Kerala High Court
Palakkad District Tile Workers Union ... vs Employees Provident Fund Organization ... on 31 January, 2025
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WP(C) NO.27531 OF 2017 &
Connected cases
1
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.
FRIDAY, THE 31ST DAY OF JANUARY 2025 / 11TH MAGHA, 1946
WP(C) NO. 27531 OF 2017
PETITIONER:
JAIHIND RAMLAKHAN
AGED 28 YEARS
LABOUR CONTRACTOR, ANISE COMPLEX, JAINMEDU,
PALAKKAD- 678 012, PERMANANET RESIDENT OF VILLAGE SURAI,
PARIHAN P.O. AZAMGARH, UTTAR PRADESH
BY ADVS.
SRI.P.RAMAKRISHNAN
SRI.C.ANIL KUMAR
SMT.ASHA K.SHENOY
SRI.S.K.HARISH
SMT.PREETHI RAMAKRISHNAN
SRI.PRATAP ABRAHAM VARGHESE
RESPONDENTS:
1 M/S.COMTRUST SUPER DESIGNER TILES (P) LIMITED
OLAVAKODE, PALAKKAD- 678 002
REP. BY ITS MANAGING DIRECTOR
2 THE PORESIDENT PALAKKAD DISTRICT TILE WORKERS UNION INTUC
ROOM NO.14, M.C. BUILDING, 27/150 CIVILS TATION ROAD,
PALAKKAD- 678 001
3 THE DISTRICT LABOUR OFFICER ENFORCEMENT AUTHORITY UNDER THE
CONTRACT LABOUR
(REGULATION & ABOLITION) ACT, PALAKKAD- 678 001
4 THE REGIONAL LABOUR COMMISSIONER THE APPELLATE AUTHORITY UNDER THE
CONTRACT LABOUR
(REGULATION & ABOLITION)ACT,
ERNAKULAM- 682 030
BY ADVS.
KARUNAKARAN C.K.
K.V.KRISHNAKUMAR(D/758/2015)
LEKSHMI P. NAIR(K/001011/2017)
SHIFNA MUHAMMED SHUKKUR(K/000671/2020)
KRISHNA SURESH(K/000727/2021)
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2
MEKHA MANOJ(K/001711/2023)
SMT. SURYA BINOY, SR.GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31.01.2025,
ALONG WITH WP(C).15483/2019, 27471/2017, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
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WP(C) NO.27531 OF 2017 &
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3
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.
FRIDAY, THE 31ST DAY OF JANUARY 2025 / 11TH MAGHA, 1946
WP(C) NO. 15483 OF 2019
PETITIONER:
PALAKKAD DISTRICT TILE WORKERS UNION (INTUC)
ROOM NO.14, M.C. BUILDING, CIVIL STATION ROAD,
PALAKKAD - 678 001, REPRESENTED BY ITS PRESIDENT.
BY ADVS.
T.C.SURESH MENON
SRI.P.S.APPU
SRI.A.R.NIMOD
SRI. DEEPAK B
RESPONDENTS:
1 EMPLOYEES PROVIDENT FUND ORGANIZATION INDIA
HEAD OFFICE - BHAVISHYANIDHI BHAVAN, 14,
DHIKAIJI CAMA PALACE, NEW DELHI - 110 066,
REPRESENTED BY ITS PRESIDENT.
2 THE ADDITIONL CENTRAL PROVIDENT FUND COMMISSIONER
KERALA AND LAKSHADWEEP, BHAVISYANIDHI BHAVAN,
P.B. NO.1016, PATTOM, THIRUVANANTHAPURAM - 695 004.
3 EMPLOYEES' PROVIDENT FUND ORGANIZATION
REGIONAL OFFICE - BHAVISHYANIDHI BHAVAN,
ERANHIPALAM P.O., KOZHIKODE - 673 006,
REPRESENTED BY ITS ASSISTANT PROVIDENT FUND COMMISSIONER.
4 THE REGIONAL JOINT LABOUR COMMISSIONER AND APPELLATE AUTHORITY
ERNAKULAM - 682 030.
5 THE DISTRICT LABOUR OFFICER (ENFORCEMENT)
THOZHIL BHAVAN, CIVIL STATION COMPOUND,
PALAKKAD - 678 001.
6 M/S. COMTRUST SUPER DESIGNER TILES (P) LIMITED
OLAVAKKODE, PALAKKADU - 678 002,
REPRESENTED BY ITS GENERAL MANAGER.
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4
BY ADVS.
DR.ABRAHAM P.MEACHINKARA, SC, EPF ORG.
GOVERNMENT PLEADER
SRI.C.K.KARUNAKARAN
SMT. SURYA BINOY, SR.GP
SRI. SAJEEV KUMAR, K GOPAL, SC EPF
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31.01.2025,
ALONG WITH WP(C).27531/2017 AND CONNECTED CASES, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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WP(C) NO.27531 OF 2017 &
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5
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.
FRIDAY, THE 31ST DAY OF JANUARY 2025 / 11TH MAGHA, 1946
WP(C) NO. 27471 OF 2017
PETITIONER:
M/S.COMTRUST SUPER DESIGNER TILES (P) LTD
OLAVAKODE, PALAKKAD 678 002.
BY ADVS.
SRI.C.K.KARUNAKARAN
SRI.JOPHY POTHEN KANDANKARY
RESPONDENTS:
1 STATE OF KERALA
REP. BY SECRETARY, LABOUR, GOVERNMENT SECRETARIAT,
THIRUVANANTHAPURAM 695 001.
2 REGIONAL JOINT LABOUR COMMISSIONER
& APPELLATE AUTHORITY, ERNAKULAM 682 030.
3 PRESIDENT
PALAKKAD DISTRICT TILE WORKERS' UNION (INTUC),
ROOM NO. 14, M.C.BUILDING 27/180, CIVIL STATION ROAD,
PALAKKAD 678 001.
4 JAIHIND RAMLAKHAN
VILLAGE SURAI, PARIHAN PO, AZAMGARH,
UTTAR PRADESH 276 404.
BY ADVS.
SRI.P.S.APPU
SRI.A.R.NIMOD
SRI.T.C.SURESH MENON
SMT. SURYA BINOY, SR.GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31.01.2025,
ALONG WITH WP(C).27531/2017 AND CONNECTED CASES, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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6
MOHAMMED NIAS C. P. , J.
=====================================
W. P. (C) Nos. 27531, 27471 OF 2017 &
15483 OF 2019
=====================================
Dated this the 31st day of January, 2025
JUDGMENT
The petitioner in W.P.(C) No.27471 of 2017 is a Private
Company, incorporated and registered under the provisions of the
Companies Act, 1956, engaged in the manufacture of cement blocks
for various floor paving applications. The petitioner submits that
ever since its inception, it has been engaging contract labour, both
inter-state Migrant Labour (ISM) and contact labour for
production in view of the seasonal and intermittent nature of
production. Initially a labour contractor by the name of Sri.
Thakur Prasad had supplied labourers till 2013, when the
petitioner stopped engaging his services, as there were issues
regarding the non-payment of service tax by the Contractor.
2. From 2013-2014 onwards, the 4th respondent, namely,
Jaihind Ramlakhan has been supplying labour. The petitioner
relies on Ext.P3 application submitted by the petitioner seeking
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application under the provisions of the ISM Act. He was granted
registration under Ext.P3A. The petitioner also submitted an
application for registration on 13.06.2013 under the provisions of
the Contract Labour (Regulation and Abolition) Act, 1970 (for
short, 'the CLRA Act'), as seen from Ext.P4. The 4th respondent, the
contractor had also submitted an application on 13.06.2013 to the
Registering Authority, which is produced as Ext.P4A. It is the
submission of the petitioner that both Ext.P4 & Ext.P4A
applications were complete in all respects including the payment
of the required fees and the security deposit. Ext.P5 is the
agreement entered into between the petitioner and the 4 th
respondent for the supply of contract labour. It is submitted that
the 4th respondent is registered under the EPF and ESI Acts and the
remittances were being made into the individual contract workers'
accounts. As there were some issues with the previous contractor,
the petitioner was directly making remittances under the ESI and
EPF and deducting the amounts from the payments made to the 4 th
respondent. The petitioner has also produced Exts.P6, P7, P8 and
P9 to show such statutory payments made.
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3. The Registering Authority under the Contract Labour Act
declined registration sought by the principal employer was
rejected through Exts.P10 order. The appeal preferred against the
same was rejected through Ext.P13 order. The learned counsel for
the petitioner submits that Exts.P10 and P13 orders were passed
completely contrary to the statutory provisions of the Act.
Extraneous matters, not stipulated in the Statute were considered
for rejecting the application. It is also stated that the reasons in
the impugned orders rejecting the application seeking registration
and how the same has to be considered are all stipulated in the
Statute. The Registering Authority has travelled far beyond to
reject the application.
4. In W.P.(C) No.27531 of 2017, the contractor filed Ext.P2
application under Section 12 of the Contract Labour Act seeking a
licence. Ext.P3 is the order passed on 20.09.2016 rejecting Ext.P2
application. Though the petitioner preferred Ext.P4 appeal, the
same was rejected through Ext.P5 order on 29.03.2017. The
petitioner contends that the orders are passed completely ignoring
the statutory mandate. The matters considered for rejecting the
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application are beyond the scope of the Act. It is also pointed out
that no notice envisaged under Rule 13(2) of the Contract Labour
(Regulation & Abolition) Central Rules, 1971 was issued to the
petitioner before rejecting his application.
5. W.P.(C) No.15483 of 2019 is filed by the Palakkad District
Tile Workers Union (INTUC), which is a respondent in both Writ
Petitions, seeking to quash Ext.P7 order passed by the Employees
Provident Fund Organization dated 06.03.2019, which rejected the
representation filed by them, citing the pendency of W.P.(C)
No.27471 of 2017.
6. The learned counsel for the petitioners relied on Sections
7, 10 and 12 of the CLRA Act, which deals with the registration of
the principal employer and also the licensing of the contractors.
Specific reference is also made to the Kerala Contract Labour
(Regulation and Abolition Rules), 1974 in particular Rules 19, 21, 22
and 23. It is the submission of the learned counsel for the
petitioners that except the matters covered by the Rules, which
dealt with how the applications are to be considered and also the
eligibility, the Registering/Licensing authority could not have
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gone outside the Act in stating reasons which are not matters to be
considered while dealing with the cases of registration or granting
a licence. A perusal of the impugned orders in the Writ Petitions
shows that the reasons given in the impugned order have no
relation to what is contained in the Statute.
7. The learned counsel for the petitioner in W.P.(C) No.15483
of 2019 cited the decision in M.Gopal v. The Assistant Labour
Commissioner and Registrar/Licensing Authority, Bangalore
(MANU/KA/ 0182/2000) for contending that the licencing
authority was entitled to look into whether the details furnished in
the application form and also the genuineness of the same and the
investigation contemplated an exercise in that regard. Therefore,
the reasons given in the impugned orders cannot be said to be
wrong as the authority had only verified whether the details
furnished were genuine. The learned counsel also relies on Section
8 of the Act to say that there is a power of the authority to revoke
the licence in case the same is obtained either by
misrepresentation or the suppression of material facts, which is
also an indication that while granting registration/licence, the
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authority can look into the genuineness of the claim made.
8. There cannot be any doubt as to whether authorities can
look into the genuineness of the particulars furnished in the
application and which are stated under the statute. The Rules
specify the manner in which the application is to be considered,
making other consideration matters not covered by the statute,
illegal. The impugned order clearly shows that matters not
contemplated under the Act are considered including even the
alleged non-payment of wages under the Minimum Wages Act,
matters fully outside the scope of the Act.
9. Under such circumstances, impugned orders cannot be
sustained, and they are quashed. There will be a direction to the 3 rd
respondent in W.P.(C) No. 27531 of 2017 to reconsider the
application for registration submitted by the petitioner in W.P.(C)
No.27471 of 2017 and also the application submitted by the
petitioner in W.P.(C) No. 27531 of 2017 seeking a licence under the
provisions of the Act. Needless to say, the 3rd respondent shall go
by the stipulations in the statute while considering the
applications. In case, the 3rd respondent feels that any information
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is wanting, he shall give a notice in writing to the petitioners
calling for the details and only after giving an opportunity of
hearing to them, shall orders be passed in the application. The
licensee/registering authority cannot consider any matter not
covered by the Act and Rules.
10. A decision as directed above shall be taken at the earliest,
at any rate within six weeks from the date of receipt of a copy of
the judgment. In view of the orders passed in W.P.(C) Nos. 27531
and 27471 of 2017, no further orders are required to be passed in
W.P.(C) No. 15483 of 2019 as the only reason in the impugned order
therein was the pendency of W.P.(C) No.27471 of 2017.
The impugned orders are quashed, and these writ petitions
are allowed as above.
Sd/-
MOHAMMED NIAS C.P.,
JUDGE
LU
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APPENDIX OF WP(C) 15483/2019
PETITIONER EXHIBITS :
EXHIBIT P1 TRUE COPY OF THE ORDER NO.E1-2980/2013 PASSED BY THE
5TH RESPONDENT DATED 20.9.2016.
EXHIBIT P2 TRUE COPY OF THE ORDER NO.A1-2388/2016 PASSED BY THE
4TH RESPONDENT DATED 29.3.2017.
EXHIBIT P3 TRUE COPY OF THE ORDER NO.A1-2387/2016 PASSED BY THE
4TH RESPONDENT DATED 29.3.2017.
EXHIBIT P4 TRUE COPY OF THE REPRESENTATION SUBMITTED BY THE
PETITIONER DATED 24.6.17.
EXHIBIT P5 TRUE COPY OF THE REMINDER LETTER SUBMITTED BY THE
PETITIONER DATED 30.1.2019.
EXHIBIT P6 TRUE COPY OF THE COMMUNICATION SENT BY THE 3RD
RESPONDENT TO THE PETITIONER DATED 6.3.2019.
EXHIBIT P7 TRUE COPY OF THE COMMUNICATION SENT BY THE 3RD
RESPONDENT TO THE PETITIONER DATED 6.3.2019.
EXHIBIT P8 TRUE COPY OF THE RECEIPT ISSUED BY THE 3RD RESPONDENT
TO SUNITHA.M DATED 15.4.2014
EXHIBIT P9 TRUE COPY OF THE RECEIPT ISSUED BY THE 3RD RESPONDENT
TO SUJATHA C DATED 15.4.2014
EXHIBIT P10 TRUE COPY OF THE REQUEST MADE BY THE PETITIONER TO THE
3RD RESPONDENT DATED 21.8.2020
EXHIBIT P11 TRUE COPY OF THE COMMUNICATION NO.CSD/G/011 ADDRESSED
BY THE 6TH RESPONDENT TO THE 3RD RESPONDENT, DATED 14-
5-2022.
EXHIBIT P12 TRUE COPY OF THE COMMUNICATION ADDRESSED BY JAIHIND
RAMLAKHAN CONTRACTOR TO THE 3RD RESPONDENT, DATED 21-
07-2020.
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APPENDIX OF WP(C) 27471/2017
PETITIONER EXHIBITS :
EXHIBIT P1 A TRUE COPY OF THE CHALLANS DATED 5.5.2005 EVIDENCING
APPLICATION FOR REGISTRATION MADE BY SHRI.THAKUR
PRASAD, AS WELL AS THE PETITIONER, BOTH UNDER THE
PROVISIONS OF ISM ACT AND CONTRACT LABOUR ACT
EXHIBIT P2 A TRUE COPY OF THE ORDER DATED 30.10.2015 PASSED BY
THE ASSISTANT COMMISSIONER OF CENTRAL EXCISE,
PALAKKAD, AGAINST SHRI.THAKUR PRASAD
EXHIBIT P3 A TRUE COPY OF THE APPLICATION FOR LICENSE, DATED
13.6.2013 SUBMITTED UNDER THE PROVISIONS OF THE ISM
ACT
EXHIBIT P3A A TRUE COPY OF THE CERTIFICATE OF REGISTRATION OF THE
PETITIONER UNDER THE ISM ACT, DATED 20.6.13
EXHIBIT P4 A TRUE COPY OF THE APPLICATION FOR REGISTRATION
SUBMITTED ON 13.6.2013 BY THE PETITIONER UNDER
CONTRACT LABOUR ACT
EXHIBIT P4A A TRUE COPY OF THE APPLICATION SUBMITTED BY THE 4TH
RESPONDENT ON 13.6.2013 TO THE REGISTERING AUTHORITY
EXHIBIT P5 A TRUE COPY OF AGREEMENT DATED 1.4.2013,BETWEEN THE
PETITIONER AND THE 4TH RESPONDENT FOR SUPPLY OF
CONTRACT LABOUR
EXHIBIT P6 A TRUE COPY OF THE ELECTRONIC CHELLAN -CUM-RETURN
EVIDENCING PAYMENT INTO THE INDIVIDUAL EPF ACCOUNTS OF
CONTRACT LABOURERS UNDER THE 4TH RESPONDENT BY THE
PETITIONER
EXHIBIT P7 A TRUE COPY OF THE RETURN OF CONTRIBUTION IN FORM 5
ISSUED BY THE ESI CORPORATION FOR THE PERIOD APRIL
2016 SEPTEMBER 2016 FOR THE CONTRACT LABOUR UNDER THE
4TH RESPONDENT
EXHIBIT P8 A TRUE COPY OF THE SERVICE TAX REGISTRATION DATED
31.3.2014 ISSUED TO THE 4TH RESPONDENT
EXHIBIT P9 A TRUE COPY OF THE CHALLAN EVIDENCING TDS DEDUCTION
AND REMITTANCES MADE BY THE PETITIONER INTO THE
ACCOUNT OF THE 4TH RESPONDENT
EXHIBIT P10 A TRUE COPY FO THE ORDER NO. E1-2979/2013 DATED
20.9.2016 ISSUED BY THE DISTRICT LABOUR OFFICER,
(ENFORCEMENT), PALAKKAD
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EXHIBIT P11 A TRUE COPY OF THE APPEAL SUBMITTED BEFORE THE 2ND
RESPONDENT
EXHIBIT P12 A TRUE COPY OF THE REPLY DATED 21.2.2017 SUBMITTED BY
THE PETITIONER TO THE COUNTER STATEMENT FILED BY THE
3RD RESPONDENT
EXHIBIT P13 A TRUE COPY OF THE ORDER PASSED BY THE 2ND RESPONDENT,
NO. 2387/16 DATED 29.3.2017
EXHIBIT P13A A TRUE COPY OF THE ENVOLOPE IN WHICH EXHIBIT P13 WAS
SENT BY THE 2ND RESPONDENT
Exhibit P14 THE TRUE COPY OF THE PROFESSIONAL TAX PAID ON
13.03.2020 BY THE 4TH RESPONDENT CONTRACTOR FOR THE
WORKERS UNDER HIM IN TO THE LOCAL BODY FOR THE SECOND
HALF OF 2019-2020
Exhibit P15 THE TRUE COPY OF THE DETAILS OF CONTRIBUTION PAID ON
02.12.2020 BY THE 4TH RESPONDENT CONTRACTOR TOWARDS
THE LABOR WELFARE FUND FOR THE PERIOD ENDING JUNE
2020.
Exhibit P16 THE TRUE COPY OF FORM GSTR-3 B DATED18.04.2018 FILED
BY THE 4TH RESPONDENT CONTRACTOR FOR THE PERIOD MARCH
Exhibit P17 THE TRUE COPY OF TDS RECONCILIATION ANALYSIS AND
CORRECTION ENABLING SYSTEM (TRACES) RELATING TO THE
TDS DEDUCTED FOR PAYMENTS MADE TO THE 4TH RESPONDENT
CONTRACTOR BY THE PETITIONER FOR THE FINANCIAL YEAR
2020-21 (ASSESSMENT YEAR 2021-22).
Exhibit P18 THE TRUE COPY OF THE INCOME TAX RETURNS (FORM ITR-4)
DATED 25.07.2021 FILED BY THE 4TH RESPONDENT
CONTRACTOR FOR THE FINANCIAL YEAR 2020-21 (ASSESSMENT
YEAR 2021-22).
Exhibit P19 THE TRUE COPY OF THE ELECTRONIC CHALLAN CUM RETURN
(ECR) FILED ON 03.12.2019.
RESPONDENTS EXHIBITS :
EXHIBIT R3 (A) TRUE COPY OF A DEMAND FOR MINIMUM WAGES WAS OFTEN MADE
ON BEHALF OF THE WORKERS, BY THE 3RD RESPONDENT UNION
ON 14.08.2012.
EXHIBIT R3 (B) TRUE COPY OF THE ORDER G.O(RT) NO. 727/2014/LBR PASSED
BY THE 1ST RESPONDENT DATED 07.06.2014.
EXHIBIT R3 (C) TRUE COPY OF ONE SUCH RECEIPT ISSUED BY THE EMPLOYEE
UNDER THE EMPLOYEES PROVIDENT FUND SCHEME IN RESPECT
TO ONE WORKER GIRIJA C DATED 04.12.2013.
EXHIBIT R3 (D) TRUE COPY OF THE PETITION FILED BY THE PETITIONER
BEFORE THE POLICE PRODUCED AS EXT.P3 IN W.P.C NO.
26915 OF 2015 DATED 01.09.2015.
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EXHIBIT R3 (E) TRUE COPY OF ORDER PASSED IN H.A.04/2015 ON THE FILES
OF THE APPELLATE AUTHORITY UNDER (THE HEADLOAD WORKERS
ACT - 1978 AND RULES - 1981), DATED 09.12.2016
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APPENDIX OF WP(C) 27531/2017
PETITIONER EXHIBITS :
EXHIBITP1 TRUE COPY OF THE CONTRACT DATED 1-4-2013 ENTERED INTO
BETWEEN THE PETITIONER AND 1ST RESPONDENT
EXHIBITP2 TRUE COPY OF THE APPLICATION SUBMITTED BY THE
PETITIONER BEFORE THE 3RD RESPONDENT
EXHIBIT P3 TRUE COPY OF THE ORDER DATED 20-09-2016 ISSUED BY THE
3RD RESPONDENT
EXHIBIT P4 TRUE COPY OF THE MEMORANDUM OF APPEAL SUBMITTED
JOINTLY BY THE PETITIONER AND THE 1ST RESPONDENT
EXHIBIT P5 TRUE COPY OF THE ORDER DATED 29-03-2017 OF THE 4TH
RESPONDENT
// True Copy // PA To Judge
