2 Orion Security Solutions Pvt. Ltd vs 62 Union Of India & Ors on 10 July, 2019

[Cites 3, Cited by 0]

Calcutta High Court (Appellete Side)

2 Orion Security Solutions Pvt. Ltd vs 62 Union Of India & Ors on 10 July, 2019

Bench: Shekhar B. Saraf

                                             1


Ct.
No.   10.7.19                    W.P. 11917 (W) of 2019
12                              Orion Security Solutions Pvt. Ltd.
                                            -Versus-
 62                                   Union of India & Ors.
akb
                Mr.   Arunabha Ghosh
                Mr.   Soumya Majumder
                Mr.   Badal Saha
                Mr.   Debashis Sarkar      ...For the Petitioner

                Ms. Mitali Bhattacharjee   ...For Respondent Nos. 1 & 2

This is an application under Article 226 of the Constitution of India wherein the writ petitioner, being the employer has challenged the order of attachment/freezing of the eight bank accounts by the Regional Provident Fund Commissioner-I, Regional Office, Kolkata, being the respondent No. 2 herein. The facts in this case are as follows :-

(a) By order dated May 29, 2018 the respondent No. 2 had passed an order under Section 14B of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 (hereinafter referred to as the EPF & MP Act of 1952) claiming a sum of Rs. 61,90,698.00 for levy of damages as prescribed under law;

(b) By order dated May 29, 2018 another order has been passed by the respondent No. 2 under Section 7Q of the EPF & MP Act, 1952 for a sum of Rs. 56.84336.00;

(c) The petitioner has approached the Appellate Tribunal, being the Central Government Industrial Tribunal against the order passed under Section 14B of the EPF & MP Act, 1952. This appeal and the application for stay are still pending before the Tribunal; and

(d) Against the order in relation to Section 7Q, an application was made on May 03, 2019 by the petitioner to the Regional Provident Fund Commissioner-I for consideration of liquidation of the above sum in 10 monthly equal instalments. This application is also pending before the Regional Provident Fund Commissioner-I. In the light of the above factual matrix, learned Counsel appearing on behalf of the petitioner submits that the petitioner is willing to deposit 25% of the amount payable under Section 7Q of the EPF & MP Act, 1952 within 7 (seven) days from date before the respondent No.

2 and prays that upon such payment being made, the respondent No. 2 may consider his application for instalments in a compassionate manner as provided under Section 8E of the EPF & MP Act, 1952.

I have heard the Counsel appearing on behalf of the respondent Nos. 1 and 2, who has submitted that the petitioner is a recalcitrant and habitual offender with regard to non-payment of employees' provident fund dues. She further submits that no leniency should be granted to such a petitioner.

Upon consideration of the submissions made on behalf of both the parties, I am of the view that the attachment/freezing of the bank accounts of the petitioner should be lifted upon the terms as directed by this Court which are as follows :-

(a) 25% of Rs. 56,84,336.00 shall be deposited by the petitioner to the respondent No. 2 within a period of 15 days from date;

(b) A sum of Rs. 61,90,698.00 shall remain frozen in the petitioner's account bearing No. 00902000016954 of HDFC Bank, Gurgaon;

(c) This particular account shall be operational beyond this particular amount and the other 7 (seven) accounts as mentioned in page 5 of the supplementary affidavit, the attachment made on all of them shall be released and accounts defreezed;

(d) Upon payment of 25% as indicated under clause (a), the respondent No. 2 shall consider the representation dated May 03, 2019 and fix the monthly instalments (not exceeding 10) for payment of the balance amount payable under Section 7Q of the EPF & MP Act, 1952; and

(e) Upon payment of 25% as indicated in clause

(a) above the respondent authority shall immediately within two days intimate the Bank by receipt of such payment and direct the Bank to defreeze the accounts as indicated above.

With the aforesaid observations, the writ petition is disposed of.

All parties to act on the server copy of this order.

Urgent photostat certified copy of this order, if applied for, be given to the parties, on priority basis.

( Shekhar B. Saraf, J.)

Unlock Advanced Research with PRISMAI

Calcutta High Court (Appellete Side)