Business Daily from THE HINDU group of publications
Saturday, Nov 17, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Saturday, Nov 17, 2007 ePaper | Mobile/PDA Version |
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Industry & Economy
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Social Security States - Tamil Nadu PF authorities should use discretion while levying damages: HC ‘The impugned order was passed unmindful of legal provisions as well as judicial precedents.’ Our Legal Correspondent Chennai, Nov. 16 Provident fund authorities should exercise their discretion in awarding damages under Section 14-B of the Employees Provident Funds & Miscellaneous Provisions Act, 1952, the Madurai Bench of the Madras High Court has ruled. Quashing the impugned order dated May 31, 2004 of the Regional PF Commissioner, Tirunelveli, levying damages on Abcoy for its failure to pay PF dues, Mr Justice K. Chandru said that levying of damages was penal in nature, and when the petitioner (Abcoy) had submitted that it was facing financial problems and hence could not pay the dues on time, the Regional PF Commissioner, Tirunelveli did not even refer to the said fact and rejected it. On the contrary, he awarded damages for various periods. Even though an appeal lay to the Appellate Tribunal under Section 7-I of the Act for more than 3 years, the authority had not exercised his discretion in regard to award of damages. Citing an order of the Division Bench of Madras High Court [Kasthuri Mills vs Asst PF Commissioner – (2007 (1) CTC 201], the Judge held that inspite of the direction given by the Bench to follow the guidelines in future, impugned order was passed unmindful of legal provisions as well as judicial precedents. The Bench had referred to an order of apex court in 2005 2 Supreme Court Cases 235 in which that court had ruled that right to reason was an indispensable part of a sound judicial system. Another rationale was that the affected party could know why decision had gone against him. It was a fit case to be allowed following the earlier decision cited, the Judge ruled and quashed the order of PF Commissioner. . More Stories on : Social Security | Courts/Legal Issues | Tamil Nadu
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