VidhiSangh

Supreme Court of India · 17/01/2020

M/S. PAWAN HANS LIMITED & ORS. versus AVIATION KARMACHARI SANGHATANA & ORS.

[2020] 1 S.C.R. 728 · 2020 INSC 51

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The Supreme Court upheld provident-fund coverage for Pawan Hans’s directly engaged contractual workers but directed enrolment under its own PF Trust Regulations for uniformity. Government ownership alone did not satisfy the statutory exclusion, and the company’s regulations covered these employees. Relief was limited to January 2017 onward and excluded workers no longer employed at judgment. Different interest rates governed the company’s and employees’ past contributions, with computation and disbursement to follow under the Court’s directions.

Issues

  1. Whether the company could exclude its directly engaged contractual workers from provident-fund benefits and from what date contributions should be made.

Provisions considered

Held

Result

Appeal disposed of modifying the High Court directions: eligible serving contractual employees to join the company PF Trust from January 2017. RPFC to submit past-contribution computation within twelve weeks for Court-directed transfer from the deposit; employees to pay matching contributions plus 6% interest within twelve weeks after the company’s remittance. Contributions from January 2020 onward under the Trust Regulations. Union awarded Rs.5 lakh costs; remaining Court deposit refundable after disbursements.

Judgment PDF: Supreme Court of India, [2020] 1 S.C.R. 728.