The Provident Funds Act, 1925

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THE PROVIDENT FUNDS ACT, 1925 ACT NO. 19 OF 1925 1*

[27th August, 1925.]

An Act to amend and consolidate the law relating to Government and other Provident Funds.

WHEREAS it is expedient to amend and consolidate the law relating to Government and other Provident Funds:

It is hereby enacted as follows:--

1.

Short title, extent and commencement.

1. Short title, extent and commencement.(1) This Act may be called the Provident Funds Act, 1925.

(2) It extends to the whole of India 2*[except the State of Jammu and Kashmir] 3*.

(3) It shall come into force on such date 4* as the Central Government may, by notification in the Official Gazette, appoint.

2.

Definitions.

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

(a) "compulsory deposit" means a subscription to, or deposit in, a Provident Fund which, under the rules of the Fund, is not, until the happening of some specified contingency, repayable on demand otherwise than for the purpose of the payment of premia in respect of a policy of life insurance, 5*[or the payment of subscriptions or premia in respect of a family pension fund], and includes any contribution 6* and any interest or increment which has accrued under the rules

[See footnote 1 for this section]

4. 1st April, 1926, Gazette of India, 1925, Pt. I, p. 1182.

5. Ins. by Act 1 of 1930, s. 2.

6. The words "credited in respect of any such subscription or deposit" omitted by s. 2, ibid.

2 of the fund on any such subscription, deposit or contribution, and also any such subscription, deposit, contribution, interest or increment remaining to the credit of the subscriber or depositor after the happening of any such contingency;

(b) "contribution" means any amount credited in a Provident Fund, by 1*[any authority administering the Fund], by way of addition to, 2*[a subscription to or deposit or balance at the credit of an individual account in,] the Fund; and "contributory Provident Fund" means a Provident Fund the rules of which provide for the crediting of contributions;

(c) "dependant" means any of the following relatives of a deceased subscriber to, or a depositor in, a Provident Fund, namely, a wife, husband, parent, child, minor brother, unmarried sister and a deceased son's widow and child, and, where no parent of the subscriber or depositor is alive, a paternal grand-parent;

(d) "Government Provident Fund" means a Provident Fund, other than a Railway Provident Fund, constituted by the authority of 3*[the Secretary of State, the Central Government, the Crown Representative or any State Government] for any class or classes of 4*[persons in the service of the Government] or 5*[of persons employed in educational institutions or employed by bodies existing solely for educational purposes], 6*[and references in this Act to the Government shall be construed accordingly];

(e) "Provident Fund" means a fund in which subscription or deposits of any class or classes of employees are received an held on their individual accounts, and includes any contributions 7* and any interest or increment accruing on such subscriptions, deposits or contributions under the rules of the Fund;

8*[(f) "Railway administration" means--

(i) any company administering a railway or tramway in 9*[any part of India] either under a special Act of Parliament

[See footnote 2 for this section]

1*[of the United Kingdom] or an Indian law, or under contract with the Government, or (ii) the manager of any railway or tramway administered by the 2*[Central Government] of by a State Government, and includes, in any case referred to in sub-clause (ii), the 2*[Central Government] or the State Government, as the case may be']

(g) "Railway Provident Fund" means a Provident Fund constituted by the authority of a railway administration for any class or classes of its employees.

3.

Protection of compulsory deposits.

3. Protection of compulsory deposits. (1) A compulsory deposit in any Government or Railway Provident 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 Civil, Revenue or Criminal Court in respect of any debt or liability incurred by the subscriber or depositor, and neither the Official Assignee nor any receiver appointed under the Provincial Insolvency Act, 1920, (5 of 1920.)

shall be entitled to, or have nay claim on, any such compulsory deposit.

(2) Any sum standing to the credit of any subscriber to, or depositor in, any such Fund at the time of his decease and payable under the rules of the Fund to any dependant of the subscriber or depositor, or to such person as may be authorised by law to receive payment on his behalf, shall, subject to any deduction authorised by this Act and, save where the dependant is the widow or child of the subscriber or depositor, subject also to the rights of an assignee under an assignment made before the commencement of this Act, vest in the dependant, and shall, subject as afore-said, be free from any debt or other liability incurred by the deceased or incurred by the dependant before the death of the subscriber or depositor, 4.

Provisions regarding re-payments.

4. Provisions regarding re-payments. (1) When under the rules of any Government or Railway Provident Fund the sum standing to the credit of any subscriber or depositor, or the balance thereof after the making of any deduction authorised by this Act, has become payable, the officer whose duty it is to make the payment shall pay the or balance, as the case may be, to the subscriber or depositor, or, if he is dead, shall--

(a) if the sum or balance, or any part thereof, vests in a dependant under the provisions of section 3, pay the same to the dependant or to such person as may be authorised by law to receive payment on his behalf; or

[See footnote 3 for this section]

(b) if the whole sum or balance, as the case may be, does not exceed five thousand rupees, pay the same, or any part thereof, which is not payable under clause (a), to any person nominated to receive it under the rules of the Funds, or, if no person is so nominated, to any person appearing to him to be otherwise entitled to receive it; or (c) in the case of any sum or balance, or any part thereof, which is not payable to any person under clause (a) or clause (b) pay the same,--

(i) to any person nominated to receive it under the rules of the Fund on production by such person of probate of letters of administration evidencing the grant to him of administration to the estate of the deceased or a certificate granted under the Succession Certificate Act, 1889 1*, (7 of 1889.) or under the Bombay Regulation VIII of 1827, entitling the holder thereof to receive payment of such sum, balance or part, or (ii) where no person is so nominated, to any person who produces such probate, letters or certificate:

Provided that, where the whole or any part of any sum standing to the credit of the subscriber or depositor has been assigned to any other person before the commencement of this Act, and notice in writing of the assignment has been received by the officer from the assignee, the officer shall...

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