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Oswal Petrochemicals Vs. Union of India and ors. WP (C) 3237 of 2010

Date : 24/07/2012

This petition was filed by Oswal Petrochemicals in the Delhi High Court against the order of the Employees Provident Fund Appellate Tribunal dated April 13, 2010. The tribunal had dismissed the appeal of the petitioner for paying a sum of 43,38,921 rupees as provident fund contribution of 43 employees for the period from October, 1999 to January, 2004.

The employees had taken a voluntary retirement and had arrived at a settlement and a memorandum of settlement dated September 12, 2003, by which they were entitled to certain benefits. Though, the petitioners had already paid the back wages as per the settlement entered by them but had challenged the claim of the employees for provident fund on the same.

The High Court dismissed the appeal relying on the order of Shree Changdeo Sugar Mills and another vs. Union of India and another, (2001) 2 SCC 519 wherein it is stated that even in a case of lump sum payment of full and final settlement of all the claims, the management is required to contribute to the provident fund.


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