WELFARE FUND INSPECTOR Vs. BABY THOMAS, PANIKULANGARA HOUSE

JUDGEMENT

(1.) The Welfare Fund Inspector of Toddy Workers' Welfare Fund Board, is aggrieved by the judgment of the learned Single Judge in allowing the Writ Petition quashing the direction to pay interest to the tune of Rs.1, 36, 793/- by the respondent under Section 8 of the Kerala Toddy Workers' Welfare Fund Act, 1969 (for brevity 'the Act') , read with Section 38(1) of the Kerala Toddy Workers' Welfare Fund Scheme, 1969 (for brevity 'the Scheme') .

(2.) The respondent was a licensee of Toddy Shop Nos.31 to 35 of Kuruvilangad Range during 1998-99. On final determination by the appellant, a sum of Rs.77, 534/- was found to be due from the respondent under Section 8 of the Act. The respondent filed a statutory appeal under Section 8(5) of the Act and as per Ext.P1 order dated 18-07-2001 the appellant was directed to make a reassessment as per the statements given by the respondent. The appellant sat over the order for more than a decade and ultimately on 30-11-2010 as per Ext.P2 reassessment directed the respondent to pay a revised amount of Rs.65, 608/- to the Welfare Fund. The delay was caused mainly due to the act of the appellant, but the respondent was directed to pay a total interest to the tune of Rs.1, 38, 642/- under Sections 8 and 8A of the Act read with Clause 38(1) of the Scheme. The respondent contends that he is not liable to pay Rs.1, 849/- as interest under Section 8A of the Act and Rs.1, 36, 793/- demanded as per Section 8 read with Clause 38(1) of the Scheme. The Writ Petition was filed to quash Ext.P2 order of the appellant.

(3.) After considering the Writ Petition, the learned Single Judge held that the respondent is not liable to pay interest under Clause 38(1) of the Scheme, as there was no demand consequent to the remittance of the matter for re-determination and after passing orders as per Ext.P2. However, the respondent was found to be liable to pay interest under Section 8A of the Act, as there was delay in remitting the advance amount. The appellant contends that every employer is liable to file a monthly statement in Form No.4A(44) showing the welfare fund contribution and he has an obligation to make advance remittance to Welfare Fund under Section 8A of the Act. In case of default, the amount has to be recovered with interest at the rate of 18% per annum from the succeeding month. Similarly, there is an obligation on the part of the employer to remit the balance amount payable, after deducting advance contribution already paid before 10th of every month in accordance with Section 4 of the Act read with Clause 38(1) of the Scheme and under Section 8, an employee is liable to pay interest for any such delayed payment. In view of the statutory provisions to pay interest dues, the argument of the appellant is that the learned Single Judge erred in holding that the interest payable to the tune of Rs.1, 36, 793/- is unjustified. The appellant explains that the delay of about ten years in re-determination was caused due to certain official reasons and that such delay in final determination cannot be a reason for non-payment of interest.