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(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 contractor shall recover the contribution
payable by such employee (in this Scheme referred to as the
member's contribution) and shall pay to the principal employer
the amount of member's contribution so deducted together with
an equal amount of contribution (in this Scheme referred to as
the employer's contribution) and also administrative charges.
(3) It shall be the responsibility of the principal employer to pay

both the contribution payable by himself in respect of the
employees directly employed by him and also in respect of the
employees employed by or through a contractor and also
administrative charges.
Explanation: For the purposes of this paragraph the expression

"administrative charges" means such percentage of the pay
(basic wages, dearness allowance, retaining allowance, if any,
and cash value of food concessions admissible thereon) for the
time being payable to the employees other than an excluded
employee, and in respect of which Provident Fund Contribution
are payable as the Central Government may, in consultation
with the Central Board and having regard to the resources of
the Fund for meeting its normal administrative expenses, fix…”
85. Sub Clause (3) of the above stated Clause 30 of the Scheme, 1952,
particularly casts an obligation upon the principal employer to pay both the
contribution payable by itself in respect of the employees directly employed
W.P.(C) 8237/2014 & 17 other connected matters Page 42 of 61

98
by it and also in respect of the employees employed by or through a

contractor. Also, Clause 36 of the Scheme, 1952 further imposes duty upon
the employer to prepare a contribution card in terms of Form 3 or Form 3A.
86. Form 3A and Form 6A as per Scheme, 1952 and the Employees‟
Pension Scheme 1995 at Clause 19, is filed by the employers to bring on
record the details of contribution towards the EPF dues. The data submitted
therein includes account number, name of the subscriber, name and address
of the factory/establishment, statutory rate of contribution etc.
87. The respondent RPFC has filed a letter dated 9th January, 1986 which
is appended as Annexure –II with the counter affidavit. The relevant extract
of the same is as under:
“..(i) The provisions of the EPF Act, 1952 without any
exemption are implemented.
(iii) Whenever a contractor is appointed in future [including in

the case of present contractors), details of period of contract
employees/labourers employed by the contractor alongwith
details of their date/s of appointment etc. be obtained and
furnished to concerned EPFO. In case of existing contractors,
this information should be furnished to concerned EPFO before
28.2.1986.
***
(v) Contractor's labour wages should be got disbursed in the
presence of Assistants Manager (Depot) concerned as
envisaged in. the contract terms and after making necessary
deductions towards the employees/contributions from the wages
of employees/labourers and sent to RPFC concerned alongwith
the employers' [contractors] contributions. Such remittance to
the RPFC should be accompanied by the schedule containing

99
name of the employees, his/her individual Provident Fund

account No. if any, the date of his initial appointment etc.
(vi) As the provisions of EPF are statutory and Corporation

being the Principal employer,; SRM/RM/JM [FQ] concerned
may immediately direct District Manager's concerned to
implement the provisions of the EPF Act, which have also been
included in the tender documents and keep on reviewing the
position on a monthly basis without fail…”
88. The above stated letter dated 9th January, 1986 was issued by Food
Corporation of India, Head Quarters, New Delhi to all the Senior/Regional
Manager/Joint Managers of FCI. Upon perusal of the above mentioned
clauses of the letter, it is observed that FCI had stated itself to be the
principal employer and mentioned that it is the duty of FCI to pay the
contribution in terms of the Act.
89. In view of the express provisions under CLRA and Schemes framed
thereunder, this Court is of the view that the petitioner being the principal
employer is liable to pay the EPF dues and it cannot shy away from its
obligations.
90. With regard to the other limb of the petitioner‟s arguments, it has been
submitted that the learned Appellate Tribunal failed to appreciate that the
respondent RPFC did not discharge its statutory duties conferred under Sub
Section (2) of Section 7-A of the Act to ensure the appearance of the
contractors for the identification of the workers to whom the EPF dues are to
be disbursed eventually. The same is against the statutory provisions as well

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97

(2) In respect of employees employed by or through a

(3) It shall be the responsibility of the principal employer to pay

Explanation: For the purposes of this paragraph the expression

W.P.(C) 8237/2014 & 17 other connected matters Page 42 of 61

by it and also in respect of the employees employed by or through a

(iii) Whenever a contractor is appointed in future [including in

W.P.(C) 8237/2014 & 17 other connected matters Page 43 of 61

name of the employees, his/her individual Provident Fund

(vi) As the provisions of EPF are statutory and Corporation

W.P.(C) 8237/2014 & 17 other connected matters Page 44 of 61

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