The Empire Jute Company Limited vs The Regional Provident Fund ...
2023 Latest Caselaw 2005 Cal

Form No.J(2)


                 IN THE HIGH COURT AT CALCUTTA
                CONSTITUTIONAL WRIT JURISDICTION
                         APPELLATE SIDE
Present :

The Hon'ble Justice Raja Basu Chowdhury

                                WPA 23174 of 2022

                    The Empire Jute Company Limited
                                    Vs.
            The Regional Provident Fund Commissioner-I & Anr.


For the petitioner          :      Mr. Mainak Bose
                                   Mr. S. M. Akhter

For the Provident Fund :           Mr. Shiv Chandra Prasad
Authority.

Heard on                    :      27.03.2023

Judgment on                 :      27.03.2023



Raja Basu Chowdhury, J:


1. The present writ application has been filed, inter alia, praying for

   grant of installments to pay off the admitted provident fund dues

   for the period from January, 2019 till December, 2019 and

   January, 2021 till July, 2021, as determined by the respondents

in proceedings under Section 7A of the Employees' Provident

Fund and Miscellaneous Provisions Act, 1952 (hereinafter referred

to as the "said Act").

2. Mr. Bose, learned advocate representing the petitioner by placing

reliance on the circular dated 11th February, 2014, issued by the

Additional Central Provident Fund Commissioner (Compliance),

has submitted that the respondents had adopted a policy for

granting installments. He says, unfortunately, in the petitioner's

case the same had not been adhered to. He submitted that the

respondents were bound to comply with their instructions as

reflected in the circular dated 11th February, 2014. In the factual

backdrop, as aforesaid, the petitioner may be permitted to pay off

its dues by way of 48 monthly installments.

3. Considering the submissions made by the petitioner this Court

had directed the learned advocate representing the Provident

Fund Authorities to take appropriate instruction in the matter

and further directed the petitioner to make payment of

Rs.50,00,000/- (Rupees fifty lakhs) only to the respondent no.1,

within 28th November, 2022.

4. The petitioner has since complied with the aforesaid direction.

5. Mr. Prasad, learned advocate representing the Provident Fund

Authorities has since, submitted that on the basis of the

determination made by them, in respect of the proceedings under

Section 7A of the said Act, a sum of Rs.3,00,17,481/- is due as

per the following particulars.

      Jan 2019 to Dec 2019                     78,79,133/-


      Jan 2020 to Dec 2020                     85,95,424/-


      Jan 2021 to Jul 2021                     52,11,498/-


      Aug 2021 to Dec 2021                     46,95,757/-


      Jan 2022 to April 2022                   36,35,669/-


               Total                           3,00,17,481/-

6. He says since the petitioner has come forward to make payment

of the outstanding dues by way of installments, the petitioner

should make payment of the entirety of the outstanding, inter

alia, including, the amount determined by them up to April, 2022

under section 7A of the said Act. He also insists that apart from

the aforesaid, the petitioner is also liable to make payment of

interest under Section 7Q of the said Act and damages in terms of

Section 14B of the said Act. In support of his aforesaid

contention, he relies on a chart, wherefrom it appears that apart

from determination made under Section 7A of the said Act an

aggregate sum of Rs. 9984022 has been determined towards

interest under section 7Q of the said Act.

7. Heard the learned advocates appearing for the respective parties

and considered the materials on record. I find that the petitioner

has already complied with the initial direction for payment of

Rs.50,00,00/- (Rupees Fifty Lakhs) only. It also appears that the

Provident Fund Authorities by its circular dated 11 th February,

2014 had notified all the Additional Central Provident Fund

Commissioner (Zones) and all Regional Provident Fund

Commissioners, with regard to its decision of allowing the

establishments, desirous of availing installment facilities to

liquidate their dues in installments.

8. Considering the fact that a decision has already been taken by the

respondents, themselves, to permit the establishment to liquidate

their dues by way of installments and taking into consideration

the financial stress suffered by the petitioner owing to the

pandemic, I am of the view that the petitioner should be permitted

to liquidate the balance provident fund dues, in installments

insofar as the same concerns determination made under Section

7A and 7Q of the said Act as per the particulars given below:-

       Determination under                            Rupees

             Section 7A


               Period

        Jan 2019 to April 2022
                                                3,00,17,481/-





       Determination under                           Rupees

             Section 7Q


               Period


      01.01.2019 to 31.12.2019                     31,88,565/-


      01.01.2020 to 31.12.2020                     26,11,455/-


      01.01.2021 to 31.12.2021                     18,63,834/-


      01.06.2022 to 30.04.2022                     3,98,570/-


      01.06.2015 to 16.02.2023                     19,21,598/-


               Total                               99,84,022/-

9. Insofar as the determination made under Section 14B is

concerned, since the parties claim that the petitioner has already

challenged the same by filing a separate writ application, such

determination is not being taken into consideration for the

present.

10. From the aforesaid, it would appear that an aggregate sum of

Rs.3,50,01,503/- (Rupees Three Crores Fifty Lakhs One

Thousand Five Hundred and Three) only is due and payable after

giving credit to sum of Rs.50,00,000/- (Rupees Fifty Lakhs) only,

already paid by the petitioner pursuant to the direction passed by

this Court. Having regard to the aforesaid I am of the view that

the petitioner, at the first instance, should make payment of

50,00,000/- (Rupees Fifty Lakhs) only, directly to the respondent

no.1 within a period of two week from date. The balance amount

be liquidated by the petitioner in 48 equal monthly installments.

The first of such installment be paid by the petitioner on/or

before 31st May, 2023 and the balance 47 installments be paid

on/or before the 28th of each succeeding month till the entire

dues are cleared.

11. The petitioner is also directed to submit a revolving bank

guarantee from any schedule bank, equivalent to six months

installments with the respondent no.1, on or before 31st May,

2023 for availing the installment facilities.

12. The petitioner is also directed to make payment of the

employer's contribution regularly by 15th of each month. It is

made clear that the payment of installments will not absolve the

petitioner to make payment of interest, in terms of Section 7Q of

the said Act. Insofar as the claim for damages are concerned, the

same would abide by the result of the pending writ application

and be subject to any challenge being made by the petitioner.

13. I further direct that the petitioner shall not deal with and

dispose of its assets and properties, except in course of its

business, dealings and transactions.

14. The respondents are also restrained from taking any steps for

initiation of recovery proceedings or any coercive steps against the

petitioner, until expiry of the tenure for payment of instalments in

respect of the dues which have been permitted to be liquidated

and dealt by this order. In default of payment, as directed above,

the respondents shall be entitled to enforce their claim, if any,

against the petitioner subject to any right that the petitioner may

have.

15. Since I have not called for any affidavits, the allegations made

in the writ application are deemed to have been denied by the

respondents.

16. With the above observations, the writ application, being WPA

23174 of 2022 is disposed of.

17. There shall be no order as to costs.

18. Urgent photostat certified copy of this order, if applied for, be

given to the parties upon compliance of necessary formalities.

(Raja Basu Chowdhury, J.) sb