Report No. 137

2.5.8. Unwarranted insistence on production of No Demand Certificate.-

Another cause which occasions delay in the finalisation and settlement of cases is the requirement as to production of 'No Demand Certificate'. This certificate is given by the employer certifying that there are no dues recoverable from the employee. Even though there is no provision in the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and the Scheme framed thereunder authorising the withholding of the provident fund dues for want of such a certificate, the dues are often withheld by preferring this excuse.

Again, while the employee is generally called upon to produce such a certificate after obtaining it from the concerned department/official of the employer, the employee is totally helpless if his request is not attended to for very many months or years. To illustrate the point, it may be mentioned that even though an employee (Shri Lalan Kuki) submitted his claim papers after retirement in April 1988, his case has not been finalised for more than 18 months or want of 'No Demand Certificate' by his employer [National Project Construction Corporation].