The court emphasizes that the statutory mechanism contemplated under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 should not be circumvented, and the Writ Court has no role in assisting the sale of property to liquidate dues towards the respondent authorities.

JUDGMENT

Ravi Krishan Kapur, J. - Both these petitions raise connected questions of law and fact and were heard together. The grievance of both the petitioners is directed against the recovery proceedings which have been initiated by the respondent Provident Fund authorities.

2. M/S. Howrah Mills Co. Ltd., the petitioner company in WPA No. 517 of 2020, is the owner of a jute mill situated at 135 Foreshore Road Howrah-711102. By an internal arrangement between the petitioners companies i.e. M/s Howrah Mills Company Limited and M/s Premier Digital Solutions Private Ltd. (being the petitioner in WPA No. 17653 of 2019) both the petitioner companies had entered into a private arrangement whereby M/s. Premier Digital Solutions Private Ltd. became responsible for the payment of salary, wages, provident fund dues and other emoluments to all the workers, managers, supervisors, labourers and employees of the jute mill. Such internal arrangement also provides that M/s Premier Digital Solutions Private Ltd. would carry out the entire conversion and manufacturing process of the jute goods in the jute mill.

3. The petitioners assail a notice dated 8 August, 2019 issued under Section 8B of the Act by the respondent Provident Fund authorities. The petitioners also assail the initiation of connected attachment proceedings and criminal proceedings.

4. Significantly, the proceedings initiated by the respondent authorities under Sections 7A, 7Q and 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as "the Act") have been concluded and the order of demand under the Act has attained finality. The respondent authorities now invoke inter alia their powers under Section 8B of the Act for recovery of their dues. In response to a demand for payment of their outstanding dues, M/s. Premier Digital Solutions Private Limited had made a prayer to make such payment in 72 instalments. This prayer for instalments has been rejected by the respondent authorities by the impugned communication dated 8 August, 2019.

5. On behalf of the petitioners it is submitted that in view of the internal arrangement by and between M/s Howrah Mills Company Limited and M/s Premier Digital Solutions Private Ltd., M/s. Premier Digital Solutions Private Ltd. is liable to make the aforesaid payment to the respondent authorities. It is further alleged on behalf of the petitioners that there are approximately 2500 employees whose livelihood depend on the running of the jute mill and on that ground the respondent authorities ought to be directed to take a liberal view of the matter. It is also suggested by both the petitioners that efforts should be made to sell an immovable properties belonging to the petitioner companies in order to liquidate the dues of the respondent authorities. In this connection, the petitioner companies also offer an apartment located at premises No.493/C/B, G.T. Road, District-Howrah-711102 for sale to liquidate the dues of the respondent authorities.

6. On behalf of the respondent authorities, it is submitted that both these petitions are ill-motivated and have been filed only to procrastinate the recovery process initiated by the respondent Provident Fund authorities. The aggregate dues presently payable towards the outstanding provident fund dues are in excess of Rs.6 crores. It is further submitted by the respondent authorities that the immovable property offered by the companies is not worth selling and is in any event encumbered. It is further submitted on behalf of the petitioner companies that both the petitions are lacking in bonafides and the petitioners have no intention to make payment of their dues.

7. Significantly, there is also an application being CAN No.1 of 2020 (Old CAN No.1421 of 2020) in WPA No.17653 of 2019 filed by Vivekananda Construction Private Limited for impleadment to the writ petitions. It is alleged in this application that M/s. Howrah Mills Company Ltd. has no right, title and in