Kerala High Court
Kerala State Rubber Co-Operative Ltd vs Regional Provident Fund Commissioner on 4 December, 2024
Author: Murali Purushothaman
Bench: Murali Purushothaman
2024:KER:91667
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
WEDNESDAY, THE 4TH DAY OF DECEMBER 2024/13TH AGRAHAYANA, 1946
WP(C) NO. 43007 OF 2024
PETITIONER:
KERALA STATE RUBBER CO-OPERATIVE LTD,
RUBCO HAWAI CHAPPAL FACTORY), MOORIYAD,
KOOTHUPARAMBA, KANNUR,
REPRESENTED BY ITS MANAGING DIRECTOR,
PIN - 670 643.
BY ADVS.
K.S.ARUN KUMAR
RAJI T.BHASKAR
JERIN JOSEPH
SABER KHAN K.
RESPONDENTS:
1 REGIONAL PROVIDENT FUND COMMISSIONER,
EMPLOYEES' PROVIDENT FUND ORGANISATION,
SUB REGIONAL OFFICE, V. K. COMPEX,
FORT ROAD, KANNUR, PIN - 670 001.
2 RECOVERY OFFICER,
EMPLOYEES' PROVIDENT FUND ORGANISATION,
SUB REGIONAL OFFICE, V. K. COMPEX,
FORT ROAD, KANNUR,
PIN - 670 001.
BY ADV SANTHOSHKUMAR K.C
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
04.12.2024, ALONG WITH WP(C).43027/2024, 43031/2024 AND CONNECTED
CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P. (C).Nos.43007, 43027, 43031 and 43137 of 2024
2024:KER:91667
-2-
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
WEDNESDAY, THE 4TH DAY OF DECEMBER 2024/13TH AGRAHAYANA, 1946
WP(C) NO. 43027 OF 2024
PETITIONER:
RUBCO SALES INTERNATIONAL LTD,
REPRESENTED BY ITS MANAGING DIRECTOR,
SOUTH BAZAAR, KANNUR, PIN - 670 002.
BY ADVS.
K.S.ARUN KUMAR
RAJI T.BHASKAR
AMRUTHA P S
AMRUTHA K P
VIJAY SANKAR V.H.
JERIN JOSEPH
DEVARAJ SUBRAMANIAN
SABER KHAN K.
RESPONDENTS:
1 REGIONAL PROVIDENT FUND COMMISSIONER,
SUB REGIONAL OFFICE, V. K. COMPEX,
FORT ROAD, KANNUR, PIN - 670 001.
2 RECOVERY OFFICER,
SUB REGIONAL OFFICE, V. K. COMPEX,
FORT ROAD, KANNUR, PIN - 670 001.
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
04.12.2024, ALONG WITH WP(C).43007/2024 AND CONNECTED CASES, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P. (C).Nos.43007, 43027, 43031 and 43137 of 2024
2024:KER:91667
-3-
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
WEDNESDAY, THE 4TH DAY OF DECEMBER 2024/13TH AGRAHAYANA, 1946
WP(C) NO. 43031 OF 2024
PETITIONER:
KERALA STATE RUBBER CO-OPERATIVE LTD (RUBCO),
REPRESENTED BY ITS MANAGING DIRECTOR SOUTH BAZAR,
KANNUR, PIN - 670 002.
BY ADVS.
K.S.ARUN KUMAR
RAJI T.BHASKAR
VIJAY SANKAR V.H.
DEVARAJ SUBRAMANIAN
SABER KHAN K.
RESPONDENTS:
1 REGIONAL PROVIDENT FUND COMMISSIONER,
SUB REGIONAL OFFICE, V. K. COMPEX,
FORT ROAD, KANNUR, PIN - 670 001.
2 RECOVERY OFFICER
EMPLOYEES' PROVIDENT FUND ORGANISATION,
SUB REGIONAL OFFICE, V. K. COMPEX,
FORT ROAD, KANNUR, PIN - 670 001.
BY ADV SANTHOSHKUMAR K.C
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
04.12.2024, ALONG WITH WP(C).43007/2024 AND CONNECTED CASES, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P. (C).Nos.43007, 43027, 43031 and 43137 of 2024
2024:KER:91667
-4-
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
WEDNESDAY, THE 4TH DAY OF DECEMBER 2024/13TH AGRAHAYANA, 1946
WP(C) NO. 43137 OF 2024
PETITIONER:
KERALA STATE RUBBER CO-OPERATIVE LTD,
(RUBCO COMPOUND MIXING PLANT),
VALIYAVELICHAM, KOOTHUPARAMBA, KANNUR,
REPRESENTED BY ITS MANAGING DIRECTOR,
PIN - 670 002.
BY ADVS.
K.S.ARUN KUMAR
RAJI T.BHASKAR
AMRUTHA K P
AMRUTHA P S
JERIN JOSEPH
SABER KHAN K.
RESPONDENTS:
1 REGIONAL PROVIDENT FUND COMMISSIONER,
EMPLOYEES' PROVIDENT FUND ORGANISATION,
SUB REGIONAL OFFICE, V. K. COMPEX,
FORT ROAD, KANNUR,PIN - 670 001.
2 RECOVERY OFFICER,
EMPLOYEES' PROVIDENT FUND ORGANISATION,
SUB REGIONAL OFFICE, V. K. COMPEX,
FORT ROAD, KANNUR, PIN - 670 001.
BY ADV SANTHOSHKUMAR K.C
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
04.12.2024, ALONG WITH WP(C).43007/2024 AND CONNECTED CASES, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P. (C).Nos.43007, 43027, 43031 and 43137 of 2024
2024:KER:91667
-5-
JUDGMENT
(Dated this the 4th day of December, 2024) The Kerala State Rubber Co-operative Ltd. (RUBCO), has filed these writ petitions challenging the proceedings initiated by the Employees' Provident Fund Orgainsation under Section 8F of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 (herein referred to as 'the Act'). The petitioner failed to remit the damages levied under Section 14B of the Act and interest under Section 7Q of the Act. Therefore recovery steps under Section 8F of the Act have been initiated against the petitioner. The petitioner states that, due to the prevailing market condition and paucity of working capital, the petitioner had suffered huge loss and the non remittance of the amounts levied as damages and interest is not willful. It is further stated that the petitioner is one of the biggest manufacturing unit for rubber based industry and Rubberised Coir Mattresses in India. It is submitted that the petitioner is taking earnest steps to pay the dues under the Act and that if installment facility is provided to the petitioner to pay the amounts levied as W.P. (C).Nos.43007, 43027, 43031 and 43137 of 2024 2024:KER:91667 -6- damages under Section 14B and interest under Section 7Q of the Act for which proceedings have been initiated under Section 8F of the Act, that would be a succour for the company which is in financial crisis. Accordingly, the petitioner has filed these writ petitions challenging the proceedings initiated under Section 8F of the Act for various periods and for consequential reliefs.
2. Heard the learned counsel for the petitioner and the learned Standing Counsel for the Employees' Provident Fund Orgainsation.
3. The learned Standing Counsel submits that, the petitioner can be permitted to pay the amounts in 15 equal monthly installments.
4. Taking note of the plea regarding the financial constrains of the petitioner, and finding no reason to doubt the bonafides of the plea, there will be a direction to the petitioner to pay the amounts levied under Section 14B of the Act and Section 7Q of the Act and referred to in the orders under Section 8F of the Act impugned in these writ petitions in 20 equal monthly installments, commencing from 06.01.2025. In case, the petitioner defaults payment of any W.P. (C).Nos.43007, 43027, 43031 and 43137 of 2024 2024:KER:91667 -7- two consecutive installments, it will be open to the respondents to proceed against the petitioner, in accordance with law. In order to enable the petitioner to pay the amounts in installments as above all coercive steps pursuant to the impugned orders shall be deferred.
These writ petitions are disposed of.
Sd/-
MURALI PURUSHOTHAMAN JUDGE ADS W.P. (C).Nos.43007, 43027, 43031 and 43137 of 2024 2024:KER:91667 -8- APPENDIX OF WP(C) 43027/2024 PETITIONER EXHIBITS EXHIBIT P1 A TRUE COPY OF THE PROCEEDINGS DATED 11.07.2024 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 14B OF THE EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952. EXHIBIT P2 A TRUE COPY OF THE PROCEEDINGS DATED 11.07.2024 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 7Q OF THE EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952. EXHIBIT P3 A TRUE COPY OF THE ORDER ISSUED BY THE 1ST RESPONDENT.
EXHIBIT P4 A TRUE COPY OF THE JUDGMENT DATED 10.03.2017 IN WP(C) 8148/2017 OF THIS HON'BLE COURT. W.P. (C).Nos.43007, 43027, 43031 and 43137 of 2024 2024:KER:91667 -9- APPENDIX OF WP(C) 43031/2024 PETITIONER EXHIBITS EXHIBIT P1 A TRUE COPY OF THE PROCEEDINGS DATED 09.11.2024 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 14B OF THE EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952 ISSUED.
EXHIBIT P2 A TRUE COPY OF THE PROCEEDINGS DATED 01.08.2023 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 14B OF THE EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952 ISSUED.
EXHIBIT P3 A TRUE COPY OF THE PROCEEDINGS DATED 09.11.2024 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 7Q OF THE EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952. EXHIBIT P4 A TRUE COPY OF THE PROCEEDINGS DATED 22.11.2024 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 8F OF THE EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952. EXHIBIT P5 A TRUE COPY OF THE JUDGEMENT DATED 10.03.2017 IN WP(C) 8148/2017 OF THIS HON'BLE COURT. W.P. (C).Nos.43007, 43027, 43031 and 43137 of 2024 2024:KER:91667 -10- APPENDIX OF WP(C) 43137/2024 PETITIONER EXHIBITS EXHIBIT P1 A TRUE COPY OF THE PROCEEDINGS DATED 27.07.2024 ISSUED BY THE 1 ST RESPONDENT UNDER SECTION 14B OF THE EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952. EXHIBIT P2 A TRUE COPY OF THE PROCEEDINGS DATED 29.07.2024 ISSUED BY THE 1 ST RESPONDENT UNDER SECTION 7Q OF THE EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952. EXHIBIT P3 A TRUE COPY OF THE PROCEEDINGS DATED 22.11.2024 ISSUED BY THE 1 ST RESPONDENT UNDER SECTION 8F OF THE EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952. EXHIBIT P4 A TRUE COPY OF THE JUDGMENT DATED 10.03.2017 IN WP(C) 8148/2017.
W.P. (C).Nos.43007, 43027, 43031 and 43137 of 2024 2024:KER:91667 -11- APPENDIX OF WP(C) 43007/2024 PETITIONER EXHIBITS EXHIBIT P1 A TRUE COPY OF THE PROCEEDINGS DATED 08.07.2024 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 7Q OF THE EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952. EXHIBIT P2 A TRUE COPY OF THE PROCEEDINGS DATED 27.07.2024 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 14B OF THE EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952. EXHIBIT P3 A TRUE COPY OF THE PROCEEDINGS DATED 29.07.2024 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 7Q OF THE EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952. EXHIBIT P4 A TRUE COPY OF THE ORDER ISSUED BY THE 1ST RESPONDENT.
EXHIBIT P5 A TRUE COPY OF THE JUDGMENT DATED 10.03.2017 IN WP(C) 8148/2017.