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IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.S. Ramesh, C.Kumarappan, JJ.
Mahavir Plantations Pvt. Ltd. - Appellant
Vs.
Employees' Provident Fund Organisation - Respondent
W.A.Nos.2312, 2313 of 2011 and 1012 of 2012 and M.P.Nos.1 of 2011 and 1 of 2012
Decided On : 22-01-2025
| Table of Content |
|---|
| 1. management's liability and history of arrears. (Para 2 , 3 , 12) |
| 2. sale proclamation and default information (Para 4) |
| 3. arguments regarding the sale proclamation and priority. (Para 5 , 6 , 7) |
| 4. court's observations on conduct, transparency, and validity. (Para 9 , 20 , 22 , 23) |
| 5. judicial analysis of pf recovery procedures (Para 10) |
| 6. clarity on definitions and legal interpretations about arrears. (Para 14 , 18 , 19) |
| 7. final decision on the petition and implications. (Para 24 , 25) |
JUDGMENT :
C .KUMARAPPAN, J.
The instant Writ Appeals have been filed against the order of the learned Single Judge, dated 21.06.2011, passed in W.P. Nos. 8686 and 15582 of 2010.
2. W.P. No. 8686 of 2010 was filed by the Union Bank of India (hereinafter referred to as 'the Bank'), who is the secured creditor of M/s.Mahavir Plantations Private Limited (hereinafter referred to as 'the Management'), challenging the sale notice of the PF Authorities dated 19.02.2010 issued against the Management. After the sale notice, the property was sold by proceedings dated 25.05.2010. As against the sale, the Management preferred another Writ Petition in W.P. No. 15582 of 2010. The learned Single Judge took both the Writ Petitions together and dismissed both. As a result of which, the sale proclamation, and the sale were confirmed. Aggrieved by the said order, the instant Writ Appeals were preferred.
3. The brief facts, which are necessary for the effective disposal of the present Writ Appeals, are as follows:-
(i) The Management owns a Tea Estate at Ooty. During the course of their administration, they defaulted in the payment of contribution to Employees' Provident Fund. Hence, the Employees' Provident Fund Organisation (hereinafter referred to as the 'PF Authorities') issued sale proclamation dated 23.12.2009, to bring the landed properties of the Management of an extent of 144 acres. According to the PF authorities, the total arrears are Rs. 10,33,03,049/-. In order to understand the fulcrum of the issue, it is necessary to extract the relevant portion of sale notice, which is as follows:
“SCHEDULE OF PROPERTY
All that piece and parcel of land and building situated at Registration District: The Nilgiris, Registration Sub-District : Gudalur Taluk: Udhagamandalam Village : Naduvattam, Village Panchayat : Naduvattam to the extent of area mentioned against the survey numbers as detailed below.
| No. of lot | Description of property to be sold with the names of the co- owners where the property belongs to the defaulter and any other persons as co-owners | Revenue assessed upon the property or any part thereof | Details of any encumbrances to which the property is liable | Claims, if any, which have been put forward to the property, and any other known particulars bearing on its nature and value. | |
| (1) | (2) | (3) | (4) | (5) | |
| 1 | New Survey No | Area in Acres | Not available | Not known | 1. Balance PF dues : Rs.2,38,67,943/- |
| 391/1 | 0.27 | 2. Arrear penal damages: Rs.31,23,914/- | |||
| 391/2 | 18.95 | 3. Arrear interest under 7Q: Rs.2,35,009/- | |||
| 389/3 | 0.40 | 4. Leviable penal damages: Rs.3,45,80,083/- | |||
| 390 | 0.72 | 5. Leviable interest: Rs.4,14,96,100/- | |||
| 388 | 27.77 | ||||
| 385 | 63.77 | ||||
| 374/1 | 7.56 | ||||
| 374/2 | 1.26 | ||||
| 374/3 | 5.39 | ||||
| 381/2 | 8.78 | ||||
| 381/3 | 1.40 | ||||
| 372 | 7.73 | ||||
| Total | 144 Acres | Total:Rs.10,33,03,049/- |
Common Boundaries:
North: Reserve Forest
South: Ooty-Gudalur Main Road
East : Tea Fields of M/s.Mahavir Plantations
West: Tea Fields of M/s.Mahavir Plantations
Given under my hand and seal at Coimbatore this 23rd Day of December 2009.
Sd/-
M.Srirangan,
APFC/Recovery Officer”
(ii) In pursuance of the sale notice, the Management preferred a Writ Petition in W.P. No. 3363 of 2010, wherein this Court confirmed the sale proclamation. Aggrieved by the same, they preferred a Writ Appeal in W.A. No. 324 of 2010. However, the Management did not contest the said Writ Appeal. On the contrary, they sought leave before the Division Bench to work out their remedy before the Recovery Officer under Schedule II of the Income Tax Act (hereinafter referred to as 'the IT Act'). Based on the request of the Manage
AI
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