Section 7A inquiry requires the Provident Fund authority to gather relevant evidence before fixing employer liability.

In a section 7A inquiry under the Employees' Provident Funds and Miscellaneous Provisions Act, the statutory authority must use its civil court-like powers to collect relevant evidence, including summoning persons and records needed to determine the employer's actual liability. Where the employer seeks production of contractors' records or other material necessary to identify workmen and dues, the Commissioner cannot decline to exercise those powers and decide the matter on incomplete, one-sided material. Failure to do so amounts to an improper exercise of jurisdiction. The Supreme Court held that the Commissioner had to consider the relevant evidence before determining the amount payable and remitted the matter for fresh decision.

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Issues: Whether, in an inquiry under section 7A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the Provident Fund Commissioner was bound to exercise his statutory powers to collect relevant evidence and summon the contractors' records before determining the amount payable by the employer.

Analysis: The inquiry under section 7A confers powers analogous to those of a civil court, including enforcing attendance, examining persons on oath, and requiring discovery and production of documents. The statutory purpose is to determine actual liability on the basis of concrete material identifying the workmen and the dues payable. Where the employer requests the summoning of relevant persons and records, the authority cannot decline to exercise those powers and base the determination only on limited material supplied by one side. Failure to do so amounts to not properly exercising the jurisdiction vested in the statutory authority.

Conclusion: The Commissioner was required to collect and consider the relevant evidence before making the determination, and the contrary view was not sustainable. The appeal succeeded and the matter was remitted for fresh decision in accordance with law.

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