In Brief
A registered society operating 29 grant-in-aided schools employed 16 part-time librarians working 18 hours weekly. The Provident Fund Commissioner demanded contributions under the Central Employees' Provident Funds Act, 1952. The Supreme Court held that as the schools were 100% grant-in-aided and under State control, governed by State provident fund rules, the entire establishment qualified for exemption under Section 16(1)(b) of the Central Act. Since part-time employees doing less than full-time work were ineligible under State rules (which applied to the establishment), the State's exemption covered all employees. The Court set aside recovery proceedings, holding that once an establishment is exempt, Central Act authorities cannot selectively proceed against it for particular employees.
The lawyer headnote and full judgment text are available to registered users.