Swapna D/O Mr. Muniraju Vs State of Karnataka (Karnataka High Court)
Karnataka High Court held that deeming fiction under section 405 of the IPC would be attracted only when there is deduction made by the employer and not otherwise. In absence of deduction, the deeming fiction cannot be invoked nor could there be said to be an offence amounting to criminal breach of trust.
Facts- The first petitioner is the Secretary, and the second petitioner is the Founder Trustee of Sri Balaji Educational Charitable Trust, which imparts education under the name and style of ‘Rainbow International School’ and ‘Rainbow Pre-University College’.
On 26.08.2015, the second respondent – Enforcement Officer, issued a notice to the said School, demanding payment of Employee’s provident fund dues for the period from June 2014 to January 2015 in respect of employees of the said organisation. Soon after the receipt of the said notice, the petitioner is stated to have made payments of the due amounts on 04.07.2015 for the demand period.
Subsequently, the second respondent re-issued an inquiry notice u/s. 7A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 dated 10.09.2015 as regards which the authorised representative of the petitioner appeared before the Authority and submitted necessary particulars. The second respondent initiated proceedings and passed an order directing to pay a further sum of Rs.31,758/-within 15 days vide its order dated 05.04.2016. Another proceeding was conducted on 08.08.2016, directing the Trust to deposit a sum of Rs.14,952/-towards alleged interest u/s. 7Q and Rs.26,522/- towards damages u/s. 14B of the EPF Act. This amount was also paid by the Trust on 23.03.2017.
