MADURAI: The Employees Provident Fund Organisation (EPFO) cannot levy penalty on employers for belated remittance of PF contributions owing to interim orders passed by court, the Madras High Court has ruled.
Petition allowed
Allowing a batch of writ petitions, Justice K. Chandru said the court would have to take a just, pragmatic, fair and judicial view in such matters considering the fact that the petitioners did not make payment on time because of court orders.
Tuticorin Alkali Chemicals and Fertilizers Limited, Tirunelveli Central Cooperative Bank Limited and Sree Visalam Chit Fund Limited of Sivaganga district filed the petitions against the penalty levied on them by the respective Provident Fund Commissioners.
Damages sought
The companies claimed they filed a case against enhancing the coverage limit and obtained an interim stay on payment of PF contributions towards enhanced coverage. The cases were dismissed and they remitted the contribution. But the EPFO insisted on damages for belated payment.
Mr. Justice Chandru pointed out that the Supreme Court, in Employees State Insurance Corporation Vs. Jardine Henderson Staff Association (2006), had held that no one should suffer because of court orders.
Printer friendly
page Send this article to Friends by
E-Mail
