Gurazala Primary Agriculture Co-op. Credit Society Ltd v. Provident fund Organisation, Regional Office, Bhavishyanidhi Bhavan, 3rd lane, Krishna Nagar, Guntur

Heard learned counsel appearing for the petitioner and learned standing counsel appearing for the respondents.

The petitioner questions the prohibitory order, dated 29-12- 2008 issued by the Recovery Officer, Employees Provident Fund Organization-2nd Respondent.

Indisputably, an order under Section 7A of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 ( herein after referred to as ‘the Act’) came to be passed by the Assistant Provident Fund Commissioner. Unless, the order passed under Section 7-A of the Act is questioned, the petitioner cannot challenge the prohibitory order impugned in the writ petition.

It is the contention of the petitioner that the petitioner is not aware of the order passed under Section 7 A of the Act against Madugula Primary Agriculture Co-op. Credit Society Limited which came to be merged with the petitioner society w.e.f. 25-7-2005. Once Madugula Primary Agricultural Co-operative Society merged with the petitioner society, it is the obligation of the petitioner society to comply the order passed under Section 7A of the Act. If the petitioner intends to challenge the order passed under Section 7A, it has to file an appeal as provided under Section 7(i) of the Act.

Having regard to the facts and circumstances of the case, the petitioner is permitted to file an appeal before the appropriate Tribunal against the order passed under Section 7A of the Act within a period of four weeks from the date of receipt of copy of this order. Till such appeal is filed there shall be stay of recovery of the amount subject to the condition that the petitioner depositing half of the demanded amount within a period of four weeks from today. The prohibitory order is kept under suspension for a period of four weeks so as to enable the petitioner to operate the account.