The main legal point established in the judgment is that the PF authorities have the first charge on the assets of the establishment, and the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 will override the other claims.

1. Both writ petitions came to be posted on being specially ordered by the Hon'ble Chief Justice vide his order dated 19.4.2011.

2. It is a peculiar case where one writ petitioner is a nationalised Bank which gave sticky advance to a plantation owner and the second writ petitioner is that plantation management which is a chronic defaulter of all dues towards various labour legislations. They have come to this court challenging the action initiated by the PF Department in having recovered the amounts due to them by invoking the execution power conferred on them by virtue of Section 8 of the Employees Provident Fund and Miscellaneous Provisions Act, 1952.

3. In the first writ petition in W.P.No.8686 of 2010, the petitioner is the Union Bank of India challenges the sale notice dated 19.2.2010 issued by the recovery officer, EPF Organisation and seeks to set aside the same. In that writ petition, this court on 27.4.2010 had directed telegraphic notice to be issued to the plantation management and notice was directed to be taken by the Standing Counsel for the PF Department. Pending the writ petition, no interim order was granted. Subsequently, the third respondent herein was impleaded by the petitioner by filing M.P.No.3 of 2010. It was ordered by this court on 30.7.2010. On notice from this court, on behalf of first respondent, a counter affidavit, dated 10.6.2010 was filed and on behalf of second respondent, a counter affidavit, dated 25.4.2011 was filed. The third respondent purchaser has filed a counter affidavit, dated 25.4.2011.

4. Even while that writ petition was pending, the plantation owners had filed the second writ petition in W.P.No.15582 of 2010, challenging the recovery notice dated 25.5.2010 issued by the second respondent Recovery Officer and to set aside the sale of 144 acres in various survey numbers of tea plantation belonging to the petitioner company in favour of the third respondent purchaser and to direct the refund to the third respondent the sale consideration of Rs.4.41 crores paid by the third respondent. When that writ petition came up on 20.7.2010, this court had recorded that a sum of Rs.74,32,807/-was paid by the petitioner as found in the proclamation of sale and that an interim injunction was granted restraining the third respondent purchaser from altering the nature of properties and dealing with the properties by way of sale, lease, etc. A counter affidavit, dated Nil (September, 2010) was filed by respondents 1 and 2. The purchaser has also filed an application in M.P.No.3 of 2010 to vacate the interim order together with supporting counter affidavit, dated 1.9.2010. The petitioner has also filed a reply affidavit, dated 13.11.2010.

5. Heard the arguments of Mr.A.V.Arun for Union Bank of India, Mrs.Nalini Chidambaram, learned Senior Counsel appearing for Mr.R.Parthiban, counsel for M/s.Mahavir Plantation Private Ltd., Mr.V.Vibhishanan, learned Standing Counsel for PF Department and Mr.K.M.Vijayan, learned Senior Counsel appearing for Mr.A.S.Balaji, learned counsel appearing for the purchaser M/s.Archana Industries.

6. The short question that arises for consideration is whether the sale of a portion of the estate of petitioner Plantation to an extent of 144 acres to satisfy the dues payable by the plantation owner towards PF claims is liable to be set aside by this Court?

7. When the PF Organisation had issued a proclamation of sale, dated 23.12.2009 bringing the landed properties of the petitioner to an extent of 144 acres in various survey numbers for sale towards the claim for recovery of the amount due to the PF Department which worked out to Rs.10,33,03,049/-, a public notice was also issued in Dinamalar, dated 8.1.2010 and followed by a further notice, dated 16.2.2010. In the notice it was indicated that the reserve value of the property was Rs.4,32,00,000/- and dues payable by the plantation was Rs.10,33,03,049/-. The auction was fixed on 18.2.2010. It was at that stage, t