CEMA ELECTRIC LIGHTING PRODUCT INDIA PVT LTD. Vs. RECOVERY OFFICER AND ASSISTANT PROVIDENT FUND COMMISSIONER

JUDGEMENT

(1.) This Court on 15.10.2019 while issuing the Notice for final disposal had noted that this is a petition, where the petitioner is aggrieved by the fact that, though, he has paid to both the contractors, viz., M/s. Shivam Enterprise and M/s. Jatin Enterprise, the amount of provident fund, pensions and other expenses, and since these two independent concerns have no connection with the petitioner, for they being the third parties, so far as their legal existence is concerned, they are merely providing the labourers to the petitioner. The provident fund authority in the proceedings under Section 14B of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 (hereinafter referred to as 'the P.F. Act' for short) has chosen to freeze the bank accounts of the petitioner.

(2.) Learned advocate Mr. P.J. Mehta appearing for the petitioner has urged that the entire amount has already been paid to the independent contractors, the proof of which had already been given to the Provident Fund authorities, by way of a communication dated 08.10.2019. He has further submitted that in the entire proceedings under Section 14B of the P.F. Act, the petitioner had not been made the party. It is further his say that all the bank accounts of the petitioner company had been frozen. This is a time of festivity and the month is ending; they shall have also to make the payment to the labourers and they are put in jeopardy because of the action of P.F. Authority.

(3.) According to the learned advocate Ms. E. Shailaja appearing for the P.F. Authority, what emerges from the record is that the Jatin Enterprise and Shivam Enterprise were admittedly the contractors working for the petitioner- M/s. CEMA Electric Lighting Product India Pvt. Ltd. Against both of them, proceedings under Section 14B and 7Q of the P.F. Act have been initiated. The recovery proceedings have also initiated against both these contractors. She further urges that a notice under Section 8F of the said Act dated 18.06.2019 also had been issued for the dues of the Shivam Enterprise, and therefore, the petitioner was put at the notice regarding the recovery that may be initiated against the principal employer of the establishment. It is further his say that in the recovery proceedings, a letter dated 24.10.2015 issued by CEMA to Jatin Enterprise and a letter dated 20.02.2015 issued by CEMA to Shivam Enterprise had brought to the notice of the Recovery Officer. The petitioner accepted having retained the PF dues of both i.e. Jatin Enterprise and Shivam Enterprise, beyond the dates provided for statutory compliance. The contract with Shivam Enterprise and Jatin Enterprise had ended on January, 2014 and March, 2015 respectively. The statutory remittances since have been delayed by the petitioner and as both the respondent nos. 2 and 3 have become defunct in post termination of contract with the petitioner, two orders have been issued on 16.09.2019 to the bankers of the petitioner, since, the Recovery Officer has not received any amount under Section 8F of the P.F. Act. The bank also intimated the authority that there was no balance. For Jatin Enterprise - respondent no.3, the amount due of the P.F. Authority is Rs.6,49,764/- (Rupees Six Lakh Forty Nine Thousand Seven Sixty Four only) and the amount due of the P.F. Authority for Shivam Enterprise - respondent no.2 is Rs.12,68,410/- (Rupees Twelve Lakh Sixty Eight Thousand Four Hundred Ten only).