Employers are liable to pay damages for delayed contributions to the provident fund, assessed based on beneficiary losses, irrespective of the reasons for delay.

1The Ernakulam District Cooperative Bank Limited (hereinafter referred to as 'the Bank') is an Apex Cooperative Bank constituted and registered under the Kerala Cooperative Societies Act, 1969. The provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 are applicable to the Bank (hereinafter referred to as 'the Act'). As per the provisions of the Act the Bank is required to deposit the employer's and employees' share of Employees Provident Fund and Family Pension Fund contribution and the Employer's share of Insurance Fund contributions, together with the Administrative/Charges/Inspection charges within 15 days of the close of the respective month.

2 It is alleged in the petition that the petitioner had been regularly paying the contributions without any default. But, the petitioner could not effect prompt payments during the months of August and October in the year 1989 and January to April, July, September to November, 1990 due to unavoidable reasons. The Regional Provident Fund Commissioner, who is the first respondent in this case has issued Ext. P1 notice to the petitioner for belated shall not be levied on the petitioner for belated remittances and contributions. Petitioner submitted explanation. According to the petitioner the delay in making the payment is not wilful as it was because of the increase in the work load in the Bank. In September, 1990 it is stated that the workmen employed in the Bank were on strike and the work was completely paralysed and hence the petitioner could not remit the contributions in time.

3It is alleged in the petition that without considering the objections of the petitioner the first respondent issued Ext. P2 order directing the petitioner to pay a damage of Rs. 11,931/-. Therefore, the petitioner has filed this original petition for a writ of certiorari quashing Ext. P2 order.

4The first respondent filed a counter stating that the employer of the establishment has to pay the dues to the various accounts of the Fund within 15 days of the close of every month and in case he fails to pay the dues in time, the Regional Provident Fund Commissioner can impose damages not exceeding the amount of arrears for the period in default, as per the powers conferred upon him under S.14B of the Act. S.14B provides as follows:
"Power to recover damages: Where an employer makes default in the payment of any contribution to the Fund [the Family Fund or the Insurance Fund] or in the transfer of accumulations required to be transferred by him under sub-s.(2) of S.15 [or sub-s.(5) of S.17] or in the payment of any charges payable under any other provision of this Act or of [any Scheme or Insurance Scheme] or under any of the conditions specified under S.17, [the Central Provident Fund Commissioner or such other officer as may be authorised by the Central Government, by notification in the official gazette in this behalf] may recover [from the employer by way of penalty such damages, not exceeding the amount of arrears, as may be specified in the Scheme]".
Thus, it is clear from S.14B of the Act that if an employer makes default in the payment of any contribution to the Fund, he shall be liable to pay the amount by way of penalty such damages, not exceeding the amount of arrears as may be specified in the Scheme.

5While dealing with the scope of S.14B of the Act regarding the fixation of quantum of damages this court in the decision reported in Bharat Plywood and Timber Products (P) Ltd. v. Employees' Provident Fund Commissioner, Trivandrum and others (1977 LLJ 379) held as follows:
"S.14B clearly indicates that an employer is liable to pay damages if he has made default in payment of the contribution. Merely, because of the amount had been paid earlier to the order under S.14B, it cannot be contended that there was no default in payment on the due date if the amount was paid only subsequent to the due date. Any delay in paying the amount under S.6 causes loss to the beneficiaries of the sc