The Hindu Business Line : HC quashes damages claimed by PF Commissioner

Chennai, Nov. 10 A claim by the Regional PF Commissioner, Madurai, for payment of damages by State-owned Tuticorin Alkali Chemicals & Fertilizers Ltd, for alleged failure to pay PF contributions on due date has been set aside by the Madurai Bench of the Madras High Court.

Mr Justice K. Chandru, hearing writ petitions from the company as also a few other undertakings challenging the order dated March 10, 2005 of Assistant PF Commissioner, Tirunelveli levying damages for belated remittance of PF dues, held that action of the department was unjustifiable.

The petitioner had benefit of interim order by the High Court staying payment of PF contribution on enhanced coverage. Subsequently, all writ petitions were dismissed, and the Court upheld enhancement of income limit. No sooner these petitions were dismissed, the petitioner paid contribution and there was no due towards original contributions.

If employer was now asked to deposit the amount towards damages not only towards their contribution, but also for failure of contribution by employees, it would be unjust, the judge ruled. Employer having paid the amount due to PF, the court would have to take just, pragmatic, fair and judicial view. Citing the decisions of the apex court, the Judge said this court had no hesitation in setting aside the order of levy under Section 14B of Employees’ PF Act. The writ petitions were allowed.

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