(1.) Petitioner aggrieved by the order Annexure-'F' of the 2nd Respondent-Assistant PF Commissioner and Recovery Officer directing issue of warrant of arrest and commit the Petitioner to civil prison, has presented this petition.
(2.) Petition is opposed by filing statement of objections dated: nil of the 2nd Respondent, inter alia contending that M/s. Spectra Lamps Pvt. Ltd., covered under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (for short 'the Act') committed default in remitting provident fund contribution, following which an order under Section 7(A) of the Act was passed, determining non-remittance of Rs. 15,34,123/- towards contributions for the period 09/1998 to 02/2006. Failure to comply with the said order, led to issue of recovery certificates bearing Nos. 119, 06, 55 and 30 dated 16.01.2002, 20.05.2002, 10.01.2005 and 08.04.2008, respectively, under Section 8 of the Act. Recovery Officer/Respondent on receipt of the certificates, initiated proceedings to recover the said sums by arrest of the employer, being one amongst several modes prescribed in Sections 8(B) to 8(G) of the Act, by issuing a show cause notice dated 27.11.2009 whence, the Petitioner appeared before the recovery Officer on 18.01.2010 and filed objection statement contending that he had resigned from the post of director of the said company and one Sri. Hemanth Kumar, the transferee of the Company together with assets and liabilities, with effect from 05.03.2007 was responsible and liable to pay the sums determined in the certificates. The objection being without merit was rejected and justifiably the order impugned was passed.
(3.) Learned Counsel for the Petitioner contends that though arrest and detention is one of the modes for recovery of the amount, nevertheless. Act also provides for other modes of recovery by way of sale of assets of the Company and that the mode of arrest and detention in civil prison ought to be the last resort and even if deployed, should be in compliance with Rule 73 in part V of Schedule II to the Income Tax Act, 1961. Learned Counsel places reliance upon the decision of a learned single judge of the High Court of Bombay in Kanaiyalal Prabhudas Maru and Ors. v. Regional Provident Fund Commissioner, Maharashtra and Goa and Ors., 2002 1 LLJ 297 Lastly Learned Counsel contends that the assets of the Company M/s. Spectra Lamps Pvt. Ltd., is valued at more than Rs. 4.00 crores and the amounts determined as contribution is recoverable by enforcing the mode of sale of the said assets. No other grounds are urged.