R. RAMAKRISHNA RAO vs STATE OF KERALA

The Supreme Court ruled that under Section 1(3)(b) and Section 16(1)(b) of the Employees Provident Funds Act, 1952, the exemption period for a new establishment is counted from the date it is set up, not from when the number of employees reaches twenty. The Court clarified that the term 'employing' does not imply a continuous employment of twenty persons for five years. The appellant's claim for exemption was denied as the period should be counted from 1948, when the first establishment was established, rather than from 1959 when the third hotel was added.