The main legal point established in the judgment is the interpretation of whether the interest under Section 7Q of the PF Act is in addition to the damages under Section 14B.

A.K. SIKRI, ACTING CHIEF JUSTICE:

1. The petitioner has filed the instant petition under Article 226 of the Constitution of India wherein various prayers are made which include a declaration that provisions of Section 7-Q of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as „the PF Act ) are ultra vires. However, the theme of the petition is to challenge the interest levied or received under Section 7-Q of the PF Act amounting to Rs.4,53,886.00 on 3.2.2011and Rs.13,775.00 on 21.7.2007 mainly on the ground that when the damages for late payment of provident fund dues are recovered from the petitioner by passing orders under Section 14 of the PF Act, the interest as prescribed under Section 7-Q of the PF Act cannot be independently charged as that is inbuilt in the slabs of damages and charging of this interest would amount to double payment by the petitioner. The petitioner is an establishment engaged in supplies of manpower for the purposes of security and surveillance to different establishments and is covered by the provisions of the PF Act. It is allotted Code Number DL-27506. It appears that the petitioner had not paid provident fund contribution and other contribution including administrative charges payable under different provisions of the said Act in time and because of this late payment the Assistant Provident Fund Commissioner initiated proceedings for recovery of damages under Section 14-B of the Act. These proceedings culminated in passing of order dated 26.11.2010 holding that the establishment had failed to pay, within prescribed time limit:-

“(i) The Provident Fund contribution;

(ii) The Employees Pension contribution;

(iii) The Insurance Fund contribution; and

(iv) The Administrative charges For the period from 06/99 to 06/04, 03/05 to 05/05, 07/05 to 01/07, 05/07 to 08/08, 10/08, 10/08.”

2. For this reason, damages in the sum of Rs. 7,10,989/- were imposed under Section 14-B of the Act; details of which are as under:-

For the period from 06/99 to 06/04, 03/05 to 05/05, 07/05 to 08/08, 10/08, 10/08 totalling Rs. 710989/- be recovered as per the account wise schedule indicted below from the employer in relation to M/s Roma Henny Security Services Pvt. Ltd. bearing code No. DL/27506:

3. The order further indicated that the petitioner was also liable to remit a sum of Rs. 453886/- towards interest payable under Section 7-Q of the PF Act @ 12% p.a. which

4. The petitioner paid the amount of damages of Rs. 7,10,989/-vide cheque No. 632192 dated 28.12.2010. By a separate letter of even date, the petitioner disputed the liability of interest under Section 7Q of the Act on the ground that this amount had already been included in the amount of damages calculated by the respondent. The respondent however, did not accept this plea and issued adjustment orders under Section 8F of the PF Act and attached the current account of the petitioner and by this process recovered a sum of Rs.4,53,886/- on 3.2.2011. The petitioner protested against this recovery vide his representation dated 12.2.2011 drawing the attention of the Division Bench judgment of this Court in the case of M/S System and Stampings and Anr. Vs. Employees’ Provident Fund Appellate Tribunal and Ors. 2008 LR 485 which was upheld by the Supreme Court, as the SLP thereagainst was dismissed in limini. However, this did not have any effect on the respondent who made a further recovery of Rs. 13775.00 under Section 7-Q of the PF Act on account of late payment of Rs. 4,53,886.00. It is under these circumstances, the petitioner has preferred the instant petition. The challenge to recovery is laid on the following basis:-provisions come into force vide notification dated 30.06.1997. The account wise detail of the amount payable towards Section 7-Q of the PF Act was furnished as follows:

(a) The amount of interest payable under Section 7Q of the Act is already stand included in the slab in damages prescribed