Mahavir Plantations Pvt Ltd vs The Assistant Provident Fund ...
2011 Latest Caselaw 1453 Del

                                                         UNREPORTABLE


*      IN THE HIGH COURT OF DELHI AT NEW DELHI

                               WP (C) No.1602/2011

                                          Date of Decision: March 11, 2011


       MAHAVIR PLANTATIONS PVT LTD               ...... Petitioner
                     through Mr. C.N.Sreekumar, Advocate with
                     Mr. S.S.Pandey, Advocate

                      versus

       THE ASSISTANT PROVIDENT FUND COMMISSIONER & ANR
                                                   ..... Respondents
                       through Mr. R.C.Chawla, Advocate with
                       Mr. Sri Ram Kamal, Advocate
       CORAM:
       HON'BLE MISS JUSTICE REKHA SHARMA

1.     Whether the reporters of local papers may be allowed to see the
       judgment? No
2.     To be referred to the reporter or not? No
3.     Whether the judgment should be reported in the „Digest‟? No

REKHA SHARMA, J. (ORAL)

This writ-petition is directed against the order of the Employees‟

Provident Fund Appellate Tribunal, dated September 13, 2010

dismissing an appeal filed before it against an order passed under

Section 7Q of the Employees‟ Provident Funds and Miscellaneous

Provisions Act, 1952 (hereinafter called the "Act") on the ground that

an order passed under the said Section is not an appealable order.

It is not in dispute that an order under Section 7A of the Act

determining the liability of the petitioner was passed by the Assistant

Provident Fund Commissioner on November 21, 2007 and in the same

order, the petitioner was held liable to pay simple interest @ 12% in

terms of Section 7Q of the Act. It is also not in dispute that the

WP (C) No.1602/2011 Page 1 petitioner raised no challenge to the said order. As a matter of fact,

the order dated November 21, 2007 came to be passed after the

petitioner inspite of opportunities given failed to appear before the

Assistant Provident Fund Commissioner.

The petitioner did pay the amount due from it as determined

under Section 7A of the Act, but did not pay the interest levied under

Section 7Q of the Act. Hence, a further order dated June 03, 2010 was

passed against it by the Assistant Provident Fund Commissioner, R.O.

Coimbatore levying interest to the tune of ` 27,92,681.55P. It was

against this order that the petitioner had preferred an appeal before

the Employees‟ Provident Fund Appellate Tribunal.

It is provided in Section 7Q of the Act that, "the employer shall

be liable to pay simple interest at the rate of twelve per cent per

annum or at such higher rate as may be specified in the Scheme on

any amount due from him under this Act from the date on which the

amount has become so due till the date of its actual payment. " An

employer under this Section becomes liable to pay interest as a

consequence of his failure to pay any amount due from him under the

Act from the date it became due till its actual payment. Once the

liability has been determined, the interest thereon has to follow. And

this is what has been done in the present case. The Section leaves no

scope for interference. The Tribunal is justified in holding that the

order passed under Section 7Q of the Act is not an appealable order.

There is no merit in the writ-petition. The same is dismissed.

REKHA SHARMA, J.

MARCH 11, 2011
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WP (C) No.1602/2011                                                 Page 2