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TMI Blog1999 (12) TMI 770X X X X Extracts X X X X X X X X Extracts X X X X ..... , who was a member of the Provident Fund Scheme, applied to the Regional Provident Fund Commissioner for the payment of his provident fund on 15-7-1992. It was found that the application filed was not complete as required by para 72(5)(d) of the Provident Fund Scheme applicable in the case. The appellant forwarded the application to the respondent's employer for verification in terms of the said para. The Inspector of the appellant is also stated to have visited the factory, where the respondent-employee was working, to impress upon the employer to expedite verification of the application. The appellant's Area Inspector is stated to have personally gone to the factory on 19-8-1992 and obtained the verification application. The claim of the respondent was settled on 24-8-1992. However, the respondent filed a complaint before the District Consumer Disputes Redressal Forum, Faridabad ('the District Forum') on 26-8-1992 alleging deficiency in service of the appellant and claimed damages to the tune of Rs. 65,000 along with cost for the alleged delay in payment of his provident fund. The appellant raised a preliminary objection regarding the jurisdiction of the District Forum on the gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging or both, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge of under a contract of personal service." 5. The definition of consumer is wide and covers in its ambit not only the goods but also services, bought or hired, for consideration. Such consideration be paid or promised or partly paid or partly promised under any system of deferred payment and includes any beneficiary of such person other than the person who hires the services for consideration. The Act is aimed to protect the interests of a consumer as understood in commercial sense of the term as 'purchaser of goods' and in larger sense 'user of services'. The important characteristic of goods and service under the Act is that such goods are supplied at a price to cover the costs which consequently result in profit or income to the seller of goods or provider of service. The definition excludes a person who obtains such goods for re-sale or for any commercial purposes. However, the services hired fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rowing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.' It was, therefore, urged that the applicability of the Act having been confined to movable goods only a complaint filed for any defect in relation to immovable goods such as a house or building or allotment of site could not have been entertained by the Commission. The submission does not appear to be well founded. The respondents were aggrieved either by delay in delivery of possession of house or use of substandard material etc. and therefore they claimed deficiency in service rendered by the appellants. Whether they were justified in their complaint and if such act or omission could be held to be denial of service in the Act shall be examined presently but the jurisdiction of the Commission could not be ousted (sic merely) because even though it was service it related to immovable property." and while dealing with the meaning of the word 'service' this Court held : "The main clause itself is very wide. It applies to any service made available to potential users. The words 'any' and 'potential' are significant. Both are of wide ampli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as under : '"services" means service of any description which is made available to potential users and includes the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging or both, housing construction, entertainment, amusement or the purveying a news or other information, but does not include the rendering of any service free of charge or under a contract of personal service.' A reading of the definition would indicate that the services contemplated thereunder alone are the services within the meaning of the Act except excluded services mentioned thereunder. The excluded services are 'service free of charge or under a contract of personal service.' The concept of contract of personal service was considered in a recent judgment of this Court in Indian Medical Assn. v. V.P. Shantha JT 1995 (8) SC 119. This Court had held therein that the expression 'personal service' has a well-known legal connotation and has been construed in the context of the right of seek enforcement of such a contract under the Specific Relief Act, 1963. For that purpose, a contract of personal service has been he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heme framed under sub-section (1) may provide that any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in this behalf in the Scheme." Section 5(d) authorises the Central Government to appoint a Central Provident Fund Commissioner who is the Chief Executive Officer of the Central Board constituted under section 5(a). Section 6 provides that the contributions to the Scheme shall be made by the employer to the fund at the rates specified therein from the wages of the employee along with his own equal contribution. In exercise of the powers conferred by section 5 of the Provident Fund Act, the Central Government framed Employees Provident Fund Scheme, 1952. Para 30 of the Scheme provided : "Payment of contributions.-(1) The employer shall, in the first instance, pay both the contribution payable by himself (In this Scheme referred to as the employer's contribution) and also, on behalf of the member employed by him directly or by or through a contractor, the contribution payable by such member (in this Scheme referred to as the member's contribution). (2) In respect of employees employed by or through a contractor, the cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ysed in depth, is without substance and, if accepted, is likely to defeat the purpose and object of the Act as also the scheme framed under it. The word 'consideration' has not been defined either under the scheme or the Act. Black's Law Dictionary defines 'consideration' thus : Consideration is not to be confounded with motive, consideration means something which is of value in the eye of the law, moving from the plaintiff, either or benefit of the plaintiff or of detriment to the defendant. In volume 17 of Corpus Juris Secundum (pp. 420-421 and 425) the import of 'consideration' has been described thus : Various definitions of consideration are to be found in the textbooks and judicial opinions. A sufficient one, as stated in Corpus Juris and which has been quoted and cited with approval is, "a benefit to the party promising, or a loss or detriment to the party to whom the promise is made. . . ." At common law every contract not under seal requires a consideration to support it, that is as shown in the definition above, some benefit to the promisor, or some loss or detriment to the promisee. . . . There is a sufficient consideration for a promise if there is any benefit to the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the employee has to be equal to the contribution payable by the employer in respect of such employee. The words 'in respect of' are significant as they indicate the liability of the employer to pay his part of the contribution in consideration of the employee working with him. But for the employment of the employee there is no obligation upon the employer to pay his part of the contribution to the scheme. The administrative charges, as required to be paid under para 30 of the scheme are also paid for consideration of the employee being the member of the scheme. It is immaterial as to whether such charges are deducted actually from the wages of the employee or paid by his employer in respect of the employee-member of the scheme working for such employer. The administrative charges are further required to be determined having regard to the basic wages, the dearness allowance, retaining allowance, if any, and cash value of food concessions admissible thereon for the time being payable to the employee. If the contention of the appellant is accepted that as no part of the administrative charges are deducted from the actual wages of the employee, he cannot be deemed to be hiring the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowance, travelling and compensatory allowances, gratuities and compassionate allowances, pensions, contributions to provident fund and other benefit fund instituted for the officers and employees of the Central Board, the cost of audit of the accounts, legal expenses and cost of all stationery and forms incurred in respect of the Central Board, cost and all expenses incurred in connection with the construction of office and staff quarters shall be met from the Administration Account of the Fund. The member of the scheme is entitled only to the interest determined as per para 60. Chapter VIII deals with nominations, payments and withdrawals from the fund. 11. We cannot accept the argument that the Regional Provident Fund Commissioner, being Central Government, cannot be held to be rendering 'service' within the meaning and scheme of the Act. The Regional Provident Fund Commissioner, under the Act and the scheme discharges statutory functions for running the scheme. It has not, in any way, been delegated with the sovereign powers of the State so as to hold it as a Central Government, being not the authority rendering the 'service' under the Act. The Commissioner is a separate and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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