Lotus Herbals Private Limited Vs Employees’ Provident Fund Organization And Ors. (Delhi High Court)
Delhi High Court addressed a petition filed by Lotus Herbals Private Limited challenging a notice under Section 7A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, issued by the Employees’ Provident Fund Organization (EPFO). The petitioner contended that the notice, dated January 22, 2019, was issued with mala fide intent, relying solely on one inspection report, disregarding a second report that favored the petitioner. The company sought the quashing of the notice, claiming that the due process of law was not followed, and that the report which worked against them was unfairly prioritized.
The court considered the submissions and examined the procedural legality of the notice issued. It emphasized that the EPFO had provided the petitioner with an opportunity to represent their case and determine their dues under the Act. It also referred to the law governing such notices, stating that they must be issued by the competent authority and that any objections should be raised during the enquiry proceedings, not at the notice stage. The court ruled that the show-cause notice was issued in accordance with the procedure established by law and dismissed the petition, agreeing with the respondent’s submission that no illegality had occurred in the process.
