Bombay High Court Dismisses Writ Petition Challenging PF Assessment Due to Availability of Alternative Remedy. Petitioner failed to avail statutory appeal under Section 7I of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and no exceptional grounds were made out to bypass the remedy.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The petitioner, M/s Balaji Ginning Factory, challenged an order dated 25.09.2014 passed under Section 7A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (the Act) by the Assistant Provident Fund Commissioner, Akola. The petitioner had initially filed an application under Section 7A(4) of the Act to set aside the ex parte order, which was rejected on 18.11.2014. The petitioner did not file an appeal under Section 7I of the Act within the prescribed period and instead filed the present writ petition on 16.03.2016. The petitioner's counsel argued that due to illness of the petitioner's parents and medical treatment of his son, the appeal could not be filed in time. It was also contended that the impugned order was vitiated as the beneficiary employees were not identified, relying on an order in Public Interest Litigation No.1/2019 and the Calcutta High Court decision in C.D. Steel Pvt. Ltd. v. Assistant Provident Fund Commissioner. The petitioner further relied on Rule 21 of the Employees' Provident Fund Appellate Tribunal (Procedure) Rules, 1997, and decisions in Shirpur Shetkari Sahakari Sakhar Karkhana Ltd. v. Regional Provident Fund Commissioner and Shri Gurudeo Ayurved Mahavidyalaya v. Madhav Narayan Mahakode, to argue that the petition could be entertained with conditions. The respondent opposed the petition on the ground of alternative remedy. The High Court, after hearing both sides, held that the petitioner had an efficacious alternative remedy of appeal under Section 7I of the Act, and the reasons given for not availing the remedy were not sufficient to entertain the writ petition. The court dismissed the petition, leaving it open to the petitioner to avail the statutory remedy in accordance with law.

Headnote

A) Constitutional Law - Writ Jurisdiction - Alternative Remedy - The High Court declined to entertain a writ petition challenging an order under Section 7A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, as the petitioner had an efficacious alternative remedy of appeal under Section 7I of the said Act. The court held that mere personal difficulties of the petitioner, such as illness of parents and medical treatment of son, do not constitute exceptional circumstances to bypass the statutory remedy. (Paras 1-5)

B) Employees' Provident Funds - Section 7A - Identification of Beneficiaries - The petitioner argued that the impugned order was vitiated for non-identification of beneficiary employees. However, the court did not examine this contention on merits as the petition was dismissed on the ground of availability of alternative remedy. (Paras 2-5)

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Issue of Consideration

Whether the writ petition challenging an order under Section 7A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 should be entertained when the petitioner has not availed the statutory remedy of appeal under Section 7I of the said Act.

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Final Decision

The writ petition is dismissed. The petitioner is at liberty to avail the statutory remedy in accordance with law.

Law Points

  • Alternative remedy
  • Exhaustion of statutory remedy
  • Writ jurisdiction
  • Section 7A
  • Section 7I
  • Employees' Provident Funds and Miscellaneous Provisions Act
  • 1952
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Case Details

2019 LawText (BOM) (09) 154

WRIT PETITION NO. 2190/2016

2019-09-03

A.S. Chandurkar

Shri A. R. Deshpande for petitioner, Shri H. N. Verma for respondent

M/s Balaji Ginning Factory, through Its Proprietor – Sunil Chiranjilal Bajaj

Assistant Provident Fund Commissioner, Akola

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Nature of Litigation

Writ petition challenging an order under Section 7A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.

Remedy Sought

The petitioner sought to quash the order dated 25.09.2014 passed under Section 7A of the Act.

Filing Reason

The petitioner claimed that the order was ex parte and that the beneficiary employees were not identified, and that due to personal difficulties, the statutory appeal could not be filed.

Previous Decisions

The petitioner's application under Section 7A(4) to set aside the ex parte order was rejected on 18.11.2014. No appeal under Section 7I was filed.

Issues

Whether the writ petition should be entertained when the petitioner has not availed the statutory remedy of appeal under Section 7I of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.

Submissions/Arguments

Petitioner argued that due to illness of parents and medical treatment of son, the appeal could not be filed in time, and that the impugned order was vitiated for non-identification of beneficiaries. Petitioner relied on Rule 21 of the Employees' Provident Fund Appellate Tribunal (Procedure) Rules, 1997, and various judgments to argue that the petition could be entertained with conditions. Respondent opposed the petition on the ground of alternative remedy.

Ratio Decidendi

The High Court held that when an efficacious alternative remedy is available under the statute, the writ petition should not be entertained unless exceptional circumstances are shown. The personal difficulties of the petitioner were not sufficient to bypass the statutory remedy of appeal under Section 7I of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.

Judgment Excerpts

The challenge raised in the present writ petition is to the order dated 25.09.2014 passed under Section 7A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. According to the petitioner it had initially filed an application under Section 7A(4) of the said Act on the ground that the order dated 25.09.2014 was an exparte order. The petitioner could not file an appeal under Section 7I of the said Act within the stipulated period. In that view of the matter, the writ petition is dismissed. The petitioner is at liberty to avail the statutory remedy in accordance with law.

Procedural History

The petitioner challenged an order dated 25.09.2014 under Section 7A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. An application under Section 7A(4) to set aside the ex parte order was rejected on 18.11.2014. No appeal under Section 7I was filed. The present writ petition was filed on 16.03.2016.

Acts & Sections

  • Employees' Provident Funds and Miscellaneous Provisions Act, 1952: Section 7A, Section 7A(4), Section 7I
  • Employees' Provident Fund Appellate Tribunal (Procedure) Rules, 1997: Rule 21
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