Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948

For persons employed in coal mines, framing of a Provident Fund Scheme, a Pension Scheme, a Deposit-linked Insurance Scheme and a Bonus Scheme.

Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948

[Act 46 of 1948]      [3rd September, 1948]

An Act to make provision for the framing of a Provident Fund Scheme a [i][Pension Scheme] [ii][a Deposit-linked Insurance Scheme] and a Bonus Scheme for persons employed in coal mines

[iii][* * *]

It is hereby enacted as follows:

1. Short title and extent.

1. Short title and extent.—[iv][(1) This Act may be called the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948.]

[v][(2) It extends to the whole of India.]

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

2. Interpretation.

2. Interpretation.—In this Act, unless there is anything repugnant in the subject or context,—

(a) “bonus” means any sum of money payable to an [vi][employee] under the Coal Mines Bonus Scheme framed under this Act;

[vii][(aa) “coal” includes lignite;]

[viii][(b) “coal mine” means any excavation where any operation for the purpose of searching for or obtaining coal has been or is being carried on, and includes—

(i) all borings and bore holes;

(ii) all shafts, in or adjacent to and belonging to a coal mine, whether in the course of being sunk or not;

(iii) all levels and inclined places in the course of being driven;

(iv) any opencast working or quarry, that is to say, an excavation where any operation for the purpose of searching for or obtaining coal has been or is being carried on, not being a shaft or an excavation which extends below superjacent ground;

(v) all conveyors or aerial rope ways provided for the bringing into or removal from a coal mine of coal or other articles or for the removal of refuse therefrom;

(vi) all adits, levels, planes, machinery, works, railways, tramways and sidings, in or adjacent to and belonging to a coal mine;

(vii) all workshops situated within the precincts of a coal mine and under the same management and used for purposes connected with that coal mine or a number of coal mines under the same management;

(viii) any office of a coal mine;

(ix) all power-stations for supplying electricity for the purpose of working the coal mine or a number of coal mines under the same management;

(x) any premises for the time being used for depositing refuse from a coal mine, or in which any operation in connection with such refuse is being carried on, being premises exclusively occupied by the employer of the coal mine;

(xi) all hospitals and canteens maintained for the benefit of the employees of a coal mine or a number of coal mines under the same management;

(xii) any coke oven or plant;

(xiii) any premises in or adjacent to and belonging to a coal mine, on which any plant or other machinery connected with a coal mine is situated or on which any process ancillary to the work of a coal mine is being carried on;]

(c) “contribution” means the contribution payable in respect of a member under the Coal Mines Provident Fund Scheme framed under this Act [ix][or the contribution payable in respect of an employee to whom the Insurance Scheme applies];

[x][(d) “employee” means any person who is employed for wages in any kind of work, manual or otherwise, in connection with a coal mine and who gets his wages directly from the employer and includes—

(1) any person employed by or through a contractor in or in connection with a coal mine, and

(2) for the purposes of the Coal Mines Provident Fund Scheme, also—

(i) any other person who is employed as a sanitary worker, Mali, teacher, or domestic servant in or in connection with a coal mine and who receives wages directly from the employer, and

(ii) any apprentice or trainee who receives stipend or other remuneration from the employer;]

[xi][(e) “employer”, when used in relation to a coal mine, means any person who is the immediate proprietor or lessee or occupier of the coal mine or of any part thereof and in the case of a coal mine the business whereof is being carried on by a liquidator or receiver, such liquidator or receiver, and in the case of a coal mine owned by a company the business whereof is being carried on by a managing agent, such managing agent, but does not include a person who merely receives a royalty, rent or fine from the coal mine, or is merely the proprietor of the coal mine, subject to any lease, grant or licence for the working thereof, or is merely the owner of the soil and not interested in the coal of the coal mine; but any contractor for the working of a coal mine or any part thereof shall be subject to this Act in like manner as if he were an employer, but not so as to exempt the employer from any liability;]

(ee) [* * *][xii]

(f) “Fund” means the provident fund established under the Coal Mines Provident Fund Scheme;

[xiii][(fa) “Insurance Fund” means the Deposit-linked Insurance Fund established under sub-section (2) of Section 3-G;

(fb) “Insurance Scheme” means the Coal Mines Deposit-linked Insurance Scheme framed under sub-section (1) of Section 3-G;]

[xiv][(fc) “Managing agent” has the meaning assigned to in the Companies Act, 1956 (1 of 1956); and]

(g) “Member” means a member of the Fund.

[xv][(h) “Pension Fund” means the Pension Fund established under sub-section (2) of Section 3-E;

(i) “Pension Scheme” means the Coal Mines Pension Scheme framed under sub-section (1) of Section 3-E;

(j) “superannuation”, in relation to an employee who is a member of the Pension Scheme, means the attainment, by the said employee, of such age as is fixed in the contract or conditions of service as the age on the attainment of which such employee shall vacate the employment.]

3. Coal Mines Provident Fund Scheme.

3. Coal Mines Provident Fund Scheme.—(1) The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Coal Mines Provident Fund Scheme for the establishment of a Provident Fund for [xvi][employees] and specify the coal mines to which the said scheme shall apply.

[xvii][(1-A) The Fund shall vest in, and be administered by the Board constituted under Section 3-A.]

(2) Any scheme framed under the provisions of sub-section (1) may provide for all or any of the matters specified in the First Schedule.

3-A. Constitution of Board of Trustees.

[xviii][3-A. Constitution of Board of Trustees.—(1) The Central Government may, by notification in the Official Gazette, constitute, with effect from such date as may be specified therein, a Board of Trustees for the territories to which this Act extends (hereinafter in this Act, referred to as the Board) consisting of the following persons, namely:—

(a) a Chairman appointed by the Central Government;

(b) the Coal Mines Provident Fund Commissioner, ex officio;

(c) three persons appointed by the Central Government;

(d) not more than six person representing Government of such States as the Central Government may specify in this behalf, from time to time, appointed by the Central Government;

(e) six persons representing employers, appointed by the Central Government after consultation with such organisations of employers as may be recognised by the Central Government in this behalf and of whom at least one shall be a person who is not a member of any such organisation;

(f) six persons representing employees appointed by the Central Government after consultation with such organisations of employees as may be recognised by the Central Government in this behalf and of whom at least one shall be an employee himself and at least one shall be a person who is not a member of any such organisation.

(2) The terms and conditions subject to which a member of the Board may be appointed and the time, place and procedure, of the meetings of the Board shall be such as may be provided for in the Coal Mines Provident Fund Scheme.

(3) The Board shall [xix][subject to the provisions of Section 3-E,] [xx][and Section 3-G] administer the Fund vested in it in such manner as may be specified in the Scheme aforesaid.

(4) The Board shall perform such other functions as it may be required to perform by or under any provisions of [xxi][the Coal Mines Provident Fund Scheme] [xxii][, the [Coal Mines Pension Scheme][xxiii] and the Insurance Scheme].

3-B. Board of Trustees to be a body corporate.

3-B. Board of Trustees to be a body corporate.—The Board of Trustees constituted under Section 3-A shall be a body corporate under the name specified in the notification constituting it, having perpetual succession and a common seal and shall by the said name sue and be sued.

3-C. Appointment of officers.

3-C. Appointment of officers.—(1) The Central Government shall appoint a Coal Mines Provident Fund Commissioner, who shall be the chief executive officer of the Board and shall be subject to the general control and superintendence of the Board.

(2) The Central Government may also appoint as many other officers whose minimum monthly salary in the scale of pay (if any), applicable to them is not less than four hundred rupees, as it may consider necessary to assist the Coal Mines Provident Fund Commissioner in the discharge of his duties.

(3) Subject to the provisions of sub-sections (1) and (2), the Board may appoint such other officers and employees as it may consider necessary for the efficient administration of the Coal Mines Provident Fund Scheme [xxiv][and the [Coal Mines Pension Scheme] and the Insurance Scheme].

(4) The method of recruitment, salary and allowances, discipline and other conditions of service of the Coal Mines Provident Fund Commissioner shall be such as may be specified by the Central Government and such salary and allowances shall be paid out of the Fund.

(5) The method of recruitment, salary and allowances, discipline and other conditions of service of the other officers and employees of the Board shall be such as may be specified by the Board with the approval of the Central Government.

3-D. Transfer of accounts.

3-D. Transfer of accounts.—(1) Where any employee who is a subscriber to any provident fund of the coal mine in which he is employed becomes a member of the Fund in accordance with the provisions of any Coal Mines Provident Fund Scheme, the accumulations in the provident fund of the coal mine standing to the credit of the employee shall notwithstanding anything to the contrary contained in any law for the time being in force, or in any deed or other instrument establishing the provident fund but subject to the provisions if any contained in the Scheme, be transferred by such person and within such time as may be provided in the Scheme to the Fund and shall be credited to the account of the employee in the Fund.

(2) Where a member of the Fund leaves his employment in a coal mine and obtains re-employment in any other establishment (not being a coal mine to which the Coal Mines Provident Fund Scheme applies) and becomes a subscriber to any provident fund of the establishment, the amount of accumulations to the credit of such employee in the Fund shall be transferred, within such time as may be specified by the Central Government in this behalf, to the credit of his account in the provident fund of the establishment in which he is re-employed, if the employee so desires and the rules in relation to that provident fund permit such transfer.

(3) Where any employee who is a subscriber to any provident fund of an establishment (not being a coal mine to which the Coal Mines Provident Fund Scheme applies) leaves his employment in that establishment and obtains re-employment in a coal mine and becomes a member of the Fund, the amount of accumulations to the credit of such employee in the provident fund of the establishment left by him shall, if the employee so desires and the rules in relation to such provident fund so permit, be transferred to the credit of his account in the Fund.]

3-E. Coal Mines Pension Scheme.

[xxv][3-E. Coal Mines Pension Scheme.—(1) The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Coal Mines Pension Scheme for the purpose of providing for—

(a) superannuation pension, retiring pension or permanent total disablement pension to the persons employed in any coal mine or class of coal mines to which this Act applies; and

(b) widow or widower pension, children pension or orphan pension and life assurance benefits, payable to the beneficiaries of such employees.

(2) Notwithstanding anything contained in Section 3, there shall be established, as soon as may be after framing of the Pension Scheme, a Pension Fund into which there shall be paid, from time to time, in respect of every employee who is a member of the Pension Scheme,—

(a) such sums, not exceeding one-fourth, of the amount payable to the Fund under sub-section (1) of Section 10-D as the employer's contribution as well as the employee's contribution, as may be specified in the Pension Scheme;

(b) such sums as the Central Government may, after due appropriation made by Parliament by law in this behalf, specify;

(c) the net assets of the Pension Fund as existed immediately before the establishment of the Pension Fund; and

(d) any other contribution which may be made to the Pension Fund with the previous approval of the Central Government.

(3) On the establishment of the Pension Fund, the Family Pension Scheme (hereinafter referred to as the ceased scheme) shall cease to operate and all assets of the ceased scheme shall vest in, and shall stand transferred to, and all liabilities under the ceased scheme shall be enforceable against, the Pension Fund and the beneficiaries under the ceased scheme shall be entitled to draw the benefits, not less than the benefits, they were entitled to under the ceased scheme, from the Pension Fund.

(4) The Pension Fund shall vest in and be administered by the Board in such manner as may be specified in the Pension Scheme.

(5) A scheme framed under the provisions of sub-section (1) may provide for all or any of the matters specified in the Second Schedule.]

3-F. Special grant by Central Government.

[xxvi][3-F. Special grant by Central Government.—The Central Government shall, after due appropriation made by Parliament by law in this behalf, pay such further sums as may be determined by it into the [Pension Fund][xxvii] to meet all the expenses in connection with the administration of the [Coal Mines Pension Scheme] other than the expenses towards the cost of any benefits provided by or under the said scheme.]

3-G. Coal Mines Deposit-linked Insurance Scheme.

[xxviii][3-G. Coal Mines Deposit-linked Insurance Scheme.—(1) The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Coal Mines Deposit-linked Insurance Scheme for the purpose of providing life insurance benefits to such employees as are covered by the Coal Mines Provident Fund Scheme.

(2) There shall be established, as soon as may be after the framing of the Insurance Scheme, a Deposit-linked Insurance Fund into which shall be paid by the employer from time to time in respect of every such employee, in relation to whom he is the employer, such amount, not being more that one per cent of the aggregate of the basic wages, dearness allowance and retaining allowance (if any) for the time being payable in relation to such employee, as the Central Government may, by notification in the Official Gazette, specify.

Explanation.—For the purposes of this sub-section,—

(a) the expression “basic wages” has the meaning assigned to it in the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952);

(b) “dearness allowance” means all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living and shall be deemed to include also the cash value of any food concession allowed to the employee;

(c) “retaining allowance” means an allowance payable for the time being to an employee of any coal mine during any period in which the coal mine is not working, for retaining his services.

(3) The Central Government shall, after due appropriation made by Parliament by law, contribute to the Insurance Fund in relation to each employee covered by the Coal Mines Provident Fund Scheme, an amount representing one-half of the contribution which an employer is required, by sub-section (2), to make.

(4) (a) The employer shall pay into the Insurance Fund such further sums of money, not exceeding one-fourth of the contribution which he is required to make under sub-section (2), as the Central Government may, from time to time, determine, to meet all the expenses in connection with the administration of the Insurance Scheme other than the expenses towards the cost of any benefits provided by or under that scheme.

(b) The Central Government shall, after due appropriation made by Parliament by law, pay into the Insurance Fund such further sums of money representing one-half of the sums payable by the employer under clause (a), to meet all the expenses in connection with the administration of the Insurance Scheme other than the expenses towards the cost of any benefits provided by or under that scheme.

(5) The Insurance Fund shall vest in the Board and shall be administered by the Board in such manner as may be specified in the Insurance Scheme.

(6) Any scheme framed under the provisions of sub-section (1) may provide for all or any of the matters specified in the Third Schedule.]

4. Fund to be recognised under Act 43 of 1961.

[xxix][4. Fund to be recognised under Act 43 of 1961.—For the purposes of the Income Tax Act, 1961, the Fund shall be deemed to be a recognised Provident Fund within the meaning of Part A of the Fourth Schedule to that Act.]

5. Coal Mines Bonus Scheme.

5. Coal Mines Bonus Scheme.—(1) The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Coal Mines Bonus Scheme for the payment of bonus to [xxx][employees] and specify the coal mines to which the said scheme shall apply.

(2) A scheme framed under the provisions of sub-section (1) may provide for all or any of the matters specified in the [xxxi][Fourth Schedule].

[xxxii][(3) The employer shall pay the bonus in accordance with the Scheme as aforesaid.]

6. Retrospective operation of a scheme.

6. Retrospective operation of a scheme.—A scheme framed under this Act may provide that any of its provisions shall come into force either prospectively or retrospectively with effect from such date as may be specified in this behalf in the scheme.

7. Modification of a scheme.

7. Modification of a scheme.—The Central Government may, by notification in the Official Gazette, add to, amend or vary [xxxiii][either prospectively or retrospectively] a scheme framed under this Act.

7-A. Schemes to be laid before Parliament.

[xxxiv][7-A. Schemes to be laid before Parliament.—Every scheme made under this Act shall be laid as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in [xxxv][two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid] both Houses agree in making any modification in the scheme or both Houses agree that the scheme should not be made, the scheme shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that scheme.

7-B. Determination of moneys due from employer.

7-B. Determination of moneys due from employer.—(1) The Coal Mines Provident Fund Commissioner or any other officer duly authorised in this behalf by the Central Government may by order determine the amount due from any employer under any provisions of this Act or of any scheme framed thereunder and for this purpose may conduct such enquiry as he may deem necessary.

(2) The officer conducting the enquiry under sub-section (1) shall, for the purpose of such enquiry, have the same power as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), for trying a suit in respect of the following matters, namely:—

(a) enforcing the attendance of any person or examining him on oaths;

(b) requiring the discovery and production of documents;

(c) receiving evidence on affidavit;

(d) issuing commissions for the examination of witnesses;

and any such enquiry shall be deemed to be a judicial proceeding within the meaning of Sections 193 and 228 and for the purposes of Section 196 of the Indian Penal Code, 1860 (45 of 1860).

(3) No order determining the amount due from any employer shall be made under sub-section (1), unless the employer is given a reasonable opportunity of representing his case.

(4) An order made under this section shall be final and shall not be questioned in any court of law.]

8. Protection against attachment.

8. Protection against attachment.—(1) The amount of the provident fund standing to the credit of any member in the Fund shall not in any way be capable of being assigned or charged and shall not be liable to attachment under any decree or order of any court in respect of any debt or liability incurred by the member and neither the Official Assignee nor any Receiver appointed under the Provincial Insolvency Act, 1920, shall be entitled to, or have any claim on, any such amount.

(2) Any amount standing to the credit any member in the Fund at the time of his death and payable to his nominee under the Coal Mines Provident Fund Scheme shall, subject to any deduction authorised by the said scheme, vest in the nominee and shall be free from any debt or other liability incurred by the deceased or incurred by the nominee before the death of the member.

[xxxvi][(3) The provisions of sub-section (1) and sub-section (2) shall, so far as may be, apply in relation to the [pension][xxxvii] or any other amount payable under the [Coal Mines Pension Scheme] [xxxviii][and also in relation to any amount payable under the Insurance Scheme] as they apply in relation to any amount payable out of the Fund.]

[disclaimer]