{"id":201667,"date":"2011-11-14T00:00:00","date_gmt":"2011-11-13T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/c-vs-assistant-on-14-november-2011"},"modified":"2019-03-22T11:25:39","modified_gmt":"2019-03-22T05:55:39","slug":"c-vs-assistant-on-14-november-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/c-vs-assistant-on-14-november-2011","title":{"rendered":"C vs Assistant on 14 November, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">C vs Assistant on 14 November, 2011<\/div>\n<div class=\"doc_author\">Author: D.H.Waghela,<\/div>\n<pre>  \n Gujarat High Court Case Information System \n    \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n\n\t \n\n \n\n\n\t \n\nSCA\/17935\/2003\t 5\/ 5\tJUDGMENT \n \n\n\t\n\t \n\n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 17935 of 2003\n \n\n \n \nFor\nApproval and Signature:  \n \nHONOURABLE\nMR.JUSTICE D.H.WAGHELA\n\t\t\tSd\/- \n \n=========================================================\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n1\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\tReporters of Local Papers may be allowed to see the judgment ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n2\n\t\t\n\t\t \n\t\t\t \n\nTo be\n\t\t\treferred to the Reporter or not ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n3\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\ttheir Lordships wish to see the fair copy of the judgment ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n4\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\tthis case involves a substantial question of law as to the\n\t\t\tinterpretation of the constitution of India, 1950 or any order\n\t\t\tmade thereunder ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n5\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\tit is to be circulated to the civil judge ?     1\n\t\t\t&amp; 2 YES;  3 to 5 NO\n\t\t\n\t\n\n \n\n \n=========================================================\n\n \n\nC\nU SHAH PREPARATORY SCHOOL &amp; 1 - Petitioner(s)\n \n\nVersus\n \n\nASSISTANT\nPROVIDENT FUND COMMISSIONER - Respondent(s)\n \n\n=========================================================\n \nAppearance\n: \nMR\nSI NANAVATI Senior Counsel for M\/s.NANAVATI &amp; NANAVATI\nfor\nPetitioners : 1 - 2. \nMR PJ MEHTA for Respondent : 1, \nMR\nBHAGYODAYA MISHRA for Respondent :\n1, \n=========================================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE D.H.WAGHELA\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 14\/11\/2011 \n\n \n\n \nORAL\nJUDGMENT<\/pre>\n<p>1.\t\tThe<br \/>\npetitioner &#8211; educational institution has invoked Articles 226 and 227<br \/>\nof the Constitution  to challenge the order<br \/>\ndated 01.12.2003 of Assistant Provident Commissioner as illegal  and<br \/>\noppressive.  By the impugned order dated 01.12.2003, in exercise of<br \/>\npowers conferred under section   14-B of the Employees&#8217; Provident<br \/>\nFunds and Miscellaneous Provisions Act, 1952 (for short, &#8220;the<br \/>\nAct&#8221;),  the respondent has imposed, by way of damages, penalty<br \/>\nof Rs.1,54,326\/- and ordered the petitioner to pay within 15 days.<br \/>\nThat amount  of damages is sought to be levied admittedly on the<br \/>\nbasis that provident fund dues were paid by the petitioner after<br \/>\nrespective due dates, as detailed in show cause notice dated<br \/>\n06.06.2003.  According to that show cause notice, payment of<br \/>\nprovident fund dues had fallen due in respect of the period from<br \/>\nFebruary 1982 to June 1988.\n<\/p>\n<p>2.\t\tIt was<br \/>\nthe case of the petitioner before the respondent and before this<br \/>\nCourt that validity of the Government of India Notification No.SO.986<br \/>\nof 1982 had been challenged before the Apex Court in several<br \/>\npetitions and, on account of injunction granted by the Apex Court,<br \/>\noperation and execution of that notification was stayed. The Apex<br \/>\nCourt dismissed the writ petitions and upheld validity of the<br \/>\nnotification by order dated 29.1.1988. The petitioner institution was<br \/>\nallotted Code number for provident fund account on 26.7.1988<br \/>\nmentioning the application of the Act and the Schemes thereunder with<br \/>\neffect from 01.4.1982. It was, on that basis, submitted that<br \/>\nretrospective allotment of Code number to the petitioner could not<br \/>\noperate or be effective in view of the  injunction granted by the<br \/>\nSupreme Court and the respondent ought not to have levied any amount<br \/>\nby way of damages for the period during which the notification in<br \/>\nquestion was stayed.\n<\/p>\n<p>3.\t\tThere<br \/>\nis no dispute about the fact that the aforesaid notification was<br \/>\nunder challenge before the Supreme Court and that issue was decided<br \/>\nby the Apex Court in <a href=\"\/doc\/1284919\/\">D.A.V.College and Another v.<br \/>\nRegional Provident Fund Commissioner and Others<\/a> reported in 1988  (2)<br \/>\nL.L.J. 218.  The operative part of that judgment reads<br \/>\nas under:-\n<\/p>\n<p>&#8220;2.\tWe<br \/>\ndirect that the petitioners shall comply with the Act and the scheme<br \/>\nframed thereunder regularly with effect from February 1, 1988.<br \/>\nWhatever arrears they have to pay under the Act and the schemes in<br \/>\nrespect of the period between March 1, 1982 and February 1, 1988<br \/>\nshall be paid by each of the petitioners within such time as may be<br \/>\ngranted by the Regional Provident Fund Commissioner. If the<br \/>\npetitioners pay all the arrears payable from March 1, 1981 upto<br \/>\nFebruary 1, 1988 in accordance with the directions of the Regional<br \/>\nProvident Fund Commissioner, he shall not levy any damages for the<br \/>\ndelay in payment of the arrears. Having regard to the special facts<br \/>\nof these cases, the subscribers (the employees) shall not be entitled<br \/>\nto any interest on the arrears. The Writ Petitions are disposed of<br \/>\naccordingly. No costs.&#8221;\n<\/p>\n<p>4.\t\tIn<br \/>\nview of the clear observations and directions of the Apex Court as<br \/>\nquoted hereinabove and there being no dispute about the averments<br \/>\nthat operation of the notification dated 19.2.1982 was stayed by the<br \/>\nApex Court, the petitioner could not have been faulted for not<br \/>\ndepositing the provident fund dues regularly and within time during<br \/>\nthe period from March 1, 1981 to February 1, 1988. There was also no<br \/>\ndispute about the fact that the petitioner is an educational<br \/>\ninstitution, not carrying on any business or commercial activity, and<br \/>\nthe show cause notice for levy of damages was issued as late as in<br \/>\nJune, 2003. Long before that, the petitioner had already paid  the<br \/>\nprovident fund dues in August, 1988, according to the submission.\n<\/p>\n<p>5.\t\tAs<br \/>\nagainst the above facts, the impugned order relied upon the<br \/>\nprovisions of section 14-B of the Act which prescribed no period of<br \/>\nlimitation for recovery of damages. According to the plain language<br \/>\nof section 14-B of the Act, where an employer makes default in<br \/>\npayment of any contribution to the Fund, or in the transfer of<br \/>\naccumulations required to be transferred by him, or in the  payment<br \/>\nof any charges payable under any other provision of the Act, or any<br \/>\nScheme,  the Provident Fund Commissioner or such other officer as may<br \/>\nbe authorized may recover from the employer by way of penalty such<br \/>\ndamages, not exceeding the amount of arrears, as may be specified in<br \/>\nthe Scheme.  Applying the provisions of section 14-B in the facts of<br \/>\nthe present case, it would appear that the employer could not be<br \/>\ninferred to have consciously made default in payment of any<br \/>\ncontribution when application of the Act itself was under challenge<br \/>\nand the notification dated 19.2.1982 was inoperative.  Even<br \/>\notherwise, provisions of section 14-B leaves some discretion to the<br \/>\nauthority in the matter of imposing penalty insofar as the maximum<br \/>\nlimit for such penalty is prescribed. When the Hon&#8217;ble Apex Court<br \/>\nhad, in the case pending before it,  clearly directed not to levy any<br \/>\ndamages for the delay in payment of arrears in respect of delay in<br \/>\npayment of provident fund dues for the period between March 1, 1982<br \/>\nand February 1, 1988,  the respondent was required to follow suit and<br \/>\nnot impose the  penalty mainly on account of the fact that the<br \/>\npetitioner was not a party before the Supreme Court in the matter<br \/>\nbetween <a href=\"\/doc\/1284919\/\">D.A.V.College and Another v. Regional Provident Fund<br \/>\nCommissioner and Others.<\/a>\n<\/p>\n<p>6.\t\tUnder<br \/>\nthe above circumstances, the impugned order is found to be arbitrary<br \/>\nand unjustified, in the peculiar facts of the case, and hence<br \/>\nrequired to be set aside.  Rule is made absolute accordingly, with no<br \/>\norder as to costs.\n<\/p>\n<p>7.\t\tThe<br \/>\namount deposited pursuant to the interim order made herein shall be<br \/>\nrefunded to the petitioner with interest that may have accrued<br \/>\nthereon on account of its investment in Fixed Deposit.\n<\/p>\n<p>Sd\/-\n<\/p>\n<p>(<br \/>\nD.H.Waghela, J.)<\/p>\n<p>(KMG<br \/>\nThilake)<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court C vs Assistant on 14 November, 2011 Author: D.H.Waghela, Gujarat High Court Case Information System Print SCA\/17935\/2003 5\/ 5 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 17935 of 2003 For Approval and Signature: HONOURABLE MR.JUSTICE D.H.WAGHELA Sd\/- ========================================================= 1 Whether Reporters of Local Papers may be [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-201667","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>C vs Assistant on 14 November, 2011 - Free Judgements of Supreme Court &amp; 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