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2019 Supreme(Guj) 881
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SONIA GOKANI, J.
M/s Cema Electric Lighting Product India Pvt. Ltd. – Petitioner
Versus
The Recovery Officer and Assistant Provident Fund Commissioner – Respondent
R/Special Civil Application No. 18089 of 2019
Decided On : 04-12-2019
For the Petitioner: Mr. P.J. Mehta
For the Respondent: Ms. E.Shailaja
Headnote:
Contract Labour (Regulation and Abolition) Act, 1970 – Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 – Sections 8, 14, 7, 30 – Petitioner has filed this petition praying to issue writ of mandamus or any other appropriate writ, order, direction against the Respondent No. 1 for quashing and setting aside the action of issuing notice U/s 8F for attachment of Petitioner’s Bank Account of Axis Bank in the interest of justice and to Direct the respondent No. 1 to refund Rs. 7,23,884/- along with interest @ 12% from th date of collecting the said amount directly from petitioner’s Bank Account to date of payment to the petitioner – Held, Respondent Nos. 2 and 3 shall remain present before the concerned authority (Respondent No. 1) on telephonic intimation or on intimation via e-mail or text message on official mobile phones – No separate notice or summons shall be made – Let time be given to the petitioner to reply of one week and thereafter, adjudicatory process shall be completed within two weeks – Once the said proceedings are concluded, the petitioner will be entitled to take necessary legal recourse, if the same results contrary to its request – Respondent No. 1, can proceed under the Act, after the adjudicatory process is over – Amount, which has been lying with the Axis Bank is not released in favour of the EPFO and shall continue to remain with the Bank for a period of four weeks and till then, the same shall be fixed deposited, subject to the outcome of the inquiry – Petition Disposed of (Paras 18, 19)
ORDER :
1. Petitioner has filed this petition praying for following reliefs:
“(A) Be pleased to issue writ of mandamus or any other appropriate writ, order, direction against the Respondent No. 1 for quashing and setting aside the action of issuing notice U/s 8F ANNEXURE -A and B for attachment of Petitioner’s Bank Account of Axis Bank in the interest of justice.
(B) Be pleased to pass appropriate order, directing the respondent No. 1 to refund Rs. 7,23,884/- along with interest @ 12% from th date of collecting the said amount directly from petitioner’s Bank Account to date of payment to the petitioner.
(C) During the pendency of the present proceedings be pleased to grant ad-interim relief staying operation, execution and implementation of Notice U/s 8F ANNEXURE -A and B in the interest of justice till final disposal of the Petition.
(D) Be pleased to direct Respondent No. 4 Axis Bank, to allow the Petitioner for operating its Bank Account in the interest of justice.”
2. The petitioner is the company manufacturing electric lighting products situated at Limbasi, District Kheda, having been covered with statutory provisions of Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (hereinafter referred to as ‘the Act’) for its employees bearing EPF Code No. GJ/53240. Respondent No. 1 is an authority to recover the amount of the PF dues under Section 8 of the Act from the establishments who have not paid the PF dues.
3. The petitioner had assigned some work on contractual basis to those establishments, which are having the registered code number with Employees Provident Fund Organization (hereinafter referred to as ‘the EPF’). Respondent No. 2 Shivam Enterprise, having independent registered Code No. GJAHD/57627 with EPF authority, was assigned work on contract during the period from 1st October, 2011 to 31st January, 2014. It was initially paid the bill amounting to Rs. 1,99,56,698/-, whereas respondent No. 3 M/s. Jatin Enterprise, having independent registered Code number GJ/1349248 with the EPF authority, was also assigned the work on contract during the period from 1st June 2014 to 31st March 2015 and it was fully paid the bills amounting to Rs. 1,16,97,833/-.
4. It is urged by the petitioner that the EPF imposed damages and interest to the tune of Rs. 12,68,410/- against respondent Nos. 2 and Rs. 6,50,264/- against respondent no. 3 for the delayed payments of employers’ shares of provident funds for the period from June 2014 to December 2017. The work of contract with Respondent No. 2 ended on 31st March 2015.
5. Two notices nos. 935 and 936 dated 16.09.2019 came to be issued under Sections 8F of the Act to respondent No. 4, the Axis Bank, where the Petitioner’s Bank Account is maintained.
6. Grievance on the part of the petitioner is that respondent No. 1 neither informed the petitioner nor forwarded the copy of the notice under Section 8F. Therefore, it has lamented that the respondent No. 1 violated the mandatory provisions of Section 8F(3)(iii) of the Act. Bank Account of the petitioner came to be freeze pursuant to the demand of damages under Section 14B of the Act and interest amount under Section 7Q of the Act. The petitioner also came to know that respondent No. 1 directly collected Rs. 7,23,884/- from the Axis Bank, where the petitioner was having Bank Account.
7. The petitioner has further averred that respondent Nos. 2 and 3 being registered contractors with EPF Organization, has become independent establishments under the provisions of the said Act and also under the Contract Labour (Regulation and Abolition) Act, 1970, where the employer himself is liable to pay the amount of damages and interest levied under Sections 14-B and 7-Q of the Act. It is further the say of the petitioner that provisions of Sections 30(2) and 30(3) of the EPF Scheme, 1952 shall not be applicable in case of the registered contractors having independent code number as per the settled law. Respondent Nos. 2 & 3 do not have any credit bala
