REGIONAL PROVIDENT FUND COMMISSIONER Vs. ALAMPALLY BROTHERS LTD

JUDGEMENT

(1.) The Provident Fund Organization challenges the judgment in the writ petition on the ground that there has been absolutely no consideration on the question of imposition of damages under Section 14B of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 [for brevity "EPF & MP Act"].

(2.) The period in which admittedly the PF contributions were defaulted, was between April 1996 to November 1997; though in the order it is seen as till August 1998. The respondent-establishment claimed before the Provident Fund Commissioner that there was financial constraints and that alone led to the delay in making the contributions. The learned Counsel for the establishment also took us through the order of the original authority at Exhibit P10, wherein the authority had considered the contention of the establishment and found that the establishment is entitled to sympathetic consideration. But, even then finding that the loss of interest has to be compensated, the damages were levied at the maximum statutory limit prescribed.

(3.) The learned Standing Counsel for the appellant-Organization submits that Section 14B damages was compensatory till 01.07.1997, when Section 7Q interest was inserted by Act 33 of 1988 with effect from 01.07.1997.