GOPALAKRISHNA TEXTILE MILLS PRIVATE LIMITED BANGALORE Vs. REGIONAL PROVIDENT FUND COMMISSIONER BANGALORE

JUDGEMENT

(1.) IN this writ petition, the short question that arises for consideration is as to whether the respondent was right in imposing penalty even after a lapse of 12 years to take action, if yes, whether he is justified in levying penalty as stated in the impugned order.

(2.) THE brief facts which are necessary for the disposal of this writ petition are that the petitioner is a textile mill engaged in the production of cotton yarn and fabrics located in a rural area at subramanyapura, Bangalore south taluk. The petitioner has failed to remit the provident fund amount to the authority within the stipulated date. Therefore, show-cause notice was issued as per Annexure-A on 16-2-1985 under Section 14-b of the act. On 24-4-1985 the petitioner sent a reply as per annexure-b. Thereafter, the 1st respondent finalised the proceedings and forwarded the same along with its letter dated 12-6-1987 as per annexures-c and b respectively. In the said Order, the respondent 1 directed the petitioner to pay a sum of Rs. 1,06,545. 65 as damages on provident fund contributions, administratipn charges, family pension fund contributions. Deposit-linked insurance fund contribution and administrative charges for the periods from march, 1972 to february, 1984. The said order as per annexures-c and d are illegal, arbitrary and unenforceable and void. On these grounds that petitioner has questioned the said orders.

(3.) HEARD the learned counsel for the petitioner and the learned counsel for the respondent.