Telangana High Court
M/ S. Sew Infrastructure Limited vs Assistant Provident Fund on 2 May, 2024
THE HON'BLE SRI JUSTICE C.V. BHASKAR REDDY
WRIT PETITION NO.12620 OF 2024
ORDER:
This Writ Petition is filed seeking the following relief:-
"...to issue a writ, order or a direction, particularly one in the nature of Writ of Mandamus declaring the Order dated 18.03.2024 bearing TS/HYD-I/16338/C-I(1)/PD/7Q/2023/859 with Diary No.856/2023 of the first respondent under Section 7Q of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, as being violative of principles of natural justice, illegal, arbitrary and unconstitutional, contrary to the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 and consequently set aside and pass such other order or orders as this Hon'ble Court may deem fit, just and proper in the circumstances of the case."
2. The petitioner is a Company registered under the provisions of the Companies Act, 2013, engaged in the business of Infrastructure Development. The petitioner-Company is registered as an establishment under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 ("the Act, 1952"
for brevity). The first respondent issued proceedings in TS/HYD-I/16338/C-I(1)/PD/7Q/2023/859, dated 18.03.2024 exercising powers under Section 7Q of the Act, 1952.
3. According to the learned Senior Counsel appearing for the petitioner, the impugned proceedings, dated 18.03.2024 was issued by the first respondent fixing the liability on the establishment to pay an amount of Rs.1,56,91,962/- as interest on the delayed remittance of the EPF contributions without 2 issuing any notice nor calling for any explanation to enable the petitioner to submit its objections to the proceedings issued under Section 7Q of the Act, 1952. It is further contended that the petitioner was not provided an opportunity of personal hearing to enable it to satisfy the respondents that it is not liable to pay any penalty under Section 7Q of the Act, 1952 or interest on the delayed payments and the impugned action on the part of the respondents amounts to violation of principles of natural justice.
4. Per contra, Ms. Ande Vishalla, learned Standing Counsel appearing for the respondents, submits that since the petitioner-Company represented through their HR Manager appeared before the respondent for the notice issued under Section 14-B of the Act, 1952, it is aware of the proceedings issued under Section 7Q of the Act, 1952 and therefore, there was no necessity of further hearing the petitioner-Company. Thus the petitioner-Company is not entitled for any relief in this Writ Petition.
5. A careful reading of the impugned proceedings dated 18.03.2024 issued by the respondent No.1 discloses that except issuance of notice, no opportunity has been provided to the 3 petitioner to appear in-person to defend the proceedings issued against it under Section 7Q of the Act, 1952. Admittedly, in this case, while issuing the notice under Section 14-B of the Act, 1952, the respondents have provided an opportunity of personal hearing the Manager of the petitioner-Company, but the respondents have not adopted the same procedure while passing the impugned order under Section 7Q of the Act, 1952. Since the impugned order dated 18.03.2024 passed by the respondent No.1 is not preceded by personal hearing, this Court deems it appropriate to set aside the impugned order passed by the respondent No.1 and remand the matter back to the respondent No.1 for conducting fresh exercise, in accordance with law.
6. Accordingly, the impugned order dated 18.03.2024 passed by the respondent No.1 is set aside and the matter is remanded back to the respondent No.1 for conducting fresh exercise after providing an opportunity of personal hearing the petitioner or its authorized representative and pass appropriate orders, in accordance with law, within a period of two (2) weeks from the date of receipt of a copy of this order. 4
7. With the above observations, the Writ Petition is disposed of.
Miscellaneous applications, if any, pending shall stand closed. No order as to costs.
___________________________ C.V. BHASKAR REDDY, J 2nd May 2024 RRB/SCS