Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948- Sections 9 to 12 and Schedules

9. Penalty.

9. Penalty.—[i][(1) If any person—

(a) contravenes any provisions of this Act or of any scheme framed thereunder, he shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees or with both;

(b) who has been convicted of any offence punishable as aforesaid, is again guilty of any such offence within a period of two years from the date of the previous conviction, he shall be punishable on conviction with imprisonment for a term which may extend to one year or with fine which may extend to two thousand rupees or with both.]

(2) No court shall take cognizance of any offence punishable under [sub-section (1)][ii], except on a report in writing of the facts constituting such offence made by an Inspector with the previous sanction of such authority as may be specified in this behalf by the Central Government.

[iii][(3) No court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try any offence punishable under sub-section (1).]

Other Contents of Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948​
Sections 1 to 8 Sections 9 to 12 and Schedules

10. Inspectors.

10. Inspectors.—(1) The Central Government may, by notification in the Official Gazette, appoint such persons at it thinks fit to be Inspectors for the purposes of the Coal Mines Provident Fund Scheme [iv][or the Insurance Scheme] or the Coal Mines Bonus Scheme and may define their jurisdiction.

(2) An Inspector may, in respect of any coal within his jurisdiction,—

[v][(a) require an employer or any contractor from whom any amount is recoverable under Section 10-E—

(i) to furnish such information, or

(ii) to produce in the office of the Inspector or such other place as may be nearer to the employer or, as the case may be, the contractor, such accounts, books, registers and other documents,

relating to the employment of persons in a coal mines as the Inspector may consider necessary for the purposes of any scheme framed under this Act;]

(b) at any reasonable time, [vi][and with such assistance, if any, as he may think fit, enter and search any coal mine] and require anyone found in charge thereof to produce before him such accounts, books, registers and other documents relating to the employment of persons in the coal mine as he may consider necessary;

(c) examine, with respect to any matter relevant to any of the purposes aforesaid, the employer [vii][or any contractor from whom any amount is recoverable under Section 10-E], his agent or servant or any other person found in charge of the coal mine [viii][* * *] or whom the Inspector has reasonable cause to believe to be or to have been an employee in the coal mine;

[ix][(d) make copies of, or take extracts from any accounts, books, registers or other documents maintained in relation to a coal mine and where he has reason to believe that any offence under this Act has been committed by an employer or contractor, seize with such assistance as he may think fit, such accounts, books, registers or other documents or portions thereof as he may consider relevant in respect of that offence;

(e) exercise such other powers as any such scheme may provide.]

[x][(2-A) Every person required to furnish any information or produce any document under clause (a) or clause (b) of sub-section (2) shall be deemed to be legally bound to do so within the meaning of Section 175 of the Indian Penal Code (45 of 1860).

(2-B) The provisions of [the Code of Criminal Procedure, 1973 (2 of 1974)][xi], shall, so far as may be, apply to any search or seizure under sub-section (2) as they apply to any search or seizure made under the authority of a warrant issued under [xii][Section 94] of the said Code.]

(3) Every Inspector shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code, 1860 (45 of 1860).

10-A. Mode of recovery of money due from an employer.

[xiii][10-A. Mode of recovery of money due from an employer.—Any amount due from an employer in respect of any contribution or bonus under any scheme framed under this Act [xiv][or any accumulations required to be transferred under sub-section (1) or sub-section (3) of Section 3-D or any damages recoverable under Section 10-F or any charges payable by the employer under this Act in respect of the administration of any such scheme] may be recovered by the Central Government in the same manner as any arrear of land revenue.]

10-B. Determination of employer in certain cases.

[xv][10-B. Determination of employer in certain cases.—(1) Where the employer is a firm or other association of individuals, all or any of the partners or members thereof or where the employer is a company, all or any of the directors thereof, may be prosecuted and punished under this Act for any offence for which the employer is punishable:

Provided that where a firm, association or company has given notice in writing to the Coal Mines Provident Fund Commissioner or any officer specified by the Central Government in this behalf that it has nominated,—

(a) in the case of a firm, any of its partners,

(b) in the case of an association, any of its members,

(c) in the case of a company, any of its directors, who is resident in each case in any place to which this Act extends and who is in each case either in fact in-charge of the management of or holds the largest number of shares in,

such firm, association or company, to assume the responsibility of the employer for the purposes of this Act or of any scheme framed thereunder such partner, member or director, as the case may be, shall, so long as he continues to so reside and be in charge or hold the largest number of shares as aforesaid, be deemed to be the employer for the purposes of this Act or any scheme framed thereunder; unless a notice in writing cancelling his nomination or stating that he has ceased to be a partner, member or director, as the case may be, is received by the Coal Mines Provident Fund Commissioner or any officer specified by the Central Government in this behalf.

(2) Where the employer is a Government or any local authority, all or any of the officers or persons authorised by such Government or local authority, as the case may be, to manage the affairs of the coal mine, shall, notwithstanding anything to the contrary contained in any law or contract for the time being in force, be deemed to be the employers or employer in respect of the coal mine and may be prosecuted and punished under this Act for any offence for which the employer is punishable.

10-C. Delegation of powers.

10-C. Delegation of powers.—(1) The Central Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act or any scheme framed thereunder shall, subject to such conditions, if any, as may be specified in the notification, be exercisable also by the Coal Mines Provident Fund Commissioner or any officer authorised in this behalf by the Central Government.

(2) The Board may delegate to its Chairman or the Coal Mines Provident Fund Commissioner or any other officer of the Board, subject to such conditions and limitations, if any, as the Board may specify, such of the powers and functions of the Board under this Act or any scheme framed thereunder as the Board may deem necessary for the efficient administration of any scheme framed under this Act.

10-D. Payment of contribution by employers and recovery thereof from members.

10-D. Payment of contribution by employers and recovery thereof from members.—(1) The contribution shall be payable by the employer (hereinafter referred to as the employer's contribution) and by the employee (hereinafter referred to as the employee's contribution) at such rate as may be specified in the Coal Mines Provident Fund Scheme, and the employer shall pay the employer's contribution as well as the employee's contribution whether or not he has recovered from any employee the employee's share of the contribution.

(2) The amount of any contribution paid by the employer on behalf of a member shall, notwithstanding anything to the contrary contained in any other law for the time being in force or any contract, be recoverable by means of deduction from the wages of the member and not otherwise.

(3) Save as otherwise provided in the Coal Mines Provident Fund Scheme, no deduction under sub-section (2) shall be made from any wages other than such as are paid in respect of the period for which the contribution is payable.

(4) Notwithstanding any contract to the contrary, the employer shall not be entitled to deduct the employer's contribution or the charges referred to in Section 10-A from the wages of a member or otherwise to recover such contribution or charges from such member.

10-E. Recovery of moneys by employers and contractors.

10-E. Recovery of moneys by employers and contractors.—(1) [xvi][The amount of contribution (that is to say the employer's contribution as well as the employee's contribution in pursuance of the Coal Mines Provident Fund Scheme and the employer's contribution in pursuance of the Insurance Scheme)] and any charges referred to in Section 10-A paid or payable by an employer in respect of an employee employed by or through a contractor and any bonus paid or payable under any Coal Mines Bonus Scheme in respect of any such employee may be recovered by such employer from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

(2) A contractor from whom the amounts mentioned in sub-section (1) may be recovered in respect of any employee employed by or through him may, save as otherwise provided in the Coal Mines Provident Fund Scheme, recover from such employee the employee's contribution under any such scheme by deduction from the wages payable to the employee subject to the condition that no such deduction shall be made from any wages other than such as are payable in respect of the period to which the employee's contribution relates.

(3) Notwithstanding any contract to the contrary no contractor shall be entitled to deduct the employer's contribution or the charges or bonus referred to in sub-section (1) from the amount payable to an employee employed by or through him or otherwise to recover such contribution or charges or bonus from such employee.

10-F. Power to recover damages.

10-F. Power to recover damages.—Where an employer makes default in payment of any contribution or bonus or any charges payable by him under any scheme framed under this Act, or where any person who is required to transfer provident fund accumulations in accordance with the provisions of Section 3-D makes default in the transfer of such accumulations, the Central Government may recover from such employer or person, as the case may be, such damages, not exceeding twenty-five per cent of the amount of arrears, as it may think fit to impose.]

11. Priority of payment of contributions and bonus over other debts.

11. Priority of payment of contributions and bonus over other debts.—The amount due in respect of any contribution or bonus under a scheme framed under this Act or any charges incurred in respect of the administration of any such scheme, shall, where the liability therefor has accrued before the person liable has been adjudicated insolvent or, in the case of a company ordered to be wound up, before the date of such order, be deemed to be included among the debts which, under Section 49 of the Presidency Towns Insolvency Act, 1909, or under Section 61 of the Provincial Insolvency Act, 1920, or under [xvii][Section 530 of the Companies Act, 1956 (1 of 1956)], are to be paid in priority to all other debts in the distribution of the property of the insolvent or the assets of a company being wound up, as the case may be.

11-A. Protection for acts done in good faith.

[xviii][11-A. Protection for acts done in good faith.—No suit or other legal proceeding shall lie against any person in respect of anything which is in good faith done or intended to be done under this Act or under any scheme framed thereunder.]

11-B. Power to remove difficulties.

[xix][11-B. Power to remove difficulties.—If any difficulty arises in giving effect to the provisions of this Act or any scheme framed thereunder, the Central Government may, by order published in the Official Gazette, make such provision or give such direction not inconsistent with the purposes of this Act, as it appears to it to be necessary or expedient for removing the difficulty.]

11-C. Power to exempt.

[xx][11-C. Power to exempt.—(1) The Central Government may, if requested so to do by the employer, by notification in the Official Gazette, and subject to such conditions as may be specified in the notification, exempt any coal mine from the operation of all or any of the provisions of the Insurance Scheme, if it is satisfied that the employees of such coal mine are, without making any separate contribution or payment of premium, in enjoyment of benefits in the nature of life insurance, whether linked to their deposits in provident fund or not, and such benefits are more favourable to such employees than the benefits admissible under the Insurance Scheme.

(2) Without prejudice to the provisions of sub-section (1), the Insurance Scheme may provide for the exemption of any person or class of persons employed in any coal mine and covered by that scheme from the operation of all or any of the provisions thereof, if the benefits in the nature of life insurance admissible to such person or class of persons are more favourable than the benefits provided under the Insurance Scheme.

(3) Where, in respect of any person or class of persons employed in any coal mine, an exemption is granted under this section from the operation of all or any of the provisions of the Insurance Scheme (whether such exemption is granted to the coal mine wherein such person or class of persons is employed or to the person or class of persons as such), the employer in relation to such coal mine—

(a) shall, in relation to the benefits in the nature of life insurance, to which any such person or class of persons is entitled, or any insurance fund, maintain such accounts, submit such returns, make such investment, provide for such facilities for inspection and pay such inspection charges, as the Central Government may direct;

(b) shall not, at any time after the exemption, without the leave of the Central Government, reduce the total quantum of benefits in the nature of life insurance to which any such person or class of persons was entitled immediately before the date of the exemption; and

(c) shall, where any such person leaves his employment and obtains re-employment in any other coal mine, transfer within such time as may be specified in this behalf by the Central Government, the amount of accumulations to the credit of that person in the insurance fund of the coal mine left by him to the credit of that person's account in the insurance fund of the coal mine in which he is re-employed or, as the case may be, in the Deposit-linked Insurance Fund.

Explanation.—For the purposes of this sub-section “insurance fund” means any fund established by an employer under any scheme for providing benefits in the nature of life insurance to employees, whether linked to their deposits in provident fund or not without payment by the employees of any separate contribution or premium in that behalf.

(4) Any exemption granted under this section may be cancelled by the authority which granted it by order in writing, if an employer fails to comply—

(a) in the case of an exemption granted under sub-section (1), with any of the conditions imposed under that sub-section or with any of the provisions of sub-section (3);

(b) in the case of an exemption granted under sub-section (2), with any of the provisions of sub-section (3).

(5) Where any exemption granted under sub-section (1) or sub-section (2) is cancelled, the amount of accumulation to the credit of every employee to whom such exemption applied, in the insurance fund of the coal mine in which he is employed shall be transferred within such time and in such manner as may be specified in the Insurance Scheme to the credit of his account in the Insurance Fund.

11-D. Act to have effect notwithstanding anything contained in Act 31 of 1956.

11-D. Act to have effect notwithstanding anything contained in Act 31 of 1956.—The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in the Life Insurance Corporation Act, 1956.]

12. Repeal of Ordinance 7 of 1948.

12. Repeal of Ordinance 7 of 1948.—(1) The Coal Mines Provident Fund and Bonus Schemes Ordinance, 1948, is hereby repealed.

(2) Notwithstanding any such repeal, anything done or any action taken in exercise of any power conferred by or under the said Ordinance shall be deemed to have been done or taken in exercise of the powers conferred by or under this Act, as if this Act had commenced on the 23rd day of April, 1948.

The First Schedule

THE FIRST SCHEDULE

(See Section 3)

MATTERS TO BE PROVIDED FOR IN THE COAL MINES PROVIDENT FUND SCHEME

1. The employees or class of employees who shall join the Fund, the contributions payable to the Fund and the conditions under which an employee may be exempted from joining the Fund or from payment of contributions.

[xxi][2. Payment of contributions to the Fund by employers and by, or on behalf of, [employee (whether employed by an employer directly or by or through a contractor)][xxii], the rate, time and manner of such payment and the manner in which such contributions may be recovered.]

[xxiii][2-A. The manner in which employees' contributions may be recovered by contractors from employees employed by or through such contractors.]

3. The payment by the employer of such sums of money as may be considered necessary to meet the cost of administering the Fund and the rate at which and the manner in which [xxiv][the payment shall be made].

[xxv][4. The constitution of any committee for assisting the Board.]

[xxvi][5. The opening of regional and other offices.]

6. The manner in which accounts shall be kept, the investment of moneys belonging to the Fund, the preparation of a budgest, the audit of accounts and the submission of reports to the Central Government.

7. The conditions under which withdrawals from the Fund may be permitted and any deduction or forfeiture may be made, [xxvii][the maximum amount of such deduction or forfeiture and the utilisation of such deducted or forfeited amounts].

8. The fixation of the rate of interest payable to members by the Central Government in consultation with the Board of Trustees.

9. The form in which an employee shall furnish particulars about himself and his family when required.

10. The nomination of a person to receive the amount standing to the credit of a member after his death and the cancellation or the change of such nomination.

11. The registers and records to be maintained by the employer [or contractor][xxviii] and the returns to be furnished by him.

12. The form or design of an identity card or a token or a disc for purposes of identifying any employee and for the issue, custody and replacement thereof.

13. The fees to be levied for any of the purposes specified in this Schedule.

[xxix][13-A. The manner in which accumulations in any existing provident fund shall be transferred to the Fund under Section 3-D, and the mode of valuation of any assets which may be transferred by the person administering such provident fund.

14. Any other matter which is to be provided for in the Coal Mines Provident Fund Scheme or which may be necessary or proper for the purpose of implementing that Scheme.]

The Second Schedule

[xxx][THE SECOND SCHEDULE

[See Section 3-E(5)]

MATTERS TO BE PROVIDED FOR IN THE COAL MINES PENSION SCHEME

1. The employees or class of employees to whom the Coal Mines Pension Scheme shall apply and the time within which option to join that Scheme shall be exercised by those employees to whom the said Scheme does not apply.

2. The time within which the employees who are not members of the Family Pension Scheme under Section 3-E as it stood before the commencement of the Coal Mines Provident Fund and Miscellaneous Provisions (Amendment) Act, 1996 (hereinafter, in this Schedule, referred to as the amending Act) shall opt for the Pension Scheme.

3. The portion of employer's contribution and employees' contribution to the Fund which shall be credited to the Pension Fund and the manner in which it is credited.

4. The Central Government's contribution and other contributions to the Fund which shall be credited to the Pension Fund and the manner in which it is credited.

5. The minimum qualifying service for being eligible for pension and the manner in which the employees may be granted the benefits of their past service under Section 3-E as it stood before the commencement of the amending Act.

6. The regulation of the period of service for which no contribution is received.

7. The manner in which employees' interest will be protected against default in payment of contribution by the employer.

8. The manner in which the accounts of the Pension Fund shall be kept and investment of moneys belonging to Pension Fund to be made subject to such pattern of investment as may be determined by the Central Government.

9. The form in which an employee shall furnish particulars about himself and the members of his family whenever required.

10. The forms, registers and records to be maintained in respect of employees required for the administration of the Pension Scheme.

11. The scale of pension and pensionary benefits and the conditions relating to grant of such benefits to the employees, the amount of the life assurance payable under the Pension Scheme and the manner of such payment.

12. The mode of disbursement of pension and arrangements to be entered into with such disbursing agencies as may be specified for the purpose.

13. The manner in which the expenses incurred in connection with the administration of the Pension Scheme may be paid by the Central Government to the Board.

14. Nomination of persons for receiving pension and assurance amounts in the case of death of an employee.

15. Any other matter which is to be provided for in the Pension Scheme or which may be necessary or proper for the purpose of implementation of the Pension Scheme.]

The Third Schedule

[xxxi][THE THIRD SCHEDULE

(See Section 3-G)

MATTERS TO BE PROVIDED FOR IN THE COAL MINES DEPOSIT-LINKEDINSURANCE SCHEME

1. The employees or class of employees who shall be covered by the Insurance Scheme.

2. The manner in which the accounts of the Insurance Fund shall be kept and the investment of moneys belonging to the Insurance Fund, subject to such pattern of investment as may be determined, by order, by the Central Government.

3. The form in which an employee shall furnish particulars about himself and the members of his family whenever required.

4. The nomination of a person to receive the insurance amount due to the employee after his death and the cancellation or variation of such nomination.

5. The registers and records to be maintained in respect of employees; the form or design of any identity card, token or disc for the purpose of identifying any employee or his nominee or member of his family entitled to receive the insurance amount.

6. The scales of insurance amount which shall not be less than the average balance in the account of the employee concerned in the Fund during a period of three years immediately preceding his death or more than rupees ten thousand.

7. The minimum average balance to be maintained by an employee in the Fund to make him eligible for the benefit under the scheme.

8. The manner in which the amount due to the nominee or the member of the family of the employee under the scheme is to be paid including a provision that the amount shall not be paid otherwise than in the form of a deposit in a savings bank account, in the name of such nominee or member of family, in any corresponding new bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970).

9. Any other matter which is to be provided for in the Insurance Scheme or which may be necessary or proper for the purpose of implementing that scheme.]

The Fourth Schedule

THE [xxxii][FOURTH] SCHEDULE

(See Section 5)

MATTERS TO BE PROVIDED FOR IN THE COAL MINES BONUS SCHEME

1. The payment of bonus dependent on the attendance of an [xxxiii][employee] during any period.

2. The employees or class of employees who shall be eligible for the bonus and the conditions of eligibility.

3. The rate at which the bonus shall be payable to an employee and the manner in which the bonus shall be calculated.

4. The conditions under which an employee may be debarred from getting the bonus in whole or in part.

5. The rate at which sums shall be set apart by the employer for payment of bonus, and the time and manner of such payment.

6. The registers and records to be maintained by the employer [xxxiv][or contractor] and the returns to be furnished by him.

[xxxv][6-A. The transfer, by an employer to the Fund or any other fund specified by the Central Government, of the amount of bonus remaining unpaid or unclaimed for a period of six months from the end of the quarter to which the bonus relates and the extinguishment of the employer's liability to his employees to the extent of the amount so transferred.

7. Any other matter which is to be provided for in the Coal Mines Bonus Scheme or which may be necessary or proper for the purpose of implementing the Scheme.

[disclaimer]