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SANDEEP SHARMA
Maharaja Lakshman Sen Memorial College, Sunder Nagar – Appellant
Versus
Presiding Officer, Employees Provident Fund Appellate Tribunal – Respondent
JUDGMENT :
Sandeep Sharma, J.
By way of instant petition filed under Art. 226 of the Constitution of India, challenge has been laid to order dated 2.3.2016 Annexure P-2 passed by Provident Fund Appellate Tribunal, New Delhi, whereby appeal filed by the petitioner under S.7(i) of Employees Provident Fund and Miscellaneous Provisions Act, 1952 (hereinafter, ‘Act’ came to be dismissed.
2. Precisely, the facts, as emerge from the record, are that since the petitioner-Institution failed to deposit the provident fund and other allied dues to its employees, as per provisions of the Act and Employees Provident Fund Scheme (hereinafter, ‘Scheme’) framed thereunder, office of Assistant Provident Fund Commissioner issued a Show Cause Notice on 29.4.2014, calling upon the petitioner to show cause that why damages under S.14B and interest under S.7Q may not be recovered on account of default in making payment within stipulated period. Alongwith aforesaid Show Cause Notice, details of default committed by the petitioner-Institution were furnished, enabling the petitioner Institution to deposit
S.14B of Act read as Power to recover damages.
Mens rea is not required for imposing damages under the EPF Act; damages serve as penalties for defaults and ensure employee benefits, emphasizing the need for reasoned decisions from authorities.
Point of law: Power of Regional Provident Fund Commissioner to impose damages under section 14B is quasi-judicial function.
Point of Law : Provision of Section 14B explicitly employs the term “may” recover, which when read with corresponding Rule 32B, further cements discretion provided to authorities vide Act of 1952 and....
Damages under S.14B of the Employees' Provident Funds Act are penal and not compensatory, allowing for mechanical imposition up to 25% without ascertaining actual loss.
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