CRIMINAL PROCEEDINGS AGAINST MANAGING DIRECTOR/MANAGER-WHEN NOT TENABLE - The Factories Act, 1948
The petitioner deducted EPF contributions from the wages of the employees but did not deposit it thereby violated section 6 of the Act reads with para 38 of the scheme. The EPF Authority lodged FIR against the General Manager, Managing Director and Manager under sections 406/409 of IPC for offence of criminal breach of trust. Charge-sheet was filed. Chief Judicial Magistrate took cognizance and issued summons. Petitioner filed petition under section 482 of Cr. PC for quashing the criminal proceedings. The High Court held that employer does not include Managing Director or Manager. Liability in only upon the employer. Employer means the owner or the occupier or a Manager of the Factory under section 7(1) (f) of Factories Act, 1948 or the authority having ultimate control over the affairs of the establishment. Same person cannot become employer and employee at the same time. No offence under section 409 of IPC is made out. Applications are allowed. Criminal proceedings are quashed.
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