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Supreme Court of India 2019-09-12

M/S SHREE VISHAL PRINTERS LTD. ETC. ETC vs REGIONAL PROVIDENT FUND COMMISSIONER

Bench: 2 — Sanjay Kishan Kaul, K.M. Joseph

In Brief

Three printing and media companies claimed exemption under the Employees' Provident Funds Act as newly established units. The Court held they were not entitled to exemption because, despite being separate legal entities with different shareholders and directors, they demonstrated functional integrality with Bennett Coleman & Company Limited (BCCL), which published newspapers and relied on them for office space, personnel, and printing services. The Court applied the established test of functional interdependence rather than mere legal separation, holding that separate entities operating in functional integration cannot evade provident fund obligations by claiming new establishment status. All three appeals were dismissed with costs.", <parameter name="subject_tags">["Provident Fund Law", "Labour Law", "Statutory Interpretation", "Establishment Definition", "Social Security", "Employment Law", "Statutory Exemptions", "Functional Integrality Test", "Corporate Structure"]

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