Partly allowed

M/S.Steel Complex Limited v. the Regional Provident Commissioner, Kzd

Kerala HC16 Nov 2011WP(C)/17450/2006

Case brief

AI extract

What is this about?

The Court considered a writ petition by a sick industrial company seeking waiver of damages levied under Section 14B of the EPF Act. Relying on BIFR recommendations and rehabilitation schemes, the Court quashed the impugned order but remitted the matter to the Respondent Board for disposal after payment of outstanding interest and a hearing.

What did the court decide?

Impugned order quashed; payment of interest under Section 7Q mandated within two months; matter remitted to the Board for reconsideration and disposal within three months.

M/S.Steel Complex Limited Vs the Regional Provident… — Company and Corporate | Kerala HC (2011)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT :

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THE HONOURABLE MR. JUSTICE B.P.RAY WEDNESDAY, THE 16TH NOVEMBER 2011 / 25TH KARTHIKA 1933

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WP(C).No. 17450 of 2006(B)

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--------------------------

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PETITIONER

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---------------

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M/S. STEEL COMPLEX LTD., POST BOX NO.42, FEROKE-673 672, KOZHIKODE REPRESENTED BY ITS MANAGING DIRECTOR, MR.UNNEENKUTTY.

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BY ADVS.SRI.E.K.NANDAKUMAR

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SRI.E.K.NANDAKUMAR SRI.A.K.JAYASANKAR NAMBIAR

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RESPONDENT(S):

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--------------------

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1. THE REGIONAL PROVIDENT FUND COMMISSIONER EMPLOYEES PROVIDENT FUND ORGANIZATION, BHAVISHYA NIDHI BHAVAN, P.B.NO.1806, ERANHIPALAM, KOZHIKODE.

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2. THE CENTRAL BOARD OF TRUSTEES, EMPLOYEES PROVIDENT FUND ORGANISATION BHAVISHYA NIDHI BHAVAN, 14-BHIKAIJI CAMA PLACE, NEW DELHI-110 066.

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3. THE DIRECTOR (REVOVERY) EMPLOYEES PROVIDENT FUND ORGANISATION, BHAVISHYA NIDHI BHAVAN, 14-BHIKAIJI CAMA PLACE NEW DELHI-110 066.

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4. THE ASSISTANT PROVIDENT FUND COMMISSIONER, EMPLOYEES PROVIDENT FUND ORGANIZATION, BHAVISHYA NIDHI BHAVAN, P.B.NO.1806, ERANHIPALAM, KOZHIKODE.

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R1 TO 4 BY ADV. SRI.THOMAS MATHEW NELLIMOOTTIL,SC, P.F.

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 16/11/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 17450 of 2006(B)

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APPENDIX

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PETITIONER'S EXHIBITS

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EXT.P1. COPY OF THE ORDER NO.KR/KK/3996/ENF. DAM. CELL / (3) / 05 DATED 25.07.2005.

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EXT.P2. COPY OF THE ORDER NO.KR/KK/3996/ENF. 1 / (3) 2/ 05 DATED 02.12.2005.

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EXT.P3. COPY OF THE ORDER NO.KR/KK/3996/ENF. DAM. CELL / 1 (3) / 2005 DATED 08.11.2005.

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EXT.P4. COPY OF THE APPLICATION IN ORDER NO.KR/KK/3996/ENF. 1 (3) /2/ 05/1/11809 DATED 20.01.2006.

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EXT.P5. COPY OF THE APPLICATION IN ORDER NO.KR/KK/3996/ENF. DAM. CELL/ 1 (3) 2005/11335 DATED 20.01.2006.

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EXT.P6. COPY OF THE SUMMARY RECORD OF PROCEEDINGS DATED 16.05.2006.

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EXT.P7. COPY OF THE ORDER NO.RRC/E II/6 (5) 06/KR DATED 08.06.2006.

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EXT.P8. COPY OF THE MODIFIED SANCTIONED SCHEME OF THE BIFR DATED 10.6.2010 (WITHOUT ITS ANNEXURES)

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RESPONDENT'S EXHIBTITS : NIL

/ TRUE COPY /

P.A. TO JUDGE

B.P. RAY, J.

- - - - - - - - - - - - - - - - - W.P.(C) Nos. 17450 of 2006

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Dated this the 16^th day of November, 2011.

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JUDGMENT

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Heard the learned counsel for the petitioner.

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The petitioner has approached this Court with the

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following prayers:

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Call for the records leading to Ext.P7 communication and to quash the same by the issue of a writ or certiorari.

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Issue a writ of mandamus or other appropriate writ, order or direction commanding the 2^nd respondent to consider and dispose of Exts.P4 and P5 applications in accordance with law after providing the petitioner an opportunity of being heard.

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The case of the petitioner is as follows:

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The company is a Sick Industrial Company as defined under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985. Under Section 14B of the Employees Provident Fund and Miscellaneous Provisions Act which deals with the levy of penal charges, the Central Board of Trustees of the Employees Provident Fund Organisation has the power to reduce or waive the damages levied under the section in respect of an establishment which is a sick industrial unit undergoing a scheme of rehabilitation subject to such terms and conditions

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W.P.(C) Nos.17450 of 2006

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specified in the scheme. Under Paragraph 32B of the scheme, the Central Board may completely waive the damages imposed in respect of a sick industrial company where there has been change of management of the said company or where the BIFR recommends complete waiver. In respect of the petitioner Company, which is undergoing a scheme of rehabilitation, there has been a further change of management pursuant to a joint venture agreement entered into between the Government of Kerala and the Steel Authority of India Ltd. In terms of the agreement, the management and control of the company will vest with SAIL. It is further asserted that the BIFR has also recommended waiver of damages levied for delayed payment of PF dues for the period 1997 to 2004. Damages under Section 14B in the present case have been levied for delayed remittances during the period April, 2003 to March, 2004 and March 2003 in respect of a person who is on deputation.

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In view of such recommendation, I am of the considered view that the petitioner Company shall make a representation highlighting its grievances before the Board enclosing a copy of this order. The learned counsel for the petitioner submits that the Company has already made a representation in terms of Section 32B enclosing the modified scheme as well as the BIFR

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W.P.(C) Nos.17450 of 2006

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order. If that be so, the Central Board of Trustees shall dispose of the representation submitted by the petitioner within a time frame after giving an opportunity of hearing to the petitioner.

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In view of the mandatory provisions contained in paragraph 32B of the scheme and the recommendations of the BIFR, I am of the considered view that the petitioner is entitled to the benefit of waiver of damages as claimed by it. The learned counsel for the respondents submits that the petitioner Company has not paid the interest levied on it under Section 7Q of the Act. If the amount has not been paid, the same shall be paid within two months from today. The impugned order under Ext.P7 is quashed. The matter is remitted back to the Board for reconsideration in accordance with law and appropriate orders shall be passed within three months from the date of receipt of a copy of this judgment. A copy of the judgment be sent to respondent No.2 at the cost of the petitioner. Requisites for the same shall be filed within three weeks from today.

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This writ petition is disposed of as above.

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sd/- B.P. RAY, JUDGE.

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W.P.(C) Nos.17450 of 2006

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-:4:-

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B.P. RAY, J.

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O.P.No. 13887 of 2002

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W.P.(C) Nos.17450 of 2006

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-:5:-

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Dated this the 16^th day of November, 2011.

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JUDGMENT

M/S.Steel Complex Limited v. the Regional Provident Commissioner, Kzd

Case brief

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M/S.Steel Complex Limited v. the Regional Provident Commissioner, Kzd

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