M/S. SREE MEENAKSHI DEVASOM PUBLIC SCHOOL vs ASSISTANT PROVIDENT FUND COMMISSIONER

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2026 Supreme(Online)(Ker) 27197

IN THE HIGH COURT OF KERALA AT ERNAKULAM
GOPINATH P., J
M/S. SREE MEENAKSHI DEVASOM PUBLIC SCHOOL – Appellant
Versus
ASSISTANT PROVIDENT FUND COMMISSIONER – Respondent
WP(C) NO. 5210 OF 2026

Important Points

No appeal against Section 7Q interest under EPF Act; damages recovery stayed pending Tribunal appeal; instalments permitted for interest payment.

Subject

Labour and Employment - Provident Fund

Act Referred

Employees' Provident Funds and Miscellaneous Provisions Act, 1952: S.14B, S.7Q

Headnote

Under Section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, damages were imposed on the petitioner for delayed contributions from March 2012 to January 2025 via Ext.P3 order, against which Ext.P4 appeal was filed before the Tribunal. Petitioner sought suspension of recovery and instalment payment for interest under Section 7Q. Court suspended recovery of damages pending stay decision in appeal. No appeal lies against Section 7Q interest demand; petitioner permitted to pay in 12 equal monthly instalments, with coercive recovery stayed if complied; default allows full recovery. Petitioner requested suspension of Section 14B damages recovery until Tribunal considers stay petition in appeal and permission to pay Section 7Q interest in instalments; respondents submitted no appeal lies against Section 7Q interest. Court's ratio: recovery of damages suspended pending Tribunal's stay order; no appeal for Section 7Q interest upheld; instalment payment reasonable. Writ petition disposed directing suspension of Ext.P3 damages recovery till Tribunal disposes stay petition in Ext.P4 appeal; interest under Ext.P7 payable in 12 equal instalments commencing 15.05.2026.

Advocates:
For the Appellants/Petitioners: SRI.SAJEN THAMPAN, SHRI.DEEPU ANIL, SMT.AYOONA P. M.
For the Respondents: SRI.K.C.SANTHOSHKUMAR, SHRI.SREEJITH S.NAIR, SHRI.RAJESH BHASKARA KURUP, SMT.KEERTHANA VENUGOPAL, SMT.ANNIE MATHEWS

JUDGMENT The petitioner has preferred Ext.P4 appeal against Ext.P3 order imposing damages under Section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as ‘the 1952 Act’) for the period from March 2012 to January 2025.

2. The learned counsel appearing for the petitioner submits that further proceedings for recovery of any amount imposed as damages underSection 14Bof the 1952 Act through Ext.P3 order may be suspended till the stay petition filed in Ext.P4 appeal is taken up and considered by the Central Government Industrial Tribunal (hereinafter referred to as ‘the Tribunal’). It is also submitted that the petitioner may be permitted to pay the amounts demanded as interest underSection 7Qof the 1952 Act in instalments. 3. The learned counsel appearing for the Provident Fund Department submits that no appeal lies against an order demanding interest underSection 7Qof the 1952 Act and the petitioner may therefore be required to pay off the interest demanded in limited instalments.

4. Having heard the learned counsel appearing for the petitioner and the learned counsel appearing for the Provident Fund Department, this writ petition will stand disposed of directing that the recovery proceedings pursuant to Ext.P3 order imposing damages under Section 14B of the 1952 Act shall remain suspended till the stay petition filed in Ext.P4 appeal is taken up and disposed of by the Tribunal.

5. In so far as the demand for interest imposed on the petitioner under Section 7Q of the 1952 Act is concerned, I am of the view that the learned counsel appearing for the Provident Fund Department is right in contending that no appeal lies before the Tribunal against an order demanding interest under of the 1952 Act. However, the request of the learned counsel for the petitioner to permit the petitioner to clear the liability for interest in instalments appears to be reasonable.

6. Accordingly, the petitioner is permitted to pay off the interest demanded under Ext.P7 in 12 equal instalments. The 1^st of such instalments shall be paid on or before 15.05.2026 and the subsequent instalments shall paid on or before the 15^th day of every succeeding months. In order to enable the petitioner to pay the amounts, coercive proceedings (if any) to recover amounts due under Ext.P7 shall be kept in abeyance. If the petitioner fails to pay any instalments, the respondent may proceed to recover the entire amount in accordance with the law. Writ petition is ordered accordingly.