THE COCHIN MALABAR ESTATES AND INDUSTRIES LTD, OWNING PULLIKKANAM ESTATE, GROUND FLOOR, NGO UNION OFFICE BUILDING, PALLIMUKKU, KOCHI Vs. EMPLOYEES PROVIDENT FUND APPELLATE TRIBUNAL, 7TH FLOOR, SKYLARK BUILDING, NEHRU PLACE, NEW DELHI 110 019

JUDGEMENT

(1.) The petitioner is challenging the order Ext.P4 passed by the first respondent-the Employees Provident Fund Appellate Tribunal, on the ground that the Tribunal did not look into the financial condition of the petitioner while directing the payment of 70% of the damages levied by the 2nd respondent.

(2.) The petitioner is a public limited Company owning tea and rubber plantations in the State of Kerala. According to the petitioner it has been facing severe financial crisis since the year 1998-1999 due to fall in price of tea and rubber. The condition became worse in the subsequent years; certain estates in Peerumedu area stopped functioning; wages could not be paid to its employees during this period. Accordingly there was delay in remitting their contribution to Employees Provident Fund (EPF) during the period from Nov. 2011 to Jan. 2003.

(3.) By Ext.P2 order, the second respondent thereupon initiated proceedings under Sec. 14B of the Employees Provident Fund and Miscellaneous Provisions Act proposing to levy damages for the delayed payment. Though, on receipt of the show cause notice, the petitioner explained the difficulties faced by the tea estates in South India generally and in the plantations under it due to which it was unable to make the payments, the 2nd respondent passed Ext.P2 order confirming the proposal and levied damages, directing payment of a sum of Rs.22,64,120.00 for the period from 11/01 to 2/03 as penal damages.