IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE AMIT RAWAL
FRIDAY, THE 20TH DAY OF MAY 2022 / 30TH VAISAKHA, 1944
WP(C) NO. 20868 OF 2021
PETITIONER:
VEEKAY TEA COMPAY (P) LTD.,
CHANDRAMALAI ESTATES, NELLIYAMPATHY P. O.,
PALAKKAD DISTRICT, PIN - 678 508,
REPRESENTED BY THE MANAGER-IN-CHARGE,
SMT. JAYANTHI M. K.
BY ADVS.
N.RAGHURAJ
SAYUJYA
RESPONDENTS:
1 THE EMPLOYEES' PROVIDENT FUND ORGANIZATION,
"BHAVISHYANIDHI BHAVAN", 14, BHIKAIJI CAMA PLACE,
NEW DELHI - 110066,
REPRESENTED BY CERNTRAL P. F. COMMISSIONER.
2 THE ASSISTANT PROVIDENT FUND COMMISSIONER,
EMPLOYEES PROVIDENT FUND ORGANIZATION,
REGIONAL OFFICE, "BHAVISHYANIDHI BHAVAN",
P. B. NO.1806, ERANHIPALAM P. O., KOZHIKODE - 673 006.
3 THE RECOVERY OFFICER,
EMPLOYEES PROVIDENT FUND ORGANIZATION,
REGIONAL OFFICE, "BHAVISHYANIDHI BHAVAN",
P. B. NO.1806, ERANHIPALAM P. O., KOZHIKODE - 673 006.
BY ADV SAJEEVKUMAR K.GOPAL, SC, EPFO
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
20.05.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 20868 OF 2021 -2-
JUDGMENT
In the present writ petition order of the Employees' Provident Fund Organization (Ext.P5) and the Appellate Tribunal (Ext.P9), determining the damages under Section 14B of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (hereinafter referred to as 'the EPF Act', for short) has been assailed. This Court while admitting the writ petition had stayed the operation of the order by directing the petitioner to deposit a sum of Rs.5,00,000/- (Rupees five lakhs only) which has admittedly been deposited.
2. Learned counsel for the petitioner submits that the aforementioned proceedings were initiated on account of delayed payment of Section 7A of the EPF Act. The petitioner company was running under loss and owing to the pandemic had further not incurred any income resulting into such default and willing to pay the damages in case this Court grants the liberty to pay in instalments.
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3. Learned counsel for the respondents submits that the damages are the sine qua non for non payment of the contribution under Section 7A of the EPF Act. Much time has already elapsed and no effort has been made. Therefore the concession of payment of rest of the amount in instalments should not be granted.
4. I have heard learned counsel for the parties and appraised the paper books.
5. The authorities under the EPF Act initiates action under Sections 14B and 7Q of the EPF Act on account of non failure of contribution under Section 7A of the EPF Act in time. In other words, the proceedings under Sections 14B and 7Q are sine qua non in case of non compliance of the provisions of Section 7A. Be that as it may. Since the petitioner has offered to pay the amount I do not intend to delve into the merits of the matter as already a sum of Rs.5,00,000/- out of the outstanding payment of Rs.17,00,000/- (Rupees seventeen lakhs only) has been paid. I permit the petitioner to pay the balance amount of Rs.12,00,000/- WP(C) NO. 20868 OF 2021 -4- (approximately) in twelve (12) equal monthly instalments commencing from 01.06.2022 and in case of default of two instalments, the respondents shall be at liberty to initiate the proceedings under Section 8F of the EPF Act in accordance with law.
Writ petition is disposed off.
Sd/-
AMIT RAWAL JUDGE VV WP(C) NO. 20868 OF 2021 -5- APPENDIX OF WP(C) 20868/2021 PETITIONER EXHIBITS Exhibit P1 TRUE PHOTOCOPY OF THE AUDITED BALANCE SHEET AND PROFIT & LOSS ACCOUNTS OF THE PETITIONER COMPANY FOR THE FINANCIAL YEAR 2014-15.
Exhibit P1(a) TRUE PHOTOCOPY OF THE AUDITED BALANCE SHEET AND PROFIT & LOSS ACCOUNT OF THE PETITIONER COMPANY FOR THE FINANCIAL YEAR 2015-16.
Exhibit P1(b) TRUE PHOTOCOPY OF THE AUDITED BALANCE SHEET AND PROFIT & LOSS ACCOUNTS OF THE PETITIONER COMPANY FOR THE FINANCIAL YEAR 2016-17.
Exhibit P1(c) TRUE PHOTOCOPY OF THE AUDITED BALANCE SHEET AND PROFIT & LOSS ACCOUNT OF THE PETITIONER COMPANY FOR THE FINANCIAL YEAR 2017-18.
Exhibit P1(d) TRUE PHOTOCOPY OF THE PROVISIONAL BALANCE SHEET AND PROFIT & LOSS ACCOUNT OF THE PETITIONER COMPANY FOR THE FINANCIAL YEAR 2018-19.
Exhibit P2 TRUE PHOTOCOPY OF THE REPRESENTATION DATED 06.09.2018.
Exhibit P3 TRUE PHOTOCOPY OF THE LETTER BEARING NO.DMA2/342/2019/DMD DATED 14.03.2019 ISSUED BY THE PRINCIPAL SECRETARY, DISASTER RELIEF DEPARTMENT.
Exhibit P4 TRUE PHOTOCOPY OF THE SUMMONS DATED 09.05.2019, REQUIRING THE PETITIONER TO APPEAR FOR HEARING CONTEMPLATED U/S. 14B OF THE EPF & MP ACT.
Exhibit P5 TRUE PHOTOCOPY OF THE ORDER BEARING NO.KR/KKD405/ENF4(1)/2019/2497 DATED WP(C) NO. 20868 OF 2021 -6- 24.07.2019.
Exhibit P6 TRUE PHOTOCOPY OF THE MEMORANDUM OF A.T.A.NO.374 OF 2019 (WITHOUT ANNEXURES).
Exhibit P6(a) TRUE PHOTOCOPY OF THE ORDER DATED 08.11.2019 IN APPEAL NO.374 OF 2019. Exhibit P7 TRUE PHOTOCOPY OF THE COUNTER AFFIDAVIT DATED 07.11.2019 FILED BY THE 2ND RESPONDENT IN A.T.A. NO.374 OF 2019.
Exhibit P8 TRUE PHOTOCOPY OF THE NOTICE DATED 06.11.2020.
Exhibit P9 TRUE PHOTOCOPY OF THE ORDER DATED 23.04.2021 IN APPEAL NO.374 OF 2019.