EMPLOYEES PROVIDENT FUND ORGANISATION Vs. KLENZAIDS BIOCLEAN

JUDGEMENT

(1.) The facts in brief are that the respondent herein is covered under the provisions of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 and is allotted with PF Code No. GJ/12320-A. On account of serious financial crises, the respondent had not deposited the PF dues in time. Therefore, the petitioner-organization issued show cause Notice to the respondent on 23.8.2004 and subsequently, passed the order dated 8.6.2007 under section 14B of the said Act. Being aggrieved by the said order, the respondent preferred an appeal being A.T.A. No. 382(5)/2008 before The Employees' Provident Fund Appellate Tribunal, New Delhi under section 7-I of the said Act. The said appeal was allowed in part by order dated 27.1.2009 whereby, the damages was restricted to 10% per annum of the arrears of contribution. Against the said order, the present petition has been preferred.

(2.) Heard learned counsel for the petitioner and perused the documents on record. It was the specific case of the respondent before the competent authority that delay in remittance of PF contribution had occurred on account of the serious financial crises which was faced by the respondent for a long period of time. The respondent had explained all the reasons behind the delay in the enquiry proceedings and had also sought time to produce the documents to rebut the Enforcement Officer's Report. It appears that the said request was turned down and the authority proceeded ex-parte and passed the impugned order under section 14B of the said Act.

(3.) In Para-8 of the impugned order passed by the Tribunal, elaborate discussion has been made on the issue as to whether an order of damages under section 14B of the said Act follows in every case of default. For this purpose, it would be relevant to refer to the said Section 14B, which reads as under: