Recovery proceedings can be suspended pending an appeal when a substantial payment is made to the concerned authority.

JUDGMENT

The petitioner has approached this Court being aggrieved by the fact that, when an appeal against the determination of damages under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as ‘the 1952 Act’), is pending before the Central Government Industrial Tribunal, along with an application for stay, the Provident Fund authorities are proceeding to recover the amount by proceeding against the bank account of the petitioner.

2. Heard the learned Standing Counsel appearing for the Employees’ Provident Fund Organisation.

3. Having heard the learned counsel appearing for the petitioner and the learned Standing Counsel appearing for the Employees’ Provident Fund Organisation, I am of the view that, since the petitioner has already preferred an appeal against the order No.KR/KCH/27968/000/ Damages/2024-25, imposing damages under Section 14B of the 1952 Act, along with an application for stay, the recovery proceedings have to remain suspended till a decision is taken on the stay petition by the Appellate Authority, namely, the Central Government Industrial Tribunal. However, considerig the fact that the amount demanded as damages is Rs.66,56,665/-, I am of the opinion that this shall be subject to the condition that the petitioner pays a portion of the said amount, which shall be taken into account while considering the stay petition in the appeal filed against the order passed under of the 1952 Act.

4. Accordingly, this writ petition will stand disposed of, directing that till the stay petition in the appeal filed against the order No.KR/KCH/27968/000/Damages/2024- 25 is taken up and considered by the Central Government Industrial Tribunal, the recovery proceedings against the petitioner shall remain suspended subject to the condition that the petitioner remits a sum of Rs.15,00,000/- (Rupees Fifteen Lakhs only) towards the liability under the said order within a period of one month from today (05.03.2026). It is made clear that, while considering the stay petition, the Central Government Industrial Tribunal shall have due regard to the fact that an amount of Rs.15,00,000/- has been paid by the petitioner (if the petitioner produces proof of having remitted the said amount within the time specified above). The writ petition is ordered accordingly.

Sd/-