The petitioner in this writ petition, namely, M/s. Indian Telephone Industries Limited, is a Public Limited Company under the administrative control of the Ministry of Communications and Information Technology of the Government of India. This writ petition relates to imposition of damages under Section 14-B of the Employees Provident Funds and Miscellaneous Provisions Act (hereinafter referred to as ‘the Act’) on the Company for delay in payment of contributions under the Act in respect of the employees of the Palakkad unit of the Company, which is one of its seven units scattered all over India, for the period from September, 2003 to October, 2004.

2. The petitioner-Company was established in the year 1948. Stated to be due to change in the policy of the Government of India, the petitioner-Company, which was making profits till 1995, started accumulating losses which has presently swelled up to the tune of Rs. 1330 crores. In view of the precarious financial situation of the Company, which could not be reversed by efforts of the Company on its own, the Company made a reference to the Board of Industries and Financial Reconstruction, under Section 15 of the Sick Industri