M/S.Royaltech Marine Engineers Vs Assistant of… — Writ and Judicial Review | Madras HC (2026)

M/S.Royaltech Marine Engineers Vs Assistant of… — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

Writ Petition disposed of with directions: the Section 7Q interest component cannot be imposed (and has been paid); the 14B damages are reduced, with the remaining 40% payable in six instalments, failing which the respondent/Commissioner may proceed in accordance with law for further recovery; no costs; connected Writ Miscellaneous Petition closed.

Issue for consideration

Whether the order dated 20.06.2024 passed by the respondent (proceedings No.TN/RO/CHN-I/CCI(PDC)/TN/93070/Div-511/2024), demanding Section 7Q interest and Section 14B damages under the EPF & MP Act, should be quashed as illegal. +2 more

Ratio / Principle

Since the amount recovered is not in dispute and has already been paid through the recovery process, the interest component under Section 7Q cannot be imposed.

Key takeaways

The amount of interest under Section 7Q of the EPF & MP Act has been paid.ratio¶30
In view of the company's financial constraint, the Court reduced the 14B damages, directing that the remaining 40% of the damages be paid in six instalments.ratio¶30
If the petitioner fails to pay any instalment, the respondent / Commissioner is at liberty to proceed in accordance with law for further recovery.ratio

Detailed headnote1 paragraphs

MADRAS HIGH COURT (K. Surender J.) — WP No. 21299 of 2024 (decided 24-07-2026): Writ petition under Article 226 by M/s.Royaltech Marine Engineers challenging the Assistant PF Commissioner's proceedings No.TN/RO/CHN-I/CCI(PDC)/TN/93070/Div-511/2024 dated 20.06.2024, which demanded Section 7Q interest of Rs.3,70,609/- and Section 14B damages of Rs.7,41,947/- under the EPF & MP Act, after a prior Section 7A assessment of Rs.7,98,119/- had already been recovered from the company's attached account. Held: (i) as the amounts were already recovered/paid, the interest component under Section 7Q cannot be imposed, and the 7Q interest stands paid; (ii) in view of the company's financial constraint, the 14B damages were reduced, with the remaining 40% directed to be paid in six instalments, and on default of any instalment the Commissioner may proceed in accordance with law for further recovery. Writ Petition disposed of on these directions; no costs; connected Writ Miscellaneous Petition closed.

WP No. 21299 of 2024 and WMP No.23259 of 2024

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 24-07-2026

CORAM

THE HON'BLE MR.JUSTICE K. SURENDER WP No. 21299 of 2024 and WMP No.23259 of 2024

M/s.Royaltech Marine Engineers, Rep by its Proprietor G.Pandiyaraj, Ground Floor, Old No.111, New No.231, Angappa Naicken Street, George Town, Parrys, Chennai – 600 001.

..Petitioner(s)

Vs

Assistant PF Commissioner (APFC), Regional Office, Employees Provident Fund Organisation, Bhavishya Nidhi Bhawan, No.37, Royapettah High Road, Chennai – 600 014.

..Respondent(s)

PRAYER : Writ Petition filed under Article 226 of the Constitution of India, may be pleased to issue a Writ of Certiorari Mandamus to the records relating to the impugned order passed by the respondent in his proceedings vide No.TN/RO/CHN-I/CCI(PDC)/TN/93070/Div-511/2024 dated 20.06.2024 and quash the same is illegal may be stipulated by this Hon’ble Court.

For Petitioner(s): Mr.G.Thalaimutharasu

For Respondent(s):

Mr.R.Vishnu

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WP No. 21299 of 2024 and WMP No.23259 of 2024

ORDER

Challenge in this Writ Petition to the order passed by the respondent in

his proceedings vide No.TN/RO/CHN-I/CCI(PDC)/TN/93070/Div-511/2024 dated 20.06.2024 and quash the same as illegal.

The facts of the case is that several proceedings concluded prior to 2019. The total amount under Section 7A enquiry, it was Rs.7,98,119/-. Thereafter, the respondent / Assistant Provident Fund Commissioner attached the account of the petitioner’s company and collected the amount outstanding towards Section 7A of EPF & MP Act, enquiry. According to the learned counsel, thereafter, the issue was closed, however, again they have sent the present notice seeking 7Q of EPF & MP Act for Rs.3,70,609/- and 14B damages of the EPF & MP Act for Rs.7,41,947/-.

The grounds urged by the learned counsel for the petitioner is that nearly five years after PF contribution was already paid, but now the department has come up with the damages under Section 14B of EPF & MP Act and also interest 7Q of EPF & MP Act.

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WP No. 21299 of 2024 and WMP No.23259 of 2024

On the other hand, learned counsel for the respondent would submit

that the process of recovering the PF contribution commence only when the PF authorities quantified the amount of interest under 7Q of EPF & MP Act and also 14B damages.

Heard learned counsel for the parties and perused the materials on

record.

Since the amount recovered is not in dispute as already been paid though through recovery process, however, the interest component under Section 7Q cannot be imposed. Further, the amount of interest under Section 7Q of EPF & MP Act has been paid. However, in view of the condition to the companies which is in financial constraint, this Court feels it appropriate to reduce the 14B damages to 60% reduced and the remaining 40% damages paid in six instalments. If any other instalments, the petitioner fails to pay, the respondent / commissioner is at liberty to proceed in accordance with law for further recovery.

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WP No. 21299 of 2024 and WMP No.23259 of 2024

This Writ Petition stands disposed of with the above directions. No

costs. Consequently, connected Writ Miscellaneous Petition is closed.

24-07-2026

Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No

MTL

To

Assistant PF Commissioner (APFC), Regional Office, Employees Provident Fund Organisation, Bhavishya Nidhi Bhawan, No.37, Royapettah High Road, Chennai – 600 014.

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WP No. 21299 of 2024 and WMP No.23259 of 2024

K.SURENDER J.

MTL

WP No. 21299 of 2024 and WMP No.23259 of 2024

24-07-2026

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