2011 (9) TMI 944

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., and has its own Provident Fund Scheme and is an exempted establishment, under section 17 of the Employees Provident Fund Scheme & Miscellaneous Provisions Act, 1952 [hereinafter referred to as 'Act']. 3.The petitioner availed the services of three security agencies, i.e., Victory Security service, Loyal Security Service and Jayam/Sward Security Service. 4.All the security agencies are independent establishment, carrying on business of providing security service to various establishments. 5.The Victory Security Service and Loyal Security service are registered under the Act, and allotted code No.TN/42886 and TN/29536 respectively. 6.The case of the petitioner is that the code number is allotted only to an independent es....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....not disputed, as under 30 of the Employees Provident Fund Scheme, 1952, it is the duty of the principal employer to recover the contribution, i.e. employer and employees share and deposit it with the Provident Fund Commissioner. In view of the stand taken by the learned counsel for the petitioner, recovery of contribution qua the Jayam/Sward Security Service from the petitioner is upheld, and the petitioner is directed to deposit the contribution within one month of the receipt of certified copy of this order. 12.The learned counsel for the petitioner challenged, the notice of demand with respect to contribution payable by other two security agencies, on the ground that once these contractors were allotted independent code number, the li....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....peration of the scheme is allowed to the principal employer, he is out of the net of the scheme. He is then obliged to set up a trust and maintain the accounts of his employees. Such a literal construction, therefore, naturally leads to the conclusion that the contractors are within the mischief of the scheme. Not having obtained any exemption within the meaning of Sec.17 of the Act, they (the Contractors) are still covered by the scheme and obliged to obtain separate code numbers under the Act and the scheme and deposit the contributions with the authorities under the Act." (Page 540 Para;11)" 14.The learned counsel for the respondents, however, contends, that this judgment will not be applicable to the case of the petitioner, as an ord....