EMPLOYEES PROVIDENT FUND ORGANIZATION Vs. BHAGAWATI TEXTILES LTD

JUDGEMENT

(1.) This writ petition has been filed by the Employees of Provident Fund Organization aggrieved by the order dated 03.11.2014 in ATA 643(7)/2013 of the Employees Provident Fund Appellate Tribunal, New Delhi.

(2.) The fist respondent is an establishment covered under the Employees Provident Fund and Miscellaneous Provisions Act 1952 (for short 'the Act'). The petitioner contends that the first respondent defaulted in remittance of Provident Fund contributions for the period from Feb., 2001 to Dec., 2004. The authorities initiated proceedings against the first respondent under Sec. 14B of the Act. Ultimately an amount of Rs. 48,82,215.00 was imposed as damages.

(3.) Challenging the order imposing damages the first respondent filed appeal before the second respondent-Employees Provident Fund Appellate Tribunal. According to the petitioner, the Tribunal without properly appreciating the legal contentions urged by the petitioner, held that since the first respondent establishment is not a wilful defaulter no damages can be levied under Sec. 14B of the Act. Consequently, the second respondent Tribunal set aside the orders imposing the damages.