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2018 (9) TMI 2045 - HC - Indian LawsEntitlement to the benefit of Provident Fund as per the Act and the statutory scheme - members of the Petitioner and other similarly situated employees, employed on contract basis - HELD THAT:- A conjoint reading of Sections 16 and 17 of the PF Act discloses that the provisions of the Act do not apply to an establishment which is belonging to or under the control of the Central or State Government and whose employees are entitled to the benefit of a contributory Provident Fund or old age pension in accordance with the scheme. An establishment can be exempted by the appropriate Government if the employees of the said establishment are in enjoyment of a Provident Fund Scheme which is not less favourable than the one under the PF Act. In the instant case, it is required to be noted that the shareholding to the extent of 51% is that of the Central Government and to the extent of 49% is that of the ONGC. The affairs of the Respondent No.1 are regulated and controlled by its Memorandum and Articles of Association. The affairs of the Respondent No.1 are managed by the Board of Directors and that the Board of Directors functions independently and not at the behest or directions or control of the Central Government - It is questionable whether the Respondent No.1 would classify as an airline owned or controlled by the Central Government. In the matter of application of the PF Act which is undoubtedly a social welfare legislation, a liberal interpretation is required to be adopted so as not to deprive the benefit of the said social welfare legislation to the employees like the members of the Petitioner Union. Since Section 16(1)(b) excludes an employee who has the benefit of a Provident Fund Scheme whose terms and conditions are not less favourable than the one available under the PF Act. The contract employees of the Respondent No.1 cannot be denied the benefits of the Provident Fund on both counts i.e. on the ground that they are ineligible as they are the employees of the airline controlled by the Central Government and to the benefits of the Scheme under the Trust Regulations on the ground that they are contract employees - such an interpretation would result in gross injustice to the members of the Petitioner Union and other similarly situated as them who are working in the Respondent No.1 and who as indicated have put in more than 20 years of service with the Respondent No.1. It is directed that the benefits under the PF Act be extended to the members of the Petitioner Union who are working on contract basis with the Respondent No.1 and other similarly situated be extended latest by 31st December 2018 - petition allowed.
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