The main legal point established in the judgment is the statutory obligation of employers to contribute to the Toddy Workers Welfare Fund, the payment schedule, and the legal basis for the demand of penal interest under S.9 of the Act for arrears.

K.S. Radhakrishnan, J.

1. The question that has come up for consideration in these cases is whether the demand made towards penal interest under Para.38(1) of the Toddy Workers Welfare Fund Scheme read with S.9 of the Toddy Workers Welfare Fund Act is legal or not.

2. The Welfare Fund Inspector as well as Revenue Authorities of the respective districts issued notices to the writ petitioners demanding penal interest for the amount which fell due on 10th April of the succeeding year on the date of the final determination order. Before we examine the questions raised in these cases we may first examine the scope of the Act and the Scheme. Kerala Toddy Workers Welfare Fund Act, 1969 was enacted to provide for the constitution of a fund to promote the welfare of toddy workers in the State of Kerala. The Act proposed established of Toddy Workers Welfare Fund to which the employer and the employee would contribute equally. Scheme called the Toddy Workers Welfare Fund Scheme, 1969 was framed by the Government. A Board called Toddy Workers Welfare Fund Board was also constituted to administer the fund in accordance with the scheme so framed. The fund would be utilised for the general welfare of the workers. Quantum of welfare fund and the time and manner of payment of the contribution by the employers are regulated under S.4 and 8A of the Act as well as Para.30 and 38(1) of the Scheme. As per S.4 of the Act and Para.30 of the Scheme the quantum of the welfare fund payable by the employer is 21% (employers share 8%, gratuity share 5% and the employees contribution 8%) of the wages payable by the employers to each of the employee per year. S.8A provides for payment of monthly advance contribution equivalent to one-twelfth of the amount payable annually in respect of his shop according to the latest determination under S.8 of the Act. The advance welfare fund contribution for a month falls due on 5th of the succeeding month.

3. There is a statutory obligation on every employer under Para.38(1) of the Scheme to file a monthly statement in form No. 4A showing wages, welfare fund contribution etc. Employer shall also send a consolidated statement showing the total amount of wages of each month and the Welfare Fund Payable by him for the year, the amount remitted under S.8A and the chalan/draft/cheque for the balance amount payable by him on or before the following 10th April. There is also a legal obligation cast on the employer to remit advance welfare fund contribution under S.8A and if he fails to discharge the obligation the said amount would be recovered with interest at the rate of 18% per annum from 5th of the succeeding month. Scheme cast a further obligation on the part of the employer to file a consolidated statement showing the total wages and the welfare fund contribution of his employees for a year and to remit the balance amount payable as per statement after deducting the advance contribution already paid on or before 10th April in accordance with S.4 read with Para.38(1) of the Scheme. The Chief Welfare Fund Inspector and the Welfare Fund Officers working under the Act and the Scheme found that in very many case they failed to collect penal interest for the delayed payment of the amount on the 10th April of succeeding year till date of determination order. In the determination orders issued under S.8 of the Act interest portion also could have been included. In Trichur District interest portion was included in the order and the amount was recovered. In certain Districts the officers failed to collect the interest portion. This is an error committed in the office.

4. We may indicate in this connection that the Kerala Toddy Workers Welfare Fund Act, 1969 was amended in the year 1996 and S.8B was inserted which enables the Chief Welfare Fund Inspector or any other Welfare Fund Inspector who has passed an order under sub-s. (1) of S.8 against which no appeal has been made to the Government as provided in sub-s. (5), may on