KASHAN CARPET INDUSTRIES Vs. STATE OF J&K

JUDGEMENT

(1.) ON the allegations that the petitioners firm had filed to remit from time to time, the provident fund contributions and administrative charges, respondent No 2 passed an order under section 16 of the Jammu and Kashmir Employees Provident Funds Act. 1961, levying demages on the petitioner firm for the said defaults. The petitioner firm challenges that order of respondent No. 2 dated 9 -4 -74 firstly, on the ground that Sec. 16 of the J&K Employees Provident Fund Act, 1961, is ultra vires of the Constitution and secondly, on the ground that before the penalty (damages) was levied against the petitioner firm, no notice was given to the petitioner firm and proceedings were taken behind its back.

(2.) AT the hearing of the petition, Mr. R.N. Kaul learned counsel for the petitioner, has given up the challenge on the first ground and has confined himself to the challenge on the second ground only.

(3.) FROM the reply affidavit (para -9 in particular) and the other material available on the record, it is manifest that before the impugned order levying penalty was issued by respondent No. 2, no notice had been given to the petitioner firm and the firm had not been afforded any chance to explain their case. According to learned counsel for the respondent, no notice was required to be given under the Act.