1. In this writ petition, the following important question of law has arisen for consideration:

"For making an appeal to the Employees Provident Fund Appellate Tribunal under Section 7-I of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, against an order of recovery of damages passed under Section 14-B of the said Act, whether the employer needs to pay 75% of the amount due from him as envisaged in Section 7-O of the Act?"

2. The petitioner is admittedly an employer as defined under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 ("EPF Act" in short). The second respondent, by his Proceedings in TN/RO/MDU/24116/Circle 6/ PDC/LD/2013 dated 31.05.2013, has passed an order to recover damages from the petitioner to the tune of Rs.23,77,612/-. Challenging the said order made under Section 14-B of the EPF Act, the petitioner has preferred an appeal to the Employees Provident Fund Appellate Tribunal in A.T.A. 500(13)/2013. The Tribunal, by order dated 30.07.2013, directed the petitioner to deposit an amount of Rs.10,00,000/- representing 75% of the amount due, within four weeks from the date of the said order. Challenging the said direction, the petitioner is before this Court with this writ petition.

3. I have heard the learned counsel appearing on either side and also perused the records carefully.

4. It is the contention of the petitioner that so far as Section 7-O of the EPF Act is concerned, it is applicable only against an order made under Section 7-A of the EPF Act. In respect of an order for recovery of damages made under Section 14-B of the EPF Act, according to the petitioner, Section 7-O is not applicable. But the learned counsel for the respondents would submit that Section 7-O is very much applicable to an order made under Section 14-B of the EPF Act as well.

5. I have considered the above submissions. In order to examine the question of law involved, let us have a quick look into the relevant provisions of the EPF Act. Section 7-A(1) of the EPF Act reads as follows (Sub-Sections 2 to 5 are not reproduced herein as it is not necessary for the purpose of this case):

"7-A. Determination of moneys due from employers.-(1)The Central Provident Fund Commissioner, any Additional Provident Fund Commissioner, any Deputy Provident Fund Commissioner, any Regional Provident Fund Commissioner or any Assistant Provident Fund Commissioner, may by order,-

(a) in a case where a dispute arises regarding the applicability of this Act to an establishment, decide such dispute; and

(b) determine the amount due from any employer under any provision of this Act, the Scheme or the Pension Scheme or the Insurance Scheme, as the case may be, and for any of the aforesaid purposes may conduct such inquiry as he may deem necessary.”

6. Section 14-B of the EPF Act reads as follows:

"14-B. Power to recover damages.-Where an employer makes default in the payment of any contribution to the Fund, the Pension Fund or the Insurance Fund or in the transfer of accumulations required to be transferred by him under sub- section (2) of section 15 or sub-section (5) of section 17 or in the payment of any charges payable under any other provision of this Act or of any Scheme or Insurance Scheme or under any of the conditions specified under section 17, the Central Provident Fund Commissioner or such other officer as may be authorized by the Central Government, by notification in the Official Gazette, in this behalf may recover from the employer by way of penalty such damages, not exceeding the amount of arrears, as may be specified in the Scheme.

Provided that before levying and recovering such damages, the employer shall be given a reasonable opportunity of being heard.

Provided further that the Central Board may reduce or waive the damages levied under this section in relation to an establishment which is a sick industrial company and in respect of which a Scheme for rehabilitation has been sanctioned by the Board for I