Dismissed¶¶57

The Regional Provident Fund Commissioner I v. M/S Bombay Rayon Fashion Ltd.

Karnataka HC5 Jun 2026WP/12842/2023

Case brief

AI extract

What is this about?

EPF damages Section 14-B; Section 7-Q interest; discretionary 20% reduction for absence of intentional delay; CGIT Bangalore EPF No.150/2017 order dated 27.02.2020 quashing sought via certiorari; Regional Provident Fund Commissioner-I v. M/s. Bombay Rayon Fashion Ltd. (Unit-14); Writ Petition No. 12842 of 2023 (L-PF); High Court of Karnataka, decision 05.06.2026; NC: 2026:KHC:26889-DB; writ dismissed; damages reduced Rs.5,19,526/- to Rs.4,15,600/-; interest Rs.4,56,224/- accepted; CDR restructuring backdrop.

What did the court decide?

None to the petitioner; the Writ Petition was dismissed and the CGIT's order reducing the Section 14-B damages by 20% stands, with pending interlocutory applications disposed of. ¶¶57

The Regional Provident Fund Commissioner I Vs M/S… — Writ and Judicial Review | Karnataka HC (2026)

¶1

¶2

NC: 2026:KHC:26889-DB WP No. 12842 of 2023

¶3

HC-KAR

¶4

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5^TH DAY OF JUNE, 2026

¶5

PRESENT

¶6

THE HON'BLE MR. JUSTICE D K SINGH AND

¶7

THE HON'BLE MR. JUSTICE T.M.NADAF WRIT PETITION NO. 12842 OF 2023 (L-PF)

¶8

BETWEEN:

¶9

THE REGIONAL PROVIDENT FUND COMMISSIONER - 1., EMPLOYEE PROVIDENT FUND ORGANIZATION, REGIONAL OFFICE - PEENYA, PLOT NO.S(1)F, 1^ST CROSS, 1^ST STAGE, PEENYA INDUSTRIAL ESTATE, BANGALORE - 560 058. NOW AT NO.62, 3^RD CROSS, INDUSTRIAL SUBURB, YESHWANTHPUR 2^ND STAGE, BENGALURU - 560 022.

¶10

Digitally signed by REKHA R Location: High Court of Karnataka

¶11

…PETITIONER (BY SRI. SARAVANA P., ADVOCATE) AND:

¶12

M/S. BOMBAY RAYON FASHION LTD., (UNIT-14), NO.42/2-1, INDUSTRIAL SUBURB, YESHWANTHPURA, BENGALURU - 560 022, REP BY ITS VICE PRESIDENT.

¶13

…RESPONDENT

¶14

2 - NC: 2026:KHC:26889-DB WP No. 12842 of 2023

¶15

HC-KAR

¶16

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER WRIT FOR QUASHING THE ORDER DATED:27.02.2020 IN EPF/ITB/150/2017 (ANNEXURE-A) PASSED BY THE HON'BLE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT BANGLAORE AND ETC.,

¶17

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MR. JUSTICE T.M.NADAF

¶18

ORAL ORDER

¶19

(PER: HON'BLE MR. JUSTICE T.M. NADAF)

¶20

This Writ Petition is filed by the Regional Provident Fund Commissioner,-I, Employees' Provident Fund Organization, Bengaluru invoking extraordinary jurisdiction of this Court under Articles 226 and 227 of the Constitution of India, assailing the order dated 27.02.2020

¶21

3 - NC: 2026:KHC:26889-DB WP No. 12842 of 2023

¶22

HC-KAR

¶23

passed by the Central Government Industrial TribunalCum-Labour Court¹ in EPF No.150/2017 (Annexure-A).

¶24

The CGIT vide the impugned order allowed the appeal in part filed by the establishment/ employer, whereby reducing the quantum of damages levied instead of Rs.5,19,526/- to Rs.4,15,600/-, that is marginally reducing by 20% in terms of discretion provided under Section 14-B of the Employees Provident Fund & Miscellaneous Provisions Act, 1952² however keeping intact the other terms stipulated in the impugned order.

¶25

Facts germane to file this Writ Petition are as under:

¶26

The respondent was issued with an order by the petitioner herein dated 16.03.2015 imposing damages of Rs.5,16,526/- under Section 14-B of PF Act on belated payment of contribution in respect of the period December 2012 to October 2013.

¶27

1 the CGIT, for short

¶28

2 the Act of 1952, for short

¶29

4 - NC: 2026:KHC:26889-DB WP No. 12842 of 2023

¶30

HC-KAR

¶31

The respondent is engaged in manufacturing

¶32

and exporting of readymade garments with workforce of 8,000 employees on its rolls. Due to Worldwide Economic recession and collapse of Major European and US Bankers/ Financial Institutions and also due to depreciation in the value of the Indian Rupee, the Company suffered Forex Loss (Cash Loss) in the year 2010-11 and 2011-12. Considering the subsistence of its employees, the respondent Company, running the same with all difficulties, approached the Corporate Debt Restructuring Cell (CDR) vide letter dated 27.09.2013 which was considered favorably admitting under restructuring

¶33

scheme.

¶34

On 26.02.2015, the petitioner herein claimed

¶35

damages in respect of late remittance of contribution from 12/2012 to 10/2013, despite the objections of the respondent Company that it was running through recession and other difficulties existing Worldwide, the Commissioner levied damages of Rs.5,19,526/- in a

¶36

5 - NC: 2026:KHC:26889-DB WP No. 12842 of 2023

¶37

HC-KAR

¶38

mechanical manner without exercising the discretion vested with him under Section 14-B of the Act of 1952. An order of interest also came to be passed under Section 7- Q of the Act of 1952 for a sum of Rs.4,56,224/- which the respondent Company has accepted. The respondent Company aggrieved by the order of payment of damages, approached the CGIT.

¶39

In response to notice, the petitioner herein appeared before the CGIT and submitted reply justifying the order impugned, contending that there is admitted delay in remitting the PF contributions; deposit of the dues

¶40

after the date specified in law does not absolve the employer of the liability to pay the damages. Section 14-B does not speak or differentiate between the intentional and unintentional default, every default attracts levy of damages and interest upon the belated payment.

¶41

The CGIT having found at paragraph No.9 of the Judgment that the petitioner herein passed the order

¶42

¶43

NC: 2026:KHC:26889-DB WP No. 12842 of 2023

¶44

HC-KAR

¶45

without recording the existence of mens rea/ actus reus and in gross inadvertence to the circumstances which actuated the delay; further held that, it is a non-speaking order thus violative of the principles of natural justice. However, holding that the interest imposed under Section 7-Q of the Act of 1952, which the respondent has admitted is binding on the Company, but exercising discretion under Section 14-B of the Act of 1952, instead of remanding the matter, reduced the damages by 20% i.e., from Rs.5,19,526/- to Rs.4,15,600/-, marginally reducing the same to Rs.1,04,000/-. It is this order passed by the CGIT is called in question in this Writ Petition.

¶46

Heard, Sri.Saravana.P, learned counsel

¶47

appearing for the petitioner.

¶48

Learned counsel submits that the order passed by the CGIT reducing the damages by 20% clearly shows that the CGIT is in confirmation of the order, however only on the point that there is no mens rea/ actus reus and in

¶49

7 - NC: 2026:KHC:26889-DB WP No. 12842 of 2023

¶50

HC-KAR

¶51

gross inadvertence to the circumstances which actuated the delay, reduced 20% of damages. Learned counsel further submits that, Section 14-B does not speak or differentiate between the intentional and unintentional default, every default attracts levy of damages and interest upon the belated payment and sought to allow the Writ Petition, set-aside the order passed by the CGIT and dismiss the appeal.

¶52

We having considered the submission of learned

¶53

counsel for the petitioner, are of the view that though the CGIT affirmed the order passed by the petitioner, it exercised its discretion under Section 14-B of the Act of 1952 on the point that there is no intentional delay in payment of contribution, the same in conformity with settled position of law, which does not call for any interference of this Court. Accordingly, the Writ Petition stands dismissed .

¶54

¶55

NC: 2026:KHC:26889-DB WP No. 12842 of 2023

¶56

HC-KAR

¶57