M/S RAM COMPUTERS V. THE REGIONAL PROVIEDENT FUND COMMISSIONER-II

WP/103896/2022

AI Insights

The case involves M/s Ram Computers, a manpower supply agency, which faced an order of attachment on its bank accounts due to default in payment of provident fund contributions as mandated under the Employees Provident Fund and Miscellaneous Provisions Act, 1952. The petitioner sought a writ of mandamus from the High Court of Karnataka to stay the coercive recovery steps by the respondent, the Regional Provident Fund Commissioner-II, citing the vacancy of the CGIT which hindered the appeal process. The court acknowledged the procedural delay due to the vacancy and provided an interim stay on the attachment order, allowing the petitioner a future opportunity to contest the order once the CGIT is functional.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 691585 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 27-09-2022
• Assessment Year: misc
• Laws Referred To: Constitution of India, Employees Provident Fund and Misc. Provisions Act, 1952
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P V GUNJAL
• Assessee Lawyers: M H PATIL; HARSHAWARDHAN PATIL
• Keywords: Attachment of bank account; Coercive steps of recovery; Writ of Mandamus; Vacancy of CGIT; EPF Appellate Tribunal
• Section: 71; 226; 14B; 227

Judgement Text

"- 1 - WP No. 103896 of 2022 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 27TH DAY OF SEPTEMBER, 2022 BEFORE THE HON'BLE MR JUSTICE M.I.ARUN WRIT PETITION NO. 103896 OF 2022 (L-PF) BETWEEN: M/S RAM COMPUTERS NO.24, 2ND FLOOR, SRI LAXMISIDDI LIGHT COMPLEX, TAVATIGALLI, BELAGAVI REPRESENTED BY ITS PROPRIETOR MR. ANANSAHEB BANGARE …PETITIONER (BY SRI. M. H. PATIL AND SRI.HARSHAWARDHAN M. PATIL, ADVOCATE) AND: THE REGIONAL PROVIEDENT FUND COMMISSIONER-II EMPLOYEES PROVIDENT FUND ORGANISATION, SUB-REGIONAL OFFICE, BHAVISHYA NIDHI BHAVAN NEW BLOCK NO.10 BEHIND INCOME TAX OFFICE, NAVANAGAR, HUBLI-580025 …RESPONDENT (BY SRI. P. V. GUNJAL, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO: I. ISSUE A WRIT OF MANDAMUS THAT IN VIEW OF VACANCY OF THE CGIT AND EPF APPELLATE TRIBUNAL, KINDLY DIRECT THE RESPONDENT TO NOT TO TAKE ANY COERCIVE STEPS OF RECOVERY PURSUANT TO 14B ORDER NO.GB/HBL/PENAL DAMAGES/63363/2022-23/257/309 DATED Digitally signed by SUJATA SUBHASH PAMMAR - 2 - WP No. 103896 of 2022 28.06.2022/20.07.2022 AS PER ANNEXURE-A, TILL PRESIDING OFFICER REPORTED TO THE APPELLATE TRIBUNAL AND LISTING OF STATUTORY APPEAL FILED BY THE PETITIONER BEFORE THE EPF APPELLATE TRIBUNAL, BENGALURU FOR ADMISSION, AS PER ANNEXURE-B; II. DIRECT THE RESPONDENT TO NOT TAKE ANY COERCIVE STEPS RECOVERY PURSUANT TO 14B ORDER NO.GB/HBL/PENAL DAMAGES/63363/2022-23/257/309 DATED 28.06.2022/20.07.2022 AS PER ANNEXURE-A, TILL PRESIDING OFFICER REPORTED TO THE APPELLATE TRIBUNAL AND LISTING OF STATUTORY APPEAL FILED BY THE PETITIONER BEFORE THE EPF APPELLATE TRIBUNAL, BENGALURU FOR ADMISSION. THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING: ORDER 1. The petitioner is a man power supply Agency/Contractor, registered under the provisions of Shops and Establishment Act. It is also covered under the provisions of the Employees Provident Fund and Misc. Provisions Act, 1952 (hereinafter referred to as ‘the EPF Act’, for short). On the ground that it defaulted in payment of its contribution to the provident fund of its employees, proceedings were initiated against the petitioner and an order as contemplated under Section 14(B) of the EPF Act, has been passed by the respondent and an order of attachment attaching its account in Union Bank of - 3 - WP No. 103896 of 2022 India and Canara Bank has been passed. Aggrieved by the same, the instant writ petition is filed. 2. The impugned order of attachment of Bank Account is appealable order under Section 7I of the EPF Act. However, it is submitted that the jurisdictional CGIT is vacant and hence the instant writ petition is filed. 3. The learned counsel for respondent submits that the Presiding Officer is likely to be appointed to the CGIT in the near future and he fairly submits that the writ petition can be disposed of by giving liberty to the petitioner to approach CGIT within a period of two months after appointment of the Presiding Officer and an interim protection can be given to the petitioner by staying the impugned order of attachment till such time. His submission is placed on record. Hence the following order: ORDER i. The petitioner is given liberty to approach the jurisdictional CGIT within two months after - 4 - WP No. 103896 of 2022 appointment of the Presiding Officer and challenge the impugned order. ii. The operation of the impugned order dated 20.07.2022 bearing No.GB/HBL/Penal Damages/63363/2022-23/257/309 passed by the respondent vide Annexure-C to the writ petition is stayed till such date. iii. It is made clear that, if the petitioner fails to approach CGIT within two months from the date of appointment of the Presiding Officer and obtain necessary orders, respondent Authority is at liberty to proceed against the petitioner. iv. Writ petition is disposed of accordingly. Sd/- JUDGE gab List No.: 1 Sl No.: 35 "