IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
SUREPALLI NANDA, J.
Osmania University – Appellant
Versus
Employees Provident Fund Organization (EPFO) & others - Respondents
W.P.No.23812 OF 2023
Decided on : 15-04-2024
(A) Employees Provident Funds and Miscellaneous Provisions Act, 1952 - Section 7-O - Writ petition challenging the order of the Tribunal directing the petitioner to remit 40% of the assessed amount - The Tribunal's order was deemed arbitrary as it reduced the statutory requirement of 75% deposit without sufficient reasoning - The court emphasized the importance of compliance with the Act for the welfare of employees and the necessity of timely contributions to the provident fund. (Paras 6, 11, 12)
(B) Appeal - The court cannot entertain a writ petition on the same subject while the appeal is pending before the competent authority - The petitioner was granted time to comply with the Tribunal's order. (Paras 10, 12)
ORDER:
Heard learned Senior Designated Counsel Mr.G.Vidyasagar, representing Mr.S.Lakshmikanth, learned Standing Counsel appearing on behalf of the petitioner, Ms. Ande Vishala, learned counsel appearing on behalf of respondent Nos.1 to 3 and Ms. T.Swetha, learned counsel appearing on behalf of respondent No.4.
2. The Petitioner approached the Court seeking prayer as under :
PERUSED THE RECORD.
3. The averments in the counter affidavit filed by the Respondent No.4, in brief are as under:
a) The respondent is a retired employee at the Osmania University. The petitioner university was established in 1917, but even prior to 1982, except where the employees or workers are entitled to the benefit of contributory provident fund or old age pension in accordance with any scheme or rule framed by the central government or state government governing such benefits as Mentioned in Section 16 of the Employees Provident Fund and Miscellaneous Provisions Act, 1952, the same reads as under:
Since the petitioner establishment never claimed that the said employees are entitled to the benefit of the contributory Provident fund or old-age pension Schemes, as mentioned above Section 16 of EPF & MP Act, 1952, stand applied to the petitioner university. Hence, petitioner’s University comes under the purview of the said Act, 1952 w.e.f. the month of February, 1982.
b) The workers working for or in connection with petitioner University come under the definition of “Employee” under provisions of EPF & MP Act, 1952 which reads as under:
c) Despite aforementioned legal position, the petitioner university has been evading the application of the said law from March 1982 till date, denying the statutory benefits to hundreds of its employees. Since the petitioner failed to start the implementation of the Act, an enquiry under section 7A of the Act, 1952 was instituted, for determining the due under the provisions of the Act, 1952 and summons dated 20-09-2018 were issued to provide due opportunity of being heard by appearance either in person of the employer or through authorised representative on 18.10.2018.
Arcot Textile Mills Ltd., vs. Regional Provident Fund, Commissioner & Others
The court upheld the Tribunal's order requiring the petitioner to deposit 40% of the assessed amount, emphasizing compliance with the Employees Provident Funds Act for employee welfare.
The court affirmed that pre-deposit requirements under the Employees Provident Funds Act are essential for appeal admission, reinforcing the importance of procedural fairness.
Tribunal's requirement for a 20% pre-deposit under Section 14B of the EPF Act is invalid as no such provision exists for appeals under that section.
Delay in EPF contributions results in automatic penalties under Section 14B, independent of intent, reinforcing the strict liability principle in social welfare legislation.
The delay in EPF remittance does not exempt the employer from penalties, as mens rea is not required for imposing damages under Section 14-B of the Act.
The Tribunal has no jurisdiction to entertain an appeal filed beyond 120 days from the date of issuance of the order, and cannot condone the delay beyond the said period.
The main legal point established in the judgment is the authority of the Regional Provident Fund Commissioner to decide the entitlement of an employee to become a member and the date from which the e....
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