Disposed¶7

Indus International School v. the Regional Provident Fund Commissioner

Bombay HC18 Mar 2025WP/497/2025

Case brief

AI extract

What is this about?

International Workers; provident fund liability of employer; Section 7Q interest levy of Rs.25,82,163/-; Section 7A assessment order dated 19 June 2023; Article 14 of the Constitution; paragraph 83 EPF Scheme; paragraph 43A EPF (Pension) Scheme; Stone Hill Education Foundation vs. The Union of India & Ors. (Karnataka High Court, 25 April 2024); interim stay on implementation of interest order; M/s. Indus International School v. Regional Provident Fund Commissioner-II; adjourned to 18 March 2025.

What did the court decide?

Interim stay: implementation of the impugned order dated 19 November 2024 withheld till the next date of hearing; Petition adjourned to 18 March 2025. ¶7

Indus International School vs the Regional Provident Fund Commissioner — Bombay HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Interim stay: implementation of the impugned order dated 19 November 2024 withheld till the next date of hearing; Petition adjourned to 18 March 2025.

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Issue for consideration

Whether the Petitioner is liable to pay the interest of Rs.25,82,163/- levied under Section 7Q of the Act consequent to the provident fund dues ascertained by the order dated 19 June 2023 (characterised by counsel as assessed under Section 7A of the Act) in respect of two International Workers, or whether — given that the Karnataka High Court has held the provisions imposing employer provident fund liability for International Workers violative of Article 14 of the Constitution of India — the Petitioner is entitled to refund of the assessed dues so that no interest is payable.

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Ratio / Principle

Interim direction: till the next date of hearing (the Petition is listed again on 18 March 2025), the impugned order dated 19 November 2024 shall not be implemented.

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Detailed headnote1 paragraphs

Bombay High Court (Civil Appellate Jurisdiction), Writ Petition No. 497 of 2025 — M/s. Indus International School v. The Regional Provident Fund Commissioner-II (Sandeep V. Marne, J.) (interim order dated 17 January 2025): Counsel for the Petitioner relied on a Karnataka High Court Single Judge judgment and order dated 25 April 2024 (Stone Hill Education Foundation vs. The Union of India & Ors.) holding paragraph 83 of the EPF Scheme and paragraph 43A of the EPF (Pension) Scheme — dealing with employer liability to deposit provident fund in respect of International Workers — violative of Article 14 of the Constitution of India. The impugned order dated 19 November 2024, passed under Section 7Q of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, levies interest of Rs.25,82,163/- consequent to the order dated 19 June 2023 ascertaining provident fund dues of two International Workers (Clementine Elise Clara Gilles and Ann Elizabeth Wenger). Counsel contended that, in view of the constitutional finding, the Petitioner is entitled to refund of the dues assessed under Section 7A of the Act and no interest is payable. Respondent-RPFC-II sought time; the Petition was adjourned to 18 March 2025 with an interim direction that the impugned order shall not be implemented till the next date of hearing.

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k 1/2 912 wp 497.25 as.doc

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION

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WRIT PETITION NO.497 OF 2025

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M/s. Indus International School ....Petitioner V/S

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The Regional Provident Fund Commissioner-II ....Respondent

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Mr. Aumkar V. Joshi a/w Mr. Nitin Borkar for the Petitioner. Ms. Ranjana Todankar for Respondent.

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CORAM: SANDEEP V. MARNE, J. DATE : 17 JANUARY 2025.

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P.C.:

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Heard Mr. Joshi, the learned counsel appearing for the Petitioner.

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Mr. Joshi would invite my attention to the judgment and order dated 25 April 2024 passed by the learned Single Judge of Karnataka High Court ( Stone Hill Education Foundation vs. The Union of India & Ors. ) in which paragraph 83 of the EPF Scheme and paragraph 43A of the EPF (Pension) Scheme are held to be violative of Article 14 of the Constitution of India. The said provisions deal with liability of the employer to deposit provident fund in respect of International Workers.

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The impugned order dated 19 November 2024 is passed under provisions of Section 7Q of the Employees’ Provident Fund katkam Page No. 1 of 2

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k 2/2 912 wp 497.25 as.doc

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and Miscellaneous Provisions Act, 1952 ( the Act ) levying interest of Rs.25,82,163/- consequent to the order dated 19 June 2023 ascertaining the provident fund dues in respect of two International Workers viz . Clementine Elise Clara Gilles and Ann Elizabeth Wenger.

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According to Mr. Joshi since the very provision for making the employer liable to deposit provident fund in respect of International Workers is held to be violative of provisions of Article 14 of the Constitution of India by the Karnataka High Court, the Petitioner is in fact entitled to refund of the dues assessed by order passed under Section 7A of the Act and that therefore, there is no question of paying any interest on such ascertained dues.

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Ms. Todankar, learned counsel would appear on behalf of Respondent-RPFC-II and seeks time.

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List the Petition again on 18 March 2025.

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Till the next date of hearing, the order dated 19 November 2024 shall not be implemented.

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Digitally signed by SUDARSHAN SUDARSHAN RAJALINGAM RAJALINGAM KATKAM KATKAM Date: 2025.01.18 16:40:15 +0530

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(SANDEEP V. MARNE, J.)

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Page No. 2 of 2

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katkam

Indus International School v. the Regional Provident Fund Commissioner

Case brief

What is this about?

What did the court decide?

Indus International School v. the Regional Provident Fund Commissioner

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Cases cited

Statutes considered

Procedural history

Parties & counsel

Coram

Case details

All orders in this case

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