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MANJU RANI CHAUHAN
Continental India Private Limited – Appellant
Versus
Union of India – Respondent
JUDGMENT
Mrs. Manju Rani Chauhan, J.
Heard Mr. G.K. Singh, learned Senior Advocate assisted by Mr. Sharad Chandra, learned counsel for the petitioner, Mr. Udit Chandra, learned counsel for respondent nos.2 and 3 and Mr. Gautam Kumar Upadhaya, learned counsel for respondent no.1.
2. The petition has been filed by the petitioner with a prayer to quash the impugned orders dated 31.03.2023 bearing Nos.139811 and 139812 respectively passed on the same date by the Regional Provident Fund Commissioner-I, Regional Officer, Meerut whereby he has imposed a damage to the tune of Rs.8,91,69,116/- upon the petitioner as well as M/s Modi Rubber Limited under Section 14B of Employees' Provident Fund and Miscellaneous Provisions Act, 1952 (herein after referred to as the "Act of 1952") and has also imposed interest on delayed payment under Section 7Q of the Act of 1952 to the tune of Rs.4,28,71,452/- which has been levied on the petitioner as well as M/s Modi Rubber Limited, Modi Nagar, Ghaziabad.
3. Brief facts of the case are that the proceedings under the Act of 1952 were initiated by issuing summons under Section 14B alongwith Section 7Q of the Act of 1952 for belated remittance of contribution
Procedural fairness demands that parties are heard and any timely contributions considered before imposing damages and interest under the Employees' Provident Fund Act.
Aggrieved persons with a statutory remedy of appeal are required to exhaust such remedy before filing a writ petition.
The orders imposing damages under the EPF Act must be reasoned and based on factual findings, ensuring principles of natural justice are upheld.
Interest under Section 7Q of the Act is independent of damages under Section 14B, and claims regarding interest must be pursued in the pending appeal.
Financial difficulties do not justify delayed remittance of provident fund contribution, and lack of mens rea is not a sufficient defense.
Damages for delayed payment under the EPF Act cannot exceed the amount of arrears, and interest cannot be levied on penal amounts without statutory authority.
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