A2979 THIRUMOHUR PRIMARY AGRICULTURAL CO-OPERATIVE BANK LTD. Vs. ASSISTANT PROVIDENT FUND COMMISSIONER

JUDGEMENT

(1.) Thirumohur Primary Agricultural Co-Operative Bank Ltd, Thirumohur failed to pay the EPF contribution for the period March 2012 to December 2016. Therefore, the EPF authority levied damages of Rs.7,13,265.00 for the belated payment of EPF contribution. The petitioner bank has filed an appeal under Sec. 7 I of the Employees' Provident Fund and Miscellaneous Provisions Act [in short 'the EPF Act'] before the EPF Tribunal and the same was partly allowed by the appellate tribunal by reducing 55% of the damages levied by the EPF authority. Therefore, as against the orders of the appellate tribunal, directing the bank to pay 45% of the damages, the petitioner bank filed WP(MD)No.10785 of 2021. Aggrieved over the orders of the appellate tribunal in reducing 55% of the damages the EPF authority has filed WP(MD)No.20797 of 2022.

(2.) Since both these writ petitions are arising out of the same order, these writ petitions are tagged together and disposed of by this common order.

(3.) The learned counsel for the EPF organisation submits that the appellate tribunal in its order held that the order of damages passed by the EPF authority is just and proper to the facts and circumstances of the case, however, has found fault with the EPF authority for not applying the principle of mens rea and actus reus as per the decision of the Hon'ble Supreme Court in the case of Employees State Insurance Corporation Vs HMT Ltd and Another reported in AIR 2008 SC 1322 and in the case of the APFC Vs Management of RSL Textiles India Pvt Limited reported in 2017 3 SCC 110. The Appellate Tribunal has also come to the conclusion that the petitioner bank is facing certain financial crisis. He further submits that the findings of the appellate tribunal on the necessity for mens rea and the actus reus as per the decisions of the Hon'ble Supreme Court referred to above are not longer good law in view of the judgment of the Hon'ble Supreme Court in Horticulture Experiment Station Gonikoppal Vs Regional Provident Fund Organisation reported in (2022) 2 SCC 516, wherein the Hon'ble Supreme Court has held that mens rea or actus reus is not an essential element for imposing penalty or damages for breach of civil obligations and liabilities.