NADIPPISAI PULAVAR Vs. REGIONAL PROVIDENT FUND

JUDGEMENT

(1.) This writ petition is filed as against the order of the EPF authority passed under Sec. 14B of the EPF and MP Act.

(2.) The respondent EPF authority has initiated the proceedings under Sec. 14B of the Act in the year 2018 for the belated payment of EPF contribution from 1/4/2017 to 31/3/2018. This proceedings was conducted on 27/6/2018 by issuing a summon to the petitioner on 4/6/2018. On 27/6/2018 the Accountant of the petitioner Mill has appeared before the EPF authority and has also stated about financial the crisis faced by the Mill. However, without providing sufficient time the authority has proceeded with the proceedings and has levied the damages as per Para 32-A of the EPF Scheme. Aggrieved by that, the Mill has preferred this writ petition on 11/4/2019. This Court has also entertained this petition by admitting the same on 15/4/2019 and also granted an order of interim stay.

(3.) The learned Counsel for the petitioner submits that the Mill has been closed down in the year 2016 due to the financial crisis and that was also duly intimated to the respondent that they were not in a position to pay a salary from the year 2016. However, they have paid the EPF contribution. Without considering the financial status of the petitioner Mill, the respondent EPF authority have levied the damages in a mechanical manner and also without providing sufficient opportunity to explain their financial condition.