Provident Fund - The Legal Chamber

This Supreme Court judgment addresses contempt proceedings for non-compliance with a prior Supreme Court order modifying an industrial tribunal award. The Court appoints an auditor to resolve wage calculation discrepancies, assess excess payment recoveries, and determine statutory gratuity interest. It refrains from intervening in a separate High Court matter concerning provident fund dues, affirming the High Court's competence on that issue. Facts Of The Case: The contempt petition arose from the Brihanmumbai Municipal Corporation's (BMC) non-compliance with a Supreme Court judgment dated April 7, 2017. That judgment had modified an Industrial Tribunal award, which originally directed the BMC to grant permanent status and retrospective benefits to approximately 2,700 sanitation workers ...

The Supreme Court declined to initiate contempt proceedings, finding the delayed payment of dues, while a violation, was not wilful. It reinforced that contempt jurisdiction cannot be used to adjudicate new claims like pension, which were not part of the original decree. The Court, however, awarded compensatory costs for the protracted litigation. Facts Of The Case: A.K. Jayaprakash, a manager at Nedungadi Bank Ltd., was dismissed from service in 1985 on grounds of alleged irregularities in sanctioning loans and delays in reporting. He challenged this dismissal under the Tamil Nadu Shops and Establishment Act, 1947. The Deputy Commissioner of Labour initially set aside the dismissal and ordered his reinstatement. This decision was repeatedly challenged by the Bank, first in the Madras Hi...

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Supreme Court Directs Independent Officer to Verify Arrears, Stop Illegal Recoveries from Workers

Supreme Court: Delayed Payment Not Always Contempt, But Bank Must Pay for Protracted Litigation