Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V TUESDAY, THE 12TH DAY OF MARCH 2024 / 22ND PHALGUNA, 1945 WP(C) NO. 9665 OF 2024 PETITIONERS:
M/S. VARGHESE BROTHERS & CO.
PLOT NO. 5, KINFRA FOOD PARK, KAKKANCHERY, MALAPPURAM REPRESENTED BY ITS PARTNER, PIN - 673634 BY ADVS.
LATHA ANAND M.N.RADHAKRISHNA MENON K.R.PRAMOTH KUMAR S.VISHNU (ARIKKATTIL) SIDHARTH P.S.
RADHAKRISHNA PILLAI B RESPONDENT/S:
1 THE BOARD OF TRUSTEES EMPLOYEES PROVIDENT FUND ORGANIZATION, BHAVISHYANIDHIBHAVAN, BHIKAIJICAMA PLACE NEW DELHI REPRESENTED BY ITS SECRETARY, PIN - 110066 2 ASSISTANT PROVIDENT FUND COMMISSIONER (COMPLIANCE) EMPLOYEES PROVIDENT FUND ORGANIZATION, REGIONAL OFFICE, BHAVISHYANIDHIBHAVAN, ERANHIPALAM P.O., KOZHIKODE, PIN - 673006 BY ADV ABRAHAM P.MEACHINKARA SRI SAJEEV KUMAR K GOPAL, SC FOR EPFO THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 9665 OF 2024 2 JUDGMENT Petitioner states that they are a partnership firm running a soda and soft drink manufacturing unit and is covered under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (for short, the ‘EPF Act’) and the schemes framed thereunder. The petitioner states that a sum of Rs. 3,72,328/- was determined by the respondents as interest under Section 7Q of the EPF Act for delayed payment of contribution for the period from 01.06.2019 to 31.03.2023. It is contended that the firm is facing financial distress and has not been functioning since 2020. In the said circumstances, the petitioner is stated to have approached the 2nd respondent and sought an opportunity to remit the amount in manageable installments. However, their request was rejected by Exhibit P9 letter. The petitioner states that they are in impecunious circumstances and requests the issuance of directions to the respondents to permit the petitioner to pay the amount in manageable installments.
2.
Smt. Latha Anand, the learned counsel appearing for the petitioner, submitted that the petitioner is not disputing the quantum of interest that has been assessed, but the request is only to grant the petitioner a generous period of not less than 15 months to clear the outstanding.
WP(C) NO. 9665 OF 2024 3 3.
Sri. Sajeev Kumar K. Gopal, the learned Standing Counsel appearing for the respondents, has vehemently opposed the request.
4.
Upon careful consideration of the submissions presented, the records indicate that the petitioner manages a manufacturing unit. It is the contention of the petitioner that the manufacturing unit’s operations were significantly disrupted by the lockdown enforced during the pandemic, which assertion is not objected to by the respondents. Acknowledging the financial hardships asserted by the petitioner and noting the representations from the learned counsel for the EPFO regarding the petitioner's subsequent regular remittances, I am of the opinion that it is both just and equitable to afford the petitioner the opportunity to settle the outstanding interest amount through feasible installments.
5.
Resultantly, this writ petition is ordered, and the following directions are issued:
(i) The petitioner shall remit the amount mentioned under Section 7Q of the Act, 1952, in twelve (12) equal monthly installments commencing from 15.04.2024 and continue to pay the same on every successive month thereafter until the entire amount is wiped off.
(ii) If the amounts are diligently paid in terms of the directions above, coercive proceedings initiated against the
WP(C) NO. 9665 OF 2024 4 petitioner by the respondents for the realization of the amount shall be kept in abeyance.
sd/- RAJA VIJAYARAGHAVAN V JUDGE DCS
WP(C) NO. 9665 OF 2024 5 APPENDIX OF WP(C) 9665/2024 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE STATEMENT DATED 11.10.2023 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT Exhibit P2 TRUE COPY OF THE BALANCE SHEET OF THE PETITIONER FOR THE PERIOD FROM 2020-2021 Exhibit P3 TRUE COPY OF THE BALANCE SHEET OF THE PETITIONER FOR THE PERIOD FROM 2021-2022 Exhibit P4 TRUE COPY OF ELECTRICITY BILL DATED 28.01.2020 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4(a) TRUE COPY OF ELECTRICITY BILL DATED 26.02.2020 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4(b) TRUE COPY OF ELECTRICITY BILL DATED 25.04.2020 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4(c) TRUE COPY OF ELECTRICITY BILL DATED 31.05.2020 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4(d) TRUE COPY OF ELECTRICITY BILL DATED 01.06.2020 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4(e) TRUE COPY OF ELECTRICITY BILL DATED 26.06.2020 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4(f) TRUE COPY OF ELECTRICITY BILL DATED 28.07.2020 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4(g) TRUE COPY OF ELECTRICITY BILL DATED 04.09.2020 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4(h) TRUE COPY OF ELECTRICITY BILL DATED 26.09.2020 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4(i) TRUE COPY OF ELECTRICITY BILL DATED 27.10.2020
WP(C) NO. 9665 OF 2024 6 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4(j) TRUE COPY OF ELECTRICITY BILL DATED 26.11.2020 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4(k) TRUE COPY OF ELECTRICITY BILL DATED 26.12.2020 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4 (l) TRUE COPY OF ELECTRICITY BILL DATED 31.01.2021 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4(m) TRUE COPY OF ELECTRICITY BILL DATED 26.02.2021 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4(n) TRUE COPY OF ELECTRICITY BILL DATED 31.03.2021 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4 (o) TRUE COPY OF ELECTRICITY BILL DATED 26.05.2021 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4 (p) TRUE COPY OF ELECTRICITY BILL DATED 26.06.2021 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4 (q) TRUE COPY OF ELECTRICITY BILL DATED 27.07.2021 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4 (r) TRUE COPY OF ELECTRICITY BILL DATED 26.08.2021 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4 (s) TRUE COPY OF ELECTRICITY BILL DATED 28.09.2021 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4 (t) TRUE COPY OF ELECTRICITY BILL DATED 26.10.2021 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P4 (u) TRUE COPY OF ELECTRICITY BILL DATED 26.11.2021 ISSUED BY THE KSEB TO THE PETITIONER Exhibit P5 TRUE COPY OF GST RETURN FILED BY THE PETITIONER FOR THE PERIOD DURING APRIL 2020-21 DATED 11.08.2020
WP(C) NO. 9665 OF 2024 7 Exhibit P5(a) TRUE COPY OF GST RETURN FILED BY THE PETITIONER FOR THE PERIOD DURING MAY 2020-21 DATED 11.08.2020 Exhibit P5(b) TRUE COPY OF GST RETURN FILED BY THE PETITIONER FOR THE PERIOD DURING JUNE 2020-21 DATED 11.08.2020 Exhibit P5(c) TRUE COPY OF GST RETURN FILED BY THE PETITIONER FOR THE PERIOD DURING JULY 2020-21 DATED 11.08.2020 Exhibit P5(d) TRUE COPY OF GST RETURN FILED BY THE PETITIONER FOR THE PERIOD DURING AUGUST 2020-21 DATED 19.12.2020 Exhibit P5(e) TRUE COPY OF GST RETURN FILED BY THE PETITIONER FOR THE PERIOD DURING SEPTEMBER 2020-21 DATED 19.12.2020 Exhibit P5(f) TRUE COPY OF GST RETURN FILED BY THE PETITIONER FOR THE PERIOD DURING OCTOBER 2020-21 DATED 19.12.2020 Exhibit P5(g) TRUE COPY OF GST RETURN FILED BY THE PETITIONER FOR THE PERIOD DURING NOVEMBER 2020-21 DATED 19.12.2020 Exhibit P5(h) TRUE COPY OF GST RETURN FILED BY THE PETITIONER FOR THE PERIOD DURING DECEMBER2020-21 DATED 22.02.2021 Exhibit P5(i) TRUE COPY OF GST RETURN FILED BY THE PETITIONER FOR THE PERIOD DURING MAY 2021-22 DATED 30.07.2021 Exhibit P5(j) TRUE COPY OF GST RETURN FILED BY THE PETITIONER FOR THE PERIOD DURING JUNE 2021-22 DATED 30.07.2021 Exhibit P5(k) TRUE COPY OF GST RETURN FILED BY THE PETITIONER FOR THE PERIOD DURING JULY 2020-21 DATED 19.08.2021
WP(C) NO. 9665 OF 2024 8 Exhibit P6 TRUE COPY OF THE ORDER.NO.KR/KKD/23775/ENF-3(4)/7Q/2023/5158 DATED 01.11.2023 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER Exhibit P7 TRUE COPY OF THE REPRESENTATION DATED 15.11.2023 SENT BY THE PETITIONER TO THE 2ND RESPONDENT Exhibit P8 TRUE COPY OF THE CHALLAN DATED 29.02.2024 FROM THE WEBSITE OF EPFO Exhibit P9 TRUE COPY OF THE LETTER.NO.KR/KKD/23775/ENF-3(4)/DAM/2024/6001 DATED 08.02.2024 SENT BY THE 2ND RESPONDENT TO THE PETITIONER