I O L LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS writ petition has been filed by Indian Oxygen Ltd. Fazalganj, Kanpur against an order, levying damages under Section 14-B of the Employees' Provident Fund and Miscellaneous Provisions Act. 1952 (hereinafter referred to as 'Act 1952'), dated October 3, 1994.

(2.) FACTS in short giving rise to the present writ petition are as follows: A show cause notice under Section 14-B of the Act, 1952 was issued to the employers on February 9,1994 calling upon them to state as to why necessary contributions towards Provident Fund, Family Pension Fund, Employees' Deposit Linked Insurance Fund, Administrative Charges on Employees' Provident Fund, Administrative Charges/ Inspection Charges on Employees' Deposit Linked Insurance were not deposited within 15 days of the close of each month, as required by law. for the period March, 1973 to May, 1990 in respect of ad hoc D.A. paid to employers.

(3.) IT has thereafter been recorded that although no period of limitation is provided for levy of damages under Section 14-B, yet such notice under Section 14-B has to be issued within reasonable time and the period of 8 to 17 years for issuance of such a notice has been hold to be unreasonable. For the same reasons as recorded by the Bombay High Court, this Court finds that in the present case also there is inordinate delay ranging between 20 to 11 years In respect of item nos. 1 to 10 and 4 years in respect of item no. 11. Such long delay cannot be said to be reasonable and therefore this Court has no hesitation to hold that the initiation of the proceedings under Section 14-B itself is bad. Accordingly, writ petition is allowed. The order dated October 3, 1994 is hereby quashed.