Veekay Tea Compay (P) Ltd vs The Employees' Provident Fund ...
2022 Latest Caselaw 5464 Ker

               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.

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/-

(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

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

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.