BEST AND CROMPTON ENGINEERING LTD Vs. ASSISTANT PROVIDENT FUND COMMISSIONER EPF ORGANISATION BANGALORE

JUDGEMENT

(1.) The 1st respondent - Assistant Provident Fund Commissioner, in exercise of jurisdiction under Section 7-A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. for short 'Act', initiated proceedings against Arrcee Enterprises, the 2nd respondent and 12 other institutions, including the petitioner, on the premise that they were principal employers of the 2nd respondent for not having remitted the provident fund contribution in respect of employees of the 2nd respondent. After an enquiry the 1st respondent passed an order dated August 21, 2007, Annexure 'F' directing the 2nd respondent to remit the balance amount of Rs. 25,96,234, while recording a finding that the petitioner amongst other employers did not produce records and that the dues in respect of the principal employers including the petitioner will be assessed to determine the escaped amount under Section 7-C of the Act. This order was followed by a notice dated June 16, 2008, Annexure-G informing the petitioner that a recovery certificate for Rs. 25,96,234 was issued and failure to pay said sum, within 15 days, coercive action would be taken to recover the said sum together with cost, charge, expenses etc. Hence this petition aggrieved by the said order and notice at Annexures F and G, respectively.

(2.) There is considerable force in the submission of the learned counsel for the petitioner that the 1 st respondent in exercise of jurisdiction under Section 7-A of the Act, without material Constituting substantial legal evidence that the petitioner was one of the principal employers of the 2nd respondent, which had failed and neglected to pay provident fund contribution of its employees, was liable to be subjected to a further enquiry under Section 7-C of the Act to determine the escaped amount.

(3.) Learned counsel for the 1 st respondent Provident Fund Commissioner when asked