THE REGIONAL PROVIDENT FUND COMMISSIONER Vs. SAPTARSHI GYANPEATH

JUDGEMENT

(1.) The 1st Respondent is an Educational Institution which admittedly made default in making contribution to the fund payable under the Provisions for the Employees Provident Fund & Miscellaneous Provisions Act, 1952 and/or the scheme framed thereunder for the period from the month of March, 1997 till September, 1998. The said dues were however deposited on 02.11.1998. Because of such delayed deposit the proceeding was initiated under Sec. 14B of the aforesaid Act for recovery of damages for such delayed contribution to the fund for the said period. The Regional Provident Fund Commissioner by his order dated 18.09.2001 directed the Respondent Educational Institution to pay damages at the rate of 12% per annum for pre -discovery period and 17% and 22% per annum for the respective periods of defaults. The respective amounts towards damages under Sec. 14B of the said act were determined and mentioned in the said order dated 1809.2001. By the aforesaid order the Respondent Educational Institution was further directed to pay interest at the rate of 12% per annum under Sec. 7Q of the said Act on the aforesaid amount of damages from the due date till the date of actual payment.

(2.) The learned Trial Judge disposed of the writ petition by setting aside the levying of interest on the amount of damages. According to him the Provident Fund Commissioner was in error by charging interest without giving the 1st Respondent any opportunity to make payment. The learned Trial Judge accordingly directed the 1st Respondent to pay the entire amount of damages determined by him by his order dated 18.09.2001 within a period of fortnight from the date of disposal of the writ petition. This order is under challenge before us.

(3.) Upon plain reading of Sec. 7Q and 14B of the aforesaid act it appears to us that the employer in terms of provisions of Sec. 7Q for the said Act is liable to pa simple interest at least at the rate of 12% per annum on any amount due from him under the Act from the date on which the amount became due till the date of its actual payment. Sec. 14B of the aforesaid Act empowers the authority concerned to recovery damages by way of penalty for making default in making contribution to the fund. However, such amount of damages should not exceed the amount of arrears or as may be specified in the Scheme. Pa/a 32A of the Scheme framed under the aforesaid Act prescribes different rates of damages for different periods of default. Thus upon conjoint reading of Sec. 14B of the said act along with Para 32A of the said Scheme it is crystal clear that for making default in contribution to the fund the employer is not only liable for pay all arrears of contribution but at the same time damages that may be determined by the authority concerned in accordance with the provisions of Para 32A of the said Scheme.