Madras High Court
The Salem Co-Operative Sugar ... vs The Assistant Pf Commissioner on 20 June, 2023
1/7 W.A.No.1257/2023
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED :: 20-06-2023
CORAM
THE HONOURABLE MR.JUSTICE S.VAIDYANATHAN
AND
THE HONOURABLE MR.JUSTICE K.RAJASEKAR
W.A.No.1257 of 2023
The Salem Co-operative Sugar Mills
Matriculation School,
Mohanur – 637 015,
Namakkal District. ... Appellant
-vs-
1.The Assistant PF Commissioner,
Sub-Regional Office,
Employees Provident Fund Organisation,
S.J.Plaza, Swarnapuri,
Salem – 636 004.
2.The Presiding Officer,
Employees Provident Fund Appellate Tribunal,
Scope Minar Core-II,
4th Floor, Lakshmi Nagar,
New Delhi-110 092. ... Respondents
Appeal is filed under Clause 15 of the Letters Patent against the order,
dated 07.11.2022, passed in W.P.No.28835 of 2016, on the file of this Court.
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For Appellant : Mr.R.Balaramesh
For Respondent 1 : Mrs.R.Meenakshi,
Standing Counsel.
JUDGMENT
(By S.Vaidyanathan,J.)
This appeal is preferred against the common order, dated 07.11.2022,
passed in W.P.No.28835 of 2016, and confined to a portion of the said order pertaining
to the appellant School.
2. It is contended by the appellant that there was a determination of the
amount payable to the Employees Provident Fund Organisation (EPFO) by the
Authority under the Employees' Provident and Miscellaneous Provisions Act,1952, in
short, ''the Act'', which was questioned by the appellant management and the same was
taken up in appeal viz., ATA No.520 (13) 2014 and disposed of by the second
respondent Tribunal, reducing the damages from 17% to 5%, by an order, dated
19.08.2014. On appeal, in the Writ Petition, the learned single Judge, in the common
order, has discussed the issue in detail and held that the discretionary power ought not
to have been exercised by the Tribunal and reduced the amount of damages from 17% to
5%. Though in Paragraph 13 of the order in the Writ Petition both the appellate orders
are reflected and that the appellant is directed to pay the damages within a period of 12
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weeks from the date of receipt of a copy of the order in three equal instalments and the
first instalment commencing from 1st December,2022, by interpreting the order of the
Tribunal and the order in the Writ Petition directing the employer to pay the damages
determined by the Authority, the appellant contended that there was no discussion about
the appellant School and that the matter needs a detailed investigation, as there was no
finding on the aspect of payment of damages payable by the appellant School.
3. Mrs.R.Meenkshi, learned counsel appearing for respondent – EPFO,
would contend that the Writ Petitions pertaining to Salem Co-operative Matriculation
School and Chitranjilal Spinners Ltd. were clubbed together and that an identical issue
was decided by the Tribunal, reducing the damages from 17% to 5%. According to her,
though there is no averment in the order in the Writ Petition with regard to the appellant
School, the principle laid down in the said decision is applicable to the appellant School
also. She would also contend that the amount payable towards EPF dues is less than
Rs.1.40 lakhs and that the order of the Tribunal, reducing the damages, was incorrect.
That apart, she contends that the appellant has agreed to pay the damages leviable at
10% of the actual amount in 24 instalments.
4. The Tribunal has recorded the submission of the management in
Paragraph 9 of its order, dated 19.08.2014. For reference, Paragraphs 8 and 9 of the
order of the Tribunal are scanned below :
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5. Though the appellant is willing to pay 10% of the damages, he would
submit that the levy of damages at 17% is not correct.
6. Since the entire issue needs to be addressed in the Writ Petition and that
the same has not been discussed, we are inclined to remit the matter to the learned single
Judge for deciding the issue afresh in the Writ Petition.
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7. Registry is directed to list the matter before the learned portfolio Judge in
the month of July,2023, after ascertaining the convenience of the learned Judge.
8. The order of the Tribunal is of the year 2014. Even the agreed amount
has not been paid by the appellant. Hence, without prejudice to the rights of the parties,
the appellant is expected to remit 10% of the damages, as agreed, as could be seen from
Paragraph 9 of the order of the Tribunal, extracted supra, within one month, if not
already paid. We also make it very clear that if the amount is not paid, it will attract
simple interest at 9% per annum from the date of the order of the Tribunal, dated
19.08.2014.
9. Normally, this Court would not impose interest on damages. However,
since there is a concession made by the employer to pay the amount in 24 instalments,
which has not been done, we are constrained to impose the aforesaid interest payable to
EPFO.
10. Writ Appeal is disposed of accordingly. No costs. Consequently, the
connected C.M.P.No.12573 of 2023 stands closed.
Index : Yes/No (S.V.N.,J.) (K.R.S.,J.)
Internet : Yes/No 20-06-2023
Speaking / Non-speaking Order
dixit
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To
1.The Assistant PF Commissioner,
Sub-Regional Office,
Employees Provident Fund Organisation,
S.J.Plaza, Swarnapuri,
Salem – 636 004.
2.The Presiding Officer,
Employees Provident Fund Appellate Tribunal,
Scope Minar Core-II,
4th Floor, Lakshmi Nagar,
New Delhi-110 092.
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7/7 W.A.No.1257/2023
S.VAIDYANATHAN,J.
AND
K.RAJASEKAR,J.
dixit
W.A.No.1257 of 2023
20-06-2023
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