Allowed

Goldman Sachs Services Private Limited v. the Regional Provident Fund Commissioner

Karnataka HC26 Sept 2024WP/8836/2021

Case brief

AI extract

What is this about?

This judgment disposed of three connected writ petitions filed by Goldman Sachs Services Private Limited against the Regional Provident Fund Commissioner. The Court allowed the petitions and set aside the orders levying damages and interest under Section 14B of the EPF Act.

What did the court decide?

The impugned orders dated April 19, 20, and 21, 2021, levying damages and interest under Section 14B of the EPF Act are set aside. The levying of penalty and consequential interest is also set aside.

Goldman Sachs Services Private Limited Vs… — Pension and Retirement Benefits | Karnataka HC (2024)

¶1

NC: 2024:KHC:40583 WP No. 8836 of 2021 C/W WP No. 8819 of 2021 WP No. 8822 of 2021

¶2

¶3

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

¶4

DATED THIS THE 26^TH DAY OF SEPTEMBER, 2024

¶5

BEFORE

¶6

THE HON'BLE MRS JUSTICE K.S. HEMALEKHA

¶7

WRIT PETITION NO. 8836 OF 2021 (L-PF)

¶8

C/W

¶9

WRIT PETITION NO. 8819 OF 2021 (L-PF) WRIT PETITION NO. 8822 OF 2021 (L-PF) IN WP No. 8836/2021

¶10

BETWEEN:

¶11

GOLDMAN SACHS SERVICES PRIVATE LIMITED, HAVING ITS OFFICE AT HELIOS BUSINESS PARK 150 OUTER RING ROAD, KADUBEESANAHALLI, BENGALURU -560 103, REPRESENTED BY ITS AUTHORIZED REPRESENTATIVE.

¶12

…PETITIONER

¶13

Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA

¶14

(BY SRI. S.S. NAGANAND, SENIOR ADVOCATE FOR SMT. NAMRATA KOLAR, ADVOCATE)

¶15

AND:

¶16

THE REGIONAL PROVIDENT FUND COMMISSIONER, REGIONAL OFFICE, K R PURAM, NO.F-28, NSU BLOCK, ITI CAMPUS (BENGALURU PLANT), DOORAVANI NAGAR, KR PURAM, BENGALURU - 560 016, REPRESENTED BY THE COMMISSIONER.

¶17

2 - NC: 2024:KHC:40583 WP No. 8836 of 2021 C/W WP No. 8819 of 2021 WP No. 8822 of 2021

¶18

UNION OF INDIA, REPRESENTED THROUGH THE SECRETARY, MINISTRY OF LABOUR AND EMPLOYMENT, SHRAM SHAKTI BHAWAN, RAFI MARG, NEW DELHI - 110 001.

¶19

…RESPONDENTS

¶20

(BY SMT. NANDITA D. HALDIPUR, ADVOCATE FOR R1; SRI. THIMMANNA BHAT, CGSC FOR R2)

¶21

THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR THE RECORDS OF PROCEEDINGS ON THE RECORD OF THE R-1 AND ETC.,

¶22

IN WP NO. 8819/2021

¶23

BETWEEN:

¶24

GOLDMAN SACHS SERVICES PRIVATE LIMITED, HAVING ITS OFFICE AT HELIOS BUSINESS PARK 150 OUTER RING ROAD, KADUBEESANAHALLI, BENGALURU -560 103, REPRESENTED BY ITS DIRECTOR MR. SRIVATHSAN PARTHASARATHY.

¶25

...PETITIONER

¶26

(BY SRI. S.S. NAGANAND, SENIOR ADVOCATE FOR SMT. NAMRATA KOLAR, ADVOCATE)

¶27

AND:

¶28

THE REGIONAL PROVIDENT FUND COMMISSIONER, REGIONAL OFFICE, K R PURAM, NO.F-28, NSU BLOCK,

¶29

3 - NC: 2024:KHC:40583 WP No. 8836 of 2021 C/W WP No. 8819 of 2021 WP No. 8822 of 2021

¶30

ITI CAMPUS (BENGALURU PLANT), DOORAVANI NAGAR, KR PURAM, BENGALURU - 560 016, REPRESENTED BY THE COMMISSIONER.

¶31

UNION OF INDIA, REPRESENTED THROUGH THE SECRETARY, MINISTRY OF LABOUR AND EMPLOYMENT, SHRAM SHAKTI BHAWAN, RAFI MARG, NEW DELHI - 110 001.

¶32

...RESPONDENTS

¶33

(BY SMT. NANDITA D. HALDIPUR, ADVOCATE FOR R1; SRI. THIMMANNA BHAT, CGSC FOR R2)

¶34

THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR THE RECORDS OF PROCEEDINGS ON THE RECORD OF THE R-1 AND ETC.,

¶35

IN WP NO. 8822/2021

¶36

BETWEEN:

¶37

GOLDMAN SACHS SERVICES PRIVATE LIMITED, HAVING ITS OFFICE AT HELIOS BUSINESS PARK 150 OUTER RING ROAD, KADUBEESANAHALLI, BENGALURU -560 103, REPRESENTED BY ITS DIRECTOR MR. SRIVATHSAN PARTHASARATHY.

¶38

...PETITIONER

¶39

(BY SRI. S.S. NAGANAND, SENIOR ADVOCATE FOR SRI. A. SHARAN A. KUKREJA, ADVOCATE)

¶40

4 - NC: 2024:KHC:40583 WP No. 8836 of 2021 C/W WP No. 8819 of 2021 WP No. 8822 of 2021

¶41

AND:

¶42

THE REGIONAL PROVIDENT FUND COMMISSIONER, REGIONAL OFFICE, K R PURAM, NO.F-28, NSU BLOCK, ITI CAMPUS (BENGALURU PLANT), DOORAVANI NAGAR, KR PURAM, BENGALURU - 560 016, REPRESENTED BY THE COMMISSIONER.

¶43

UNION OF INDIA, REPRESENTED THROUGH THE SECRETARY, MINISTRY OF LABOUR AND EMPLOYMENT, SHRAM SHAKTI BHAWAN, RAFI MARG, NEW DELHI - 110 001.

¶44

...RESPONDENTS

¶45

(BY SMT. NANDITA D. HALDIPUR, ADVOCATE FOR R1; SRI. THIMMANNA BHAT, CGSC FOR R2)

¶46

THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR THE RECORDS OF PROCEEDINGS ON THE RECORD OF THE R-1 AND ETC.,

¶47

THESE PETITIONS COMING ON FOR ORDERS, THIS DAY,

¶48

ORDER WAS MADE THEREIN AS UNDER:

¶49

CORAM: HON'BLE MRS JUSTICE K.S. HEMALEKHA

¶50

5 - NC: 2024:KHC:40583 WP No. 8836 of 2021 C/W WP No. 8819 of 2021 WP No. 8822 of 2021

¶51

ORAL ORDER

¶52

Petitioner in WP No.8836/2021, is seeking for the

¶53

following prayer:

¶54

(i) Call for the records of proceedings bearing No. PY/KRP/PD/35518/Diary No. 857/2018 on the record of the Respondent No. 1

¶55

(ii) Issue a Writ, Order or Direction, more particularly in the nature of Writ of Certiorari, quashing/setting aside the order bearing No. PY/KRP/PD/35518/Diary No. 857/2018 dated April 19, 2021; and

¶56

(iii) grant such further and other reliefs as this Hon'ble Court may deem fit in the interest of justice and equity.

¶57

Petitioner in WP No.8822/2021, is seeking for the

¶58

following prayer:

¶59

"(i) Call for the records of proceedings bearing No. PY/KRP/PD/35518/Diary No. 153/2019 on the record of the Respondent No. 1

¶60

(ii) Issue a Writ, Order or Direction, more particularly in the nature of Writ of Certiorari, quashing/setting aside the order bearing No. PY/KRP/PD/35518/Diary No. 153/2019 (Annexure-A) dated April 20, 2021; and

¶61

6 - NC: 2024:KHC:40583 WP No. 8836 of 2021 C/W WP No. 8819 of 2021 WP No. 8822 of 2021

¶62

(ii) grant such further and other reliefs as this Hon'ble Court may deem fit in the interest of justice and equity."

¶63

Petitioner in WP No.8819/2021, is seeking for the

¶64

following prayer:

¶65

"(i) Call for the records of proceedings bearing No. PY/KRP/PD/35518/Diary No. 50/2020 on the record of the Respondent No. 1

¶66

(ii) Issue a Writ, Order or Direction, more particularly in the nature of Writ of Certiorari, quashing/setting aside the order bearing No. PY/KRP/PD/35518/Diary No. 50/2020 dated April 21, 2021(Annexure-A); and

¶67

(iii) grant such further and other reliefs as this Hon'ble Court may deem fit in the interest of justice and equity."

¶68

The petitioners in all these petitions seeks to

¶69

the act on the part of the respondent – authorities in determining the damages payable under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 ("EPF Act" for short) and the interest

¶70

¶71

NC: 2024:KHC:40583 WP No. 8836 of 2021 C/W WP No. 8819 of 2021 WP No. 8822 of 2021

¶72

thereon. The tabular form of the claim made by respondent No.1 against the petitioner is culled out as under:

¶73

"S lN o	*Order* *Details*	*Principal* *Amount(Rs.)* *i.e. Damages*	*Interest* *Amount(Rs.)*	*Period*
1	Dairy No.857/2018 (W.P 8836/2021)	82,75,01,495/-	49,03,94,330/-	01.04.2017 to 31.03.2018
2	Dairy No.153/2019 (W.P 8822/2021)	6,39,07,110/-	4,25,17,498/-	01.04.2018 to 31.03.2019
3	Dairy No.50/2020 (W.P 8819/2021)	14,10,36,809/-	16,91,05,147/-	01.04.2019 to 31.03.2020
	*TOTAL*	103,24,45,414/-	70,20,16,975/-"

¶74

Learned Senior counsel, Sri S.S.Naganand

¶75

submits that in view of striking down of para No.83 of the EPF Act, holding that the international workers do not come under the purview of the EPF Act in the decision of Stone Hill Education Foundation and Others Vs. Union of India and Others¹ (Stone Hill Education Foundation) , the impugned order imposing damages and

¶76

1 W.P.No.18486/2012 disposed on 25.04.2024

¶77

8 - NC: 2024:KHC:40583 WP No. 8836 of 2021 C/W WP No. 8819 of 2021 WP No. 8822 of 2021

¶78

interest under Section 14B of the EPF Act is liable to be set aside.

¶79

Smt. Nanditapur Haldipur, learned counsel appearing for the respondent – authorities submits that, against the order in Stone Hill Education Foundation

¶80

and connected matters, W.A.No.887/2024 has been preferred by the authority and the appeal is pending consideration, pendency of the appeal cannot be a ground for the authority to keep the present petition pending. This Court in the case of Stone Hill Education Foundation having held at para No.83A as unconstitutional, the impugned orders levying damages and interest, which are determined on the PF contributions to be paid to international workers are consequent orders, which needs to be set aside and this Court pass the following:

¶81

ORDER

¶82

i. The Writ petitions are allowed .

¶83