NATIONAL COAL DEVELOPMENT Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner, the National Coal Development Corporation Limited, an undertaking of the Government of India having to headquarters at Darbhanga House, Ranchi, by this writ application has challenged the order dated 8th of September, 1971 contained in Annexure 6 to the writ application, passed by the Commissioner, Coal Mines provident Fund Dhanbad (respondent No. 2) imposing a sum of Rs. 6,43,479.26 paise as damages upon the petitioner under Section 10-F of the Coal Mines Provident Fund and Bonus Schemes Act (Act 46 of 1948) - to be referred briefly as 'the Act'.

(2.) The relevant facts and circumstances leading to the passing of the impugned order are these. The petitioner a admittedly owns several collieries in the State of Bihar as well as other States which are producing coal and is an "employer" within the meaning of Clause (e) of Section 2 of the Act and is liable to pay coal mines provident fund contribution under Section 10-D of the Act. One of the units owned by the petitioner is known as Kargali (sic). In this case we are concerned with the defaults made by the petitioner with respect to this colliery in payment of the contribution towards provident fund for the period April, 1969 to November, 1970 1 (excluding May, 1970). Section 10-D of the Act provides that the contribution payable in respect of a member under the Coal Mines Provident Fund Scheme framed under this Act, shall be payable by the employer (known as employee's contribution) and by the employee (known as employee's contribution) at such rate as may be specified under the aforesaid Scheme and the employer shall pay the employer's contribution as well as the employee s contribution, whether or not he has recovered from any employee the employee's share of the contribution. It is admitted that the scheme contemplated under Section 10-D of the Act has already been framed. Under paragraph 33-A of that Scheme, the petitioner was bound to make the payment of the contribution on or before the 15th day (said to be now amended to be the last day) of every month following the month to which the contribution relate under any of the modes prescribed under the aforesaid paragraph of the Scheme.

(3.) The petitioner was served with a demand notice dated 20th of March, 1971, contained in Annexure 1 to the writ application, by respondent No. e in respect of the aforesaid damages. This notice stated that as the payments of the provident fund dues in respect of the period, already indicated above, have not been made within the prescribed time 1 limit, damages thereon for belated payments as per provisions contained in Section 10-F of the Act "have become due for payment" in terms of the notification. O.S.O. 2977 pull shed in the Gazette of India dated 8th of October, 1966. A statement was appended to this notice in pursuance of the rate of recovery of damaged appended to the aforesaid notification by a schedule. We shall refer to the schedule later and consider it in a little greater detail. The petitioner was, however, called upon to make the payment of the said amount of Rs. date date of the receipt of the said notice failing which it was to be realised as arrears of land revenue through certificate proceeding. This notice was, however, modified by a registered letter of respondent No. 2 dated 29th of June, 1971 (Annexure 3 to the writ petition) by which the petitioner was previded with an opportunity to file an objection, if any, to the said demand w thin 15 days of the receipt of this notice (Annexure 3) either personally or through a duly authorised representative "when a date will be fixed, if necessary, for the hearing of the matter." It was further clarified that in the event of the failure of the petitioner to do so, the amount of demand covered by the notice would be deemed as final and conclusive and would be realised by taking proceedings under Section 10-A of the Act.