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7. As far as the liability of employer under section 49 of the Societies Act, Mr. Dhorde would rely upon the decisions in the matters of New Phaltan Sugar Works Ltd. and others Vs. State of Maharashtra and others; 2004(3) Mh.L.J. 266 and Poona Post and Telecom Co- operative Credit Society Ltd. Vs. Union of India and others; 2010(1) Mh.L.J. 858.
8. The learned Advocate Mr. Rane who appears for the respondents no. 3 to 8 submits that the LIC agents who are appointed and whose services are regulated by the Agents Regulations are not the employees but merely agents. Section 49 of the Societies Act would enjoin the employer and pre-supposes that there exists employer-employee relationship between the employer and the agents who are the members of the credit co-operative society. That being not the case, there is no statutory obligation on the LIC to make any deduction. There is a vast distinction between the employees of the LIC and its agents. They are only paid commission. The essential element to establish the employer-employee relationship in the nature 5 WP / 3256 / 2021 of salary or regular remuneration etc. are clearly absent in case of agents. They are merely paid commission which in turn depends upon the business they provide to the LIC. Though there are certain regulations regarding their appointments and tenure, they are not the employees. There is no scope for any such interpretation. The special enactment has come into force pursuant to the enabling powers under section 49 of the LIC Act. There is no scope to draw any other interpretation.
- society, the LIC's agents are its employees whereas the respondent - LIC is disputing the fact.
12. There is a specific regulation in the form of Agents Regulations which lays down elaborate provisions for their appointments, as also regulates their relationship with the LIC. All the provisions regarding their qualification, appointments, training, examination/re-appointments, functions, commission, gratuity, termination, resignation, disqualification, appeals have all been provided for in these regulations.
18. We are, therefore, of the considered view that the LIC agents cannot be considered and equated with the regular employees of the LIC.
19. In view of such a conclusion, the logical and legal corollary would be that the relationship between the LIC and its agents will not 10 WP / 3256 / 2021 be that of an employer-employee which is a sine qua non for attracting the statutory liability under section 49 of the Societies Act.
23. However, since we have already held that the LIC is not under any statutory obligation under section 49 of the Societies Act, it is entitled to refuse to follow the course, but that can be only in respect of the loans disbursed by the petitioner - society to such LIC agents to whom the loans have been advanced after the petitioner - society was specifically put to notice by the communication in February 2020 whereby, for the first time it seems to have informed the petitioner - society its inability to make the remittances by deducting the commission. In other words, it is only in respect of the loans advanced by the petitioner - society to the agents of LIC till February 2020 that the respondent - LIC would be under an obligation to make deductions from the salaries and to remit the money to the petitioner - society. The respondent - LIC having put the petitioner - society to notice, if any advances were made by it after the receipt of this communication of February 2020, the petitioner - society can be stated to have done so at its own peril.