Sayaji Mills Ltd. v. Regional Provident Fund Commissioner
Case brief
What is this about?
Scope of 'infant factory' exemption under Section 16(1)(b), Employees' Provident Funds and Miscellaneous Provisions Act, 1952: three-year exemption period counts from the date the factory was first established, not from the date the contributing employer acquired title; purchase of a closed factory from the Official Liquidator in winding up, temporary stoppage of production pursuant to a winding-up order, change of ownership, investment of fresh capital, renovated machinery, new licence, diversified products and re-employment of 70% of the old workmen on fresh contracts do not extinguish the old factory or create a new factory, nor revive exemption; strict construction of exemption clauses in beneficent labour legislation implementing Article 43 of the Constitution; constructions facilitating evasion avoided; Lakshmi Rattan Engineering Works [1966] 1 LLJ 741 (SC) reiterated; Chagganlal Textile Mills (Bom) followed; Bharat Board Mills AIR 1957 Cal 702, Vegetable Products AIR 1959 Cal 783, Jamnadas Agarwala AIR 1963 Cal 513, Robindra Textile Mills AIR 1958 Punj 55, Hindustan Electric AIR 1959 Punj 27, R.L. Sahni AIR 1966 Mad 416, Kunnath Textile AIR 1959 Ker 3, New Ahmedabad Bansidar Mills AIR 1968 Guj 71 approved; Provident Fund Inspector Trivandrum (1970) 2 SCR 481 and Vithaldas Jagannathdas AIR 1965 Mad 508 distinguished on facts; civil appeal dismissed with costs.