TMI Blog1974 (1) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... a sum of ₹ 1,39,419 .50 being the contribution to the Provident Fund for the months of June, July and August, 1968 and that thereby they had contravened the provisions of Paragraph 38(1) of the Employees' Provident Funds Scheme, 1952, an act punishable under Paragraph 76(a) of the Scheme. 2. An investigation was made into the affairs of the company Under Section 15 of the Industries (Development and Regulation) Act, 1951 and on being satisfied that the company was managed in a manner highly detrimental to public interest, the Government of India issued an order dated January 7, 1972 authorising the Gujarat State Textile Corporation to take over the management of the company. On May 6,1972 the Gujarat Government issued a notific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst the judgment of the High Court. 4. We are concerned in this appeal with the narrow question whether the prosecution pending against the appellants under Paragraph 76(a) of the Employees' Provident Funds Scheme, 1952 is liable to be stayed by virtue of the notification issued by the Government of Gujarat on May 6, 1972. That notification was issued in exercise of the power conferred by Section 4(1)(a)(iv) of the Act, which reads thus: 4. (1) Notwithstanding any law, usage, custom, contract, instrument, decree, order, award, submission, settlement, standing order or other provision whatsoever, the State Government may, by notification in the official Gazette, direct that- (a) in relation to any relief undertaking and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liabilities of such persons themselves. Their obligations and liabilities have to be viewed from a different angle than the obligations and liabilities of the company itself which only acts impersonally. 6. The object of Section 4(1)(a)(iv) is to declare, so to say, a moratorium on actions against the undertaking during the currency of the notification declaring it to be a relief undertaking. By Sub-clause (iv), any remedy for the enforcement of an obligation or liability against the relief undertaking is suspended and proceedings which are already commenced are to be stayed during the operation of the notification. Under Section 4(b), on the notification ceasing to have force, such obligations and liabilities revive and become enforceab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nor can a proceeding already commenced against them in their individual capacity be stayed. Indeed, it would be strange if any such thing was within the contemplation of law. Normally, the occasion for declaring an industry as a relief undertaking would arise, out of causes connected with defaults on the part of its directors and other officers. To declare a moratorium on legal actions against persons whose activities have necessitated the issuance of a notification in the interest of unemployment relief is to give to such persons the benefit of their own wrong. Section 4(1)(a)(iv) therefore advisedly limits the power of the State Government to direct suspension of remedies and stay of proceedings involving the obligations and liabilities i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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