College not run by ‘aid of power’

An educational institution using electricity for fans, lighting and other ordinary amenities is not an establishment “working with the aid of power” like a factory. Therefore, the provisions of the Employees' Provident Funds Act and other labour welfare laws will not be applicable to it on the ground it is working with the “aid of power”. The Bombay High Court (HC) stated so in the case, Aniket College of Social Work vs Assistant Provident Fund Commissioner. The enforcement officer found after inspection that the college, registered under the Societies Registration Act, had defaulted in remitting provident fund, family pension and insurance under various welfare schemes. The college pleaded that it was employing less than 50 people and, therefore, the laws were not applicable on it. Moreover, it was not working with the aid of power like an industry. The authorities did not accept the argument. The college moved the HC but a single-judge Bench rejected the petition, stating even if electricity or power is used by an educational institution for lighting, cooling or heating, the work of teaching is with the aid of power. He further maintained only establishments to which there is no power supply are exempted. The college appealed to the division Bench and succeeded in convincing it. The division Bench overruled the earlier judgment. It said the law invoked was indeed a welfare legislation, and required a liberal interpretation “but if the use of power is only to operate tube lights or fans as in this case, such use of power shall certainly not imply that the imparting of education is with the aid of power.” However, if education is imparted with the aid of electronic goods like computers and projectors, the interpretation could be different, the judgment observed.