UNION OF INDIA AND ANR.versusM/S. MURUGAN TALKIES

A                         UNION OF INDIA AND ANR.
                                    v.
                          MIS. MURUGAN TALKIES

                              DECEMBER 12, 1995

B               (K. RAMASWAMY AND B.L. HANSARIA, JJ.]

          Labour laws :

          Cine Workers and Cinema Theatre Workers (Regulation of Employ-
C ment) Act, 1981 : Sections 24 and 25.
           Provident FwuJ-Share of contribution-Workmen and theater owners
    directed to deposit their share of contribution to provident fund from date of
    filing writ petitions in High Court-Providellt Fund Act, 1952.

D         The respondent challenged before the High Court the validity or
    Sections 24 and 25 or Cine Workers and Cinema Theatre Workers (Regula·
    tion or Employment) Act, 1981 and the notification of Ministry or Labour,
    Government or India. The High Court while upholding validity of the Act
    had given relief to the respondent to pay its share or the contribution to
    the provident fund w.e.r the date of jndgment. Aggrieved by the High
E   Court's judgment the appellants preferred the present appeal.

           On behalf or the respondent it was contended that some workmen
    had retired and it would be inequitable to ueduct their share or contribu-
    tion from their meagre wages with retrospective period.

F         Disposing of the appeal, this Court

         HELD : 1.1. Since some or the workmen have already retired and
    deduction from date of enforcement of the notification would cause great
    hardship to some existing workmen, they cannot be made to bear the
G   burden of their contribution with retrospective effect. [620-C]

           1.2. As regards the liability of the owners of the theatres who ap-
    proached the High Court, the operation of the notification was stated at
    their instance. The High Court was wholly unjustified in granting the same
    relief to these owners/licencees. After their writ petitions were dismissed,
H   they were to bear the liability from the date on which the respective owners
                                          618
                      U.0.1. v. MURUGANTALKIES                           619

of the theatres or the licencees, who had filed the writ petition in the High A
Court, are made liable to deposit their share of contribution towards
provident fund account under the scheme. [620-E]

      District Exhibitors Association, Muzaffarnagar & Ors. v. Union of India
& Ors., [1991] 3 SCC 119, relied on.
                                                                                B
      2. The respondent and all the theatre owners are directed to deposit
their share of contribution to the provident fund account from the respec-
tive date on which they filed the writ petition in the High Court The
appellants should intimate all of them the date on which they had filed the
writ petitions and call upon them to pay their share of contribution.
                                                                   [620-G]
                                                                                c
        CIVIL APPELLATE JURISDICTION: Civil Appeal No. 9407 of
1995.

     From the Judgment and order dated 24.11.94 of the Madras High
Court i" ·.v.P. No. 12533/86.                                      D
        T.C. Sharma and C.V.S. Rao for the Appellants.

        K.M. Vijayan and K.V. Mohan for the Respondents.

        The following Order of the Court was delivered :                        E
       This appeal by special leave arises from the judgment of the Division
Bench of the Madras High Court in W.P. No. 12533/86 dated November
24, 1994. The respondent and others challenged the validity of Sections 24
and 25 of Cine Workers and Cinema Theatre Workers (Regulation of
Employment) Act (50 of 1981)(for short 'the Act') and the notification of       F
Government of India bearing No. 35016 issued by Ministry of Labour on
April 30, 1986. The Division Bench while upholding the validity of the Act
has given relief to the respondent to pay their share of the contribution
w.e.f. the date of judgment dated November 24, 1994.

        The Union of India has filed this appeal. The controversy is no longer G
res integra. This Court in District Exhibitors Association Muzffamagar & Ors.
v. Union of India & Ors., [1991] 3 SCC 119 upholds the validity of the
provisions and the rules. However, it was held that the employer's contribu-
tion should be made effective from the date of the order setting aside the
retrospective operation of the notification. It can thus be concluded that H
    620                  SUPREME COURT REPORTS (1995] SUPP. 6 S.C.R.

A from the date of the notification the owners of the Cinema Theatre are
    liable to contribute their share and also entitle to deduct from the wages
    of the workmen towards their share of provident fund and to have it
    credited to the account maintained by the appropriate authority in that
    behalf.

B         It is contended for the respondents that the High Court has granted
    the relief taking into consideration that some workmen had retired and it
    would be inequitable to deduct from the meagre wages of existing
    employees with retrospective period. Therefore, the High Court directed
    deduction of their share from the date of the judgment. It is needless to
C   mention that since some of the workmen have already retired and from
    some existing workmen deduction from date of enforcement of the notifica-
    tion would cause great hardship to them, so it cannot be made to bear the
    burden of their contribution with retrospective effect from the date of the
    notification towards their share of contribution.

D
            To that extent, the order of the High Court is upheld. As regards the
    liability of the owners of the theaters who approached the High Court, the
    operation of the notification had stayed at their instance. We find that High
    Court was wholly unjustified in granting the same relief to these
    owners/licencees. After their writ petitions were dismissed, they were to
E   bear the liability from the date of the enforcement for the notification as
    held by this Court. It is, therefore, necessary that from the date on which
    the respective owners of the theaters or the licencees, who had filed the
    writ petition in the High Court, ar~ :;a!,!;: to deposit their share of con-
    tribution towards provident fund account under the scheme.
F
          We are issuing the order under Article 142 of the Constitution. The
    order of the High Court lo that extent is set aside. The respondent and all
    the theaters owners are directed to deposit their share of contribution to
    the provident fund account from the respective dates on which they filed
    the writ petitions in the High Court. The appellants should intimate all of
G   them the date on which they had filed the writ petitions and call upon them
    to pay their share of contribution.

          The appeal is accordingly allowed to above extent. No costs.

    v.s.s.                                                      Appeal allowed.