Page 117 - GSTL_3rd September 2020_Vol 40_Part 1

2020 ] KARNATAKA INDUSTRIAL AREAS DEV. BOARD v. COMMR. OF CENTRAL TAX 51
for securing just and humane conditions of work which includes a living
wage and decent standard of life. The said Act obviously seeks to pro-
mote those goals. Therefore, interpretation of the said Act must not only
be liberal but it must be informed by the values of Directive Principles.
Therefore, an awareness of the social perspective of the Act must guide
the interpretative process of the legislative device.
27. Keeping those broad principles in mind, if we look at the
Objects and Reasons in respect of the relevant Section it will be easier for
this Court to appreciate the statutory intent. The opening words of Sec-
tion 14B are, “where an employer makes a default in the payment of
contribution to the fund”.
This was incorporated by way of an amendment, vide Amending
Act 37 of 1953. In this connection, the excerpts from the Statement
of Objects and Reasons of Act 37 of 1953 are very pertinent. Rele-
vant excerpts are :
“There are also certain administrative difficulties to be set right.
There is no provision for inspection of exempted factories; nor is
there any provision for the recovery of dues from such factories.
An employer can delay payment of provident fund dues without
any additional financial liability. No punishment has been laid
down for contravention of some of the provisions of the Act.
This Bill seeks primarily to remedy these defects’. - S.O.R., Gazette
of India, 1953, Extra, Pt. II, Sec. 2, p.910.”
28. Similarly, in respect of Section 17(1A), clause (a) which
makes Section 14B applicable to an exempted establishment also came
by way of an amendment, namely, by Act 33 of 1988. Here also if we
look at the relevant portion of the Statement of Objects and Reasons of
Act 33 of 1988 we will find that they are based on certain recommenda-
tions of the High level committee to review the working of the Act. Var-
ious recommendations were incorporated in the Objects and Reasons
and one of the objects of such amendment is as follows :-
“(viii) the existing legal and penal provisions, as applicable to
un-exempted establishments, are being made applicable to ex-
empted establishments, so as to check the defaults on their part;”
………..
58. We hold that in a case of default by the employer by an ex-
empted establishment, in making its contribution to the Provident
Fund Section 14B of the Act will be applicable”.
11. Now, we can examine the activities of the appellant to determine
whether they are coming under the scope of mandatory, statutory functions
discharged by a public authority in terms of law. The term ‘public authori-
ty’ has to be examined and understood. ‘Public’ includes a section of the
public (Shri Venkataraman Devaru v. State of Mysore - 1958 S.C.R. 895). The
word ‘public’ is ordinarily used with reference to a joint body of citizens.
The term ‘authority’ is defined as “a public administrative agency or corpo-
ration having quasi governmental powers and authorized to administer a
revenue producing public enterprise”, (Webseter’s Third New International
Dictionary); authority is a body having jurisdiction in certain matters of
“public nature”. Therefore, the “ability” conferred upon a person by the
law to alter, by his own will directed to that end, the rights, duties, liabili-
ties or other legal relations either of himself or of other persons must be
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