PUNJAB STATE COOPERATIVE SUPPLY & MARKETING FEDERATION LTD Vs. EMPLOYEES PROVIDENT FUND APPELLATE TRIBUNAL AND OTHERS

JUDGEMENT

(1.) In the instant writ petition, petitioner has prayed for the following relief:-

(2.) The petitioner is a Cooperative Society called the Punjab State Cooperative Supply & Marketing Federation Limited (for short 'MARKFED') are engaged into transaction of procurement of food stocks. In that connection, the petitioner were engaging labourers through contractors like respondent Nos.4 to 7. Respondent Nos.4 to 7 were held to be ex parte and order dated 24.9.2015 was passed by this Court. For the assessment period from July, 1984 to August, 1994, the contractors were bound to pay Provident Fund on behalf of the employees. If the contractors failed to remit in that event, the principal employer the petitioner is liable to pay. In this regard, necessary proceedings have been drawn by the EPF Department on 24.6.1998 under Section 7-A of the EPF Act, 1952 (Annexure P-3). The petitioners remained ex parte. Consequently, the Assistant Provident Fund Commissioner proceeded to determine the dues and pass order. Feeling aggrieved by the 7-A proceedings order, petitioner preferred an appeal before the Employees Provident Fund Appellate Tribunal, New Delhi (for short 'the EPFAT'). The EPFAT dismissed the petitioner's appeal on 16.11.2010 (Annexure P-8). Hence, the present petition.

(3.) Learned counsel for the petitioner submitted that EPF amount on behalf of the employees is required to be remitted in the EPF Department by the contractors like respondent Nos.4 to 7. Since the contractorsrespondent Nos.4 to 7 engaged the services of the employees, therefore, the petitioners are not liable to pay. It was further submitted that the assessment or determination of EPF amount for the period from July, 1984 to August, 1994 is contrary to the circular issued on 17/22.4.1997 (Annexure P-2) wherein it is held that para 26 of the EPF scheme would be effective from 1.11.1990. Therefore, the 7-A proceedings assessment for the period from July, 1984 to August, 1994 is contrary to Annexure P-2. At the best, petitioner is liable to pay EPF for the period from 1.11.1990 to August, 1994. To that extent, the 7-A proceedings are liable to be set aside. Consequently, the EPFAT order dated 16.11.2010 is also liable to be set aside.