M/S. VISWABHARATHI WELFARE PRINTING PRESS Vs. REGIONAL PROVIDENT FUND COMMISSIONER HYDERABAD AND ANOTHER

JUDGEMENT

(1.) The order of the Regional Provident Fund Commissioner, Andhra Pradesh, Hyderabad, levying a sum of Rs. 31,026-55 ps. by way of damages, under Sec. 14-B of the Employee's Provident Funds and Family Pension Fund Act (being Central Act No. 19 of 1952) (hereinafter referred to as "the Act"), is challenged herein.

(2.) The petitioner could not remit its contribution to the Provident Fund and other incidental charges as prescribed by law, during the years 1972 to 1975, for the reason that it suffered serious losses during that period. It applied to the 1st respondent for permission to clear off the arrears in instalments which was granted, while making it clear that the same shall not absolve the petitioner from its liability for damages under Sec. 14-B. Later, on 27-1-1977 the 1st respondent issued a notice calling upon the petitioner to show cause as to why damages in a sum of Rs. 31,026-55 ps. should not be levied upon it under Sec. 14-B of the Act. The petitioner submitted its explanation, reiterating that because of the serious losses suffered by it during the period 1972 to 1975, it could not remit its contribution in time and that, it has also been granted permission to clear off the arrears in instalments only on the ground. It submitted that, in those circumstances, there is no warrant for levying any damages. The said explanation was rejected by the 1st respondent and he levied damages, as proposed in the show-cause notice.

(3.) In this writ petition, Mr. V. Jagannadha Rao, the learned Counsel for the petitioner, contends that levying of damages equivalent to the amount of arrears, in the circumstances of this case, is arbitrary and mechanical. He submits that the 1st respondent has not applied or followed any reasonable criteria or standard in arriving at the figure of damages.