SOMERVELL MEMORIAL CSI MEDICAL COLLEGE AND HOSPITAL KARAKONAM Vs. REGIONAL PROVIDENT FUND COMMISSIONER

JUDGEMENT

(1.) The petitioner herein is an establishment covered under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 ("Act 19 of 1952" for short). They defaulted in paying the contributions and administrative charges due to the respondent for the period from 1.4.2018 to 31.3.2019. Exhibit P1 notice was accordingly issued to the petitioner calling upon them to pay a sum of Rs 73,63,088/- towards damages under Section 14B of the Act and Rs 36,27,362/ towards interest under Section 7Q of the Act for the belated payment. By Exhibit P2 order, they were informed that steps would be taken to realize the amount without further notice. Impugning the said notice, the petitioner is before this Court seeking interference.

(2.) Sri M.R. Sarin Panicker, the learned counsel appearing for the petitioner, submitted that the petitioner is running a Medical College and due to policy changes of the Government and other unforeseen circumstances, the petitioner is in great financial turmoil. They have approached the Central Government Industrial Tribunal cum Labour Court, Ernakulam and have mounted a challenge against the order imposing damages under Section 14B of the Act and the said appeal is pending as Appeal No.461 of 2019. According to the learned counsel, insofar as the demand under Section 7Q is concerned, the petitioner is not disputing the quantum. He submits that after receipt of the notice of demand, the petitioner has remitted a sum of Rs.5,07,830/- vide Ext.P3, a sum of Rs.4,45,647/- vide Ext.P4 and a sum of Rs.4,45,647/- vide Ext.P5. He prays that a breathing time be granted to the petitioner to avoid initiation of coercive proceedings at the instance of the respondent.

(3.) Smt Nita N.S., the learned standing counsel, has vehemently opposed the prayer of the petitioner. It is submitted that the payment of interest is statutory and even an appeal is not provided against the demand of interest under Section 7Q. The learned counsel has also disputed the submission in so far as Exhibit P5 remittance is concerned. According to the learned counsel, the amount due towards the respondent is Rs 26,73,885/ as on date.