SNL BEARING LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) HEARD learned counsel for the parties.

(2.) THE petitioner has sought quashing of the notice dated 9th August, 2007 (Annexure-3) by which the petitioner has been asked to show cause as to why it should not be declared as deemed defaulter for non-payment of the lease rent payable to M/s. SBL Industries Limited Ranchi as outstanding liability and dues of M/s. SBL Industries Limited Ranchi to the E.P.F. Organization. The petitioner has also sought quashing of the notice of attachment dated 11 th April 2007 (Annexure-2) issued by the respondent no.4 Official Liquidator, Government of India, Ministry of Company Affairs. The petitioner is a tenant of M/s. SBL Industries Limited, whereupon it is liable to pay rent to the said Company. The E.P.F dues of SBL Industries Ltd. were outstanding against the Employees' Provident Fund Organization, for which a notice dated 6th August, 2003 was issued to the petitioner to remit the rental due to M/s. SBL Industries Limited, Ranchi in favour of E.P.F Organization (Annexure-1).

(3.) LEARNED counsel for the Respondents E.P.F. Organization submits that under Section 11 of the Act of 1952, the organization has priority of payment of contribution over other debts even in cases where any employer is adjudicated insolvent or, being a company, an order for winding up is made. Learned counsel for the Respondents-EPF Organization also submits that the petitioner was himself in default in not making payments for the subsequent periods after June, 2004 till the notice of the Deputy Official Liquidator dated 11th April, 2007 by which the petitioner has been asked to remit the rental for the period January, 2005 onwards. The petitioner has not explained reasons for not remitting the said rental for the period before the notice dated 11th April, 2007 in favour of EPF. Organization.