(1.) Contract workers attached to the second respondent are the petitioners in the Original Petition. The issue relates to the benefits under the Employees Provident Funds and Miscellaneous Provisions Act, 1952 in the case of the petitioners and similarly situated employees are concerned. Though the petitionersand similarly situated workmen were entitled to the coverage under the Employees Provident Funds Scheme, the respondents took steps belatedly by proceedings dated 11.1.1991, the second respondent establishment was directed to pay an amount of Rs. 1771232.00. According to the petitioner, this includes the interest and penalty. However, it was later learned that the petitioners and other workmen were denied interest with effect from 1971 to 1987.
(2.) It is not in dispute that the coverage under the Employees Provident Funds Scheme has been determined with effect from 1971. However, the second respondent establishment has a case that they are not liable to pay any damages for the non contribution from 1971 to 1989. The second respondent had infact challenged the determination of contribution from 1971 to 1987 before this Court in O. P. No. 1149/1991. In the Judgment dated 4.3.1996 Shanmugam J. has dealt with in detail the contentions of the second respondent who was the petitioner in that case. It is observed that the second respondent was more worried about the damages under S.14B in respect of belated payment. It is pertinent to note that there is no reference at all with regard to the interest. It will be profitable to extract Para.7 & 8 of the judgment referred to above.
(3.) S.7Q of the Act in the matter of interest reads as follows: