Sri Bhagavathi Textiles Limited Vs Asstt. Provident Fund Commissioner (Kerala High Court)
The Kerala High Court granted limited relief to the petitioner by permitting payment of damages imposed under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 in 18 equal monthly instalments. The damages related to the period February 2001 to December 2004. The Court noted that the original Section 14B order had been restored by a Division Bench, making the petitioner liable to pay the assessed amount, following which a recovery notice was issued. Since the petitioner sought only instalment facility and not interference with the liability, the Court directed that the first instalment be paid on or before 04-07-2026, with subsequent instalments due on the 4th of every succeeding month. Coercive recovery proceedings were stayed during compliance, while any default would entitle the EPFO to resume recovery in accordance with law.
The Kerala High Court allowed a company to pay EPF damages levied under Section 14B in 18 equal monthly instalments after the original order imposing damages had been restored and a recovery notice was issued. As the petitioner sought only instalment relief, the Court directed payment of the first instalment by 04-07-2026 and the remaining instalments on the 4th day of each succeeding month. All coercive recovery proceedings were kept in abeyance to facilitate payment. However, the Court clarified that any default in an instalment would permit the authorities to proceed with recovery in accordance with law.
