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2026 Supreme(Online)(Mad) 26080

IN THE HIGH COURT OF JUDICATURE AT MADRAS
HEMANT CHANDANGOUDAR, J
Municipal Commissioner, Virudhachalam Municipality – Appellant
Versus
Assistant Provident Fund Commissioner, (Compliance) Employees' Provident Fund Organization – Respondent
WMP(MD)No.1394 of 2026



Advocates:
For Petitioner: Mr.C.Karthikeyan
For Respondent: Mr.I.Robert Chandrakumar

Writ petition not maintainable without exhausting statutory appeal under Section 7-I of EPF Act.

Headnote:The Employees’ Provident Fund Act, 1952, under Section 7A enables inquiry into provident fund contributions, and Section 7-I provides appellate remedy against such orders. The municipality challenged an order demanding Rs.1,49,72,769/- as contributions for January 2011 to November 2020. The court found the writ petition premature without exhausting statutory appeal. The issue was maintainability of the writ petition. The ratio decidendi holds that writ jurisdiction under Article 226 cannot be invoked bypassing available statutory appellate remedy under Section 7-I, absent exceptional circumstances. Writ petition dismissed as not maintainable, with liberty to pursue appeal; pre-deposit dispensed as amount recovered.

Table of Content
1. challenges epf contribution liability order. (Para 1)
2. writ dismissed for non-exhaustion of appeal; amount recovered. (Para 2 , 3)
3. liberty to appeal without pre-deposit or delay condonation. (Para 4 , 5)

ORDER

The petitioner, Virudhachalam Municipality, represented by its Municipal Commissioner, challenges the order dated 24.03.2025 passed by the sole respondent under Section 7A of the Employees’ Provident Fund Act. By the said order, the petitioner has been fastened with liability to pay a sum of Rs.1,49,72,769/- towards employees’ contribution for the period from January 2011 to November 2020.

2. Though several grounds have been raised in the writ petition, the same is not maintainable, as the petitioner has not availed the alternative remedy of appeal provided under Section 7-I of the Act.

3. The learned counsel for the respondent submitted that, pursuant to the impugned order, the entire amount has already been recovered from the petitioner. The said submission is recorded.

4. In view of the fact that the writ petition has been filed without exhausting the statutory remedy of appeal under Section 7-I of the Act, the writ petition is dismissed as not maintainable, with liberty to the petitioner to file an appeal before the appellate authority under the said provision. Inasmuch as the entire amount has already been recovered, the requirement of pre-deposit of the statutory amount is dispensed with.

5. If such an appeal is filed within a period of four weeks from the date of receipt of a copy of this order, the appellate authority shall entertain the same and dispose of it on merits, without insisting on an application for condonation of delay. No costs. Consequently, the connected miscellaneous petition is closed.

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