EPF Act Can Be Applied Even To Factories Not Engaged In Schedule 1 Industries: Supreme Court Rejects Plea Of Umbrella Making Unit



Coram: Justice Abhay S Oka and Justice Sanjay Karol

Case no.: CIVIL APPEAL NO. 4619 OF 2010

Court Observation: “We are dealing with a social welfare legislation described by the Constitution Bench as a measure of social justice. Therefore, to give effect to the legislature’s intention, the Court will have to adopt a purposive interpretation. We, therefore, reject the contention that all factories which are not covered by industries in Schedule I are out of the coverage of clause (b)”.

“Clause (a) of sub-Section (3) is applicable only to those factories engaged in any industry specified in Schedule I. Clause (b) of sub-Section (3) is applicable to all other establishments which are not covered by clause (a) of subSection (3) provided such establishments are notified by a notification issued by the Central Government which is published in the official Gazette. Clause (b) of sub-Section (3) takes within its fold all establishments which are not covered by clause (a). Therefore, a notification under clause (b) can be issued in respect of factories engaged in any industry which is not specified in Schedule I”.

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