TaxTMI 
TaxTMI 
2006 (2) TMI 634
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....in benefits by way of necessary amendments to Section 16 and the question as to whether any vested right are sought to be affected would arise only when the provisions are given retrospective operation. It was held that the real intention was to deal with the establishments universally on equal footing under the provisions of the Act and, therefore, no exemption whatsoever was intended to be provided in favour of any establishment. On and from date of enforcement of the amended provisions all establishments including the establishments who had enjoyed the benefit of exemption are brought within the purview of the operation of the Act and they in no way alter any of the rights accrued in favour of the writ petitioners' establishments. The factual scenario needs to be noted in brief as the controversy is whether the appellants are entitled to the protection as claimed. At the time of enactment of the Act: Name of the appellant Sri Lakshmi Srinivasa Navya Jute Mills Srinivasa Jute Mills Sitaram Lakshmi Jute Mills Civil Appeal No. 6777/2003 6778/2003 6779/2003 6780/2003 Commencement of infancy period/commercial production November 17, 1995 April 1, 1996 August 19, February 19, ....
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....tive Societies Act, 1912, or under any other law for the time being in force in any State relating to Co- operative Societies, employing less than fifty persons and working without the aid of power; or (b) to any other establishment employing fifty or more persons or twenty or more but less than fifty persons until the expiry of three years in the case of the former and five years in the case of the latter, from the date on which the establishment is, or has been, set up. Explanation: For the removal of doubts, it is hereby declared that an establishment shall not be deemed to be newly set up merely by reason of a change in its location". Section 16 was further amended by the Employees' Provident Funds and Miscellaneous (Amendment) Act, 1988 with effect from 1.8.1988, and Clause (b) of sub-section (1) of Section 16 was substituted by clauses (b), (c) and (d) and the said amendment to Section 16 is as under: "(b) to any other establishment belonging to or under the control of the Central Government or the State Government and whose employees are entitled to the benefit of contributory provident fund or old age pension in accordance with any scheme or rule framed by ....
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....e or necessarily require it, retrospective operation should not be given to a statute so as to take away or impair an existing right or create a new obligation or impose a new liability otherwise than as regards matters of procedure. The general-rule as stated by HALSBURY in Vol. 36 of the LAWS OF ENGLAND (3rd Edn,) and reiterated in several decisions of this Court as well as English Courts is that all statutes other than those which are merely declaratory or which relate only to matters of procedure or of evidence are prima facie prospective and retrospective operation should not be given to a statute so as to affect, alter or destroy an existing right or create a new liability or obligation unless that effect cannot be avoided without doing violence to the language of the enactment. If the enactment is expressed in language which is fairly capable of either interpretation, it ought to be construed as prospective only." A Division Bench of Bombay High Court while considering the earlier amendment to Section 16(1)(d) curtailing the infancy period from 5 years to 3 years, held thus, in Magic Wash Industries (P) Ltd v. Assistant Provident Fund Commissioner, Panaji and Anr. (1999 Lab....
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....ration of any enactment so repealed or anything duly done or suffered thereunder; or (c) affect any right, privilege, obligation or liability acquired, accrued or incurred under any enactment so repealed; or (d) affect any penalty, forfeiture or punishment incurred in respect of any offence committed against any enactment so repealed; or (e) affect any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid; and any such investigation, legal proceeding or remedy may be instituted, continued or enforced, and any such penalty, forfeiture or punishment may be imposed as if the repealing Act or Regulation had not been passed." In terms of Clause (c) of Section 6 as quoted above, unless a different intention appears the repeal shall not affect any right, privilege or liability acquired, accrued or incurred under the enactment repeal. The effect of the amendment in the instant case is the same. It is a cardinal principle of construction that every statute is prima facie prospective unless it is expressly or by necessary implication made to have retrospective operat....