Kerala State Cashew Development Corporation Ltd, Rep. by Its Managing Director Vs Regional Provident Fund Commissioner, Kollam

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 2025:KER:28050

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 WP(C) No.13403 of 2025

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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 MURALI PURUSHOTHAMAN

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 WEDNESDAY, THE 2 ND DAY OF APRIL 2025 / 12TH CHAITHRA, 1947
 WP(C) NO. 13403 OF 2025

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 PETITIONER:

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 KERALA STATE CASHEW DEVELOPMENT CORPORATION LTD, REP.
 BY ITS MANAGING DIRECTOR
 P.B.NO.13,CASHEW HOUSE, MUNDAKKAL, KOLLAM, PIN - 691001

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 BY ADVS.
 SRI.VIPIN P.VARGHESE, SC, KERALA STATE CASHEW
 DEVELOPMENT CORPORATION LTD.
 ADARSH MATHEW
 ANIRUDH G. KAMATH
 AGUSTHO NORBERT
 ANNA B.
 MEGHA MADHAVAN

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 RESPONDENT:

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 REGIONAL PROVIDENT FUND COMMISSIONER, KOLLAM
 EMPLOYEES PROVIDENT FUND ORGANISATION, REGIONAL OFFICE,
 PONNAMMA CHAMBERS - I, PARAMESWAR NAGAR, KOLLAM, PIN -
 691001

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 BY ADVS.
 Pirappancode V.S.Sudheer, SC.
 AKASH S.(K/980/2008)
 RICHU THERESA ROBERT(K/002427/2021)

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 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
 ADMISSION ON 02.04.2025, THE COURT ON THE SAME DAY
 DELIVERED THE FOLLOWING:

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 WP(C) No.13403 of 2025

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 2025:KER:28050

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JUDGMENT

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The petitioner is a Corporate entity fully owned by the Government of Kerala and operates 30 cashew factories across the State. The respondent is an authorized officer of the Employees’ Provident Fund Organization with the authority to levy interest under Section 7Q of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as ‘the Act’).

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This writ petition is filed seeking instalment based

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remittance of interest amounting to Rs.4,06,058/- levied under

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Section 7Q of the Act in respect of Factory No.20 of the petitioner at Elampalloor, Kollam for the period from 01.04.2021 to 30.09.2024 (wage months 09/2014 to 06/2022) by the respondent as per Ext.P1 proceedings.

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According to the petitioner, the delay in the payment of contributions under the Act is solely due to the financial doldrums faced by the petitioner and there is no willful non-compliance. It is stated that the entirety of funds available in the Corporation's current account represents the sole Working

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 2025:KER:28050

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 WP(C) No.13403 of 2025 3

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Capital currently allocated by the Government. Any coercive measures taken to attach funds from this account would result in substantial loss to the Corporation, closure of factories and consequent loss of livelihoods for over a thousand workmen.

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The learned Standing Counsel for the Employees Provident Fund Organisation submits that non payment of contributions is willful and despite repeated reminders, the petitioner did not remit the dues and it is in such circumstances interest under Section 7Q was levied. The learned counsel however submits that, taking into consideration the fact that the petitioner is a State Public Sector Undertaking, a breathing time can be granted to the petitioner for remitting the dues.

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Taking note of the fact that the petitioner is a State Public Sector Undertaking and there is no reason to doubt the bona fides of the plea regarding financial constraints, and the plea that petitioner has been making Provident Fund remittances otherwise promptly, to provide a succor to the petitioner so that the petitioner may remain in business, I am of the view that instalment facility can be granted to the petitioner

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 2025:KER:28050

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 WP(C) No.13403 of 2025 4

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to pay the interest levied under Section 7Q of the Act. Accordingly, this writ petition is disposed of directing the petitioner to remit the interest levied under Section 7Q of the Act as per Ext.P1 in 15 consecutive and equal monthly instalments commencing from 02.05.2025. It is made clear that if the petitioner commits default of two consecutive instalments, the respondent will be at liberty to proceed against the petitioner in accordance with law.

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Sd/-

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MURALI PURUSHOTHAMAN JUDGE

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smp

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 WP(C) No.13403 of 2025

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 2025:KER:28050

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APPENDIX OF WP(C) 13403/2025

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 PETITIONER EXHIBITS

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`Exhibit P1`	`THE TRUE COPY OF THE ORDER NO.` `KR/KLM/1491B/PENAL DAMAGES(7Q)/DIARY NO` `82/2024 DATED 05.12.2024 ISSUED BY RESPONDENT`
`Exhibit P2`	`THE TRUE COPY OF THE PROFIT AND LOSS` `STATEMENTS OF 2014-2015`
`Exhibit P3`	`THE TRUE COPY OF THE PROFIT AND LOSS` `STATEMENTS OF THE YEAR 2015-16 SHOWING THE` `LOSS FACED BY THE CORPORATION`
`Exhibit P4`	`THE TRUE COPY OF THE PROFIT AND LOSS` `STATEMENTS OF THE YEAR 2016-17`
`Exhibit P5`	`THE TRUE COPY OF THE PROFIT AND LOSS` `STATEMENTS OF THE FISCAL YEAR 2017-2018 OF` `THE PETITIONER`
`Exhibit P6`	`THE TRUE COPY OF THE PROFIT AND LOSS` `STATEMENT PERTAINING TO THE YEAR 2018-2019`
`Exhibit P7`	`THE TRUE COPY OF THE STATEMENT OF PROFIT AND` `LOSS PERTAINING TO THE FISCAL YEAR 2019-2020`
`Exhibit P8`	`THE TRUE COPY OF THE STATEMENT OF PROFIT AND` `LOSS OF THE SAID YEAR 2020-2021`
`Exhibit P9`	`THE TRUE COPY OF THE STATEMENT OF PROFIT AND` `LOSS OF THE YEAR 2021-2022`
`Exhibit P10`	`THE TRUE COPY OF THE JUDGMENT DATED` `19.12.2024 IN W.P.C 45455 OF 2024 PASSED BY` `THIS HON'BLE HIGH COURT`

Kerala State Cashew Development Corporation Ltd, Rep. by Its Managing Director v. Regional Provident Fund Commissioner, Kollam

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Kerala State Cashew Development Corporation Ltd, Rep. by Its Managing Director v. Regional Provident Fund Commissioner, Kollam

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