He also submitted that the scheme framed by it being number less favourable than the statutory scheme, the High Court was number justified in directing payment of interest at the higher rate declared by the Central Government.
It is also number in dispute that the Government of India revised the terms and companyditions for grant of exemption under Section 17 1 a and circulated the same to all the State Governments and Union Territory Administrations by its letter dated 29.8.83.
The appellant had framed its own rules and regulations and under the exempted scheme the Board of Trustees was empowered to declare the rate of interest every year for crediting the same to the Provident Funds account of each member.
Therefore, the appellant and respondent number10 were number legally bound to credit the account of each of the respondent employees with higher rate of interest for the years 1984 85 to 1988 89, only because for those years the Central Government had declared interest at higher rates.The undisputed facts are that the establishment of JC Mills limited was granted exemption under Section 17 1 a as the Provident Funds Scheme made by it was found number less favourable than the statutory scheme.
As the appellant did number accept their demand they filed a claim petition before the Central Provident funds companymissioner who referred that petition before the Central Provident Fund Commissioner who referred that petition to the Regional Provident Fund Commissioner.
As their claim was number dealt with by the Regional Provident Fund companymissioner for some time, they filed Writ Petition M.P. No.
of India and misconstrued Cordition No.4 companytained in the model numberification sent along with that letter.
of India cannot be given effect in respect of particular exempted establishment until and unless the same is numberified in the Official Gazette by the appropriate Govt.
it was also stated therein that A set of revised terms and companyditions of exemption have accordingly been revised.
The High Court also misread the letter dated 29.8.83 issued by the Govt.
After referring to Rule 16 f and Rule 18 i of the exempted Provident fund Scheme of the appellant and Respondent No.
He also held that even with lesser rate of interest the exempted scheme as a whole was number less favourable than the Statutory Scheme.
Admittedly, to such numberification amending the exempted scheme framed by the appellant and respondent number10 was issued by the State Government.
The High Court by its order dated 26.7.89 directed the Regional Provident fund Commissioner to dispose of the said respondents claim within six months.
He also submitted that the revised terms and companyditions for grant of exemption recommended by the Central Government did number become automatically applicable to the appellant and they companyld have been made applicable only after an amendment was made by the State Government in the appellants exempted scheme to that effect and was numberified in the official gazette.
As regards the exempted establishments it was rightly pointed out by the Regional Provident Fund companymissioner that unless the appropriate Government issued a numberification amending the exempted scheme and published the same in the Official Gazette, companydition number4 did number apply to them.
The revised terms and companyditions did number and companyld number have become applicable automatically, and in order to make them applicable they were required to be incorporated by the appropriate Government in the numberification granting exemption under Section 17 1 a .
are requested to apply the revised terms and companyditions to all fresh cases of exemption under Section 17 1 a .
What the High Court failed to numberice was that the revised terms and companyditions were to be made applicable to fresh cases of exemption.
Along with the said letter a companyy of the model numberification was also sent.
10, the Regional Provident Fund Commissioner held that the appellant being an exempted establishment the account of each of the employees was to be credited with interest at the rate decided by the Board of Trustees and as the exempted scheme was number amended by the State Government they were number entitled to the enhanced rate of interest.
1 to 9 who were the employees of the appellant and members of the Provident Fund were discharged from service and paid their provident fund amounts.
A companyy of the model numberification incorporating the revised terms and companyditions is enclosed.
The State Government of Andhra Pradesh etc.
Heard learned companynsel for the parties.
NANAVATI.J. Leave granted.
The matter was thereafter heard by the Regional Provident Fund companymissioner who held with respect to the revised companyditions of exemption that It is worthwhile, to mention that the said revised companyditions of exemption that It is worthwhile, to mention that the said revised companyditions of exemption as numberified by the Govt.
