GURU VITTAL P Vs. REGIONAL PROVIDENT FUND COMMISSIONER

JUDGEMENT

(1.) THESE two writ petitions are interconnected and hence the same are dealt with in common. The result of W. P. No. 10227 of 2000 is dependent upon the result of W. P. No. 6242 of 2000. Writ Petition No. 6242 of 2000 has been preferred by the partners of one Sri Padmanabha Theatre situated at Waltax Road, Chennai 600 069. The said theatre is an establishment covered under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act. At the instance of the first and second respondents proceedings were initiated for recovery of contributions in respect of the establishment, Sri Padmanabha Theatre for the period from November 1996 to May 1999.

(2.) IT transpires that a total sum of Rs. 5,74, 177. 50 was found to be due from the establishment by way of contribution and other charges. By proceedings dated August 5, 1999, the Recovery Officer was furnished with the certificate under Section 8-B of the Employees' Provident Funds and Miscellaneous Provisions Act, hereinafter called the Act, pursuant to which, by notice of attachment, dated August 10, 1999, the second respondent attached certain movables belonging to the establishment such as projector and certain other accessories. By yet another communication dated August 10, 1999, the attached properties were left in the custody of the first petitioner. Subsequently a revised notice of attachment, dated August 19, 1999, was forwarded to the establishment attaching the very same properties which were attached earlier in the notice, dated August 10, 1999. Again on December 24, 1999, a notice of proclamation of sale was issued indicating that the properties attached earlier will be sold by an auctioneer at the site on January 25, 2000 for the recovery of a sum of Rs. 5,74,177. 50. Subsequently, the petitioners were issued with a communication, dated January 20, 2000, by the second respondent claiming to be an order attaching the business carried on by the petitioners under the name and style of Sri Padmanabha Theaters at No. 16, Waltax, Road, Chennai 600 079 and the petitioners were prohibited and restrained from transferring or changing the said business. The said proceedings were also initiated for the purpose of recovering the arrears amount of Rs. 5,74,177. 50. Closely followed by that, by proceedings, dated January 21, 2000, the third respondent was appointed as a Receiver to manage and run the business of Sri Padmanabha Theatres, Chennai 600079, on and from January 24, 2000, investing him with all the powers necessary for the management of the said business in accordance with the rules. Though, it is stated in the said communication that certain enclosures were also annexed to it, the petitioners claim that no such enclosures were forwarded to them.

(3.) THE petitioners have averred that without notice to them, the first respondent has appointed a third party as a Receiver who has also taken control of the theatre and was taking steps to run the theatre, that when the petitioner approached the first respondent to pay the amounts in instalments, the said request of the petitioners was turned down and that they were asked to pay the entire amount of Rs. 5,74,177. 50 in one lump sum, while the third party was permitted to deposit a sum of Rs. 3 lakhs, while taking over the management and pay the balance amounts in instalments of Rs. 10,000 per month, that the action of the first and second respondents in appointing a Receiver behind the back of the petitioner, while rejecting the petitioners request to make the payments in instalments was highly illegal and therefore, liable to be interfered with. It is stated that the petitioners are also willing to make a payment of rupees three lakhs to the third respondent, which is stated to have been paid by him to the first and second respondents and clear the balance amount in instalments at the rate of Rs. 25,000 per month.