SC allows clubbing of two establishments as one for the purposes of the PF as there was unity of ownership, management, control, finance, labour and functional integrity
In a landmark judgement the Supremem Court ruled that "When two establishments are run by the same family under a common management with common work force and with financial integrity, they are expected to be treated as branches of one establishment for the purposes of the Provident Fund Act".
In 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 contribution 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. It said that the tests in such cases was whether there was unity of ownership, unity of management and control, unity of finance and unity of labour and unity of functional integrity.
Regards,
Kamal
From India, Pune
173In a landmark judgement the Supremem Court ruled that "When two establishments are run by the same family under a common management with common work force and with financial integrity, they are expected to be treated as branches of one establishment for the purposes of the Provident Fund Act".
In 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 contribution 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. It said that the tests in such cases was whether there was unity of ownership, unity of management and control, unity of finance and unity of labour and unity of functional integrity.
Regards,
Kamal
From India, Pune
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
From India, Dehra Dun
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