High Court Of Calcutta
ALTAMAS KABIR, ALOK KUMAR BASU
JASODA GLASS AND SILICATE - Appellant
Versus
REGIONAL PROVIDENT FUND COMMISSIONER - Respondent
P. M. A. 875 Of 1992
Decided On : 10/10/2001
CRIMINAL LAW - EMPLOYEES' PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952 - SECTIONS 7-A, 14 - COGNIZANCE OF OFFENCES - DEPOSIT OF OUTSTANDING DUES - QUASHING OF CRIMINAL COMPLAINTS - CONDITIONS.
Fact of the Case:
The appellants, who were facing criminal complaints for default in payment of provident fund dues, challenged the validity of the complaints on the ground that the proceedings under Section 7-A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, on which the complaints were based, were conducted without giving them an opportunity to represent their case.
Finding of the Court:
The Court held that the criminal complaints were validly filed and the Magistrate had jurisdiction to take cognizance of the complaints. However, the Court also held that in view of the fact that the appellants had deposited all the outstanding dues, the proceedings in respect of which such payments had been made should be dropped.
Issues: 1. Whether the criminal complaints were validly filed and the Magistrate had jurisdiction to take cognizance of the complaints. 2. Whether the subsequent deposit of the outstanding dues by the appellants could lead to the quashing of the criminal complaints.
Ratio Decidendi: 1. The Court held that the criminal complaints were validly filed and the Magistrate had jurisdiction to take cognizance of the complaints because: - The proceedings under Section 7-A of the Act were conducted in accordance with the law. - The appellants were duly notified of the proceedings and were given an opportunity to represent their case. - Prosecution was duly sanctioned by the Regional Provident Fund Commissioner, West Bengal, after the appellants failed to comply with the demand notices duly served on them. 2. The Court held that the subsequent deposit of the outstanding dues by the appellants could lead to the quashing of the criminal complaints because: - The Hon'ble Supreme Court in the Adoni Cotton Mills Ltd. case (supra) quashed the proceedings for prosecution initiated on the notices to show cause as to why prosecution for default should not be taken under Sections 14 and 14-A of the Act since the amount in default had been partly deposited and partly secured. - The appellants in the present case had also deposited all the dues which were allegedly outstanding on the strength of orders passed from time to time.
Final Decision: The Court disposed of the appeal with leave to the appellants to file separate affidavits before the learned Chief Judicial Magistrate, Barasat, North 24 Parganas, in respect of each separate complaint giving details of the payments of the amounts in default in each such complaint. If the learned Magistrate was satisfied that such payments had been duly made, he was to take steps to drop the proceedings in respect of which such payments had been made.
( 1 ) THIS appeal is directed against the summary rejection of the writ petition filed by the appellants, inter alia praying for quashing of the various complaint cases set out in prayer (a) thereto and pending before the learned Chief judicial Magistrate, Barasat.
( 2 ) ON behalf of the appellants it was urged by Sri Sukumar Bhattacharjee that all the complaints filed on behalf of the Regional provident Fund Commissioner, West Bengal, were incompetent as the same was based on adjudications said to have been made under section 7-A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, but in respect whereof no notice had been served on the appellants, It was urged that since the section 7-A proceedings had been conducted behind the back of the writ petitioners, the same stood vitiated and all proceedings taken on the basis of such unlawful adjudication also stood vitiated and were liable to be quashed.
( 3 ) IN this connection, reference was made to a Single Bench decision of the Madras High court in Ramanujam Press v. Regional Provident fund Commissioner, Madras, AIR 1970 Mad 224, wherein the orders passed consequent to the adjudication under Section 7-A of the aforesaid act were quashed as the employer was not given an opportunity to represent his case in the Section 7-A proceedings.
( 4 ) SRI Bhattacharjee then referred to the decision of the Hon'ble Supreme Court in union of India and others v. Dinanath shantaram Karekar and others, reported in air 1998 SC 2722 : 1998 (7) SCC 569 : 1998-II-LLJ-748 wherein relation to service of a charge-sheet the Hon'ble Supreme Court held that since the delinquent had to submit his reply, actual service was essential and had to be proved.
( 5 ) SRI Bhattacharjee submitted that in the absence of proof of actual service the theory of communication could not be invoked.
( 6 ) IT was also submitted that sanction for prosecution had not been obtained from the regional Provident Fund Commissioner, West bengal, the Andaman and Nicobar Islands, and the complaints filed by the Provident Fund inspector were, therefore, without authority, and the cognizance taken thereupon was bad in law and was liable to be quashed.
( 7 ) SRI Bhattacharjee urged that pursuant to the various orders passed from time to time in the appeal, all the dues alleged to have been outstanding, had been fully paid by the appellants and in view of the decisions of the hon'ble Supreme Court and this Court in that regard, the criminal complaint cases were liable to be quashed.
( 8 ) SRI Bhattacharjee also referred to the decision of the Hon'ble Supreme Court in adoni Cotton Mills Ltd. v. Regional Provident fund Commissioner and others reported in 1995 Supp. (4) SCC 580 : 1996-II-LLJ-739 wherein having regard to the liquidation of the outstanding provident fund dues, the Hon'ble supreme Court directed that the prosecutions for default in payment of such dues be quashed subject to the condition that the sum directed to be deposited be paid to the Regional Provident fund Commissioner who would be entitled to appropriate the same.
( 9 ) IN this connection reference was also made to a Bench decision of this Court in the case of Regional Provident Fund Commissioner, West bengal v. Raj Kumar Nemani and others reported in 1995 (1) L. L. N. 945, wherein relying on the decision of the Hon'ble Supreme court in Provident Fund Inspector, Faridabad v. Jaipur Textile, Faridabad, reported in AIR 1987 SC 1738 : 1986 (Supp) SCC 678, it was held that since the entire arrears of provident fund had been deposited prior to the lodging of the criminal complaint, the prosecution could not be proceeded with.
( 10 ) SRI Bhattacharjee next referred to a single Bench decision of this Court rendered by one of us (ALTAMAS KABIR, J.) in Kanoria Jute industries, Ltd. and another v. Regional I provident Fund Commissioner, West Bengal and others, reported in 1994 (1) C. L. J. 442, wherein in the facts and circumstanc
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