Madras High Court
The Assistant Provident Fund ... vs The Presiding Officer on 6 October, 2025
Author: B.Pugalendhi
Bench: B.Pugalendhi
WP(MD)No.13381 and 15300 of 2021
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 06.10.2025
CORAM:
THE HONOURABLE MR.JUSTICE B.PUGALENDHI
WP(MD)No.13381 and 15300 of 2021
and
WMP(MD)Nos.10342, 12192 and 12193 of 2021
in WP(MD)No.13381 of 2021
The Assistant Provident Fund Commissioner,
Employees Provident Fund Organisation,
Regional Office,
Chokkikulam, Madurai – 625 002. ...Petitioner
Vs
1.The Presiding Officer,
Employees Provident Fund Appellate Tribunal,
CGIT cum Labour Court, Chennai – 600 006.
2.A-1493 Pattiveeranpatti Coffee and Cardamom
Growers Co-Opeartive Bank Ltd,
(Through its Secretary P.Murugesan)
Pattiveeranpatti – 624211,
Dindigul District. ...Respondents
PRAYER: Writ Petitions filed under Article 226 of the Constitution of
India to issue a writ of certiorari to call for the records pertaining to the
impugned order of the 1st respondent the CGIT cum EPF Appellate
Tribunal, Chennai in EPFA 313/2017-ATA.No.759(13)/11 dated
31.03.2021 and quash the same by confirming the order passed by the
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WP(MD)No.13381 and 15300 of 2021
Assistant Provident Fund Commissioner, Madurai under Section 14B of
the Employees Provident Fund and Miscellaneous Provisions Act, 1952
in his proceedings No.TD/RO/MDU/858/RO/Circle/PDC/LO/2011 dated
13.10.2011.
For Petitioner : Mr.X.John Xavier
For Respondent : Mr.VOS. Kalaiselvam
No.2
in WP(MD)No.15300 of 2021
A-1493 Pattiveeranpatti Coffee and Cardamom
Growers Co-Opeartive Bank Ltd,
(Through its Secretary P.Murugesan)
Pattiveeranpatti – 624211,
Dindigul District. ...Petitioner
Vs
1.The Employees Provident Fund
Appellate Tribunal,
I Floor, B Wing,
26, Haddows Road,
Shastri Bhavan, Chennai – 600 006.
2.The Assistant Provident Fund Commissioner,
Employees Provident Fund Organisation,
Regional Office, Lady Doak College Road,
Chokkikulam, Madurai – 625 002.
...Respondents
PRAYER: Writ Petitions filed under Article 226 of the Constitution of
India to issue a writ of certiorari to call for the records pertaining to the
proceedings of the 1st respondent in EPFA 313/2017-ATA.No.759(13)/11
dated 31.03.2021 and quash the same.
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WP(MD)No.13381 and 15300 of 2021
For Petitioner : Mr.VOS. Kalaiselvam
For Respondent : Mr.X.John Xavier
No.2
ORDER
These writ petitions have been filed by the EPF authority and the Co-Operative Bank respectively as against the findings of the EPF appellate tribunal in EPFA 313/2017-ATA.No.759(13)/11 dated 31.03.2021.
2.The EPF authority has initiated damages proceedings as against the establishment co-operative bank for the belated payment of EPF contribution for the period from April 2006 to February 2010 and levied damages of Rs.2,98,439/-. The order of the EPF Authority passed under Section 14B of the Employees' Provident Fund and Miscellaneous Provident Funds Act [in short 'the EPF Act'] has been challenged before the appellate tribunal and the same has been allowed by the appellate tribunal by modifying the penalty as 50% on the ground that there is no mens rea and actus reus on the part of the establishment for belated contribution. The appellate tribunal has also held that establishment 3/8 https://www.mhc.tn.gov.in/judis ( Uploaded on: 14/10/2025 03:35:04 pm ) WP(MD)No.13381 and 15300 of 2021 being a co-operative institution catering the needs of the local coffee and cardamom growers and the statue itself refers as may recover, the EPF authority ought not to have levied damages under Section14B of the EPF Act. The appellate tribunal while holding that there is no mens rea or actus reus and the establishment caters the needs of the local coffee and cardamom growers, has modified the damages to 50%. Therefore, the EPF authority and the co-operative bank have filed these writ petitions.
3.The learned counsel for the EPF authority submits that the findings of the appellate tribunal on the necessity for mens rea and the actus reus as per the decisions of the Hon'ble Supreme Court referred to in the impugned order are not longer good law in view of the judgment of the Hon'ble Supreme Court in Horticulture Experiment Station Gonikoppal Vs Regional Provident Fund Organisation reported in (2022) 2 SCC 516, wherein the Hon'ble Supreme Court has held that mens rea or actus reus is not an essential element for imposing penalty or damages for breach of civil obligations and liabilities and the relevant portion is extracted hereunder:
“19.Taking note of the three-Judge Bench 4/8 https://www.mhc.tn.gov.in/judis ( Uploaded on: 14/10/2025 03:35:04 pm ) WP(MD)No.13381 and 15300 of 2021 judgment of this Court in Union of India Vs Dharmendra Textile Processors, which is indeed binding on us, we are of the considered view that any default or delay in the payment of EPF contribution by the employer under the Act is a sine qua non for imposition of levy of damages under Section 14-B of the 1952 Act and mens rea or actus reus is not an essential element for imposing penalty / damages for breach of civil obligations / liabilities.”
4.The learned counsel for the establishment/ co-operative bank submits that it is a co-operative institution registered under the Tamil Nadu Co-Operative Societies Act and due to high establishment cost and due to non recovery of loan amount the establishment suffered huge loss between the years 2006 and 2010. He also submits that there was some loss suffered by the society that due to the policy decision of the Government, the Coffee Board stopped the agency system where the petitioner establishment was an agent, who purchases the coffee through the agent and pulverises the same and return. This stoppage of the business also made them to suffer loss. The learned counsel has also relied on the judgment of the Hon'ble Full Bench of this court in All India Private Educational Institutions Association Vs. State of Tamil 5/8 https://www.mhc.tn.gov.in/judis ( Uploaded on: 14/10/2025 03:35:04 pm ) WP(MD)No.13381 and 15300 of 2021 Nadu, reported in 2020 (5) CTC 93 and submits that the similar writ petition was filed by a co-operative society as against the orders of the appellate tribunal and this Court has allowed the writ petition in favour of the society fully waiving the damages.
5.This court considered the rival submissions made.
6.Admittedly the establishment co-operative bank has failed to pay the EPF contribution within the stipulated time. Section 14 B of the EFP Act enables the EPF authority to recover the damages as per the scheme. However, the proviso mandates that damages can be levied only after providing opportunity to the establishment. Here in this case, sufficient opportunity has been provided to the establishment and thereafter damages has been levied. The appellate tribunal has modified the damages as 50% on the ground that there is no mens rea or actus reus in belated EPF contribution. The appellate tribunal has also found that it is not mandatory provision that in all the cases damages have to be levied as per the scheme. The establishment claims that there was a policy decision of the Government and there was unpaid loans therefore, they 6/8 https://www.mhc.tn.gov.in/judis ( Uploaded on: 14/10/2025 03:35:04 pm ) WP(MD)No.13381 and 15300 of 2021 have suffered loss. These cannot be the grounds for exempting the co- operative bank from paying the damages as provided under Section 14B of the EPF Act. Therefore, this court is not inclined to entertain the writ petition filed by the establishment co-operative bank and accordingly WP(MD)No.15300 of 2022 is dismissed and consequently the writ petition filed by the EPF authority in WP(MD)No.13381 of 2021 is allowed. The impugned order is set aside. The order of the EPF authority dated 13.10.2011 is hereby sustained. Connected miscellaneous petitions are closed. No costs.
06.10.2025 DSK To
1.The Presiding Officer, Employees Provident Fund Appellate Tribunal, CGIT cum Labour Court, Chennai – 600 006.
2.The Assistant Provident Fund Commissioner, Employees Provident Fund Organisation, Regional Office, Chokkikulam, Madurai – 625 002.
3.A-1493 Pattiveeranpatti Coffee and Cardamom Growers Co-Opeartive Bank Ltd, (Through its Secretary P.Murugesan) Pattiveeranpatti – 624211, Dindigul District.
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