Dismissed¶40

M/s.Thai Summit Autoparts India Private Limited v. The Regional Provident Fund Commissioner -Ii

Madras HC30 Jul 2025WP/30808/2022

Case brief

AI extract

What is this about?

EPF and MP Act; Section 14(B) penal damages; Section 7Q interest; delayed remittance of PF contributions; Covid-19 lockdown; EPFO circular dated 15.04.2020; Regional Provident Fund Commissioner – II Ambattur; M/s.Thai Summit Autoparts India Private Limited; writ of Certiorarified Mandamus; Article 226 Constitution of India; damages Rs.25,516/-; interest Rs.2,46,423/-; consequential recovery order; three months' time to pay; writ petition dismissed; no costs; connected W.M.P.No.30236 of 2022 closed.

What did the court decide?

Three months' time from the date of the order to pay the amount due under Section 7Q of the EPF and MP Act as quantified by the respondent; writ petition dismissed with no costs; connected miscellaneous petition (W.M.P.No.30236 of 2022) closed. ¶40

M/s.Thai Summit Autoparts India Private Limited Vs… — Writ and Judicial Review | Madras HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the impugned order dated 20.10.2022 quantifying damages of Rs.25,516/- and interest of Rs.2,46,423/- under Sections 14(B) and 7Q of the EPF and MP Act for delayed remittance during the Covid lockdown period is liable to be quashed, given that damages under Section 14(B) stood waived for the Covid period pursuant to the EPFO circular dated 15.04.2020. +1 more

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Court's answer

No damages were awarded for the Covid 19 period; the order under challenge is only the order passed under Section 7Q of the EPF and MP Act for interest on belated payment of contributions, and the petitioner has already paid some part of the amount.

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Ratio / Principle

The Section 7Q order quantifying interest is a consequential order passed to realise the amount; the petitioner has to pay the amount as quantified by the respondent.

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Key takeaways

The authorities waived the damages under Section 14(B) of the EPF and MP Act due to the Covid 19 period; therefore the petitioner has to pay the interest as per the provisions of the EPF and MP Act.ratio¶35
The steps taken by the respondent to recover the amount cannot be interfered with by this Court.ratio¶36
Considering the facts and circumstances of the case, the Court granted the petitioner three months from the date of the order to pay the amount due under Section 7Q of the EPF and MP Act as quantified by the respondent.

Detailed headnote1 paragraphs

Madras High Court (P. Dhanabal, J.), W.P. No.30808 of 2022, decided 30.07.2025 — EPF — Delayed remittance during Covid-19 lockdown — The petitioner company challenged order No.TN/RO/AMB/PDC/AREA 9/1065340/8F/2022 dated 20.10.2022 of the Regional Provident Fund Commissioner – II, Ambattur, which quantified damages of Rs.25,516/- and interest of Rs.2,46,423/- under Sections 14(B) and 7Q of the EPF and MP Act, contending that the EPFO circular dated 15.04.2020 extended the March 2020 remittance deadline and excluded penal damages proceedings under Section 14(B) for the Covid period, so interest should equally be waived. Held: no damages were in fact awarded for the Covid 19 period; the challenged order was passed only under Section 7Q for interest on belated payment of contributions and is a consequential order to realise the amount; since damages under Section 14(B) stood waived for the Covid period, the petitioner must nonetheless pay the Section 7Q interest as per the provisions of the Act; the respondent's recovery steps cannot be interfered with. Three months' time from the date of the order was granted to pay the quantified amount. Writ petition dismissed with no costs; connected W.M.P. closed.

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Writ Petition No.30808 of 2022

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 30.07.2025

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CORAM

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THE HONOURABLE MR.JUSTICE P.DHANABAL

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Writ Petition No.30808 of 2022 and W.M.P.No.30236 of 2022

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M/s.Thai Summit Autoparts India Private Limited, Plot No.4, SIPCOT Industrial Park, Vallam Vadagal, Sriperumbudur, Kanchipuram District – 602105. Represented herein by its General Manager – Finance Mr.Chaiyasit Sasdeeong.

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...Petitioner

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The Regional Provident Fund Commissioner – II, Employees' Provident Fund Organisation, Regional Office, Ambattur, R-40, A-1, TNHB Shopping – cum – office Complex, Mugappair Road, Mugappair East, Chennai – 600 037.

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... Respondent

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PRAYER : Writ Petition filed Under Article 226 of the Constitution of India, to issue a writ of Certiorarified Mandamus to call for the records of the respondent as contained in the order No.TN/RO/AMB/PDC/AREA 9/1065340/8F/2022, dated 20.10.2022 and quash the same and consequently direct the respondent to nullify the demand in the impugned order.

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

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Writ Petition No.30808 of 2022

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For Petitioner : Mr.V.Rajesh Babu For Respondent : Mr.Krishna Dath for M/s.M.S.Viswanathan

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O R D E R

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This writ petition has been filed challenging the order passed

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by the respondent in order No.TN/RO/AMB/PDC/AREA

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9/1065340/8F/2022, dated 20.10.2022.

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2. The learned counsel appearing for the petitioner would

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submit that the respondent had proceeded against the petitioner under Section 14(B) and Section 7Q of the EPF and MP Act for the period from 01.04.2015 to 31.03.2015 for delay in remittance and a summon was issued by the respondent on 05.11.2021. The Government imposed lock down, thereby during the lock down period, the petitioner company has not functioned. As per the circular of the Employees Provident Fund Organisation dated 15.04.2020 extending the deadline for March 2020 remittance from 15.04.2020 to 15.05.2020 and also highlighted that no penal damages proceedings under Section 14(B) of the EPF and MP Act

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

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Writ Petition No.30808 of 2022

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will be initiated for the Covid period for delay in remittance. The respondent after granting time for payment of contributions as per the circular without considering the same, passed the impugned order by quantifying the damages of Rs.25,516/- and quantified interest of Rs.2,46,423/-. When the respondent waived the damages then they ought to have waived the interest also. Therefore, the impugned order passed by the respondent is liable to be quashed.

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3. The learned counsel appearing for the respondent would

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submit that the impugned order is passed for the interest amount under Section 7Q of EPF and MP Act and no order was passed under Section 14(B) of EPF and MP Act for damages for the Covid 19 period. Therefore, the present order is passed only in respect of the interest for the delayed payment of contributions under Section 7Q of the EPF and MP Act and therefore the petition is liable to be dismissed.

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4. Heard both sides, perused the materials available on

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records.

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

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Writ Petition No.30808 of 2022

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5. No damages were awarded for the Covid 19 period and the

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order under challenged is only in the order passed under Section 7Q of EPF and MP Act interest for the belated payments of contributions and already the petitioner has also paid some part of the amount. Since already the order has been passed under Section 7Q of EPF and MP Act by quantifying the interest and this is a consequential order passed to realise the amount, the petitioner has to pay the amount as quantified by the respondent. The authorities have waived the damages under Section 14(B) of EPF and MP

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Act, due to Covid 19 period. Therefore, the petitioner has to pay the interest as per the provisions of EPF and MP Act. The respondent also has taken steps to recover the amount and the same cannot be interfered. However, considering the facts and circumstances of the case, this Court is inclined to grant time to the petitioner to pay the said amount due under Section 7Q of EPF and MP Act as quantified by the respondent within three months from the date of this order.

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

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Writ Petition No.30808 of 2022

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6. Accordingly, with the above terms, this writ petition is dismissed. No costs. Consequently, connected miscellaneous petition is closed.

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30.07.2025

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Index : Yes/No Speaking order:Yes/No Neutral citation:Yes/No ub

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To The Regional Provident Fund Commissioner – II, Employees' Provident Fund Organisation, Regional Office, Ambattur, R-40, A-1, TNHB Shopping – cum – office Complex, Mugappair Road, Mugappair East, Chennai – 600 037.

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

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Writ Petition No.30808 of 2022

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P.DHANABAL , J.

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Writ Petition No.30808 of 2022

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