CHINDAN A RAJAN Vs. UNION OF INDIA

JUDGEMENT

(1.) IN this Writ Petition, the petitioner has sought for to declare Section 8 (B) (b) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as 'act' in short), insofar as the same consfers unguided and arbitrary power to the Executives, other than a court of law, to arrest an employer and to detain him in a prison as void and unconstitutional being violative of Art. 21 of the Constitution of India; and also sought to declare the act of the fourth respondent in arresting and detaining the petitioner in prison by its order dated 18-10-2002 as unconstitutional and without the authority of law. However, the third prayer has become infructuous since this Court has already ordered to release the petitioner. Further the petitioner has prayed to direct the 4th respondent to pay adequate and appropriate compensation to the petitioner and for such other reliefs.

(2.) ACCORDING to the petitioner, he is the managing Director of M/s. Storacks Ltd. , a private limited company consists of his family members having its registered office at saptagiri Complex, Sankey Road, Bangalore-20. He is a proprietor of M/s. Metallica pressings having its business at B-192, Peenya ii Stage, Bangalore, which is established in the year 1979-80. According to him, he was taking care of both the establishments. As such, his units were brought under the purview of Employees' Provident Funds and miscellaneous Provisions Act, 1952. According to the petitioner, he has discharged all the statutory and other obligations till 1995-96. Subsequently, because of the market recession/slump in the off take, the petitioner was compelled to supply the materials on long credit basis to most of the customers including the public sector undertakings and public limited companies. They have defaulted in making payments. Accordingly, the customers of the petitioner owe about Rs. 15,00,000/-to M/s. Sloracks Ltd. , and about Rs. 5,00,000/- to M/s. Metallica Presssings. Due to lack of funds, the petitioner's interest liability mounted with the non-recovery of the money from his customers, as such he was compelled to defer towards the statutory obligations. Since nothing has materialised, the petitioner has compelled to keep himself struggling to take care of the 18 families and 14 families of these two establishments. According to him, his Sundry debtors owe him a sum exceeding Rs. 20 lakhs. In the meanwhile, the 4th respondent served notice on him dated 3-4-2002 as per Annexure-C, demanding arrears of contribution. The petitioner had personally approached the 4th respondent of the facts. Subsequently, another notice dated 9-8-2002 was got issued by the 3rd respondent vide annexure-D under Section 7 A of the EPF and misc. Provisions Act, calling upon him to appear before him on 28-8-2002 to give evidence and produce the relevant records for determining the dues under the Employees' pf Contributions, Pension Contribution and edli Contribution. Further, the Officers of the 4th respondent sent a letter dated 16-8-2002 vide Annexure-E calling upon him to produce the balance sheets and details of company's assets and liabilities etc. , According to the petitioner, he approached the 2nd respondent on 18-10-2002, but the 2nd respondent refused to give in writing but took the petitioner to their custody and sent to central Jail on 18-10-2002 and the petitioner has been in jail ever since. In that view of the matter, the petitioner has filed this Writ Petition seeking for an issue of appropriate writ.

(3.) HEARD the learned counsel appearing for the petitioner and the learned counsel appearing for the respondents 2 to 4.