2011 (6) TMI 1007 - HC - Indian Laws

Court dismisses employer's petition challenging allowance treatment, directs compliance with EPF Act, stresses cooperation with proceedings.

The Management of Alpha Instruments Versus The Enforcement Officer, Employees' Provident Fund Organisation, The Assistant Provident Fund Commissioner, Employees' Provident Fund Organisation, Coimbatore

The court dismissed the writ petition filed by the employer challenging the treatment of allowances under Group Organisation Development as basic wages. ... - Issues involved:Challenge to order of first respondent and consequential order of second respondent regarding Group Organisation Development Reward payment contribution.Details of the judgment:The petitioner, an employer, challenged the orders of the first and second respondents regarding the treatment of allowances paid under Group Organisation Development as basic wages. The petitioner's case highlighted the composition of wages, with a portion allocated to allowances not attracting contributions towards PF, bonus, and gratuity. The respondents directed the petitioner to attend an enquiry and submit necessary registers for calculation of arrears related to the Group Organisation Development reward.The court emphasized that no final order had been passed, and the petitioner must comply with the department's orders before seeking intervention. The determination of whether the Group Organisation Development payment constitutes basic wage under the PF Act was deemed a question of both law and fact to be decided by the authorities. The court cited precedents emphasizing that settlements between parties cannot override statutory obligations, and the authorities have the power to determine such issues based on available materials.The judgment referred to various legal precedents, including decisions by the Supreme Court and the Bombay High Court, highlighting the authority of quasi-judicial bodies to determine issues related to wage components. It was noted that the petitioner could seek review and appeal under the EPF Act if aggrieved by an order passed under Section 7A. The court stressed the importance of availing remedies provided under the Act rather than bypassing them through writ jurisdiction.Additionally, the judgment referenced cases related to other statutes like the SARFAESI Act and ESI Act, emphasizing the availability of statutory remedies and the need for caution in invoking writ jurisdiction. The court dismissed the writ petition, directing the petitioner to cooperate with the second respondent's proceedings for the proper determination of the issue, without imposing any costs.Separate Judgment by Judges:No separate judgment was delivered by the judges in this case.