DCW EMPLOYEES CO-OPERATIVE CANTEEN LTD Vs. PRESIDING OFFICER, EMPLOYEES PROVIDENT FUND APPELLATE TRIBUNAL

JUDGEMENT

(1.) The appellant is the writ petitioner. As against the order levying damages under Section 14-B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the appellant filed writ petition in W.P.(MD)No.3673 of 2011. The learned Judge allowed the writ petition in part and directed the writ petitioner to pay only 25% of the damages.

(2.) The writ petitioner is a Co-operative Society registered under the Tamil Nadu Co-operative Societies Act. The business of the petitioner's Society is to supply snacks and food pockets on subsidy and on marginal rates, to the employer, who in turn provides all infrastructure and bear the maintenance expenses and also grant substantial subsidy. The petitioner Society is running on 'No Profit and No Loss basis'. It is claimed that for a long time, the petitioner canteen used fire woods for fuel without the aid of electricity and only on 01.12004, electricity power was used for operating the wet grinders as well as the refrigerators for storage of vegetables.

(3.) The learned counsel appearing for the appellant submitted that there is no reason warranting levy of damages under Section 14-B of the said Act, when the writ petitioner has paid the claim within seven days from the date of the order passed under Section 7-A of the Act. He further submitted that even assuming that there is a delay, unless existence of mens rea is pleaded and established against employer in making such delayed payment, the respondents are not entitled to levy damages under Section 14-B of the Act.