Allowed

Ckkm Pharmacy v. Employees Provident Fund Organization

Kerala HC19 Feb 2020WP(C)/1982/2020

Case brief

AI extract

What is this about?

The High Court of Kerala disposed of a writ petition challenging orders under the Employees' Provident Funds Act imposing dues. Granted the petitioner permission to clear dues in 12 equal monthly installments and ordered the impugned proceedings be kept in abeyance pending payment.

What did the court decide?

Petitioner permitted to clear dues in 12 equal monthly installments; recovery proceedings kept in abeyance pending payment without default.

Ckkm Pharmacy Vs Employees Provident Fund… — Pension and Retirement Benefits | Kerala HC (2020)

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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 RAJA VIJAYARAGHAVAN V

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WEDNESDAY, THE 19TH DAY OF FEBRUARY 2020 / 30TH MAGHA, 1941

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WP(C).No.1982 OF 2020(W)

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PETITIONER :

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M/S CKKM PHARMACY HILL PALACE ROAD,XXIV/167, TRIPUNITHURA,ERNAKULAM-682301, REPRESENTED BY ITS PROPRIETOR, MRS.KANTHI CHANDRAN.

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BY ADV. SRI.KANDAMPULLY RAHUL

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RESPONDENTS :

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1 EMPLOYEES PROVIDENT FUND ORGANIZATION REPRESENTED BY ADDL.CENTRAL PROVIDENT FUND COMMISSIONER(KERALA AND LAKSHADWEEP), BHAVISHYANIDHI BHAWAN,

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P.B.NO.1016,PATTOM,THIRUVANANTHAPURAM-695004.

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2 REGIONAL PROVIDENT FUND COMMISSIONER, BHAVISHYA NIDHI BHAWAN,JOURNALIST COLONY, CHAMMANY RD,KATHRIKADAVU, ERNAKULAM-682017.

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3 ASSISTANT PROVIDENT FUND COMMISSIONER, BHAVISHYA NIDHI BHAWAN,JOURNALIST COLONY, CHAMMANY RD,KATHRIKADAVU, ERNAKULAM-682017.

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4 STATE BANK OF INDIA, KARTHEDATH AVENUE,N FORT RD, VADAKKEKOTTA,KOTTAKAKOM, THRIPPUNITHURA,ERAKULAM,KERALA-68301, REPRESENTED BY ITS BRANCH MANAGER.

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R1-3 BY ADV. SRI.S.PRASANTH

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SRI M. JITHESH MENON, SC

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 19.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No.1982 OF 2020(W)

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JUDGMENT

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The petitioner is a concern engaged in the business of manufacture

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and sale of Ayurveda products represented by its proprietrix Mrs. Kanthi Chandran. She has approached this Court challenging Ext.P1 order passed under Section 7A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and the consequential order passed under Section 8F of the Act, by which the banker of the petitioner has been directed to put on hold the account maintained by the petitioner and also to transfer a sum of Rs.6,57,868/- to the organization being the amount due.

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Sri.Rahul Kandampully, the learned counsel appearing for the petitioner submitted that the husband of the petitioner was the proprietor of M/s. CKKM Pharmaceuticals which was temporarily closed down on 25.5.2007. The petitioner thereafter decided to restart the business in the name and style as “M/s.CKKM Pharmacy”. She applied for and obtained licence afresh from the Drugs Controller. CKKM Pharmacy applied for coverage under the Provident Fund Act. According to the petitioner, though CKKM Pharmacy has nothing to do with CKKM Pharmaceuticals, an enquiry was initiated under Section 7A and the impugned orders were

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WP(C).No.1982 OF 2020(W)

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passed. It is contended that all statutory licences obtained by the concern are fresh licences and there was no transfer of ownership by CKKM Pharmaceuticals to CKKM Pharmacy.

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The learned Standing counsel has strenuously opposed the prayer. He would point out that Ext.P5 produced from the side of the petitioner would show that the establishment commenced by the wife is a continuation of the business done by the husband. The same business is being run in the same premises with a change of name of the establishment.

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At this stage, Sri.Rahul Kandampully submitted that the petitioner be permitted to remit the amount assessed and it was requested that she be granted an opportunity to clear off the amounts due in installments. Sri.S.Prasanth, the learned Standing Counsel has opposed the request.

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I have considered the submissions advanced. The petitioner is a lady who took over the business of her husband after his death. Her only prayer before this Court is to permit her to clear the dues to the Organization. Considering the impecunious circumstances pleaded by the petitioner, I am of the considered opinion that the petitioner can be permitted to clear the dues to the 1^st respondent in 12 equal monthly installments.

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WP(C).No.1982 OF 2020(W)

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In the result, this writ petition is disposed of on the following

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terms:

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The 3^rd respondent shall grant 12 equal monthly installments to clear off the amount assessed under Section 7A of the Act. The first installment shall be payable on 15.3.2020.

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The recovery proceedings shall be kept in abeyance if the petitioner continues to pay the amounts as ordered by this Court without any default.

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On the petitioner committing default of payment of any two installments, the respondents may recommence the recovery proceedings.

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It is made clear that this order is made on the submission of the learned counsel that the petitioner is facing grave financial hardship and therefore, no further extension will be granted. This order is passed without prejudice to the right of the respondents to proceed against the petitioner for realization of amount, if any, under Section 14B and 7Q of Act 19 of 1952.

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Sd/-

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RAJA VIJAYARAGHAVAN V

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JUDGE

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WP(C).No.1982 OF 2020(W)

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APPENDIX

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PETITIONER(S) EXHIBITS:

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EXHIBIT P1 TRUE COPY OF THE ORDER NO.KR/KCH/10573/ENF-5(1)/2019 DATED 13.08.2019 ISSUED BY THE 3RD RESPONDENT UNDER SECTION 7A OF THE EMPLOYEES' PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT,1952 EXHIBIT P2 TRUE COPY OF THE ORDER DATED 06.11.2019 UNDER SECTION 8F OF THE EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT,1952 EXHIBIT P3 TRUE COPY OF THE LETTER DATED 21.06.2010 ISSUED BY THE PROPRIETOR OF M/S CKKM PHARMACEUTICALS TO THE 3RD RESPONDENT EXHIBIT P4 TRUE COPY OF THE RENTAL AGREEMENT DATED 01.01.2010 EXECUTED BETWEEN LATE DR.K.S.CHANDRAN AND SMT.KANTHI CHANDRAN EXHIBIT P5 TRUE COPY OF THE AFFIDAVIT DATED NIL SWORN BY LATE DR.K.S.CHANDRAN SUBMITTED BEFORE ASU DRUGS CONTROLLER EXHIBIT P6 TRUE COPY OF THE PROFORMA FOR COVERAGE DATED 29.07.2010 SUBMITTED BY THE PETITIONER TO THE 2ND RESPONDENT EXHIBIT P7 TRUE COPY OF THE LETTER DATED 18.11.2010 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER. EXHIBIT P8 TRUE COPY OF THE LETTER DATED 29.11.2010 ISSUED BY THE PETITIONER TO THE 3^RD RESPONDENT. EXHIBIT P9 TRUE COPY OF THE LETTER DATED 06.05.2015 ISSUED BY THE GENERAL MANAGER OF M/S CKKM PHARMACEUTICALS TO THE TRIPUNITHURA MUNICIPALITY

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WP(C).No.1982 OF 2020(W)

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EXHIBIT P10 TRUE COPY OF THE CERTIFICATE DATED 19.05.2015 ISSUED BY TRIPUNITHURA MUNICIPALITY EXHIBIT P11 TRUE COPY OF THE INTIMATION LETTER DATED 16.03.2017 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER EXHIBIT P12 TRUE COPY OF THE STATEMENT FILED BY THE PETITIONER FIRM DATED 02.05.2018 IN THE 7A PROCEEDINGS (WITHOUT ANNEXURES) EXHIBIT P13 TRUE COPY OF THE MUSTER ROLL DATED NIL OF THE PETITIONER FIRM FROM FEBRURARY 2010 TO NOVEMBER 2017. EXHIBIT P14 TRUE COPY OF THE JUDGMENT DATED 17.4.2018 IN WPC NO 13514/2018

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RESPONDENT(S) EXHIBITS : NIL

Ckkm Pharmacy v. Employees Provident Fund Organization

Case brief

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Ckkm Pharmacy v. Employees Provident Fund Organization

Case brief

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