Point of law : Under the proviso to Section 7-O of the Act of 1952, the Tribunal may waive or reduce the pre-deposit amount for reasons to be recorded in writing.

JUDGMENT :

Ajay Bhanot, J.

1. Heard Shri Sunil Tripathi, learned counsel for the petitioner and Shri Udit Chandra, learned counsel for the respondents.

2. The petitioner is aggrieved by the order dated 11.01.2021 passed by the appellate authority/Employees Provident Fund Appellate Tribunal/CGIT, Shram Bhawan, ATI Campus, Udyog Nagar, Kanpur under Section 7-I of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, admitting the appeal of the petitioner subject to deposit of 50% of the dues.

3. Shri Sunil Tripathi, learned counsel for the petitioner assailing the order dated 11.01.2021 contends that the petitioner is not liable to deposit any amount on filing of the appeal for two reasons. Firstly only conditional liability was fixed by the assessing authority /Assistant Provident Fund Commissioner, Employees Provident Fund Organization, Varanasi. Secondly, the petitioner is not the principal employer. Thirdly, the order dated 11.01.2021 passed by the appellate authority is devoid of reasons.

4. Shri Udit Chandra, learned counsel for the respondents could not dispute the fact that the order 11.01.2021 passed by the appellate authority/Employees Provident Fund Appellate Tribunal, Kanpur is not supported by any reasons. He submits that the petitioner is liable to make the pre-deposit amount in terms of Section 7-I of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.

5. Heard learned counsel for the parties.

6. The assessing authority /Assistant Provident Fund Commissioner, Employees Provident Fund Organization, Varanasi, by the order dated 15.01.2020 rendered in proceedings taken out under Section 7A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 has found non payment of provident fund dues to the eligible employees. The assessing authority /Assistant Provident Fund Commissioner, Employees Provident Fund Organization, Varanasi in the order dated 15.01.2020 found as follows:

“25. Now, therefore, I, Shahid Iqbal, Assistant Provident Fund Commissioner in exercise of powers conferred on me under Section 7A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, having regard to the facts of the case and considering the submissions made before me/evidence on record produced before me, hereby decide that the Establishment, M/s Nishtha Enterprises (together with M/s Nishtha Agency), Varanasi has failed to deposit Provident Fund dues in respect of its eligible employees amounting to Rs.7,84,194/-(Rs. Seven Lakhs Eighty Four Thousand One Hundred and Ninety Four only) for the period October, 2011 to December, 2015. The details of dues is delineated as under:

26. I further order that the above amount of Rs.7,84,194/-(Rs. Seven Lakhs Eighty Four thousand one hundred and ninety four only) assessed u/s 7A of the Act shall be paid by the Establishment within 15 days of the receipt of this order, failing which steps shall be taken to recover the same in the manner as provided u/s 8B to 8G of the said Act. As Establishment has fulfilled the criterion for coverage under the Act and has already been issued a Code Number for compliance, the Establishment shall be liable to pay the aforesaid assessed dues. In case the Establishment fails to do so, the Principal Employer shall be liable to pay the aforesaid assessed dues.”

7. Relevant provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as the 'Act') read with the Tribunal (Procedure) Rules, 1997 (hereinafter referred to as the 'Rules'), which govern and regulate