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Supreme Court Clarifies Instances In Which Two Establishments May Be Clubbed Together For EPF Act Coverage

By - King Stubb & Kasiva on November 23, 2023

[1]A Division Bench of the Supreme Court recently clarified the legal position regarding the clubbing of different institutes for coverage under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act). The court observed that the mere fact that two Institutes, managed and controlled by the same management, offer different courses or were established at different times is not relevant for their clubbing under the EPF Act. The fact that one of the institutes receives 100% grant-in-aid from the 19 governments while the other is receiving to the extent of 70%, is also not relevant.

The court after perusing the material available on record and the settled position of law affirmed that there exists financial integrity between the two institutes and that both the institutes are functioning from the same premises and upheld the decision of the High Court of Karnataka for clubbing of both institutes for the purpose of EPF Act.


[1] Civil Appeal No.4188 OF 2013


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