Case Law Details
Kulgaon Badlapur Nagar Parishad Vs Regional Provident Fund Commissioner II (Bombay High Court)
HC held that There is a purpose behind prescribing a limitation period to prefer an Appeal, by way of a statutory provision under any enactment. It is a period which is rightfully allocated to the aggrieved party to prefer an Appeal or such proceedings, as are statutorily permitted, before the superior forum. This period is at the disposal of the aggrieved party. Being a statutory period, neither can any authority curtail the said period, nor can an authority act to the prejudice of the aggrieved party during the Appeal period so as to frustrate the appeal. The Scheme under the PF Act enables the aggrieved party to approach the Appellate PF Tribunal by preferring an Appeal u/s.71. Along with the Appeal, an application u/s.7o seeking reduction of the deposit of 75% of the assessed amount or waiver of the deposit can be sought. The Appeal u/s.7I is considered after the assessee deposits 75% of the amount. It is only u/s.70 that the amount could be reduced or waived. The action of the authority dealing with Section 7-A proceeding in recovering the entire amount assessed u/s.7A before the aggrieved party could file an Appeal, and that too, within the limitation period, is apparently an arbitrary action which cannot be countenanced.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1 These three petitions involve three Municipal Councils who are identically placed. Each one of them had received the summons u/s.7-A of the EPF & MP Act, 1952 (hereinafter referred to as ‘the PF Act’). Each one participated in the 7-A enquiry and suffered an order of assessment. Vide Section 7-A assessment orders, each one was directed to deposit the assessed amounts within 15 days from the date of the orders. Pursuant to the expiry of the period of 15 days, each one suffered coercive action u/s.8F and the PF authorities recovered the entire amounts by freezing the bank accounts of these petitioners and by directing the banks to remit the said amounts in the account of the PF authority
2 These petitioners have prayed for quashing of the action initiated u/s.8F and have accordingly, mended their petitions and have added identical prayer clause (c-1) and (c-2), except that the account numbers and figures of the amounts are different. For the sake of brevity, prayer clause (c-1) and (c-2) in the first petition is reproduced herein :-
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