High Court Of Calcutta
Partha Sakha Datta, J.
HOTEL DOCK PALACE PVT.LTD. - Appellant
Versus
STATE OF WEST BENGAL - Respondent
C. R. R. 2814 Of 2006
Decided On : 02/14/2007
CRIMINAL PROCEEDINGS - EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952 - SECTION 14 - EMPLOYEES' STATE INSURANCE ACT, 1948 - SECTION 45B - EMPLOYEES' PENSION SCHEME, 1995 - SECTION 14B - QUASHING OF PROCEEDINGS - SUBSEQUENT DEPOSIT OF DUES - WHETHER A LAWFUL GROUND - HELD, NO
Fact of the Case:
Petitioners, a company and its managing director, were prosecuted for failing to deposit provident fund dues, dues under the Employees' Pension Fund Scheme, and dues under the Insurance Scheme, as well as failing to submit returns within the prescribed time period. The petitioners sought to have the proceedings quashed on the grounds that they had subsequently deposited the dues and that continuing the prosecution would be an abuse of process.
Finding of the Court:
The court held that subsequent payment of dues after the initiation of prosecution is not a lawful ground for quashing the proceedings under Section 482 of the Code of Criminal Procedure. The court reasoned that failure to pay the dues within the prescribed time is an offense under the Act and the scheme, and that such failure cannot be remedied by subsequent payment.
Issues: 1. Whether subsequent deposit of dues can be a lawful ground for quashing criminal proceedings initiated for failure to deposit provident fund dues, dues under the Employees' Pension Fund Scheme, and dues under the Insurance Scheme, as well as failing to submit returns within the prescribed time period?
Ratio Decidendi: 1. The court relied on the earlier Division Bench decision of the same court in Pranati Textiles and Ors. vs. State of West Bengal and Anr. (1989), which held that failure to pay provident fund dues within the prescribed time is an offense and cannot be remedied by subsequent payment.
Final Decision: The court dismissed the petitioners' applications seeking to quash the proceedings under Section 482 of the Code of Criminal Procedure.
( 2 ) THE petitioner No. 1, a company in the name and style of M/s. Hotel dock Palace Private Limited and the petitioner No. 2, the Managing Director of this company have been prosecuted by the Regional Employees' Provident fund Commissioner-II, West Bengal for their failure to make deposit of the provident Fund dues, dues under the Employees' Per. sion Fund Scheme and under Insurance Scheme and submission of return within the period prescribed by the statute during the months from December, 2000 to March, 2005.
( 3 ) THE petitioners pray for quashing of all the proceedings on the ground that subsequent to the launching of the prosecution they have deposited the dues and since payments have already made, albeit belatedly, there is no point in continuing with the prosecution.
( 4 ) THE question, therefore, is whether criminal proceedings initiated against the petitioners on account of their failure to deposit the provident fund dues (both of the employer and employee) and other dues on account of the Pension Scheme and Insurance Scheme and submission of return thereon can be quashed under section 482 of the Cr. PC on the ground of payment subsequent to launching of the prosecution. The question in other words is whether payment subsequent to the launching of the prosecution can be a lawful ground for quashing of the proceeding.
( 5 ) MR. Arijit Chatterjee, learned Advocate for the petitioners placed reliance upon a decision of the Hon'ble Supreme Court in Adoni Cotton mills Limited and Ors. vs. Regional Provident Fund Commissioner and Ors. as reported in 1995 Supp. 4 SCC 580, a Division Bench decision of this Court in jasoda Glass and Silicate and Ors. vs. Regional Provident Fund Commissioner and Ors. as reported in 2002 (2) Cr. LJ 407, and two decisions of learned Single judge of the this Court one in Air Transport Corporation and Ors. vs. State of west Bengal and Anr. as reported in 2006 (1) C Cr. LR (Cal.) 616 and the other in Howrah Motor Company Limited and Ors. vs. Samir Kumar Das as reported in 2004 (4) CHN 291.
( 6 ) MR. Sandip Kumar De, learned Advocate appearing for the Regional provident Fund Commissioner placed a good number of decisions namely, a division Bench decision in Pranati Textiles and Ors. vs. State of West Bengal and Anr. as reported in 1989 (1) CHN 173, Ginia Debi Agarwala vs. Provident fund Inspector and Ors. as reported in 2002 (2) CHN 550 and in order to establish his contention that the decisions cited by the learned Advocate for the petitioners are inappropriate in the context of the facts and circumstances of the instant cases. Mr. De cited the decisions in State of Haryana and Ors. vs. AGM, Management Services Limited, 2006 (5) SCC 520, A. R. Antulay vs. R. S. Nayak and Anr. as reported in 1988 (2) SCC 602; Prokash Singh badal and Anr. vs. State of Punjab and Ors. as reported in 2007 (1) SCC 1.
( 7 ) LET us, therefore, discuss the relevant decisions cited by the learned advocate for the petitioners Mr. Arijit Chatterjee. The decision of the Hon'ble supreme Court in Adoni Cotton Mills (supra) case reveals that the Hon'ble supreme Court directed quashing of the proceedings initiated through some notices in connection with offence under sections 14 and 14a of the Employees' provident Fund and Miscellaneous Provisions Act, 1952 (for short the 'act' ). In the case there was a default for a period of four months following which notices were given under the Act and on receipt of the notices the appellants therein filed writ petitions which were dismissed by the High Court and then during hearing of the civil appeal in the Hon'ble Supreme Court it transpired that the offences were committed some 15 years ago and two of the appellants died and during the pendency of the appeal the appellants deposited money along with furni
REFERRED TO : A.R.Antulay vs. R.S.Nayak
Howrah Motor Company Limited vs. Samir Kumar Das
Pranati Textiles vs. State of West Bengal
Union of India vs. Dinonath Santaram Karekar
Ginia Debi Agarwala vs. Provident Fund Inspector
Prakash Singh Badal vs. State of Punjab
Provident Fund Inspector, Faridabad vs. Jaipur Textile, Faridabad
AI
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.