Procedural fairness demands that parties are heard and any timely contributions considered before imposing damages and interest under the Employees' Provident Fund Act.

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 towards employees provident fund for the period 01.04.1996 to 16.05.2016 which was served upon the petitioner on 16.05.2016 despite the fact that the requisite amount in respect of contribution of employees towards the employees provident fund had already been deposited in the bank account of Regional Provident Fund Department and there was no lapse on the part of the petitioner. Aggrieved by the aforesaid notice, a written submission dated 28.06.2016 was preferred by the petitioner, thereafter, a letter dated 01.07.2016 was preferred by the petitioner requesting the Provident Fund Commissioner to further implead M/s Modi Rubber Ltd. Modi Nagar, Ghaziabad and M.R.L. Employees Provident Fund Trust through its trustees in the present proceedings for ascertaining the relevant facts with regard to actual remittance, which was made of the contribution towards the employees provident fund in the year 2013-2014. The summons as served upon the petitioner on 16.05.2016 mentions about the illegal assessment and imposition of damages and interest. As already stated, a detailed written submission as well as an impleadment application was also moved by the petitioner.

4. The proceedings commenced before the Assistant/Regional Provident Fund Commissioner and hearing in the matter took place on several dates. During the pendency of the aforesaid proceedings, a letter dated 20.09.2017 was preferred by the petitioner requesting for providing certain information and documents and further mentioning that there was no delay in remittance of contribution towards the employees provident fund in as much as in the period from 14.06.2013 till 24.01.2014, sum to the tune of Rs.32,87,93,283/- has already been deposited in the bank account of the department and the said amount has already been realized on different dates that being 20.06.2013, 13.08.2013, 09.09.2013 and 17.02.2014. Some clarification was sought by the concerned officer to which a proper reply was submitted. Several letters were issued as requested by the petitioners to the parties concerned and ignoring the reply, the order impugned has been passed, hence the present petition has been filed.

5. A preliminary objection has been raised by learned counsel for the respondent nos.2 and 3 regarding maintainability of the writ, as there is an alternative remedy