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[Cites 4, Cited by 16]

Supreme Court of India

Central Board Of Trustees vs M/S Indore Composite Pvt. Ltd. on 26 July, 2018

Equivalent citations: AIR 2018 SUPREME COURT 3682, 2019 LAB IC 28, (2018) 159 FACLR 108, (2018) 2 ORISSA LR 380, (2018) 3 CURLR 169, (2018) 3 JLJR 358, (2018) 3 PAT LJR 380, (2018) 3 SCT 778, (2018) 4 JCR 59 (SC), (2018) 5 ALL WC 4720, (2018) 5 BOM CR 284, 2018 (8) SCC 443, (2018) 9 SCALE 199, (2019) 2 MPLJ 564, (2019) 2 SERVLR 611, (2019) 3 MAH LJ 547, AIR 2018 SC (CIV) 2997, AIRONLINE 2018 SC 75

Author: Abhay Manohar Sapre

Bench: Navin Sinha, Abhay Manohar Sapre

                                                                      REPORTABLE

                                      IN THE SUPREME COURT OF INDIA

                                       CIVIL APPELLATE JURISDICTION

                                     CIVIL APPEAL NO.7240 OF 2018
                                (Arising out of S.L.P.(C) No.16841 of 2018)


                         Central Board of Trustees                         ….Appellant(s)


                                                      VERSUS


                         M/s Indore Composite Pvt. Ltd.                 ….Respondent(s)

                                          
                                              J U D G M E N T



                         Abhay Manohar Sapre, J.
                         1)      Leave granted.

                         2)      This appeal is filed against the final judgment

and   order   dated   01.08.2017   passed   by   the   High Signature Not Verified Digitally signed by Court of  Madhya Pradesh, Bench at Indore in Writ ANITA MALHOTRA Date: 2018.07.26 15:31:33 IST Petition   No.1046   of   2017   whereby   the   Division Reason:

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Bench of the  High Court dismissed the writ petition filed by the appellant herein and affirmed the order dated   06.09.2016   passed   by   the   Employees Provident   Fund   Appellate   Tribunal,   New   Delhi   in ATA No.214(8) of 2015.
 3) The facts of the case lie in a narrow compass and   it   would   be   clear   from   the   facts   stated hereinbelow.
4) On 19.05.2008, the appellant­Central Board of Trustees issued summons under Section 7A of the Employees   Provident   Fund   and   Miscellaneous Provisions Act, 1952 (hereinafter referred to as “the Act”) to the respondent­M/s Indore Composite Pvt.

Ltd.   for   non­payment   of   the   Provident   Fund contribution   in   the   year   2005­2006   on   the   wages lesser than the minimum wages prescribed for the employees under the category of semi­skilled.   The representative   of   the   respondent   attended   the 2 enquiry and submitted that the Department has not considered   non­working   days   of   the   employees already   furnished   in   Form   3A   for   the   year   2005­ 2006   and   there   are   some   employees   under   the category  of unskilled whereas the Department has treated all of them as semi­skilled.    The appellant, after   considering   the   aforesaid,   by   order   dated 15.04.2010,   directed   the   respondent   to   deposit Rs.87,204/­ within 15 days from the receipt of that order.  It was also stated that the above order under Section 7A is without prejudice to any action under Sections 7C7Q and 14B of the Act. 

5) On   21.01.2015,   the   appellant,   in   exercise   of the power under Section 14B of the Act, ordered the respondent   to   pay   damages   and   allied   dues   of Rs.91,585/­   for   the   delayed   payments   from 01/2007 to 02/2006 to 05/2013.

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6) Challenging   the   said   order,   the   respondent filed an appeal being ATA No.214 (8) of 2015 before the   Employees   Provident  Fund   Appellate   Tribunal, New   Delhi.     Vide   order   dated   06.09.2016,   the Tribunal  allowed the appeal and set aside the order dated 21.01.2015 passed by the appellant.

7) Felt aggrieved, the appellant filed writ petition being Writ Petition No.1046 of 2017 before the High Court.     The   High   Court,   by   the   impugned   order, dismissed the petition.

8) The   appellant   felt   aggrieved   and   filed   the present   appeal  by   way   of   special   leave   before  this Court.

9) The   short   question,   which   arises   for consideration in this appeal, is whether the Division Bench of the High Court was justified in dismissing the appellant’s writ petition.

10) Heard learned counsel for the parties. 4

11) Having heard the learned counsel for the parties and   on   perusal   of   the   record   of   the   case,   we   are constrained   to   allow   the   appeal,   set   aside   the impugned order and remand the case to the Division Bench of the High Court for deciding the writ petition afresh on merits in accordance with law.

12) After   setting   out   the   facts,   the   Division   Bench proceeded   to   disposed   of   the   writ   petition   with   the following   observations   in   its   concluding   paras   which read as under:

“On due consideration of the aforesaid on the basis of the fresh documents and affidavit for taking   additional   documents   on   record,  we cannot   direct   the   establishment   to   pay damages   for   the   period   from   March   2006­ April 2010 when all these objections were not taken before the learned Tribunal.
Considering the aforesaid, we are of the view that the order passed by the learned Tribunal is   just   and   proper   and   no   case   for interference   with   the   impugned   order   is warranted.
The writ petition filed by the petitioner has no merit and is accordingly dismissed.”      (emphasis supplied) 5
13) In our opinion, the need to remand the case to the High Court has occasioned for the reason that the Division Bench dismissed the writ petition filed by the appellant   (petitioner)   cursorily   without   dealing   with any   of   the   issues   arising   in   the   case   as   also   the arguments   urged   by   the   parties   in   support   of   their case.  
14) Indeed,   in   the   absence   of   any   application   of judicial   mind   to   the   factual   and   legal   controversy involved   in   the   appeal   and   without   there   being   any discussion,   appreciation,   reasoning   and   categorical findings on the issues and why the findings impugned in the writ petition deserve to be upheld or reversed, while dealing with the arguments of the parties in the light   of   legal   principles   applicable   to   the   case,   it   is difficult   for   this   Court   to   sustain   such   order   of   the Division   Bench.     The   only   expression   used   by   the Division Bench in disposing of the appeal is “on due 6 consideration”.     It is not clear to us as to what was that due consideration which persuaded the Division Bench to dispose of the writ petition because we find that in the earlier paras only facts are set out.
15) Time   and   again,   this   Court  has   emphasized   on the Courts the need to pass reasoned order in every case   which   must   contain   the   narration   of   the   bare facts  of  the  case  of the parties to the lis, the issues arising   in   the   case,   the   submissions   urged   by   the parties,   the   legal   principles   applicable   to   the   issues involved and the reasons in support of the findings on all   the   issues   arising   in   the   case   and   urged   by   the learned   counsel   for   the   parties   in   support   of   its conclusion.   It  is   really   unfortunate  that  the  Division Bench   failed   to   keep   in   mind   these   principles   while disposing of the writ petition. Such order, in our view, has   undoubtedly   caused   prejudice   to   the   parties because  it  deprived them to know the reasons as to 7 why   one   party   has   won   and   other   has   lost.   We   can never   countenance   the   manner   in   which   such   order was passed by the High Court which has compelled us to remand the matter to the High Court for deciding the writ petition afresh on merits. 
16) In the light of the foregoing discussion, we allow the appeal, set aside the impugned order and remand the case to the Division Bench of the High Court for deciding   the   writ   petition   afresh   on   merits   in accordance with law keeping in view our observations made supra. 
17) We,   however,   make   it   clear   that   we   have refrained   from   making   any   observation   on   merits   of the controversy having formed an opinion to remand the case to the High Court for the reasons mentioned above.   The   High   Court   would,   therefore,   decide   the writ petition, uninfluenced by any of our observations, strictly in accordance with law. 
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18) With   the   aforesaid   directions,   the   appeal   is accordingly allowed and the impugned order is set aside.  

……..................................J. [ABHAY MANOHAR SAPRE] ………...................................J.  [NAVIN SINHA] New Delhi;

July 26, 2018  9