B of the EPF and MP Act. (iii) for quashing the notice of demand dated 07.05.2007 passed by the respondent no.4, as contained in Annexure-8, by which the petitioner has been directed to deposit Rs. 38,315/-. (iv) for quashing the notice dated 14.06.2007 issued by the respondent no.4, as contained in Annexure-9, by which show cause has been asked as to why the warrant of arrest should not be issued. (iv) for issuance of a writ in the nature of mandamus and for direction to the respondent nos. 2, 3 3 and 4 to adjust and return the amount deposited by the petitioner on pressure as assessed/calculated for weavers and spinners who are not the employees of the petitioner‟s establishment. The petitioner is the Secretary of Gram Swarajya Sangh and Organization registered under the Societies Registration Act and certified by the Khadi and Village Industries Commission (hereinafter referred to as „the KVIC‟) The organization works for spreading khadi revolution and functions as per the directions and guidelines issued by the KVIC. The organization is also active in sale and production of Khadi and Village Industries Articles and providing employment and self employment to weavers and spinners (Artisans) and poor persons as per the policy of KVIC. The petitioner organization created a Trust under the Provisions of E.P.F. and M.P. Act, 1952, namely, Gram Swarajya Sangh Kalyankarta Bhavishya Nidhi Trust bearing Registration no. 63/85 to provide fruits of provident fund to the regular employees which was approved by the Employees 4 Provident Fund Organization. The petitioner organization used to file return with regard to the permanent employees, before the respondents and not with regard to weavers and spinners who are self employed persons and with whom the petitioner organization has no Master- Servant relationship, as the self employed persons were provided with the raw materials and after weaving, the final products used to be delivered to the petitioner organization, on which the concerned weavers and spinners used to be paid as per the rates of the payment chart issued by the KVIC. It is further submitted that PF contribution of the regular employees was deducted by the organization but no deduction was made from the remuneration given to the weavers and spinners as there was no direction in this regard. For the welfare of the weavers and spinners, ensuring social security measures “Artisans Welfare Fund Trust” was established in Bihar, named as “Khadi Polyvastra Shilpi Kalyan Aewam Pension Nyas”. On 30.07.2004, the summons were issued to the petitioner for initiation of a proceeding under Section 7A 5 of the E.P.F. and M.P. Act for re-determination of due amount for the period from March, 2003 to July, 2004. The petitioner appeared under an impression that the proceeding relates to the regular employees but when the petitioner organization was asked to submit the list of Weavers and Spinners, the petitioner got shocked and an explanation was submitted that weavers and spinners are not the regular employees, but without considering the same, on 18.01.2004 the assessment was done, which also included the contribution with regard to the weavers and spinners. The petitioner was directed to deposit balance amount, as contained in Annexure-5. Thereafter, the petitioner filed the review under Sub-section (i) of Section 7(B) of the E.P.F & M.P. Act which was rejected on 29.03.2007, as contained in Annexure-7. Thereafter, the recovery proceeding was initiated and vide order dated 07.05.2007 the petitioner was directed to deposit Rs.38,315/-, as contained in Annexure-8, and thereafter on 14.06.2007 the petitioner received the show cause as to why the warrant of arrest should not be issued, as contained in Annexure- 9. 6 It is submitted by the learned counsel for the petitioner that the impugned orders have been passed without considering the explanation submitted by the petitioner and without considering the fact that the weavers and spinners are the self employed persons and they are not the regular employees of the petitioner‟s establishment. Mr. R.S. Pradhan, learned Sr. counsel for the respondent nos. 2 to 4 submits that the order needs no interference and the petitioner has an alternative remedy of appeal but admits that in similarly situated matter where writ application being C.W.J.C. No. 12374 of 2006 (Resham Khadi Seva Udyog Vs. The Regional Commissioner, E.P.F. and others.) was filed without availing alternative remedy, the matter was remanded back to the authorities. The remand order was passed keeping in view that the matter was pending since, 2006. Considering the rival contentions of the parties, this Court is of the view that neither the explanation nor the review were considered by the respondent authorities in its true perspective and contentions of the petitioner also 7 have substance. Moreover, considering the fact that similarly situated organization‟s matter was remanded back to the authorities by this Court, the orders/notice, as contained in Annexure-5, 7, 8 and 9 are hereby quashed and the matter is also remanded back to the respondent authorities for fresh consideration. The petitioner will appear before the authorities concerned within eight weeks from the date of receipt/production of a copy of this order, when the respondent authorities will pass afresh order considering the contentions of the petitioner in accordance with law. Accordingly, the writ application is allowed to the extent as indicated above. Amrendra/ ( Dinesh Kumar Singh, J)