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2017 DIGILAW 1553 (BOM)

Bhartiya Vaidyak Samanvaya Samiti v. State of Maharashtra Through Secretary Department of Medical Education & Drugs

2017-08-01

R.K.DESHPANDE, SWAPNA JOSHI

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JUDGMENT : R.K. Deshpande, J. Two questions are involved in the present petition: (i) whether the petitioner-institution is entitled to increase in the grants payable by the State Government in respect of contribution of the employer to the extent of 10% towards employees provident fund from 1.5.1997 and 12% from 22.9.1997, and (ii) whether the respondents are entitled to recover the excess grant paid to the institution which is assessed at Rs.43,43,387/? 2. We have seen the Government Resolution dated 21.1.1970 by which the Government has directed that the item mentioned therein should be added to the list of approved expenditure appended to the Government Resolution dated 16th May, 1950. The item shown therein is as under : “Contribution towards employees provident fund subject to the limit of 8½ % of the emoluments of the employees” The petitioner is receiving contribution towards employees provident fund at the rate of 8½ % of the emoluments of the employees since 21.01.1970. There is no dispute about it. This 8½ % contribution of the employer prescribed under Section 6 of the Employees Provident Funds & Miscellaneous Provisions Act, 1952 was increased to 10% with effect from 1.5.1997 and, to 12% from 22.9.1997. It is therefore urged that in continuation of the Government Resolution dated 21.1.1970, the respondent-State Government is under obligation to shoulder the responsibility of entire 12% share payable by the employer as a contribution towards employees provident fund. 3. We do not find that any such statutory right exists in favour of the petitioner-Institution to claim enhancement in the contribution from 8½% to either at 10% or 12% as enhanced from 1.5.1997 and 22.9.1997 respectively. The Government has undertaken to pay the share @ 8½% contribution as per the Government Resolution dated 21.1.1970, which is an assurance and we cannot compel the Government by issuing direction to enhance it or share the additional financial burden, as claimed by the petitioner. 4. So far as the aspect of recovery of an amount of Rs. 43,43,387/- from the petitioner of towards excess grant released by the State Government is concerned, the petitioner expressed difficulties arising out of untimely release of adhoc grant by the State Government and it would therefore be a matter of reconciliation of accounts. It is not possible for this Court to undertake any such exercise. However, the petitioner claims that if an installment of Rs. It is not possible for this Court to undertake any such exercise. However, the petitioner claims that if an installment of Rs. 2 lakhs per month is given, this amount can be remitted back to the State Government. The proposal is not seriously opposed by the respondents and hence we do not find any reason not to accept such proposal. 5. In view of the above, the Writ Petition is disposed of with liberty to the respondents to recover excess amount of grant paid to the petitioner of R. 43,43,387/- outstanding as on this date. However the respondents shall permit the petitioner to pay such amount in the installments of Rs. 2 lakhs per month. The petitioner after taking instructions, undertake to make such payment and no grievance shall be raised in respect thereof. This installment should be remitted on or before 10th of every succeeding month and if there is a default in payment of such a monthly installment an interest @ 8% from the date of such default shall be chargeable. 6. In view of above, the learned counsel for the petitioner seeks permission to withdraw Civil Application No. 895/2017. Permission is granted, with liberty to the petitioner to agitate such issues before the appropriate authority.