Allowed

M/S. Foam Mattings (India) Ltd. v. the Board of Trustees

Kerala HC5 Apr 2023WP(C)/11667/2023

Case brief

AI extract

What is this about?

The High Court allowed the writ petition filed by a Kerala Government undertaking facing financial loss. The Court granted relief to clear union liability totaling Rs. 8.24 lakh in 12 monthly installments under Section 7Q of the EPF Act.

What did the court decide?

Leave granted to clear the entire liability of Rs. 8,24,949/- in 12 equal monthly installments commencing from 30th May 2023.

M/S. Foam Mattings (India) Ltd. Vs the Board… — Contract and Commercial Disputes | Kerala HC (2023)

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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 ZIYAD RAHMAN A.A.

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WEDNESDAY, THE 5TH DAY OF APRIL 2023 / 15TH CHAITHRA, 1945
WP(C) NO. 11667 OF 2023

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PETITIONER:

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M/S. FOAM MATTINGS (INDIA) LTD
( A GOVT. OF KERALA UNDERTAKING) BEACH ROAD,
ALAPPUZHA - 688 012,
REPRESENTED BY ITS MANAGING DIRECTOR

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BY ADVS.
LATHA ANAND
M.N.RADHAKRISHNA MENON
S.VISHNU (ARIKKATTIL)
SIDHARTH P.S.

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RESPONDENTS:

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1THE BOARD OF TRUSTEES
EMPLOYEES PROVIDENT FUND ORGANIZATION,
BHAVISHYANIDHI BHAVAN, BHIKAIJI CAMA PLACE
NEW DELHI, PIN – 110066
REPRESENTED BY ITS SECRETARY

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2ASSISTANT PROVIDENT FUND COMMISSIONER
EMPLOYEES PROVIDENT FUND ORGANISATION
REGIONAL OFFICE, KOCHI, KALOOR, KOCHI – 682017

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BY ADVS.
SRI.SAJEEV KUMAR K. GOPAL, SC, EPFO
V.JOHN MANI
ADV.AMMINIKUTTY K. - G.P.

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
05.04.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 11667 OF 2023

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JUDGMENT

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The petitioner is a Kerala Government undertaking working under the administrative governance of Industries Department. The petitioner is now being proceeded against on the basis of Ext.P13 order passed by the 2^nd respondent, under Section 7Q of the Employees’ Provident Funds and Miscellaneous Provisions Act, whereby a liability of Rs.8,24,949/- (Rupees eight lakh twenty four thousand nine hundred and forty nine only) has been imposed upon them. The limited prayer of the petitioner is that, they may be permitted to clear the entire arrears in easy installments. It is the case of the petitioner that, the establishment is running in loss and even finding it difficult to pay wages to its employees. The prayer for installment facility was sought in such circumstances.

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Sri.V.John Mani, the learned standing counsel on the other hand would point out that since this order is under Section 7Q, the amount to be realized are to be appropriated to the accounts of the employees directly and therefore, any delay would cause serious difficulties to them.

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WP(C) NO. 11667 OF 2023

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After considering all the relevant aspects and also taking into account the fact that, the petitioner is a Government undertaking I am inclined to show some indulgence, by granting an installment facility. In the facts circumstances of the case, I deem it appropriate to fix the tenure of installments as 12.

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Accordingly, this writ petition is disposed of permitting the petitioner to clear the entire liability as fixed in Ext.P13 in 12 equal monthly installments commencing from 30th May 2023. The subsequent installment shall become due on 30^th of every succeeding month. In case of default in making payment of any of the installment referred above, this facility shall stand cancelled and in such an event, it shall be open for the respondents to initiate the recovery proceedings for realization of the amount as per Ext.P13.

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Sd/-
ZIYAD RAHMAN A.A.
JUDGE

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scs

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WP(C) NO. 11667 OF 2023

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APPENDIX OF WP(C) 11667/2023

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`PETITIO` `Exhibit`	`NER EXHI` `P1`	`BITS` `TRUE COPY` `PROFIT AND` `SCHEDULES)` `31.03.2013`	`OF THE BALANCE SHEET AND` `LOSS ACCOUNT (WITHOUT` `FOR THE PERIOD ENDED ON`
`Exhibit`	`P2`	`TRUE COPY` `PROFIT AND` `SCHEDULES)` `31.03.2014`	`OF THE BALANCE SHEET AND` `LOSS ACCOUNT (WITHOUT` `FOR THE PERIOD ENDED ON`
`Exhibit`	`P3`	`TRUE COPY` `PROFIT AND` `SCHEDULES)` `31.03.2015`	`OF THE BALANCE SHEET AND` `LOSS ACCOUNT (WITHOUT` `FOR THE PERIOD ENDED ON`
`Exhibit`	`P4`	`TRUE COPY` `PROFIT AND` `SCHEDULES)` `31.03.2016`	`OF THE BALANCE SHEET AND` `LOSS ACCOUNT (WITHOUT` `FOR THE PERIOD ENDED ON`
`Exhibit`	`P5`	`TRUE COPY` `PROFIT AND` `SCHEDULES)` `31.03.2017`	`OF THE BALANCE SHEET AND` `LOSS ACCOUNT (WITHOUT` `FOR THE PERIOD ENDED ON`
`Exhibit`	`P6`	`TRUE COPY` `PROFIT AND` `SCHEDULES)` `31.03.2018`	`OF THE BALANCE SHEET AND` `LOSS ACCOUNT (WITHOUT` `FOR THE PERIOD ENDED ON`
`Exhibit`	`P7`	`TRUE COPY` `PROFIT AND` `SCHEDULES)` `31.03.2019`	`OF THE BALANCE SHEET AND` `LOSS ACCOUNT (WITHOUT` `FOR THE PERIOD ENDED ON`
`Exhibit`	`P8`	`TRUE COPY` `PROFIT AND` `SCHEDULES)` `31.03.2020`	`OF THE BALANCE SHEET AND` `LOSS ACCOUNT (WITHOUT` `FOR THE PERIOD ENDED ON`
`Exhibit`	`P9`	`TRUE COPY` `SHEET AND` `(WITHOUT S` `ENDED ON 3`	`OF THE PROVINCIAL BALANCE` `PROFIT AND LOSS ACCOUNT` `CHEDULES) FOR THE PERIOD` `1.03.2021`
`Exhibit`	`P10`	`TRUE COPY` `SHEET AND` `(WITHOUT S` `ENDED ON 3`	`OF THE PROVINCIAL BALANCE` `PROFIT AND LOSS ACCOUNT` `CHEDULES) FOR THE PERIOD` `1.03.2022`

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WP(C) NO. 11667 OF 2023

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5

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Exhibit P11TRUE COPY OF THE SHOW CAUSE NOTICE
DATED 24.11.2022 ISSUED BY THE 2ND
RESPONDENT
Exhibit P12TRUE COPY OF THE WRITTEN SUBMISSION
MADE BY THE PETITIONER TO THE
RESPONDENT DATED 08.12.2022
Exhibit P13THE ORDER.NO.KR/KCH/10150/PENAL
DAMAGES/2022/845 DATED 27.02.2023
IMPOSING INTEREST UNDER SECTION 7Q OF
THE ACT
Exhibit P14TRUE COPY OF THE REPRESENTATION DATED
07.03.2023 SUBMITTED BY THE PETITIONER
BEFORE THE 2ND RESPONDENT

M/S. Foam Mattings (India) Ltd. v. the Board of Trustees

Case brief

What is this about?

What did the court decide?

M/S. Foam Mattings (India) Ltd. v. the Board of Trustees

Case brief

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What did the court decide?

What the court decided

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