Kashish Developers Limited Vs Employees Provident Fund Organization (Jharkhand High Court)
The Jharkhand High Court examined a writ petition challenging an order of the Central Government Industrial Tribunal No. 2, Dhanbad, which directed the petitioner to deposit 25% of the amount assessed under Section 7A of the Employees Provident Fund and Miscellaneous Provisions Act, 1952, as a condition for entertaining its statutory appeal. The petitioner, a real estate company registered under the EPF Act, had complied with provident fund obligations for its regular employees during April 2016 to March 2020, with only a minor undisputed shortfall. The major dispute arose from an assessment holding the petitioner liable for EPF dues of workers engaged through contractors, resulting in a demand of over ₹12.49 crore.
The petitioner contended that contractors were independently registered under the EPF Act, payments were made through banking channels with TDS deductions, and there was no employer–employee relationship with contract labour. After the adjudication order under Section 7A, the petitioner filed an appeal under Section 7I along with an application under Section 7O seeking waiver of pre-deposit. The Tribunal initially directed a 30% deposit, which was set aside by the High Court earlier for being a non-speaking order that failed to consider the principles governing waiver or stay. Upon remand, despite written submissions and a Chartered Accountant’s certificate showing weak financial position, the Tribunal again ordered a 25% deposit without addressing the relevant factors.
