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SAURABH SHYAM SHAMSHERY
U. P. National Manufactures Ltd. – Appellant
Versus
Employees Provident Fund Appellate Tribunal/CGIT – Respondent
JUDGMENT
Saurabh Shyam Shamshery, J.
Heard Sri Devesh Tripathi, learned counsel for petitioner and Sri Ashish Jaiswal, Advocate for Respondents.
2. Petitioner, an organization, is aggrieved from quantum of damages determined by Assistant Provident Fund Commissioner by means of impugned order passed under Section 14B of Employees' Provident Fund and Miscellaneous Provisions Act, 1952 (hereinafter referred to as "Act, 1952").
3. Damages determined under Section 14B of Act, 1952 is Rs. 1,77,719/- and under Section 7Q is Rs. 73,028/-, total being Rs. 2,50,747/-. In pursuance of interim order passed by this Court half of amount has already been deposited by petitioner.
4. Learned counsel for petitioner submits that respondents have approached appropriate authority after a huge delay of 8-9 years which was not considered by authority as well as considering the financial condition of petitioner there was no mens ria in depositing the contribution belatedly and further prayed that since there is a discretion lies under Section 14B and 7Q of Act, 1952, therefore, damages and interest may be reduced.
5. Learned counsel appearing for respondents submits that petitioner has not raised the above
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.
The court affirmed that under Section 14-B of the Employees Provident Fund & Miscellaneous Provisions Act, 1952, only 50% of damages are recoverable, as established by prior judicial decisions.
The main legal point established in the judgment is the interpretation of Sections 14-B and 7-Q of the Act of 1952 and the grant of a stay on the recovery of damages and interest based on compliance ....
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.
Compliance with the deposit requirements under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is essential to proceed with an appeal.
Damages under S.14B of the Employees' Provident Funds Act are penal and not compensatory, allowing for mechanical imposition up to 25% without ascertaining actual loss.
Mens rea is not required for imposing damages under Section 14B of the Act; damages can be levied based on default in payment of provident fund contributions.
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