{"id":242444,"date":"2010-07-09T00:00:00","date_gmt":"2010-07-08T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/saurastra-vs-regional-on-9-july-2010"},"modified":"2017-10-10T08:43:44","modified_gmt":"2017-10-10T03:13:44","slug":"saurastra-vs-regional-on-9-july-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/saurastra-vs-regional-on-9-july-2010","title":{"rendered":"Saurastra vs Regional on 9 July, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Saurastra vs Regional on 9 July, 2010<\/div>\n<div class=\"doc_author\">Author: Ks Jhaveri,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\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\n\n \n\n\n\t \n\nSCA\/335\/2010\t 4\/ 4\tORDER \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. 335 of 2010\n \n\n \n \n=========================================================\n\n\n \n\nSAURASTRA\nCHEMICALS LTD - Petitioner(s)\n \n\nVersus\n \n\nREGIONAL\nPROVIDENT FUND COMMISSIONER &amp; 1 - Respondent(s)\n \n\n=========================================================\nAppearance : \nNANAVATI\nASSOCIATES for\nPetitioner(s) : 1, \nMS E. SHAILAJA for Respondent(s) : 1, \nMR\nDEVANG NANAVATI FOR MS ANUJA S NANAVATI for Respondent(s) :\n2, \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 KS JHAVERI\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 09\/07\/2010 \n\n \n\nORAL\nORDER<\/pre>\n<p>\tRule.\n<\/p>\n<p>Learned counsel for the respective parties waive service of rule.<br \/>\nWith the consent of both the sides, the matter is taken up for final<br \/>\nhearing today.\n<\/p>\n<p>1.\tBy<br \/>\nway of this petition, the petitioner has prayed to quash and set<br \/>\naside the demand Notice dated 02.09.2009 issued by respondent<br \/>\nno.1-Provident Fund authority, whereby, the petitioner has been<br \/>\ndirected to deposit an amount of Rs.2,15,24,982\/- with them, being<br \/>\nthe interest amount on delayed transfer of past accumulations payable<br \/>\nto the EPF Trust.\n<\/p>\n<p>2.\tThe<br \/>\nfacts in brief, as emerging from the record, are that the petitioner<br \/>\nis a company registered under the Companies Act, 1956 and is engaged<br \/>\nin the business of manufacturing chemicals, etc. The petitioner was<br \/>\ndeclared an exempted unit, as per Section 64 of the Employees&#8217;<br \/>\nProvident Fund and Misc. Provisions Act, 1952, w.e.f. 01.01.1963. The<br \/>\npetitioner used to regularly deposit \/ credit the amount of Provident<br \/>\nFund with respondent no.2.\n<\/p>\n<p>3.\tVide<br \/>\nletter dated 04.09.2006, the petitioner informed respondent<br \/>\nno.1-authority that it is willing to withdraw its membership from<br \/>\nrespondent no.2 w.e.f. 01.11.2006 and that thereafter, the employees<br \/>\ncontributions shall be deposited with respondent no.1-authority.<br \/>\nAccordingly, w.e.f. 01.11.2006, the petitioner ceased to be a member<br \/>\nof respondent no.2.\n<\/p>\n<p>4.\tVide<br \/>\ncommunication dated 22.12.2006, respondent no.1-authority informed<br \/>\nrespondent no.2 to transfer the amounts of Provident Fund deposited<br \/>\nby the petitioner before it. Vide communication dated 14.03.2007, the<br \/>\npetitioner also requested respondent no.2 to transfer the said<br \/>\namounts to respondent no.1. However, it appears that respondent no.2<br \/>\ndid not transfer the same.\n<\/p>\n<p>5.\tSome<br \/>\ntime later, the petitioner received complaints from the employees and<br \/>\nrespective Union that interest for the month of August 2007 had not<br \/>\nbeen credited in the respective accounts of employees. The petitioner<br \/>\ninformed both the respondents about the said discrepancy. In response<br \/>\nthereof, respondent no.2 informed the petitioner vide communication<br \/>\ndated 14.01.2009 that interest was not permissible for the month of<br \/>\nApril 2007 in view of the provisions of the said Act \/ Scheme.\n<\/p>\n<p>6.\tTherefore,<br \/>\nthe petitioner made several representations to respondent<br \/>\nno.1-Authority. However, no action was taken. To the shock of the<br \/>\npetitioner, respondent no.1-authority issued the impugned demand<br \/>\nNotice dated 02.09.2009 directing the petitioner to pay an amount of<br \/>\nRs.2,15,24,982\/- towards the interest on delayed transfer for the<br \/>\nperiod from the date of cancellation of the exemption, i.e.<br \/>\n31.10.2006 to March 2007 and also interest on delayed transfer for<br \/>\nthe month of April 2007. Being aggrieved by the same, the petitioner<br \/>\nhas preferred the present petition.\n<\/p>\n<p>7.\tHeard<br \/>\nlearned counsel for the respective parties and perused the documents<br \/>\non record. The issue involved in this petition pertains to<br \/>\nnon-payment of interest on the delayed transfer of past<br \/>\naccumulations. The concerned parties have filed their replies along<br \/>\nwith supporting documents.\n<\/p>\n<p>8.\tDuring<br \/>\nthe course of hearing, a consensus has been arrived at between the<br \/>\nparties whereby, they have agreed that to appear before respondent<br \/>\nno.1-authority, who shall adjudicate the issue on hand, after<br \/>\nconsidering the submissions and\/or documents, which may be produced<br \/>\nby the concerned parties.\n<\/p>\n<p>9.\tIn<br \/>\nview of the above consensus arrived at between the parties and since<br \/>\nthe matter involves disputed questions of facts, in the fitness of<br \/>\nthings, it would be appropriate that respondent no.1-authority<br \/>\nexamines the entire issue minutely and renders its decision upon it,<br \/>\nafter considering the reply\/written submissions that may be preferred<br \/>\nby the respective parties and also the documents, if any, that may be<br \/>\nproduced by either party. Orders accordingly. The Notice dated<br \/>\n02.09.2009 issued by respondent no.1-authority and impugned in this<br \/>\npetition shall be treated to be a  Notice  to the petitioner. The<br \/>\nrepresentatives of both the petitioner and respondent no.2 shall<br \/>\nremain present before respondent no.1-authority on  19 th<br \/>\nJuly 2010 at 1100 hrs.  Both the petitioner and respondent<br \/>\nno.2 shall be at liberty to file their reply\/written submissions,<br \/>\nalong with necessary document\/s, if any, upon which they want to<br \/>\nplace reliance. Respondent no.1-authority shall follow necessary<br \/>\nprocedure, as prescribed under the said Act, before rendering its<br \/>\nfinal decision and shall also afford an opportunity of hearing to<br \/>\nboth the parties. After considering all the aspects of the case and<br \/>\nthe reply\/written submissions that may be filed by the concerned<br \/>\nparties, respondent no.1-authority shall render its decision, in<br \/>\naccordance with law and as expeditiously as possible. It is made<br \/>\nclear that until final decision is rendered by respondent<br \/>\nno.1-authority, no coercive action shall be initiated against the<br \/>\npetitioner. It is expected that both the parties shall co-operate in<br \/>\nthe aforesaid proceedings so that they could be completed within a<br \/>\nreasonable period.\n<\/p>\n<p>10.\tWith<br \/>\nthe above observations and directions, the petition stands disposed<br \/>\nof. Rule is made absolute to the above extent with no order as to<br \/>\ncosts.\n<\/p>\n<p>[K.\n<\/p>\n<p>S. JHAVERI, J.]\t<\/p>\n<p>Pravin\/*<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Saurastra vs Regional on 9 July, 2010 Author: Ks Jhaveri,&amp;Nbsp; Gujarat High Court Case Information System Print SCA\/335\/2010 4\/ 4 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 335 of 2010 ========================================================= SAURASTRA CHEMICALS LTD &#8211; Petitioner(s) Versus REGIONAL PROVIDENT FUND COMMISSIONER &amp; 1 &#8211; Respondent(s) ========================================================= [&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-242444","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 v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Saurastra vs Regional on 9 July, 2010 - Free Judgements of Supreme Court &amp; 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