REGIONAL PROVIDENT FUND COMMISSIONER EMPLOYEES PROVIDINT FUND ORGANISATION HYDERABAD Vs. DECCAN FOAM PLASTICS PVT LTD

JUDGEMENT

(1.) The respondent/writ petitioner herein filed W.P. No. 14763 of 2004 seeking Writ of Mandamus declaring the action of the second appellant herein in issuing proceedings No.AP/21765/SAO/PTC/ENF (Recy)/RC.No.19/03/2004/778, dated 23-7-2004, as illegal, arbitrary and unjust and accordingly prayed for a consequential direction to set aside the said proceedings.

(2.) For whatever reasons, the respondent- company became a sick company and the matter was referred to the Board for Industrial and Financial Reconstruction (for short 'BIFR') before whom the proceedings are pending in case No. 250 of 2000. The respondent-company issued a closure notice on 11-8-2003 and the same was informed to the second appellant, with which, we are not concerned for the present in this appeal. The respondent-company was served with the notice, dated 1 -4-2003, for recovery of the amounts towards the Provident Fund contributions, to which, the respondent submitted a detailed explanation. The appellants by proceedings, dated 30-9-2003, ordered the attachment of the properties of the respondent-company, which includes the land and building. The operative portion of the order is as follows: "It is ordered that you, the said Shri B.V.R.K. Reddy, MD of M/s. Deccan Foam Plastics (P) Ltd., (AP/21765) be and you are hereby prohibited and restrained, until further orders of the undersigned from transferring or charging the undermentioned property any way and that all persons be, and that they are hereby prohibited from taking any benefits under such transfer or charge."

(3.) A panchanama was conducted on 13-11-2003 in the presence of the Finance Manager of the respondent-company.