The assessment of damages under section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 must be based on a reasonable consideration of all the facts and circumstances, including the reasons for the delay in submission of returns and deposit of contributions.

In this writ application under Article 226 of the Constitution, the petitioner has challenged the order dated 11.5.88 passed by the Regional Provident Fund Commissioner-respondent No.1 by Annexure XIII and also notices of demand dated 12.5.S8 and 27.4.89 (Annexures XIV and XV) of the writ petition and prays for issuance of appropriate writ or direction.

2. The facts of the case for the purpose of this Civil Rule may briefly be stated as follows : Shri Hemraj Agarwala is the proprietor of a saw mill known as 'Popular Saw Mills'. This proprietorial concern was converted into a partnership firm with other partrners, namely, Onkarmal Agarwala and Smti Sushila Devi Agarwala. Partnership business continued upto 31.3.88. But, thereafter it became a proprietorial concern of which Shri Hemraj Agarwala c was the sole proprietor on and from 1st April, 1988.

During the period of partnership particularly during the period from 1979-80 some of the employees wanted to have the benefits of the Provident Fund and Miscellaneous Provisions Act of 1952 (for short, the Act) and its schemes. Accordingly, there was a discussion between the employer and the employees about the scope of such benefits and the employees had expressed their willingness to contribute from their salaries. The number of employees working therein was less than 20 and the name of the industry was also not included in Schedule I of the Act. The provision of the said Act was not applicable under the proviso to section 1, sub-sections (1), (2) and (3). However, as the majority of the employees were willing to contribute their shares from their salaries, the employer also agreed to pay the share of the contribution from the employer. An application along with the consent form was filled in and signed by the willing employees before the Regional Provident Fund Commissioner-respondent No.1 with a request for issuing a notification under section 1(4) of the Act to enable the willing employees to get the benefit of the scheme of the Act. The first respondent by Annexure III dated 22.1.81 informed the said saw mill that the Act was made applicable to the establishment of the saw mill with effect from the 1st of January, 1980 subject to the conditions that the voluntary coverage as prayed for would be considered on satisfactory compliance of the establishment with the statutory provisions of the aforesaid Act and the scheme framed therein and accordingly, directed to deposit all the dues and submit all the returns from January, 1980 onwards failing which the prayer for coverage under section 1 (4) would not be acceded to. The letter was received by the petitioner's said mill in the last week of January, 1981 and as per the direction given therein the petitioner was to realise the share of the contribution from the employees and to prepare a return and deposit the amount along with the share of the employee.

3. Monthly emolument of the employees of each employee varies and, therefore, sufficient time was necessary for preparation of the return. Besides, the letter dated 21.1.81 was sent with a direction to deposit the money for the month of January. Order itself will indicate that from the date of passing of the said order there was a backlog of 13 months. The petitioner came to know about the acceptance of their prayer only in the last week of January, 1981 and the petitioner was required to prepare the returns of all the 13 months. Thereafter, returns for the months of January and February, 1980 were submitted on 20th of April, 1981 after depositing the required amount by challans in the State Bank of India. Similarly, for the months of March and April were submitted on 20.4.81. Those of May, June and July, 1980 were submitted on 29.6.81. Being backlog of 13 months at the very beginning the petitioner tried its level best to clear up the backlog and by 2nd of February, 1983 almost cleared all the backlogs clearing upto the month of July, 1982. During the period of 1983-84 and 1985 the f

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