ARAMBAGH HATCHERIES LTD Vs. EMPLOYEES PROVIDENT FUND ORGANISATION

JUDGEMENT

(1.) This writ application is directed against an order dated September 21, 2006 passed by the respondent No.2 levying damages under section 14B of the Employees' Provident Fund (Miscellaneous Provisions) Act, 1952 (hereinafter referred to as the said Act) for belated payment of the contribution of the petitioner-company under the Employees' Provident Fund Scheme. 1952 for the period from June, 2002 to August, 2005. Apart from assessing damages under the provisions of section 14B of the said Act, the interest has also been levied under section 7Q of the said Act which is not the subject-matter of scrutiny of this Court in this writ application.

(2.) The respondent No.2 issued a show-cause notice dated August 7,2007 to the petitioner-company for levying damages under section 14B of the said Act for belated payment of its contribution under the Employees' Provident Fund Scheme. 1952 (hereinafter referred to as the said Scheme). The petitioner submitted its representation dated August 17, 2006 praying for exemption from payment of the above damages. The respondent No.3 passed the impugned order dated September 21, 2006 levying a sum of Rs.25.61,671/- towards damages upon the petitioner-company under section 14B of the said Act for belated payment of its contribution towards the said Scheme.

(3.) It is submitted by Mr. Soumya Majumdar, learned Counsel appearing for the petitioner, that after amendment of the provisions of section 14B of the said Act, levying of damages is a penalty. According to him, the authority is under obligation to form an opinion in view of the language used by the Legislature in the above provision. According to him, the word "may" used in the above section does not mean or purport "shall" because a penal provision is to be interpreted strictly.