REGISTERED No. D. 221 The Gazette of India EXTRAORDINARY
PART II—Section 1 PUBLISHED BY AUTHORITY No. 45] NEW DELHI, FRIDAY, SEPTEMBER 7, 1973/BHADRA 16, 1895 Separate paging is given to this Part in order that it may be filed as a separate compilation. 19 of 1952. MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS (Legislative Department) New Delhi, the 1th September, 1973/Bhadra 16, 1895 (Saka) The following Act of Parliament received the assent of the President on the 6th September, 1973, and is hereby published for general informa tion: -— THE EMPLOYEES'PROVIDENT FUNDS AND FAMILY PENSION FUND (AMENDMENT) ACT, 1973 No. 40 OF 1973 [6th September 1973] An Act further to amend the Employees' Provident Funds and Family Pension Fund Act, 1952 and to incorporate an explanatory provi sion connected therewith in section 405 on the Indian Penal Code BE it enacted by Parliament in the Twenty-fourth Year of the Republic of India as follows: —
1. (2) This Act may be called the Employees' Provident Funds and Family Pension Fund (Amendment) Act, 1973.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
2. In section 8 of the Employees' Provident Funds and Family Pension Fund Act, 1952 (hereinafter referred to as the principal Act), for the words "be recovered by the appropriate Government", the words "be recovered by the Central Provident Fund Commissioner or such other officer as may be authorised by him, by notification in the Official Gazette, in this behalf,1' shall be substituted.
( 513 ) Short title and commencement. Amendment of section 8. 514 THE GAZETTE OF INDIA EXTRAORDINAKY [PART I I - Amendment of section 11. Amendment of section 14.
3. Section 11 of the principal Act shall be re-numbered as sub-section
(1) thereof, and—
(a) in sub-section (2) as so re-numbered, for the words and figures "section 230 of the Indian Companies Act, 1913", the words and figures "section 530 of the Companies Act, 1956" shall be substituted;
(b) after sub-section (1) as so re-numbered, the following subsection shall be inserted, namely: — "(2) Without prejudice to the provisions of sub-section {1), if any amount is due from an employer in respect of the employee's contribution (deducted from the wages of the employee) for a period of more than six months, the amount so due shall be deemed to be the first charge on the assets of the establishment, and shall, notwithstanding anything contained in any other law for the time being in force, be paid in priority to all other debts.". i. In section 14 of the principal Act,—
(a) after sub-section (1), the following sub-section shall be inserted, namely: — "(1A) An employer who contravenes, or makes default in complying with, the provisions of section 6 or clause (a) of subsection (3) of section 17 in so far as it relates to the payment of inspection charges, or paragraph 38 of the Scheme in so far as it relates to the payment of administrative charges, shall be punishable with imprisonment for a term which may extend to six months, but—
(o) which shall not be less than three months in case of default in payment of the employees' contribution which has been deducted by the employer from the employees' wages;
(b) which shall not be less than one month, in any other case; and shall also be liable to fine which may extend to two thousand rupees:
Provided that the court may, for any adequate and special reasons to be recorded in the judgment, impose a sentence of Imprisonment for a lesser term or of fine only in lieu of imprisonment.";
(b) in sub-secticn (2), for the words "The Scheme1', the words "Subject to the provisions of this Act, the Scheme" shall be substituted;
(c) sub-section (3) shall be omitted. 7 of 1913. 1 of 1956. .'SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY . 515 rS of 1898.
5. After section 14A of the principal Act, the following sections shall .be inserted, namely: — "14AA. Whoever, having been convicted by a court of an offence punishable under this Act, the Scheme or the Family Pension Scheme, commits the same offence shall be subject for every such subsequent offence to imprisonment for a term which may extend to one year but which shall not be less than three months and shall also be liable to fine which may extend to four thousand rupees.
14AB. Notwithstanding anything contained in the Code of Criminal Procedure, 1898 an offence relating +0 default in payment of contribution by the employer punishable under this Act shall be cognizable.
14AC. (1) No court shall take cognizance of any offence punishable under this Act, the Scheme or the Family Pension Scheme except on a report in writing of the facts constituting such offence made with the previous sanction of the Central Provident Fund Commissioner or such other officer as may be authorised by the Central Government, by notification in the Official Gazette, in this "behalf, by an Inspector appointed under section 13.
(2) No court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try any offence under this Act or the Scheme or the Family Pension Scheme.".
6. In section 14B of the principal Act,—
(a) after the words "contribution to the Fund", the words "or the Family Fund" shall be inserted;
(b) for the words "the appropriate Government", the words "the Central Provident Fund Commissioner or such other officer as may be authorised by the Central Government. h:- notification in the 'Official Gazette, in this behalf" shall be substituted:
(c) the words "twenty-five per cent, of" shall be emitted
(d) the following proviso shall be inserted at the end, namely : — "Provided that before levying and recovering such damages, the employer shall be given a reasonable opportunity of being jheard."- Insertion of new-sections 14AA, 14AB and
14AC. Enhanceed punishment In certain cases after previous conviction. Certain offences to be cognizable. Cognizance and trial of offences. Amendment of Bectlon
14B. 5 i 6 THE GAZETTE OF INDIA EXTBAORDINARY [PART II Insertion of new section
14C. Power of court to make orders. Insertion of new-section 17B. Liability in case of transfer of establishment. Amendment of Act 45 of 186ft
7. After section 14B of the principal Act, the following section shall; be inserted, namely: — ''14C. (1) Where an employer is convicted of an offence of making default in the payment of any contribution to the Fund or the Family Pension Fund or in the transfer of accumulations required to be transferred by him under sub-section (2) of section 15 or subsection (5) of section 17, the court may, in addition to awarding any punishment, by order in writing require him within a period specified in the order (which the court may, if it thinks fit and on application in that behalf, from time to time, extend), to pay the amount of contribution or transfer the accumulations, as the case may be,, in respect of which the offence was committed.
(2) Where an order is made under sub-section (1), the employer shall not be liable under this Act in respect of the continuation of the offence during the period or extended period, if any, allowed by the court, but if, on the expiry of such period or extended period, as the case may be, the order of the court has not been fully complied with, the employer shall be deemed to have committed a further offence and shall be punished with imprisonment In respect thereof under section 14 and shall also be liable to pay fine which may extend to one hundred rupees for every day after such expiry on which the order has not been complied with. "
8. After section 17A of the principal Act, the following section shall be inserted, namely: — "17B. Where an employer, in relation to an establishment, transfers that establishment in whole or in part, by sale, gift, lease or licence or in any other manner whatsoever, the employer and the person to whom the establishment is so transferred shall jointly and severally be liable to pay the contribution and other sums due from the employer under any provision of this Act or the Scheme or the B amily Pension Scheme, as the case may be, in respect of the period up to the date of such transfer:
Provided that the liability of the transferee shall be limited to the value of the assets obtained by him by such transfer.".
9. To section 405 of the Indian Penal Code, the following Explanation shall be added, namely: — "Explanation.—A person, being an employer, who deducts the employee's contribution from the wages payable to the employee for credit to a Provident Fund or Family Pension Fund established Sue. 1] THE GAZETTE OF INDIA EXTRAORDINARY 517 by any law for the time being in force, shall be deemed to have been entrusted with the amount of the contribution so deducted by him and if he makes default in the payment of such contribution to the said Fund in violation of the said law, shall be deemed to have dishonestly used the amount of the said contribution in violation of a direction of law as aforesaid.". K. K. SUNDARAM, Secy, to the Govt, of India. PRINTED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS. DELHT, 1973 T. • I !•'.:n'.•',.( \ .'1 • • i • ' .' ' / , [ - : i f ' i ; ,>i • :