1. Dispute regarding payment of provident fund arrear dues in installments without interest or damages under Section 14-B, Employees Provident Funds and Miscellaneous Provisions Act, 1952. (Para 3 , 4 )
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1996 Supreme(SC) 1827
SUPREME COURT OF INDIA
B L Hansaria, G N Ray
REGIONAL PROVIDENT FUND COMMISSIONER, WEST BENGAL AND ANOTHER, APPELLANT
VERSUS
DELTA JUTE AND INDUSTRIES LTD. AND ANOTHER, RESPONDENTS.
Civil Appeal No. 14167 of 1996 (Arising out of SLP No. 859 of 1995), decided on November 1, 1996.
Important Points
The interpretation of Section 14-B of the Employees Provident Funds and Miscellaneous Provisions Act, 1952, in the context of a special case where the revival of a sick industry was at stake.
Subject
Labor Law - Employees Provident Funds and Miscellaneous Provisions Act, 1952
Act Referred
Headnote
Employees Provident Funds and Miscellaneous Provisions Act, 1952 - Consent Order - Interpretation of Section 14-B
Fact of the Case:
The trial Judge passed an order for making payment of arrear dues in instalments with a direction that no interest or damages should be charged, considering the provisions of Section 14-B of the Employees Provident Funds and Miscellaneous Provisions Act, 1952.
Finding of the Court:
The Court found that in the special facts of the case, it was not desirable to direct for payment of interest and damages as claimed, as the respondent Company had revived and paid both the current and arrear dues of provident fund contribution in instalments without any default.
Issues: Interpretation of Section 14-B of the Employees Provident Funds and Miscellaneous Provisions Act, 1952, and whether the impugned order should be interfered with.
Ratio Decidendi: The Court considered the provisions of Section 14-B of the Employees Provident Funds and Miscellaneous Provisions Act, 1952, and the special facts of the case, and decided not to interfere with the impugned order.
Final Decision: The appeal was accordingly disposed of without any order as to costs.
Legal Category Hierarchy
Table of Contents
2. Whether the trial court's order allowing installment payments without interest and damages was legally sustainable or constituted a consent order. (Para 3 )
3. The court found that imposing interest and damages on a revived sick industry that has consistently paid dues would jeopardize the revival process. (Para 4 )
4. Section 14-B of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 allows for the waiver of interest and damages based on specific factual circumstances. (Para 3 , 4 )
5. Appeal disposed of; the order allowing payment of arrear dues in installments without interest or damages is upheld. (Para 4 )
6. Can interest and damages be waived under Section 14-B of the Employees Provident Funds and Miscellaneous Provisions Act, 1952?
Yes, the court may waive interest and damages by considering the facts and circumstances of the case, particularly when the entity is a revived sick industry that has consistently paid its dues. (Para 3 , 4 )
7. Is a consent order required for a trial judge to allow installment payments of provident fund dues without interest?
No, a trial judge may pass such an order based on the provisions of Section 14-B of the Act and the specific facts and circumstances of the case. (Para 3 )
ORDER
1. Leave granted.
2. Heard learned counsel for the parties.
3. Although it appears to us that the order passed by the learned trial Judge was not couched in such a manner for which it can be inferred that it is a consent order, but it appears to us that after considering the facts and circumstances of the case and presumably after keeping in view the provision of Section 14-B of the Employees Provident Funds and Miscellaneous Provisions Act, 1952, the learned trial Judge passed the order for making payment of arrear dues in instalments with a direction that no interest or damages should be charged.
4. In the facts of the case and also considering the fact that after a scheme was prepared by this Court, the respondent Company, which was a sick industry, has revived and has paid both the current and arrear dues of provident fund contribution in instalments without any default. In the special facts of the case, it will not be desirable to direct for payment of interest and damages as claimed so that the process of revival is again put to jeopardy. Considering the provisions of Section 14-B of the said Act and also the facts of the case, we do not intend to interfere with the impugned order. This appeal is accordingly disposed of without any order as to costs.
