Employers are liable to pay simple interest and damages for belated remittances of Provident Fund dues under the EPF Act.

1. Challenging the order of the 1st respondent dated 012. 2004, levying damages and interest, the petitioner has filed the present writ petition.

2. The petitioner, India Cements Limited, a company registered under the Indian Companies Act, 1913 is one of the leading manufacturers of cement in the country for several decades and is inter alia engaged in the manufacture and sale of cement. It has got various factories in the state of Tamil Nadu as well as in the state of Andhra Pradesh. One of its factories is located in Sankari West, Salem District. The petitioner has several employees on its role and also engage contract workers, who are permitted for incidental jobs of temporary nature and strictly enforce compliance of all the statutory requirements under various legislations.

2a. The petitioner industry has been allotted a Permanent Code Number and it contributes a huge amount of money by way of Employees Provident Fund and is prompt in payment of its contribution to the organization. The petitioner factory is situated at Sankari, Salem District. The petitioner is covered under the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, hereinafter referred to as EPF Act and it has been complying with the EPF contributions in time and without any default. The EPF Code Number allotted to the petitioner is Code No.TN/4648.

2b. According to the petitioner, they have been engaging contractors, who were allotted Sub-Code Numbers besides the main code number TN/4648 allotted to them, for loading of cement bags and other incidental jobs of temporary nature. It is their case that on 26.03.1999, they had sent a letter to the Assistant Provident Fund Commissioner pointing out that they had closed and cancelled the contract given to the contractors referred in the letter, with effect from 011. 1998 and the contractors were not given any work from 23.09.1998 and they have not earned any wages from the said date. The petitioner stated that the minimum administrative charges had been paid to the contractors, who were allotted sub code numbers and in view of the same, there would be no remittances/returns in respect of Sub-Code Numbers from 012. 1998 onwards. It is seen that the petitioner had also requested the authority concerned to cancel the Sub-Code Numbers allotted to the contractors.

2c. The petitioner, on facing administrative incovenience regarding payment of EPF contributions in relation to engaging contractors, met the Assistant Provident Fund Commissioner on 15.03.2000 and explained the Managements difficulties and requested that the contractors may be given a separate code number. This, was however not feasible from the side of the Department and the Assistant Provident Fund Commissioner agreed to give a Sub-Code Number under the Main Code Number of the petitioner. Thereafter, the petitioner, vide letter dated 18.04.2000 reiterated the above and requested the Assistant Provident Fund Commissioner to allot a Sub-Code Number for the contractors under its main code, so that they will be in a position to remit the contribution through challan under new Sub-Code Number and send necessary returns for the contractors engaged.

2d. On 22.04.2000, the petitioner wrote to the EPF Department once again requesting the Department to allot a Sub-Code Number under the Main Code Number of the petitioner with effect from 112. 1998. Again, on 26/30.05.2000, the petitioner addressed a letter to the Provident Fund Inspector giving the list of contractors with the date of commencement of work and requested for allotment of Sub-Code Number for its contractors under the Main Code No.TN/4648. On 011. 2001, the petitioner made a similar request for separate Sub Code Numbers under its Main Code Number. On 212. 2001, the petitioner received a letter from the Assistant Provident Fund Commissioner stating that the request of the petitioner for allotment of Sub-Code Numbers for implementation of the EPF scheme in respect o