IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
WEDNESDAY, THE 10TH DAY OF AUGUST 2022 / 19TH SRAVANA, 1944
WP(C) NO. 23180 OF 2021
PETITIONER:
M/S.KERALA STATE CASHEW DEVELOPMENT CORPORATION LTD.
P.B.NO.13, KOLLAM - 1,
REPRESENTED BY ITS MANAGING DIRECTOR,
DR.RAJESH RAMAKRISHNAN, CASHEW HOUSE,
MUNDAKKAL, KOLLAM - 1.
BY ADVS.
VIPIN P.VARGHESE
KEVIN MATHEW GEORGE
ROWENA COLETTE DIAS
RESPONDENT:
THE REGIONAL PF COMMISSIONER, EPFO,
SUB REGIONAL OFFICE,
KALOOR,
KOCHI - 682 017.
SRI.SAJEEV KUMAR K. GOPAL - SC, EPFO
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
10.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C).No.23180 OF 2021
2
JUDGMENT
The petitioner, a Government of Kerala undertaking, has approached this Court challenging Ext.P2 order of the respondent assessing damages under Section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (for short 'the Act'), for the period from 01.04.1996 to 30.09.2018. The total damages assessed is Rs.12,12,631/-. Apart from the damages assessed under Section 14B, the petitioner was also directed to pay interest under Section 7Q of the Act. Ext.P2 is challenged on the ground that, the petitioner was facing acute financial difficulties and the belated remittance of the dues under the Act and Scheme was not willful and the respondent did not consider the mitigating circumstances while assessing the damages. W.P.(C).No.23180 OF 2021 3
2. The Tribunal in Ext.P1 order has stated that, the petitioner has not produced any evidence to substantiate the financial constraints and the mitigating circumstances. Before this Court, the petitioner has produced Ext.P5, which is a statement of the Profit and Loss Account for the year ending on 31.03.2019.
3. Heard the learned counsel for the petitioner and the learned Standing Counsel for the respondent.
4. The learned Standing Counsel for the Provident Fund Organisation has relied on the judgment in Civil Appeal No.2136 of 2012 (Horticulture Experiment Station Gonikoppal, Coorg v. The regional Provident Fund Organisation) wherein the Apex Court has held that, any default or delay in the payment of EPF contribution by the employer under the Act is a sine qua non for imposition of levy of damages under W.P.(C).No.23180 OF 2021 4 Section 14B of the Act and mens rea or actus reus is not an essential element for imposing penalty/damages for breach of civil obligations/liabilities.
5. Taking into consideration, Ext.P5 and the submission that the petitioner was going through financial crisis during the material time and other mitigating circumstances pleaded in the writ petition, I feel that, interest of justice would be met if the amount assessed as damages under Section 14B in Ext.P2 is scaled down to Rs.10,00,000/-. The petitioner shall pay the amount of Rs.10,00,000/- in ten equal monthly installments commencing from 01 st day of September, 2022. If the petitioner makes any default in payment of any of the installments, the respondent will be free to proceed against the petitioner in accordance with law. To facilitate the petitioner to pay the amount in installments, W.P.(C).No.23180 OF 2021 5 proceedings pursuant to Ext.P1 shall be kept in abeyance.
The writ petition is disposed of with the above direction.
Sd/-
MURALI PURUSHOTHAMAN JUDGE SPR W.P.(C).No.23180 OF 2021 6 APPENDIX PETITIONER'S EXHIBITS:-
EXHIBIT P1 COMPUTER COPY OF ORDER DATED 05.01.2021 IN APPEAL NO.299/2019 BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT, ERNAKULAM.
EXHIBIT P2 TRUE COPY OF ORDER DATED 02.05.2019 ISSUED BY THE 1ST RESPONDENT.
EXHIBIT P3 TRUE COPY OF THIS HON'BLE COURT'S JUDGMENT IN WP(C) 15194/2013, DATED 18.07.2016. EXHIBIT P4 TRUE COPY OF THE HON'BLE COURT'S INTERIM STAY ORDER IN WP(C)NO.10935/2017 DATED 29.03.2017.
EXHIBIT P5 TRUE COPY OF THE PETITIONER'S STATEMENT OF PROFIT AND LOSSES FOR THE FINANCIAL YEAR 2018-19 DATED 27.11.2020.
RESPONDENTS EXHIBITS: NIL.