M/s. Karkhana Darusehat vs The Appellate Tribunal E.P.F. and 2 Ors.

Surya Prakash Kesarwani, J.—Heard Sri Gopal Narain, learned counsel for the petitioner and Sri Nishant Mehrotra, learned counsel for the respondent. Briefly stated the facts of the present case are that proceeding u/s 7A of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as the ''Act 1952'') for the period from July, 1994 to November, 1998 was initiated. An order dated 25th November, 2011 was passed determining the liability of the petitioner Rs. 2,14,326 interest u/s 7Q amounting to Rs. 3,90,073 was also imposed. Petitioner filed a review application u/s 7B(2) and simultaneously filed an appeal u/s 71 of the Act, 1952. The appeal of the petitioner was rejected by the impugned order dated 5th December, 2013 holding that the liability of provident fund as determined by the order dated 25th November, 2011 is undisputed. The petitioner admits his liability even before this Court with regard to the amount of provident fund.

Sri Gopal Narain submits that the petitioner admits his liability to the extent of provident fund which has already been deposited. He submits that the only grievance of the petitioner is that the provision of Section 7Q providing for interest was enforced by Notification No. S.O.492(E) dated 30th June, 1997 w.e.f. 1st July, 1997 and as such no interest can be levied for any amount outstanding prior to 1st July, 1997. He submits that any amount which remains in arrears as on 1st July, 1997, the interest shall be payable by the petitioner. Sri Nishant Mehrotra does not dispute the legal position with regard to liability of interest u/s 7Q of the Act, (sic) as submitted by the petitioner. I have carefully considered the submission of learned counsel for the parties. With consent of learned counsel for the parties, this writ petition is disposed of finally without calling for the counter-affidavit.

It is undisputed that Section 7Q of the Act, 1952 was enforced w.e.f. 1st July, 1997 vide Notification No. S.O.492(E) dated 30th June, 1997 published in the gazette of India Extraordinary Part-II Section 3(II), dated 7th July, 1997. Thus the interest may be demanded from the petitioner on all amounts of provident fund which remains in arrears as on 1st July, 1997 or subsequent to that. Grievance of the petitioner with regard to computation of interest can be well considered by the respondent No. 3.

In view of the above discussions, this writ petition is disposed of with direction to respondent No. 3 to compute the interest in accordance with the provision of Section 7Q of the Act, 1952 read with Notification No. S.O. 492(E) dated 30th June, 1997 within three weeks from today and inform the petitioner within a further period of two weeks. The petitioner shall pay the interest so computed within a further period of three weeks. If the petitioner has already deposited any amount towards interest or in excess of his liability of provident fund, if any, the same shall be adjusted. With these observation, writ petition is disposed off.