M/S EDELWEISS ASSET RECONSTRUCTION LIMITED Vs. REGIONAL PF COMMISSIONER II AND RECOVERY OFFICER, RO BENGALURU

JUDGEMENT

(1.) Leave granted.

(2.) The present appeal assails the correctness of the judgment and order dtd. 1/2/2024 passed by the Karnataka High Court in Writ Petition No.2543 of 2023 (L-PF), whereby the High Court dismissed the writ petition filed by the present appellant and further directed that the amount deposited, vide order dtd. 2/2/2023, be transmitted to the account of the respondent no.1 herein, i.e., the sole respondent before the High Court. Brief facts giving rise to the present appeal are narrated hereunder:

(3.) The EPFO, in the meantime, was informed by the Establishment that another property was being auctioned by State Bank of India through its assignee, the appellant-EARC. This property was situated at Kammanahalli (hereinafter referred to as the "Kammanahalli property"). The Establishment further informed the EPFO that another property at N.S. Palya (hereinafter referred to as the 'Palya property') was being auctioned by State Bank of Travancore (now taken over by SBI). Accordingly, the EPFO communicated with EARC and State Bank of India to remit the outstanding dues, vide communication dtd. 23/4/2021. The EPFO demanded an amount of Rs.2,08,94,800.00 from EARC as per priority under Sec. 11(2) of the PF Act. EARC filed a writ petition before the Karnataka High Court, in which an interim order was granted staying the operation of order dtd. 15/6/2016 passed under Sec. 14(B) of the PF Act raising demand for an amount of Rs.1,30,52,221.00. In view of the same, the EPFO demanded EARC to remit the balance amount of Rs.78,42,579.00 and also issued an order of attachment dtd. 24/11/2022 against EARC. In response, EARC, vide letter dtd. 27/1/2023, expressed its willingness to remit Rs.78,43,629.00, which included Rs.1050.00 as recovery charges also subject to confirmation that the said amount would be towards full and final settlement and EPFO would not raise any further demands from EARC with respect to provident fund dues of the Establishment. EARC challenged the order of attachment dtd. 24/11/2022 and also the recovery certificate of January 2023 before the High Court. The High Court, vide order dtd. 2/2/2023, directed the EARC to deposit Rs.75.00 lakhs as an interim measure and subject to such deposit stayed further recovery. By the impugned order, the said writ petition has been dismissed with the further direction that the amount of Rs.75.00 lakhs deposited by EARC be transmitted to the account of EPFO.