GARWARE MARINE INDUSTRIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) RULE. By consent heard forthwith. Petitioner No. 1 is a company incorporated under the Indian Companies Act. Petitioner No. 2 is the company Secretary. Petitioner No. 3 is the non-executive Chairman of the first petitioner company. The Petitioner, by the present petition have sought relief from this Court to strike down the demand notice both dated October 6, 2004 and Notice/order dated November 20, 2002. The relief is also sought to strike down the show cause notice for arrest dated October 6, 2004.

(2.) THE respondents by their order dated november 20, 2003 in exercise of the powers conferred on respondent No. 2 under Section 7-A of the Employees' Provident Funds and miscellaneous Provisions Act, (EPF and MP act), 1952 determined the dues of petitioner no. 1 on account of provident fund and employees pension fund and Insurance fund contribution and administrative charges towards the provident fund and insurance fund for the period from 3/2002 (sic) to 9/2003 in accordance with the provisions of the employees Provident Fund and Miscellaneous provisions Act, 1952 and Employees Provident fund Scheme 1952 and Employees Pension scheme, 1995 in the sum of Rs. 5, 98, 602/ -. The company was called upon to pay the said amount within 15 days of receipt of the order. It appears that despite the said demand, the amounts were not paid pursuant to which the third respondent was pleased to issue certificate dated August 4, 2004 and forwarded the same to the authorised officer for the recovery of the amount of Rs. 7,95,886/- the details of which were set out therein. By notice of demand dated june 4, 2004 the petitioner No. 1 was called upon to pay the amount and interest in accordance with Section 7-Q of the Act and also cost, charges and expenses and on failure to pay the amount, the amount would be realised in accordance with the provisions of Section 8-B and 8-C of the EPF and MP Act, 1952. By another notice of the same day, petitioner No. 1 was called upon to pay the sum of Rs. 21, 30, 812/- in similar terms as set out in the earlier notice. Petitioner No. 2 addressed a letter to the recovery officer dated June 22, 2004 setting out therein that they will produce relevant receipts, quadruplicate challans for the period March, 2000 to February, 2003 for verification. It was further set out that in terms of their records, PF contribution has been paid fully and therefore, recovery officer was requested to withdraw the notice of demand and to work out the fresh interest for delayed payment. Further material was forwarded by letter of July 22, 2004 to respondent No. 2 by petitioner No. 2 on behalf of petitioner No. 1. The legal notice thereafter came to be served on September 10, 2004. It is not necessary to advert to various facts set out therein.

(3.) THE third respondent caused show cause notice to be issued to petitioner No. 3 that it proposes to execute certificate for the amounts as set out in the show cause notice by his arrest and imprisonment. He was called upon to appear before respondent No. 3 on october 18, 2004 as to why he should not be arrested and detained in civil prison. A letter came to be addressed to Respondent No. 2 by petitioner No. 2 on behalf of petitioner No. 3 dated October 15, 2004. Apprehending that the petitioner No. 3 may be arrested, the petitioner have filed this petition not only for quashing the show cause notice but also in respect of other demands.