AJUDHIA TEXTILE MILLS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner (Ajudhia Texlile Mills Ltd.) has, in this Writ Petition, prayed that the orders of the Regional Provident Fund Commissioner, Delhi (Respondent No. 4), issued between 28.6.1963 and 31.10.1963 (copies of which are Annexures B. 1 to B. 4 to this Petition), demanding payment of a sum of Rs. 33,174.99 as damages under section.14B of the Employees' Provident Funds Act, 1952, should be quashed as being illegal. Admittedly, the petitioner had not paid within the requisite time the employers' contribution for provident fund. The details of the amounts due by way of contribution from the petitioner have been mentioned in the statement of amounts appended to the Writ Petition and these are not in controversy. The extent of delay in respect of making each of those payments have also been shown in the said statement of amounts and about this also there is no controversy. The impugned demands are for damages which were assessed by the Regional Provident Fund Commissioner on the basis of a circular letter emanating from the Central Provident Fund Commissioner, New Delhi, which was originally addressed to the Delhi Administration and forwarded by the Administration to the Regional Provident Fund Commissioner for levy of damages at the rates specified in the said letter The rates ranged between 20% and 25% in the catagories of cases mentioned. The amounts demanded by the impugned orders follow the said percentage Section 14-B. which was introduced by the Amending Act No 37 of 1950, reads as follow :

(2.) After siting S. 7A introduced by Amended Act, judgement proceeds]

(3.) Among others, the following three contentions have been urged on behalf of the petitioner :