Madras High Court
M/S. The Pondicherry Co-Op. Spinning ... vs The Regional Provident Fund ... on 7 September, 2020
Author: P.D. Audikesavalu
Bench: P.D. Audikesavalu
W.P. Nos. 5484 and 7016 of 2020
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 07.09.2020
CORAM
THE HON'BLE MR. JUSTICE P.D. AUDIKESAVALU
W.P. Nos. 5484 and 7016 of 2020
and
W.M.P. Nos. 6413, 6414, 6416 8371, 8372 and 8375 of 2020
W.P. No. 5484 of 2020:-
M/s. The Pondicherry Co-op. Spinning Mills Ltd.,
Represented by its Managing Director Mr. S. Shakthyvel,
Pondicherry-Villianur National Highways,
Thiruvandorkoil P.O.,
Thirubhuvanai,
Puducherry – 605 102. ... Petitioner
-vs-
1. The Regional Provident Fund Commissioner – II/OIC,
Employees Provident Fund Organisation, Regional Office,
No. 101, 100 Feet Road,
SreeVenni Commercial Complex,
Chozhan Nagar, Olandaikeerapalayam,
Puducherry – 605 004.
2. The Assistant Provident Fund Commissioner (COMP),
Employees Provident Fund Organisation, Regional Office,
No. 101, 100 Feet Road,
SreeVenni Commercial Complex,
Chozhan Nagar, Olandaikeerapalayam,
Puducherry – 605 004. ... Respondents
Prayer:- Writ Petition filed under Article 226 of the Constitution of India praying
to issue a Writ of Certiorari, calling for the records relating to impugned order
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W.P. Nos. 5484 and 7016 of 2020
i) vide No. TN/RO/PDY/PC/299/Comp/DIV-II/7A ORDER/2019-20 dated
09.10.2019 passed by the First Respondent under Section 7-A of the Employees
Provident Funds & Miscellaneous Provisions Act, 1952 and consequential
attachment order ii) vide No. TN/RO-PDY/PC/299/Comp/DIV-II/8F Order/2019
dated 18.11.2019 passed by the Second Respondent under Section 8-F of the
Employees Provident Funds & Miscellaneous Provisions Act, 1952 and quash the
same.
W.P. No. 7016 of 2020:-
M/s. The Pondicherry Co-op. Spinning Mills Ltd.,
Represented by its Managing Director Mr. S. Shakthyvel,
Pondicherry-Villianur National Highways,
Thiruvandorkoil P.O.,
Thirubhuvanai,
Puducherry – 605 102. ... Petitioner
-vs-
1. The Regional Provident Fund Commissioner – II/OIC,
Employees Provident Fund Organisation, Regional Office,
No. 101, 100 Feet Road,
SreeVenni Commercial Complex,
Chozhan Nagar, Olandaikeerapalayam,
Puducherry – 605 004.
2. Mr. Devaraj,
The Regional Provident Fund Commissioner – II/OIC,
Employees Provident Fund Organisation, Regional Office,
No. 101, 100 Feet Road,
SreeVenni Commercial Complex,
Chozhan Nagar, Olandaikeerapalayam,
Puducherry – 605 004. ... Respondents
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W.P. Nos. 5484 and 7016 of 2020
Prayer:- Writ Petition filed under Article 226 of the Constitution of India praying
to issue a Writ of Certiorari, calling for the records relating to impugned orders i)
vide No. TN/RO-PDY/PC/299/Comp/DIV-II/7A ORDER/2019-20/51 dated
18.02.2020 passed by the First Respondent under Section 7-A of the Employees
Provident Funds & Miscellaneous Provisions Act, 1952 and consequential
enforcement order ii) vide No. TN/RO-PDY/COMP/DIV-II/PC/299/8F/2020
dated 09.03.2020 passed by the First Respondent under Section 8-F of the
Employees Provident Funds & Miscellaneous Provisions Act, 1952 and quash the
same.
For Petitioner : Mr. Prakash Adiapadam (in both W.P.s)
For Respondents : Mrs. V.J. Latha, Standing Counsel
(in both W.P.s)
COMMON ORDER
(through video conference) Heard Mr. Prakash Adiapadam, Learned Counsel for the Petitioner and Mrs. V.J.Latha, Learned Standing Counsel appearing for the Respondents and perused the materials placed on record, apart from the pleadings of the parties.
2. In W.P. No. 5484 of 2020, the Petitioner has challenged the Order No. TN/ RO/PDY/PC/299/Comp/DIV-II/7A ORDER/2019-20 dated 09.10.2019 passed by 3/10 http://www.judis.nic.in W.P. Nos. 5484 and 7016 of 2020 the First Respondent under Section 7-A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as the 'Act' for short) and consequential attachment Order No. TN/RO-PDY/PC/299/Comp/DIV-II/8F Order/2019 dated 18.11.2019 passed by the Second Respondent under Section 8-F of the Act. In W.P. No. 7016 of 2020, the Petitioner has challenged the Order No.TN/RO-PDY/PC/299/Comp/DIV-II/7A ORDER/2019-20/51 dated 18.02.2020 passed by the First Respondent under Section 7-A of the Act and consequential enforcement Order No. TN/RO/PDY/COMP/Div-II/PC/299/8F/2020 dated 09.03.2020 passed by the First Respondent under Section 8-F of the Act.
3. Learned Standing Counsel appearing for the Respondents, on instructions, states that the entire amount due by the Petitioner under the impugned orders have not been fully paid and the details in that regard are furnished in the following self-explanatory tabular column:-
W.P. No. 5484 of 2020
S. Amount due from July
Particulars Details of remittance
No. 2018 to March 2019
1 Demand as per 7-A Rs. 1,80,42,469/- Nil
Order
2 Remittances/ Rs. 28,42,469/- 8-F Attachment amount vide
Attachments made D.D. No. 228352 dated
02.03.2020.
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W.P. Nos. 5484 and 7016 of 2020
3 Remittances/ Rs. 16,68,148/- Pursuant to orders of Hon'ble
Attachments made High Court Madras dated
04.03.2020, the establishment
has remitted a sum of
Rs. 16,68,148/-.
4 Remittances/ Rs. 81,48,661/- Online payment made by the
Attachments made establishment for the period
from December 2018 to March
2019 during the month of May
2020.
5 Remittances/ Rs. 2,44,704/- Payment made by the
Attachments made establishment vide D.D. No.
264766 dated 28.05.2020
6 Total amount of Rs. 1,29,03,982/- Nil
remittances
7 Balance Rs. 51,38,487/-
outstanding
W.P. No. 7016 of 2020
S. Amount due from April
Particulars Details of remittance
No. 2019 to September 2019
1 Demand as per 7-A Rs. 1,03,06,898/- Nil
Order
2 Remittances/ Rs. 11,000/- Remitted by the establishment
Attachments made vide Banker's Cheque
No. 930413 dated 16.03.2020.
3 Remittances/ Rs. 11,67,521/- *Accounted out of 8-F
Attachments made Attachment of Rs. 51,89,637/-
recovered vide D.D.
No. 012768 dated 17.03.2020.
4 Remittances/ Rs. 1,02,60,948/- Online payment made by the
Attachments made establishment for the period
from April 2019 to September
2019 during the month of
May 2020.
5 Total amount of Rs. 1,14,39,469/- Nil
remittances
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W.P. Nos. 5484 and 7016 of 2020
6 Balance Rs. 11,32,571/-** This balance amount is being
outstanding (In excess) accounted towards the
outstanding 7-A dues for the
period from July 2018 to
March 2019.
It is further explained that out of the attachment amount of Rs. 51,89,637/- recovered vide D.D. No. 012768 dated 17.03.2020, the arrear demand dues of earlier period for which recovery action taken vide CP4 Attachment Orders dated 15.11.2019 and 15.03.2020 have been accounted as below:-
(A) An amount of Rs. 12,71,922/- has been accounted towards 14-B dues for the period 2011-2012 as per the final orders dated 22.02.2019 of Central Government Industrial Tribunal, Chennai in EPFA No. 388/2017 which the Petitioner Establishment is supposed to remit the deposit amount within four weeks of receipt of the order, but the establishment has failed to pay the amount within the time limit specified in the order. (B) An amount of Rs.27,50,194 has been accounted towards 14-B dues for the period from April 2012 to February 2018.
The balance amount of Rs.11,67,521/- has been initially accounted towards the dues under Section 7-A of the Act for the period from April 2019 to September 2019, but the Petitioner has subsequently during the month of May 2020, on its own, made online payment of Rs. 1,02,60,948/- almost covering the entire dues 6/10 http://www.judis.nic.in W.P. Nos. 5484 and 7016 of 2020 for the period from April 2019 to September 2019. Hence, the balance amount of Rs. 11,32,571/- has been adjusted towards the outstanding amount of dues under Section 7-A of the Act for the period from July 2018 to March 2019. Thus, the balance outstanding dues payable by the Petitioner establishment is Rs. 40,05,916/- for the period from July 2018 to March 2019.
4. In view of the aforesaid submissions made on behalf of the Respondents, Learned Counsel for the Petitioner states that the Petitioner would satisfied if the arrears of provident fund dues accumulated are permitted to be remitted in 24 equated monthly installments.
5. In response to the query made, Learned Standing Counsel appearing for the Respondent has produced the Circular No. RRC/28(23)06/BIFR/23781 dated 11.02.2014 and the Circular No. RRC/28(23)06/BIFR/3345 dated 12.05.2014 issued by the Central Provident Fund Commissioner, containing the instructions approved by the Central Board of Trustees of the Employees Provident Fund Organisation in their earlier meetings to permit the arrears of provident fund dues accumulated to be remitted in monthly installments. 7/10 http://www.judis.nic.in W.P. Nos. 5484 and 7016 of 2020
6. Learned Counsel for the Petitioner states that the Petitioner has submitted a representation dated 31.10.2019 for availing the said benefit of remitting the arrears of provident fund accumulated in 20 equated monthly installments, which has been received by the Respondents on 31.10.2019.
7. Having due regard to the aforesaid submissions made, this Court without expressing any view on the correctness or entitlement of the claim made by the Petitioner, requires the Competent Authority to duly consider the aforesaid representation dated 31.10.2019 made by the Petitioner with reference to the parameters stipulated in the aforesaid circulars, and pass reasoned orders on merits and in accordance with law and communicate the decision taken to the Petitioner under written acknowledgment. Before carrying out that exercise, if the Competent Authority is of the view that the Petitioner has not satisfied the prescribed requirements or eligibility criteria for that benefit, the deficiencies in that regard shall be informed in writing to the Petitioner requiring the same to be furnished within a time frame of not less than 10 working days that may be granted for that purpose. In the event of the Competent Authority being of the opinion that the Petitioner has not satisfied the same even thereafter, an enquiry shall be conducted affording an opportunity of personal hearing to the Petitioner 8/10 http://www.judis.nic.in W.P. Nos. 5484 and 7016 of 2020 to explain its position regarding such compliance. It is made clear that resort to coercive action for recovery against the Petitioner shall be deferred till the representation is disposed in the aforesaid manner.
Accordingly, the Writ Petitions are disposed on the aforesaid terms. Consequently, the connected Miscellaneous Petitions are closed. No costs.
07.09.2020
vjt
Index : Yes/No
Note: Issue order copy by 16.09.2020.
To
1. The Regional Provident Fund Commissioner – II/OIC, Employees Provident Fund Organisation, Regional Office, No. 101, 100 Feet Road, SreeVenni Commercial Complex, Chozhan Nagar, Olandaikeerapalayam, Puducherry – 605 004.
2. The Assistant Provident Fund Commissioner (COMP), Employees Provident Fund Organisation, Regional Office, No. 101, 100 Feet Road, SreeVenni Commercial Complex, Chozhan Nagar, Olandaikeerapalayam, Puducherry – 605 004.
9/10 http://www.judis.nic.in W.P. Nos. 5484 and 7016 of 2020 P.D. AUDIKESAVALU, J.
vjt Copy to M/s. The Pondicherry Co-op. Spinning Mills Ltd., Represented by its Managing Director Mr. S. Shakthyvel, Pondicherry-Villianur National Highways, Thiruvandorkoil P.O., Thirubhuvanai, Puducherry – 605 102.
W.P. Nos. 5484 and 7016 of 2020 07.09.2020 10/10 http://www.judis.nic.in