Disposed

M/s. Omsai Professional Detective Security Services (P) Limited, v. Regional Provident Fund Commissioner

Andhra Pradesh HC12 Nov 2024WP/24544/2024

Case brief

AI extract

What is this about?

High Court disposed of a writ petition challenging an attachment order and arrest warrant under the EPF Act. The Court held that the respondents failed to consider remittances made by the petitioner and directed them to reconsider the claim based on an explanation, granting a stay on attachment and arrest pending the process.

What did the court decide?

Stay on order of attachment and warrant of arrest; Direction to respondents to consider petitioner's remittances and explanation under Section 7(B) and pass appropriate orders.

M/s. Omsai Professional Detective… — Pension and Retirement Benefits | Andhra Pradesh HC (2024)

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IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI

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(Special Original Jurisdiction)

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WEDNESDAY, THE THIRTEENTH DAY OF NOVEMBER ^ TWO THOUSAND AND TWENTY FOUR

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PRESENT

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HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 24544 OF 2024

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Between:

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M/s. Omsai Professional Detective Security Services (P) Limited, 57-3-4, Sriram Nilayam, Patamata, Vijayawada, NTR District - 520 010, Rep. by its Managing Director, Pilli Phani Raj, S/o. P.Kanaka Rao, Aged about 44 years ...PETITIONER

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AND

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Regional Provident Fund Commissioner, Employees Provident^Fund Organisation, Regional Office, 3'"^ Lane, Krishna Nagar, Guntur- 522 006, Guntur District.

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The Regional Provident Fund Commissioner-ll /Recovery Officer, Employees' Provident Fund Organisation, Ministry of^Labourand Employment, Government of India, District Office, Annadana Samajam Road, Vijayawada, NTR District, Andhra Pradesh 520 003.

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The Enforcement Officer, Employees' Provident Fund Organisation, Ministry of Labour and Employment, Government of India,^District Office, Annadana Samajam Road, Vijayawada, NTR District,^Andhra Pradesh 520 003.

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The Station House Officer, Patamata Police Station,^Patamata Vijayawada, NTR District.

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...RESPONDENTS Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a WR/T OF MANDAMUS declaring the order of attachment order dated 17.10.2024 bearing No.AP/RO/GNT/REC/16587 /Z-

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6/CP-16/2024 issued by the authorized officer/ 1®' Respondent to the Recovery Officer under Section 14B/7Q dues of the Employees^Provident Fund and Miscellaneous Provisions Act, 1952 (The Act) directing the petitioner establishment to pay the sum of Rs.3,73,31,909/-^andRs.5000/- towards recovery cost and charges with a total of Rs.3,73,36,909 /- (Rupees Three Crores Seventy Three Lakhs Thirty One Thousand Nine Hundred Nine only) in respect of Certificate No. 10/24, 15/24 and 164/2024, dated 15.04.2024 and 29.04.2024 respectively for the period from 5/2018 to 11/2021 towards 7A dues and for the period from 12/2021^{to3/2023towards} 14B/7Q dues and also order of attachment of immovable property and also warrant of arrest NO.AP/DOA/JA/REC/16587/CP-26/2024, dated 14.10.2024 without basis apart from arbitrary, high handed exercise of power and also violative of principles of natural justice^{andfundamental} rights guaranteed under the Constitution of India. lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the^{circumstances} stated in the affidavit filed in support of the petition, the High Court may be pleased to stay of all proceedings further including^{thearrestWarrantvide} No. AP/DOA/JA/REC/16587/CP-26/2024, dated 14.10.2024 issued by the 2nd Respondent, pending disposal of the Writ Petition. lA NO: 2 OF 2024

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Petition under Section 151 CPC praying that in the^{circumstances} stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the respondents to lift the order of attachment No.AP/RO/GNT/REC/165 87/Z- 6/CP-16/2024, dated 17.10.2024 to facilitate the petitioner to dispose of the property to pay the remaining statutory dues pending disposal of the Writ Petition.

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Counsel for the Petitioner; SRI K.VENUGOPAL REDDY Counsel for the Respondent Nos. 1 to 3: SRI T.BALAJI,^SCFOREPFO Counsel for the Respondent No.4: GP FOR HOME

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The Court made the following; ORDER

APHC010477562024

0ri?

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction)

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[3329]

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WEDNESDAY, THE THIRTEENTH DAY OF NOVEMBER TWO THOUSAND AND TWENTY FOUR

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PRESENT

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THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

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WRIT PETITION NO: 24544/2094

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Between:

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M/s. Omsai Professional Detective Security Services (p) ...PETITIONER Limited,

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AND

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Regional Provident Fund Commissioner and Others ...RESPONDENT(S)

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Counsel for the Petitioner:

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K VENUGOPAL REDDY

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Counsel for the Respondent(S):

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1.T BALAJI(SC FOR EPFO)

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2.GP FOR HOME

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The Court made the following:

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THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 24544/2024

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ORDER:

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The present Writ Petition is filed under Article 226 of the Constitution of India seeking following relief:

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pleased to issue a Writ of Mandamus declaring the order of attachment order dated 17.10.2024 bearing No,AP/RO/GNT/REC/16587/Z-6/CP-16/2024 issued by the authorized officer/ 1^‘ Respondent to the Recovery Officer under Section 14B/7Q dues of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (The Act) directing the petitioner establishment to pay the sum of Rs.3,73,31,909/- and Rs. 5000/ towards recovery cost and charges with a total of Rs.3,73,36,909/- (Rupees Three Crores Seventy Three Lakhs Thirty One Thousand Nine Hundred Nine only) in respect of Certificate No, 10/24, 15/24 and 164/2024, dated 15.04.2024 and 29.04.2024 respectively for the period from 5/2018 to 11/2021 towards 7A dues and for the period from 12/2021 to 3/2023 towards 14B/7Q dues and also order of attachment of immovable property and also warrant of arrest No.AP/DOA/J/VREC/16587/CP-26/2024, dated 14.10.2024 without basis apart from arbitrary, high handed exercise of power and also violative of principles of natural justice and fundamental rights guaranteed under the Constitution of India ”

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Heard learned counsel for the petitioner, Sri T. Balaji,^{learnedStanding} Counsel for EPFO appearing for respondent Nos.1 to 3 and learned Government Pleader for Home appearing for the respondent^No.4. 3. When the matter is taken up for hearing, it is brought^{tothenoticeof} this Court by the learned counsel for the petitioner^{that,thepetitionerisa} private limited company duly registered under the provisions of the Companies Act, 2013 and is engaged in the business^{ofprovidingmanpower} (i.e., security personnel) to both private and government^{organizations.} It is further submitted that the petitioner has consistently^{compliedwithitsstatutory} obligations by remitting the provident fund contributions^{foritsemployees,as} required, in accordance with the regulations.

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He further contends that, to the utter surprise of^the petitioner’s company, respondent Nos.1 to 3 herein issued an Order^{ofAttachmentof} Immovable Property, vide No.AP/RO/GNT/REC/16587/Z-6/CP-16/2024/, dated 17.10.2024. But, a warrant of arrest was issued^{on14.10.2024,without} considering the remittances made by the petitioner^{aswellasadheringtothe} procedure for issuance of warrants as contemplated and erroneously proceeded further and issued the impugned proceedings based on an assessment order under Section 7(A) of the Employees' Provident Funds

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(herein referred to as, the Act) and Miscellaneous Provisions Act, 1952 dated 24.05.2023. 5. He further submits that, after issuance of the impugned assessment order, the petitioner had remitted an amount of Rs.1,12,05,011/- by way of challans and also remitted by way of demand draft to an extent of Rs.63,89,009/if these amounts are accounted for, the petitioner’s outstanding liability should be reduced and adjusted accordingly if that was done, the impugned proceedings would not have been issued. However, despite these remittances, the respondents issued an Order of Attachment and Warrant of Arrest for an amount of Rs.3,73,38,009/which is arbitrary. illegal and is liable to be set aside.

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On the other hand, Sri T. Balaji, learned Standing Counsel for EPFO, nd furnished a copy of written instructions issued by^the2 respondent herein, wherein it is stated that, from the list of payments (amounting to Rs.1,12,05,011) submitted along with the explanation of the establishment, but the remittances are for the months of December 2021 (2 challans), July 2021, January 2022, February 2023 and March 2023 (7 challans) which are not part of the assessed dues (period of assessment is 05/2018 to 11/2021) against which the RRC is issued and is currently the subject matter of the present Writ Petition before this Court. This evasive attitude is evident from

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the fact that, the establishment has failed to remit^{thependingPFdues} pertaining to the period from 05/2018 to 11/2021 assessed^{videOrderunder} Section 7A of EPF and MF Act, dated 24.05.2023 even after significant delay for more than 18 months. It is further stated that,^{thecurrentstatusofthe} pending dues against the aforementioned three recovery^{certificatesareas}

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mentioned below.

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S. No.	Recovery Certificate details	Opening balance	Remitted amounts	Pending balance
1	No.GR/GNT/10/2024/16587/7A/KS T/2024/ dated 15.04.2024-7A dues	Rs.3,58,14,736/-	Rs.63.89,009/-	Rs.2,94,25.727/-
2	No.GR/GNT/16587/15/2024/PD/6/2 024/316 dated 29.04.2024-14B dues	Rs.3,81,860/-	0	Rs.3.81,860/-
3	No.GR/GNT/16587/164/2024/PD/6/ 2024/316 dated 29.04.2024 7Q dues	Rs.11,36,413/-	0	Rs.11,36,413/-
	TOTAL	Rs.3,73,33,009/-	Rs.63.89,009/-	Rs.3,09,44,000/-

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it is admitted that 7. Fie further submits that, as per the written instructions, the receipt of DD amount of Rs.63,89,069/- and adjusted^{thesame,finallythe} amount payable by the petitioner under Section 7(A) of the Act is Rs.2,94,25,727/-, but these instructions are contrary to the demand in attachment order as well as the warrant of arrest issued by the respondents.

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Taking into consideration the submissions made by learned^counselfor the petitioner, learned Standing Counsel for EPFO and^on perusal of the

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material available on record including the written instructions as well, it is observed that, respondents herein proceeded basing upon the Assessment Order, dated 24.05.2023 without considering the payments made by the petitioner in between till the date of Order of Attachment The said fact was revealed from the written instructions that some of the amounts were paid by the petitioner to a tune of Rs.1,12,05,011/by way of challans and Rs.63,89,009/- by way of DD. It is further observed that, the contention of the learned counsel for the petitioner is, the respondents shall consider the amounts remitted by the petitioner and to make a fresh payment order under Section 7(A) of the Act and by considering the explanation submitted by the petitioner dated 13.09.2024. 9. In view of the facts and ci circumstances and on perusal of the written instructions, this Court deems it appropriate to dispose of the present Writ Petition, directing the respondent Nos. 1 to 3 herein to consider the claim of the petitioner fonArarded by way of an. explanation, dated 13.09.2024 and further, the petitioner is also directed to file an appeal under Section 7(B) of the Act, substantiating the claims under remittances which were made by the petitioner within a period of two (02) weeks from the date of receipt of a copy of this Order. After such submission, the respondents are directed to consider the entire material submitted by the petitioner after affording an opportunity of

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personal hearing to the petitioner and pass appropriate orders within a reasonable period as convenient to the respondents. Till then, the respondents are restrained from proceeding further pursuant to the Order of Attachment of Immovable Property, vide NO.AP/RO/GNT/REC/16587/Z-6/CP-16/2024/, dated 17.10.2024 and a warrant of arrest bearing No.AP/DO/VJA/REC/16587/CP-26/2024, dated 14.10.2024.

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Accordingly, the Writ Petition is disposed of. There shall be no order as to costs.

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Consequently, Miscellaneous Petitions, if any, pending in this Writ Petition shall stand closed.

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Sd/- B. PRASADA RAO //TRUE COPY// ASSISTAN^^GISTRAR 1^:^{SECTIONOFFICER}

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To,

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The Regional Provident Fund Commissioner, Employees^Provident Fund Organisation, Regional Office, S'"' Lane, Krishna Nagar, Guntur - 522 006, Guntur District.

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The Regional Provident Fund Commissioner-ll /Recovery Officer, Employees' Provident Fund Organisation, Ministry of^Labourand Employment, Government of India, District Office, Annadana Samajam Road, Vijayawada, NTR District, Andhra Pradesh 520 003.

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The Enforcement Officer, Employees' Provident Fund^{Organisation,} Ministry of Labour and Employment, Government of India,^District Office, Annadana Samajam Road, Vijayawada, NTR District,^Andhra Pradesh 520 003.

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