Landmark Supreme Court Judgment on Provident Fund Act
In a landmark judgment, the Supreme Court ruled that "When two establishments are run by the same family under common management with a common workforce and financial integrity, they are to be treated as branches of one establishment for the purposes of the Provident Fund Act."
In the appeal case L.N. Gadodia & Sons & ANR. Vs. Regional Provident Fund Commissioner, the firm argued that the authorities had clubbed two establishments as one and demanded provident fund contributions from both. It argued that they were in separate business enterprises and registered as separate private limited companies.
However, the Delhi High Court and the Supreme Court accepted the contention of the PF Commissioner that they were not separate entities. They stated that the tests in such cases were whether there was unity of ownership, unity of management and control, unity of finance, unity of labor, and unity of functional integrity.
Regards,
Kamal
From India, Pune
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177In a landmark judgment, the Supreme Court ruled that "When two establishments are run by the same family under common management with a common workforce and financial integrity, they are to be treated as branches of one establishment for the purposes of the Provident Fund Act."
In the appeal case L.N. Gadodia & Sons & ANR. Vs. Regional Provident Fund Commissioner, the firm argued that the authorities had clubbed two establishments as one and demanded provident fund contributions from both. It argued that they were in separate business enterprises and registered as separate private limited companies.
However, the Delhi High Court and the Supreme Court accepted the contention of the PF Commissioner that they were not separate entities. They stated that the tests in such cases were whether there was unity of ownership, unity of management and control, unity of finance, unity of labor, and unity of functional integrity.
Regards,
Kamal
From India, Pune
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Dear Kamal, Do you have any supporting annexure from supreme court in the subject matter if any, please enclosed Regards Ravi Rudra Singh
From India, Dehra Dun
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From India, Dehra Dun
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I am adding a few more files on the clubbing of establishments for EPF coverage. I request the members to go through them and add a few more valuable points on this issue for the benefit of our fellow members.
With warm regards,
S. Sethupathy
Excellent HR Services
From India, Coimbatore
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With warm regards,
S. Sethupathy
Excellent HR Services
From India, Coimbatore
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Provident Fund Act.ppt
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952 [Compatibility Mode].pdf