PUNJAB NATIONAL BANK Vs. SUNIL KUMAR PODDAR

JUDGEMENT

(1.) VIDE impugned order dated 20. 9. 2007 passed by the District Forum, the appellant has been directed to release payment of Rs. 3,85,427 with interest @ 8% towards provident fund of the respondent and also to pay Rs. 5,000 as compensation and Rs. 2,000 as cost of litigation.

(2.) THROUGH this appeal the impugned order has been assailed mainly on the ground that the respondent being the employee of the appellant was not the consumer qua the appellant inasmuch as that the provident fund was being maintained by the appellant and was not governed by the P. F. Act and secondly that Rule 15 (1) of Hindustan Commercial Bank Limited Employees Provident Fund (Rules and Regulations) empowers it to forfeit the entire amount of the loss suffered by it due to misconduct of the employee, resulting in his dismissal.

(3.) RELEVANT facts leading to the impugned order in brief are that the respondent was the employee of Hindustan Commercial Bank which was amalgamated with Punjab National Bank on 18. 12. 1986, by the order of Central Government. The erstwhile management of Hindustan Commercial Bank issued charge-sheet in respect of sanction of loan to the tune of Rs. 6. 49 lakh. Therefore the respondent was dismissed from service on 23. 12. 1985. The dismissal was challenged and the matter was settled by Hon'ble High Court of Delhi, against the respondent. The instant complaint is in respect of provident fund contributions. Respondent No. 2 is the statutory authority to manage the provident fund contributions. The respondent No. 1 asked the appellant to pay a sum of Rs. 3,85,427. 44 as provident fund contribution. But the appellant refused to pay the amount on the strength of Rule 15 of Hindustan Commercial Bank Rules. The respondent No. 1 pleaded that respondent No. 2 is also liable to the wrongful act of the appellant i. e. forfeiture of entitlement of provident fund. The respondent No. 1 prayed for directions to appellant and respondent No. 2 to pay a sum of Rs. 3,85,427. 44 with interest @ 18% per annum from March 2005 together with cost and compensation.