PROVIDENT FUND INSPECTOR, TRIVNDRUM vs SECRETARY, N.S.S. CO-OPERATIVE SOCIETY, CHAN-GANACHERRY

The Supreme Court held that under Section 16(1)(b) of the Employees Provident Funds Act, 1952, the exemption is not available from the date the Act becomes applicable but rather from the date of setting up of the establishment. The Court applied the precedent set in R. Ramakrishna Rao v. State of Kerala, clarifying that the burden of proof lies on the appellant to demonstrate continuity of the old establishment. Despite finding the High Court's interpretation incorrect, the Court upheld the acquittal of the respondent due to insufficient evidence of continuity.