V S MURUGAN Vs. REGIONAL PROVIDENT FUND COMMISSIONER

JUDGEMENT

(1.) The prayer in the writ petition is to quash the order of the second Respondent Dated 19.10.2010 and direct the second Respondent to collect interest of Rs. 51,60,267/-which is lying with the third Respondent out of the bank guarantee of Rs. 1 crore furnished by the Petitioner.

(2.) The brief facts necessary for disposal of the writ petition are as follows:

(3.) Respondents 1 and 2 have filed counter affidavit contending that the erstwhile Jawahar Mills Limited, Salem is an establishment covered under the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952, and the said establishment defaulted in payment of provident fund dues from April 1992 and after affording opportunities provident fund dues for various spells from April, 1992 to April, 2003 were determined and corresponding penal damages under Section 14B and interest under Section 7Q were determined and the total amount payable was Rs. 2.38 crores. The properties of the said mill were attached by the third Respondent bank for the outstanding loan availed by the establishment. The said fact came to the notice of the Respondents 1 and 2 and a notice in CP-10, dated 6.3.2006 was issued to the bank/third Respondent directing to remit the provident fund dues on priority before paying/ claiming other dues.