IN THE HIGH COURT AT CALCUTTA Constitutional Writ Jurisdiction Appellate Side Present: The Hon’ble Justice Shampa Dutt (Paul) WPA 4442 of 2015 All India Central Council of Trade Unions & Ors. Vs. Union of India & Ors. For the Petitioners : Mr. Kushal Paul. For the Respondents : Mr. Mihir Kundu, Mr. Abhisek Banerjee. Judgment reserved on : 29.06.2026 Judgment delivered on : 15.07.2026 SHAMPA DUTT (PAUL), J. : 1. The writ application in the present case has been preferred praying for direction upon the respondent authorities particularly the respondent nos. 2 to 5 to disburse the Provident Fund to the petitioner nos. 2 and 3 and to all the workers of the said Mohini Mills Ltd. 2. The petitioner’s case in short is that the petitioner No.1 is a central trade union of the workers of various industries all over Page 2 India. The petitioner Nos.2 and 3 were the employees of Mohini Mills Ltd. having it’s factory at Belghoria. 3. The Petitioner No.2 joined the service in 1972 and petitioner No.3 joined in 1953. Both the petitioner are covered by the aforesaid Employees' Provident Fund & Miscellaneous Act, 1952 (in short PF Act). 4. The Petitioner No.2's PF Account No. is WB/106/W-5507 and that of petitioner No.3 is WB/106/S-795. 5. Mohini Mill was set up in the early part of the twentieth century. The said Mill was frequently closed down between the period 1979 to 1981. 6. The said Mill was taken up by the Government of India by Gazette Notification dated 23.10.1981. The respondent No.8 was authorized to take over the management of the company. However respondent No.8 failed to run the factory and the company. Respondent No.8 relinquished the responsibilities to run the factory and as a result since 21.06.1988 the factory remained closed. 7. The respondent No.8 simply abandoned the factory without declaring closure according to the relevant Act and Rules. The matter was referred to the BIFR. After much deliberation in September 1989 a Report was submitted by Industrial Page 3 Reconstruction Bank of India about the feasibility and viability of the company. In October 1993 the Hon'ble High Court at Calcutta directed for sale of the Mohini Mill as a going concern but the sale has not materialized. 8. The petitioner further states that almost 85% of the workers, who were in the pay roll of the company at the time of so-called closure have crossed the age of superannuation. It is also stated that apart from the wages of the workers the Provident Fund of the workers were not disbursed. 9. The specific case of the petitioner is that the respondent No.2 is the authority and custodian of the Provident Fund. Respondent No.3 to 5 are the authorities to take steps for recovery and disbursal of the Provident Fund in accordance with the provisions of the PF Act. 10. In October 2003, the respondent no.7, Government of West Bengal put up a notice declaring that the land of Mohini Mill was being taken over by the Government as the land was given to Mohini Mill by the Government of West Bengal for construction of the factory. 11. The petitioner further states that by a letter being No.R-Ex- 106/WB/CA/261 dated 10.04.1996 the Regional Provident Fund Commissioner-II served a Show Cause Notice upon the Page 4 respondent No.8 as to why legal steps shall not be taken against it for default in payment of Provident Fund. 12. It appears from the said letter that the outstanding PF amount is Rs. 85,73,494.61 as on April 1996. The respondent No.4 by a letter dated 24.10.1997 requested the Secretary of the respondent No.8 to meet him for discussion on clearance of arrear Provident Fund dues. It appears from the correspondence dated 17.02.2004, 26.03.2004 and 12.06.2008 that respondent No.8 is not ready to take the responsibility for giving accounts towards payment of Provident Fund. 13. That one of the Office Bearers of the petitioner sought information regarding payment of Provident Fund of the workers of Mohini Mill under Right to Information Act, 2005 from the Information Officer of the respondent No.5. The respondent No. 5 by a letter dated 15.10.2012 and 02.01.2013 informed that steps has been taken against Board of Trustees and further informed that only 8 workers had withdrawn pension contribution from 1986 to 1992. 14. The petitioner further states that the respondent Nos. 2 to 5 acted in clear violation of the provisions of the PF Act in as much as they kept silent on the illegal act of the Board of Trustees of the Mohini Mills Ltd. The Board of Trustees was constituted as the respondent authorities granted exemption to the said Company under Section 17(1-A) of the said PF Act. It appears that the Page 5 Board of Trustees did not act in accordance with the said PF Act and as such it was the statutory duty of the respondent Nos.2 to 5 to initiate criminal proceedings under Section 17(1-B) of the said PF Act and further cancel the exemption under Section 17(4) of the said PF Act. 15. The respondent authorities in such cases become the custodian of the Fund and the entire Fund is thereby transferred to the respondent No.2 and as such the respondent No.2 being custodian of the Fund is responsible for disbursal of the money accumulated under the Provident Fund account to its members or their nominee. 16. In their affidavit in opposition the respondent P.F. Authorities have stated as follows:- “That the establishment M/s Mohini Mills Limited is an exempted establishment and closed since long. And as per the file concerned, the exemption of the establishment has not been cancelled. The establishment is defaulted in payment of P.F. dues to the tune of Rs.85.73 lacs.” 17. That the establishment defaulted in payment of Provident Fund dues for the period from May 1977 to December 1977 and February 1988 to January 1989 total amount of Rs.85.75 Lakhs. That the information regarding quantum of default amount of Rs.85.75 lakhs was forwarded to the Additional Labour Page 6 Commissioner, Government of West Bengal on 03.10.1994 by the Employees Provident Fund Organization. 18. Subsequently as desired by Additional Labour Commissioner, Government of West Bengal one Enforcement Officer was deputed on 18.07.1994 to visit the said establishment and to submit a detailed report with regard to the quantum of default, on the basis of which, the Enforcement Officer visited and submitted his report that the said establishment is closed. Photo copy of the letter which he collected but however submitted in the said report that a sum of Rs. 85.75 Lakhs was outstanding as Provident Fund dues. 19. On 10.4.1996 Employees Provident Fund Organisation issued a show cause notice to the Secretary, National Textile Corporation regarding Provident Fund dues and in reply to the said show cause notice, the Secretary, National Textile Corporation vide its letter dated 25.04.1996 stated that the mill was taken over by National Textile Corporation Ltd. Subject to extension of tenure from time to time and last notification was issued on 21.3.1988, wherein the management of the mill came to an end on 21.06 1988. So far as recovery of arrear Provident Fund dues, the Secretary, National Textile Corporation asked for some time vide his letter dated 25.07.1997. Page 7 20. That Minister of State for Textile, New Delhi wrote a letter to the Minister in Charge, Labour Department, Kolkata regarding dues of Provident Fund and Manager of the said establishment stating that the matter is still pending before the Hon'ble High Court, Calcutta and that the intending purchaser M/s Santex Mill Ltd. would purchase the mill after making payment of all the liabilities of the employees. 21. In response to the office letter dated 01.01.2008, the Manager (F & A) National Textile Corporation vide its letter dated 12.06.2008 intimated that Mohini Mills was denotified on 21.06.1988 and since the Government of India and National Textile Corporation Ltd. are also the owners of Mohini Mills Ltd, the said undertaking was reverted in the Original owner Mohini Mills Ltd. Hence National Textile Corporation Ltd., ceased to exit, and was thus not the authorized person and also not responsible for payment of wages and other dues to the workmen of the said mill. 22. That due to closure of the said establishment for such a long time and non placement of Board of Trustees even after exhausting due diligence no statutory documents/records could be obtained. 23. In their affidavit in reply the petitioners have denied the case of the respondent PF Authorities totally. Page 8 24. In course of hearing, a report was submitted by the learned Counsel for the respondent RPF authority wherein it has been stated as follows, upon visiting the premises of the erstwhile M/s. Mohini Mills Ltd. at Belgharia:- “…………Mohini Mills after its closer was taken over by NTC on 23rd October 1981 and thereafter closed/abandoned the mill by NTC after 21.06.1988. Injunction notified. NTC failed to transfer Rs. 8573494.61 to B.O.T. All the Trustee members died. The undersigned has mailed to NTC Mills headquarter at J.L. Nehru Road Kolkata but they have not known about the issues. However the undersigned meet with the following personnels of Mohini Mills with short remarks.” ……………………………………………….. “Narayan Das (M. 7003848502) is only the living who can give the details. He informed about the Cashier Pravar Ranjan Roy who can give the full details of Cash/Bank balance ete of Mohini Mills Trust who lives at Srirampur, but the address/phone no not known to him but the direction of his house at Srirampur may recognizable by him on physical presence and it will take time to him to go there and from their he will ring me. He states about the 71 acres of Land of Mohini Mills is now under Kamarhati Municipality. He also states about the Fixed deposit of Mohini Mills at Belghoria Post office, which is located besides of Bata showroom. The undersigned has gone there but the Post Master has failed to state about the details. The Punjab National Bank, Belghoria Bank Manager Smt. Dipika Karmakar(M.9508009060) failed to state about any A/c no of Mohini Mills but said one cooperative a/c (inoperative) now headed with Hari Shankar Roy (M.8585022981) & Swapan Mukherjec (M 9681748441). Further information may be received from Narayan Das shortly……..” 25. On hearing the learned Counsel for the parties and on perusal of the materials on record including the report filed this court finds Page 9 that prima facie Mohini Mills is in no more in existence but considering that on closure of the said mills and on being transferred to national textile corporation limited, it can be prima facie presumed that the trust fund of the establishment wherein the PF contribution of the employees was deposited, was taken over by the authorities concerned. The PF authorities have stated that no such fund was transferred and the land of Mohini Mills has also been taken over by other local bodies. 26. Considering that it is the duty of the PF authorities to ensure that the dues of the employees which are deposited with them, are paid diligently, though at present the existence of the respondent no.8 is in question, this court finds no other option but to dispose of the writ application with a direction upon the respondent PF authorities to take necessary steps in accordance with law as per the provisions of the Act, while making all endeavour to ensure that the petitioners herein employees are paid their PF dues from the respective fund of the PF organization, at the earliest. 27. The writ application stand disposed of. 28. All connected application, if any, stands disposed of. 29. Interim order, if any, stands vacated. Page 10 30. Urgent Photostat certified copy of this judgment, if applied for, be supplied to the parties, expeditiously after complying with all necessary legal formalities. [Shampa Dutt (Paul), J.]