Cashew Development Corporation ... vs Regional Provident Fund ...
2023 Latest Caselaw 3001 Ker

          IN THE HIGH COURT OF KERALA AT ERNAKULAM
                          PRESENT
      THE HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V
   MONDAY, THE 13TH DAY OF MARCH 2023 / 22ND PHALGUNA, 1944

                   WP(C) NO. 8091 OF 2023

PETITIONER/S:

           KERALA STATE CASHEW DEVELOPMENT LTD,
           HEAD OFFICE, BEACH ROAD, KOLLAM, PIN - 691001

           BY ADVS.
           SRI.VIPIN P.VARGHESE, SC, KERALA STATE CASHEW DEVELOPMENT
           CORPORATION LTD.
           ADARSH MATHEW
           SREELEKSHMI G.
           CELINE JOHN
           MERLINE MATHEW

RESPONDENT/S:

           REGIONAL PROVIDENT FUND COMMISSIONER,
           KOLLAM, SRO, EPF ORGANISATION,
           PONNAMMA CHAMBERS-1, KOLLAM, PIN - 691001

           BY ADVS.
           SRI.SAJEEV KUMAR K. GOPAL, SC, EPFO
           PIRAPPANCODE V.S.SUDHIR
           AKASH S.
           GIRISH KUMAR M S
           V.S.VARALEKSHMI
           DEVIKA JAYARAJ


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 13.03.2023, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
 WP(C) NO. 8091 OF 2023

                                           2



                                    JUDGMENT

The petitioner herein is the Kerala State Cashew Development

Corporation Ltd., a corporation wholly owned by the Government of Kerala,

which owns and operates 30 factories and employs over 12,000 people. The

petitioner establishment is covered under the Employees Provident Fund

Miscellaneous Provisions Act, 1952, and the schemes framed thereunder.

2. According to the petitioner, for belated remittances towards

provident fund dues, Ext. P1 order has been issued under Section 7Q of the

Employees Provident Fund Miscellaneous Provisions Act, 1952, ordering the

petitioner herein to pay a sum of Rs. 58,85,725/-.

3. Sri. Vipin P. Varghese, the learned Standing Counsel appearing for

the petitioner, submits by referring to Exts. P2, P3, and P4 that the petitioner

has been suffering from huge losses and they are not in a position to pay

wages to the employees. The petitioner states that they have now been

served with Ext. P5 letter directing the petitioner to pay the amount or to

face recovery action. It is in the said circumstances that this writ petition is

filed seeking the following reliefs:

i. Issue a writ of mandamus directing the respondent to accept the amount quantify under 7Q of the EPF Act in Instalments. WP(C) NO. 8091 OF 2023

ii. Issue writ of Certiorari or any other appropriate writ to quash Exhibit P5 and directing the respondent shall not take any coercive steps until a reasonable opportunity is being granted for realising the outstanding amount.

iii. Issue a writ of Mandamus or any other appropriate writ to prevent the recovery of interest damages from the petitioner until a reasonable opportunity is granted for realising the outstanding amount.

4. Sri. Sajeev Kumar K. Gopal, the learned Standing Counsel, has

opposed the request made by the learned counsel for a facility to clear off

the amount in installments.

5. The learned counsel appearing for the petitioner submits that

unless a minimum of '12 installments' is granted, the petitioner will not be

able to clear off the amount.

6. I have considered the submissions advanced and perused the

records.

7. Having regard to the circumstances plaguing the petitioner and

taking note of the loss sustained by the petitioner as is borne out from Exts.

P2, P3, and P4, I am of the view that this writ petition can be disposed of by

granting the petitioner a facility to clear off the dues in eight equal monthly

installments. Resultantly, the following directions are issued:

(i) The respondent shall grant eight equal monthly

installments for payment of the dues, as seen from Ext.P1, WP(C) NO. 8091 OF 2023

commencing from 01.04.2023 and continuing on the 1st of

the succeeding month.

(ii) The recovery process will be put on hold and coercive

proceedings initiated pursuant to Exhibit P5 shall be kept in

abeyance as long as the payments set out in this order are

made without any default.

(iii) If the petitioner commits any default in payment, the

recovery steps, if any, are initiated, shall revive and continue.

(iv) Upon the petitioner satisfying the entire arrears, the

recovery proceedings shall be unenforceable.

This Writ Petition is disposed of as above, making it clear that the

respondents shall be free to proceed with the recovery if the above

conditions are not complied with.

Sd/-

RAJA VIJAYARAGHAVAN V JUDGE

avs WP(C) NO. 8091 OF 2023

APPENDIX OF WP(C) 8091/2023

PETITIONER EXHIBITS

Exhibit P1 TRUE COPY OF THE ORDER NO.KR/KLM/2798/PD/7Q/2021-22 DATED 16.11.2022 ISSUED BY THE RESPONDENT

Exhibit P2 TRUE COPY OF THE PROFIT AND LOSS STATEMENTS OF THE YEAR 2017-18

Exhibit P3 TRUE COPY OF THE PROFIT AND LOSS STATEMENT OF THE YEAR 2018-2019

Exhibit P4 TRUE COPY OF THE STATEMENT OF PROFIT AND LOSS OF THE YEAR 2019-2020

Exhibit P5 TRUE COPY OF THE LETTER DATED 04/01/2023 ISSUED BY THE RESPONDENT