Azad Yadav and 19 Others vs Union of India and 4 Others — Allahabad HC (2025) — LawSathi Research

Azad Yadav and 19 Others vs Union of India and 4 Others — Allahabad HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Direction to respondent no.3 to pass the final order of assessment under Section 7-A of the Act, in accordance with law, within three months, with all consequential action pursuant to the final assessment order to follow accordingly; the four mandamus reliefs sought by the petitioners were not granted at this stage.

Issue for consideration

Whether the Enforcement Officer's orders dated 04.11.2024 and 21.08.2025 (period 05/2019-04/2023) are final Section 7A assessment orders justifying immediate issuance of a Recovery Certificate under Section 8B against respondent No.5, or merely inquiries preceding the final assessment order. +1 more

Court's answer

The Enforcement Officer's orders dated 04.11.2024 and 21.08.2025 are identically worded, relate to period 05/2019-04/2023, and are titled Inquiry for the said period under Section 7A of the Act.

Ratio / Principle

Those orders are addressed to the Assessing Authority for passing the final order of assessment, i.e., they are inquiries preceding, and not themselves constituting, the final Section 7A assessment order.

Key takeaways

The petition is disposed of with a direction to respondent no.3 to pass the final order of assessment under Section 7-A of the Act, in accordance with law, within a period of three months; none of the four mandamus reliefs sought (Recovery Certificate under Section 8B, coercive recovery steps, prosecution under Section 14, restraint from reopening the concluded inquiry) was granted at this stage.ratio¶24
All consequential action pursuant to passing of the final assessment order shall follow accordingly.ratio¶24

Detailed headnote1 paragraphs

Writ petition (WRIT - C No. 43195 of 2025, High Court of Judicature at Allahabad, Court No. 9) by Azad Yadav and 19 others seeking mandamus to respondent nos. 3 & 4 to (i) issue a Recovery Certificate under Section 8B of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 on the strength of an order dated 4.11.2024 quantifying statutory dues at Rs.1,18,12,974/- against respondent No.5, (ii) initiate recovery proceedings under Section 8B read with Section 8 with coercive steps (attachment, arrest, appointment of receiver), (iii) prosecute respondent No.5's directors and officers under Section 14 for willful default, and (iv) refrain from reopening the already concluded Section 7A inquiry absent fresh material or legal basis. Counsel for respondent nos. 2, 3 and 4 stated, on instructions, that the Enforcement Officer's orders dated 04.11.2024 and 21.08.2025 (period 05/2019-04/2023) were identically worded inquiries, not final Section 7A assessment orders, and that the final order would be passed within three months; petitioners countered that the identically worded determination of 21.08.2025 showed the assessment was complete. Held (Arun Kumar, J., December 16, 2025): the two orders are identically worded Section 7A inquiries for period 05/2019-04/2023 addressed to the Assessing Authority for passing the final order of assessment; the petition was disposed of with a direction to respondent no.3 to pass the final order of assessment under Section 7-A within three months, all consequential action to follow accordingly.

HIGH COURT OF JUDICATURE AT ALLAHABAD

WRIT - C No. - 43195 of 2025

Azad Yadav And 19 Others

.....Petitioner(s)

Versus

Union Of India And 4 Others .....Respondent(s) Counsel for Petitioner(s) : Arshad Ullah Counsel for Respondent(s) : A.S.G.I., Jagdish Pathak

.....Respondent(s)

Court No. - 9

HON'BLE ARUN KUMAR, J.

Heard Sri Arshad Ullah, learned counsel for the petitioners and Sri Udit Chandra, learned counsel for the respondent nos.2, 3 and 4.

The present petition has been filed with the following reliefs:-

"i) Issue a writ, order or direction in the nature of the Mandamus commanding and directing the respondent No.3 & 4 to issue a Recovery Certificate under Section 8B of the Employees Provident Funds and Miscellaneous Provisions Act, 1952, in terms of the final order dated 4.11.2024 quantifying the statutory dues at Rs.1,18,12,974/- against respondent No.5.

ii) Issue a writ, order or direction in the nature of mandamus directing the respondent Nos. 3 & 4 to immediately initiate recovery proceedings under Section 8B read with section 8 of the Act, and to take coercive steps (as mentioned in Section 8B (attach the property, arrest the respondent No.5 and appoint the receiver for the management of respondent No.5's property) of Section 8 of the above said act.

iii) Issue a writ, order or direction in the nature of mandamus directing the respondent Nos. 3 3 & 4 to initiate prosecution proceedings against the directors and officers of Respondent No.5, under section 14 of the above said Act, 1952 for willful default and continued non payment of statutory Provident Fund dues.

iv) Issue Writ order or direction in the nature of mandamus directing the respondent Nos. 3 & 4 and restraining them from reopening or re-

WRIC No. 43195 of 2025

2

examining, (already concluded) the inquiry under Section 7A, in the absence of any fresh material or legal basis."

Sri Udit Chandra, learned counsel appearing for the respondent nos.2, 3 and 4, on the instructions received, states that the order dated 04.11.2024 is not the final assessment order under Section 7A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and it merely an inquiry prior to passing of the final assessment order. It is further contended that final order shall be passed by the competent authority within a period of three months.

Learned counsel for the petitioners raises an objection that the order dated 04.11.2024 was followed by another determination dated 21.08.2025. The subsequent determination is identically worded as the earlier order of Enforcement Officer, dated 04.11.2024, therefore, it is not correct to state that the final assessment is still to happen.

I have considered the submissions of the learned counsel for the parties and perused the materials available on record.

Perusal of the orders of the Enforcement Officer dated 04.11.2024 and 21.08.2025 would go to show that though they are identically worded and relate to period 05/2019-04/2023 but are titled to be Inquiry for the said period under Section 7A of the Act and addressed to the Assessing Authority for passing final order of assessment.

It is contended by the counsel for the respondent nos.2, 3 and 4 that proceedings for passing final assessment order are going on and a decision would be taken within a period of three months.

In view of the aforesaid, the present petition is disposed of with a direction to the respondent no.3 to pass final order of assessment under Section 7-A of the Act, in accordance with law, within a period of three months from today. All consequential action pursuant to passing of final assessment order shall follow accordingly.

(Arun Kumar,J.)

December 16, 2025 Ashok Kr.

Digitally signed by :- ASHOK KUMAR High Court of Judicature at Allahabad