Liquidators signature not needed to withdraw Profident Fund: High Court

In a significant order,the Gujarat High Court has held that it is not necessary for the worker of a liquidated unit to get the signature of the liquidator to withdraw the Provident Fund amount,if he provides sufficient proof of his identity.

In a significant order,the Gujarat High Court has held that it is not necessary for the worker of a liquidated unit to get the signature of the liquidator to withdraw the Provident Fund (PF) amount,if he provides sufficient proof of his identity.

The HC order came in the wake of a petition by the liquidator of a textile mill from Ahmedabad,which had gone into liquidation. The order came as a welcome respite for the workers of the unit.

Advocate D S Vasavada said: It was mandatory for the workers of a liquidated unit to get signature of the liquidator to withdraw their PF amount. Here,the liquidator had refused to sign the applications of around 5,000 workers saying that he had no power to do so. Following this,the workers had lodged a complaint with the Regional PF Commissioner. The PF Commissioner had issued notice to the liquidator with an intention to initiate criminal proceedings against him.

Story continues below this ad

He added: The liquidator had come to HC against the notice issued by PF commissioner. Vasavada,is at present representing the Textile Labour Association (TLA) in the case. The TLA has been representing the cases of the workers before the PF Commissioner also.

Vasavada said Justice Jayant Patel passed the order and said that it is not necessary for the workers to get the signature of the liquidator before withdrawing the PF amount since it is their money.

The court,though,has said that the workers will have to produce an adequate proof of their identity before the PF Commissioner for the withdrawal.

Stay updated with the latest - Click here to follow us on Instagram