Page 116 - DMGT306_MERCANTILE_LAWS_II

Unit 6: Employees’ Provident Fund Act, 1952

(b) which shall not be less than six months and a fine of five thousand rupees, in any other case: Notes
Provided that the Court may, for any adequate and special reasons to be recorded in the judgment,
impose a sentence of imprisonment for a lesser term.

(1B) An employer who contravenes, or makes default in complying with, the provisions of
section 6C, or clause a of sub-section (3A) of section 17 insofar as it relates to the payment of
inspection charges, shall be punishable with imprisonment for a term which may extend to one
year but which shall not be less than six months and shall also be liable to fine which may extend
to five thousand rupees:
Provided that the Court may, for any adequate and special reasons to be recorded in the judgment,
impose a sentence of imprisonment for a lesser term.

(2) Subject to the provisions of this Act, the Scheme, the Pension Scheme or the Insurance Scheme
may provide that any person who contravenes, or makes default in complying with, any of the
provisions thereof shall be punishable with imprisonment for a term which may extend to one
year, or with fine which may extend to four thousand rupees, or with both.
(2A) Whoever contravenes or makes default in complying with any provision of this Act or of
any condition subject to which exemption was granted under section 17 shall, if no other penalty
is elsewhere provided by or under this Act for such contravention or non-compliance, be
punishable with imprisonment which may extend to six months, but which shall not be less than
one month, and shall also be liable to fine which may extend to five thousand rupees.

Self Assessment

State whether the following statements are true or false:

19 When an employer fails to remit the dues under the Scheme within 15 (20 days with 5 days
grace period) days of the close of each month the employer will be liable, to pay penal
damages as maybe determined by the Regional Commissioner (RC) not exceeding 37% of
the arrears.

20. An employer who contravenes, or makes default in complying with, the provisions of
section 6 or clause a of sub-section (3) of section 17 insofar as it relates to the payment of
inspection charges.



Case Study Union of India & Anr vs Ogale Glass Works
on 1st September, 1971

mployees’ Provident Fund Act, 1952 – Scope of s. 19A of the Act – Whether decision
under s. 19A of the Act by the Central Government is final in the facts and
Ecircumstances of the case. The respondent company was manufacturing various
articles including Lantern and Safety Stoves etc. In November 1952, Employees
Provident Fund Act, was passed and the company was making regular contributions to
the Provident Fund for all employees. After sometime, another establishment which was
carrying on similar business filed a writ petition in Bombay High Court contesting the
claim of the Regional Provident Fund Commissioner that the Act applied to all sections
of the glass works. The Bombay High Court held that the Act and the scheme applied only
to such sections.

Contd....

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