Case Note & Summary
The petitioner, M/s Shiv Herbal Research Laboratory Ltd., filed a writ petition under Articles 226 and 227 of the Constitution of India challenging an order dated 18/2/2011 passed by the Employees Provident Fund Appellate Tribunal. The Tribunal had dismissed the petitioner's appeal against an order under Section 7A and 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, which had confirmed the imposition of damages and penal interest. The background facts reveal that the petitioner was held liable under Section 7A by an order dated 17/8/2000 for the period 1/3/1998 to 31/7/2000. Subsequently, a show cause notice was issued for damages under Section 14B and interest under Section 7Q, and an order imposing penalty was passed on 11/12/2003. The petitioner appealed to the Tribunal, which was numbered as ATA No.103/9/2007. The petitioner deposited 25% of the amount as directed by the Supreme Court in a Special Leave Petition. The Tribunal issued a notice for hearing on 17/2/2011. On that date, the petitioner's counsel, Shri S.S.Ghate, appeared, but the Tribunal's file was not traceable, so the matter was adjourned to 18/2/2011. On 18/2/2011, the Tribunal dismissed the appeal, leading to the present writ petition. The legal issue was whether the Tribunal's order suffered from any perversity or error of law. The petitioner argued that no opportunity of hearing was given. The High Court, after hearing both sides, found no merit in the petition. The Court noted that the petitioner had already deposited 25% of the amount and that the counsel was present on both dates. The Court held that the petitioner failed to demonstrate any perversity or error in the Tribunal's order. Consequently, the writ petition was dismissed, and the rule was discharged with no order as to costs.
Headnote
A) Employees' Provident Fund - Appeal - Dismissal for Default - Natural Justice - The petitioner challenged the order of the Appellate Tribunal dismissing the appeal for default on the ground that no opportunity of hearing was given. The High Court held that the Tribunal had adjourned the matter to the next day due to missing file and the counsel was present, but the appeal was dismissed. However, the Court found no perversity as the petitioner had already deposited 25% of the amount and the Tribunal's order was not shown to be erroneous. (Paras 1-5)
B) Employees' Provident Fund - Damages under Section 14B - Confirmation - The petitioner was held liable under Section 7A and damages under Section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The High Court upheld the Tribunal's order confirming the damages, noting that the petitioner failed to demonstrate any legal infirmity. (Paras 2-5)
Issue of Consideration
Whether the impugned order dated 18/2/2011 passed by the Employees Provident Fund Appellate Tribunal suffers from any perversity or error of law warranting interference under Articles 226 and 227 of the Constitution of India.
Final Decision
The writ petition is dismissed. Rule is discharged. No order as to costs.
Law Points
- Natural justice
- Opportunity of hearing
- Pre-deposit of 25% amount
- Scope of writ jurisdiction under Articles 226 and 227
- Confirmation of damages under Section 14B
Case Details
2011 LawText (BOM) (07) 116
WRIT PETITION NO.1245 OF 2011
Mr. S.V.Manohar for the petitioner, Mr. R.S.Sundaram for the respondent no.1
M/s Shiv Herbal Research Laboratory Ltd.
1. The Assistant Provident Fund Commissioner, 2. The Employees Provident Fund Appellate Tribunal
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Nature of Litigation
Writ petition under Articles 226 and 227 of the Constitution of India challenging the order of the Employees Provident Fund Appellate Tribunal dismissing the petitioner's appeal.
Remedy Sought
The petitioner sought quashing of the Tribunal's order dated 18/2/2011 and restoration of the appeal.
Filing Reason
The petitioner's appeal against the order under Section 7A and 14B of the EPF Act was dismissed by the Tribunal without affording an opportunity of hearing.
Previous Decisions
The Assistant Provident Fund Commissioner passed an order under Section 7A on 17/8/2000 and an order imposing penalty under Section 14B on 11/12/2003. The petitioner filed an appeal (ATA No.103/9/2007) which was dismissed by the Tribunal on 18/2/2011.
Issues
Whether the impugned order dated 18/2/2011 passed by the Employees Provident Fund Appellate Tribunal suffers from any perversity or error of law warranting interference under Articles 226 and 227 of the Constitution of India.
Submissions/Arguments
The petitioner argued that the Tribunal dismissed the appeal without affording any opportunity of hearing, as the file was not traceable on 17/2/2011 and the matter was adjourned to 18/2/2011, but on that day the appeal was dismissed.
The respondent no.1 supported the Tribunal's order and submitted that the petitioner had already deposited 25% of the amount and the counsel was present, but no perversity was shown.
Ratio Decidendi
The High Court held that the petitioner failed to demonstrate any perversity or error in the Tribunal's order dismissing the appeal. The fact that the petitioner had deposited 25% of the amount and the counsel was present on the hearing dates did not establish a violation of natural justice. The Court found no ground to interfere under Articles 226 and 227.
Judgment Excerpts
The above petition filed under Articles 226 and 227 of the Constitution of India takes exception to the order dated 18/2/2011 passed by the Employees Provident Fund Appellate Tribunal, by which order the Appeal filed by the petitioner came to be dismissed and resultantly the order passed under Section 7A and 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 came to be confirmed.
In my view, the petitioner has not been able to make out any case for interference in the impugned order. Hence, the writ petition is dismissed.
Procedural History
The Assistant Provident Fund Commissioner passed an order under Section 7A on 17/8/2000 and an order imposing penalty under Section 14B on 11/12/2003. The petitioner filed an appeal (ATA No.103/9/2007) before the Employees Provident Fund Appellate Tribunal. The Tribunal dismissed the appeal on 18/2/2011. The petitioner then filed the present writ petition under Articles 226 and 227 of the Constitution of India.
Acts & Sections
- Employees' Provident Funds and Miscellaneous Provisions Act, 1952: Section 7A, Section 14B, Section 7Q
- Constitution of India: Articles 226, 227
