BOARD OF THE TRUSTEES OF THE EMPLOYEES PROVIDENT FUND ORGANISATION Vs. CRIMSON METAL ENGINEERING COMPANY

JUDGEMENT

(1.) The petitioner has filed this writ petition seeking issuance of Writ of Certiorari to call for the records relating to the proceedings of the second respondent dtd. 15/3/2013 in Ref.No.ATA No.179(13) of 2012 and quash the order passed therein.

(2.) The learned counsel appearing for the petitioner submitted that the first respondent is covered under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 [hereinafter referred to as 'Act']. Since the first respondent made belated payment of the amount payable under the Act for the period from 1998 - 1999 to 2007 - 2008, enquiry was conducted and the first respondent dragged on the proceedings by stating one reason or the other. On 20/10/2011, the Assistant Provident Fund Commissioner directed the first respondent to pay damages to the tune of Rs.10,18,360.00, as against which, the first respondent preferred appeal before the second respondent and the second respondent passed the impugned order reducing the damages @ 5% per annum.

(3.) The learned counsel appearing for the petitioner further submitted that the petitioner not passed order under Sec. 7A of the Act, since the first respondent was regularly making the contribution, however, for the belated payment, damages was assessed by the Assistant Provident Fund Commissioner as per Sec. 14B of the Act and the same was challenged by the first respondent before the second respondent. The second respondent without considering para 32A of the Employees Provident Fund Scheme, 1952, exercised its discretionary power and reduced the damages @ 5% per annum, which is not sustainable one.