(3) Save as otherwise provided in the Coal Mines Provident Fund Scheme, not 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 Sec. 10-A from the wages of a member or otherwise to recover such contribution or charges from such member.

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

(1) '[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 employers contribution in pursuance of the Insurance Scheme)] and any charges referred to in Sec. 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 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 employers' 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.

1O-F. Power to recover damages.-Where an employer makes default in the 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 Sec. 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.]

Comment

Power to recover damages-If a quasi-judicial power.-The power to receiver damages under Sec. 10-F is a quasi-judicial power and must be exercised after notice to the party affected.2 When a body or authority has to determine a matter involving rights judicially the principle of natural Justice is implied if the decision of that body or authority affects individual rights or interests. Again, in such cases having regard to the particular situation it would be unfair for the body or authority not to have allowed a reasonable opportunity to be heard.3

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 Sec. 49 of the Presidency-towns Insolvency Act. 1909 (III of 1909), or under


1. Subs, by Act 99 of 1976. Sec. 13 (w.c.f. 1st August, 1976).
2. J. A. Trivedi Brothers v. Union oflndla. 1975 J. L. J. 404 at p. 412.
3. Commissioner of CoaJ Mines Provident Fund t>. J. P. Lalla. 1976 S.C.C. (L .& S.) 161 at pp. 163. 164.