Dismissed¶44

Kaleeswarar Mills a Unit v. The Chief Provident Fund

Madras HC6 Mar 2025WP/16375/2015

Case brief

AI extract

What is this about?

EPF Act damages waiver refused; waiver application held infructuous; Sections 7A, 14B and 7Q orders confirmed by Madras High Court and Hon'ble Apex Court; National Textile Corporation unit mills, Coimbatore; recovery communication TN/RO-CBE/NTC/RECOVERY/2015; waiver-rejection communication RRC/40 (3)07/NTC/19196 dated 20.03.2015; Article 226 writ of certiorarified mandamus; writ dismissed, no costs; connected miscellaneous petition closed.

What did the court decide?

Since the orders passed under Sections 7A, 14B and 7Q of the Act had already been challenged and confirmed by this Court, and on further challenge were also confirmed by the Hon'ble Apex Court, the consequential waiver application becomes infructuous. ¶43

Kaleeswarar Mills a Unit Vs The Chief Provident Fund — Writ and Judicial Review | Madras HC (2025)

What the court decided

AI extract

Outcome

Dismissed

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Issue for consideration

Whether the writ seeking quashing of the waiver-rejection and recovery communications can be granted when the underlying orders under Sections 7A, 14B and 7Q have already been confirmed by this Court and by the Hon'ble Apex Court, rendering the consequential waiver application infructuous.

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Court's answer

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Ratio / Principle

On that basis the writ petition is dismissed with no costs, and the connected miscellaneous petition (M.P.No.2 of 2015) is closed.

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Detailed headnote1 paragraphs

Writ Petition (Certiorarified Mandamus, Article 226) by ten Coimbatore-based unit mills of National Textile Corporation Ltd. — Kaleeswarar Mills 'A' Unit, Somasundaram Mills, Coimbatore Spinning & Weaving Mills, Cambodia Mills, Coimbatore Murugan Mills, Sri Ranga Vilas Ginning & Weaving Mills, Pankaja Mills, Sri Saradha Mills, Krishnaveni Textile Mills and Om Parasakthi Mills — challenging communication No.RRC/40 (3)07/NTC/19196 dated 20.03.2015 of the second respondent (Director (Recovery), EPFO) rejecting waiver of damages and the consequential recovery communication No.TN/RO-CBE/NTC/RECOVERY/2015 dated 25.05.2015 of the third respondent. Damages and interest had been assessed under Sections 14B and 7Q following a Section 7A order of the Employees Provident Fund and Miscellaneous Provisions Act; the waiver application was rejected with a direction to deposit outstanding dues. Holding (M. Dhandapani, J., 06.03.2025): the Section 7A/14B/7Q orders having already been confirmed by this Court and, on further challenge, by the Hon'ble Apex Court, the consequential waiver application stands infructuous; writ petition dismissed, no costs; connected M.P.No.2 of 2015 closed.

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W.P.No.16375 of 2015

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 06.03.2025

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CORAM

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THE HONOURABLE MR.JUSTICE M.DHANDAPANI

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W.P.No.16375 of 2015 And

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M.P.No.2 of 2015

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1.Kaleeswarar Mills 'A' Unit, Coimbatore (Closed)

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2.Somasundaram Mills, Coimbatore (Closed)

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3.Coimbatore Spinning & Weaving Mills, Coimbatore

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4.Cambodia Mills, Coimbatore

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5.Coimbatore Murugan Mills, Coimbatore

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6.Sri Ranga Vilas Ginning & Weaving Mills, Coimbatore

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7.Pankaja Mills, Coimbatore

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8.Sri Saradha Mills, Coimbatore (Closed)

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9.Krishnaveni Textile Mills, Coimbatore (Closed) 10.Om Parasakthi Mills, Coimbatore (Closed)

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Unit Mills of National Textile Corporation Ltd., Rep. by Senior Manager (HR – HoD), Southern Regional Office, No.35-B, Somasundaram Mills Road, Coimbatore – 641 009.

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... Petitioners

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Vs.

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1.The Chief Provident Fund Commissioner, Bhavishya Nidhi Bhavan, No.14, Bhikaji, Cama Place, New Delhi – 110 066.

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2.The Director (Recovery), Employees' Provident Fund Organization, Bhavishya Nidhi Bhavan, No.14, Bhikaji, Cama Place, New Delhi – 110 066.

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https://www.mhc.tn.gov.in/judis

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1/5

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W.P.No.16375 of 2015

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3.The Regional Provident Fund Commissioner/ Recovery Officer, Employees' Provident Fund Organization, Regional Office, Dr.Balasundaram Road, Coimbatore – 641 018.

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... Respondents

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Prayer:

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Petition filed under Article 226 of the Constitution of India to issue a Writ of Certiorarified Mandamus to call for the records of the respondents herein, pertaining to the communication No.RRC/40 (3)07/NTC/19196 dated 20.03.2015 of the second respondent herein, along with the consequential communication No.TN/RO-CBE/NTC/ RECOVERY/2015 dated 25.05.2015 from the third respondent herein, and quash the same with a consequential direction to the respondents herein to grant waiver of damages to the petitioner Mills.

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For Petitioners : Mr.C.V.Vijayakumar For Respondents : Mr.C.Kulanthaivel

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O R D E R

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This writ petition has been filed seeking issuance of Writ of Certiorarified Mandamus to call for the records of the respondents pertaining to the communication No.RRC/40 (3)07/NTC/19196 dated 20.03.2015 of the second respondent, along with the consequential communication No.TN/RO-CBE/NTC/ RECOVERY/2015 dated 25.05.2015 from the third respondent and quash the same with a

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https://www.mhc.tn.gov.in/judis

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2/5

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W.P.No.16375 of 2015

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consequential direction to the respondents to grant waiver of damages to the petitioner Mills.

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2.Heard the arguments advanced on either side and perused the

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materials available on record.

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3.Perusal of records reveal that for non payment of contribution of the employees provident fund, the respondent initiated proceedings under Section 7A of the Employees Provident Fund and Miscellaneous Provisions Act [hereinafter referred to as 'Act'] and passed order against the petitioner Mills. Thereafter, the respondents assessed damages and interest in terms of Sections 14B and 7Q of the Act. Thereafter, the petitioner filed application seeking waiver of damages and the second respondent passed the impugned order rejecting the request for waiver of damages with direction to the petitioner Mills to deposit the outstanding dues.

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4.However the fact remains that already the orders passed under Sections 7A, 14B and 7Q of the Act were challenged before this Act and the same were confirmed by this Court and it was challenged before the Hon'ble Apex Court and the Hon'ble Apex Court also

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3/5

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https://www.mhc.tn.gov.in/judis

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W.P.No.16375 of 2015

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confirmed the orders and hence the consequential waiver application becomes infructuous.

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5.Accordingly, the writ petition is dismissed. No costs.

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Consequently, connected miscellaneous petition is closed.