KARNATAKA AGRO-INDUSTRIES CORPORATION LTD , BANGALORE Vs. REGIONAL PROVIDENT FUND COMMISSIONER, KARNATAKA, BANGALORE

JUDGEMENT

(1.) The order of the Regional Provident Fund Commissioner, Kamataka. (the respondent) imposing penal damages on the petitioner for non-payment of amounts, which the petitioner was required to remit under the provisions of the Employee's Provident Funds and Family Pension Fund Act, 1952 (hereinafter referred to as the Act), is challenged by the petitioner in this writ petition.

(2.) The petitioner made default in remitting the amounts towards the fund created under the Act from July 1970 up to February 1972, the period of delay in respect of the amount remitted every month during the aforesaid period in majority of the cases is about one month and in a few cases it is more than a month. The respondent on whom now the power is conferred under Section 14-B of the Act to levy penal damages in place of the State Government by an amendment to the said Act in November 1973, made the order dated 28-7-1975 (Exhibit-C).

(3.) The petitioner pleaded before the respondent that the delay in remitting the amount was bona fide It was explained on behalf of the petitioner that there was slight unintentional delay in remitting the amounts, because they had opened several branches all over the State and the provident fund amount was remitted by the main office. Another reason, which the petitioner gave was that there was some confusion on account of option given to the employees of the State government, who belonged to Agricultural Engineering Wing either to join the petitioner corporation or to continue in the agricultural department. After referring to above pleas put forward by the petitioner, respondent proceeded to pass the order in the following terms: