Kerala State Cashew Development ... vs Regional Pf Commissioner,Epfo
2022 Latest Caselaw 9278 Ker

              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

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

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

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

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.