RECOVERY OFFICER Vs. KERALA FINANCIAL CORPORATION

JUDGEMENT

(1.) This appeal impugns the judgment of the learned single Judge dated 22nd June, 1994 allowing the Original Petition and quashing recovery notices issued by the Recovery Officer and Assistant Provident Fund Commissioner to the first respondent Corporation.

(2.) The appellant before us is the Recovery Officer within the meaning of S.2(kb) of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as E.P.F. & M.P. Act), who is also empowered to recover Provident Fund dues by reason of S.8G of the Act. The first respondent is a Corporation established under the State Financial Corporations Act, 1951. The second respondent is a scheduled bank carrying on business at Trivandrum in the State of Kerala.

(3.) A company by name M/s. Darpan Electronics (Private) Limited (hereinafter referred to as the company) was running an industrial concern engaging employees and was covered by the provisions of the E.P.F. & M.P. Act, 1952. The Company had obtained loans from the first respondent Corporation for the purpose of setting up its business. On 21.2.1997, it executed a loan agreement securing by mortgage certain immovable property belonging to it and by a deed of hypothecation certain movable properties. During the period March 1990 and December 1990 the Company committed default in payment of the contributions to the Employees Provident Fund under the E.P.F. & M.P. Act. It also committed default in repayment of the loan which it had taken from the first respondent Corporation. The first respondent initiated proceedings under S.29 of the State Financial Corporations Act, 1951 (hereinafter referred to as S.F.C. Act) and took over all the movable and immovable assets of the Company on 18th November, 1991. On 20.12.1993, the movable assets were sold towards realisation of the debts due to the first respondent Corporation. A sum of Rs. 89,083/- is lying in the account of the said company with the second respondent Bank. A sum of Rs.37,150/- is said to be due from the company toward the employers contribution to the Provident Fund.