The High Court · 2025

ADV. SRI.K.P.SREEKUMAR RESPONDENTS: THE REGIONAL PROVIDENT FUND COMMISSIONER, OFFICE OF THE EMPLOYEES PROVIDENT FUND COMMISSIONER, NO.36/685-A, BHAVISHYA NIDHI BHAWAN, KALOOR, ERNAKULAM-682017. THE CENTRAL PROVIDENT FUND COMMISSIONER, OFFICE OF THE EMPLOYEES PROVIDENT FUND COMMISSIONER, BHAVISHYA NIDHI BHAWAN, 14, BHIKAIJI CAMA PLACE, NEW DELHI-110066. THE ENFORCEMENT OFFICER (INSPECTOR), EMPLOYEES PROVIDENT FUNDS, PROVIDENT FUND INSPECTORATE, ROUND WEST, TRICHUR-682001. THE RECOVERY OFFICER, EMPLOYEES PROVIDENT FUND, NO.36/685-A, BHAVISHYA NIDHI BHAWAN, KALOOR, ERNAKULAM-682017. 1 2 3 4 WP(C).NO.2876/2017 2 * ADDL.5 THE OFFICIAL LIQUIDATOR, COMPANY LAW BHAVAN, 3RD FLOOR, BMC ROAD, THIKKAKAKRA(POST), KOCHI-682 021, KERALA. * ADDL. 6 THE CHIEF PROVIDENT FUND COMMISSIONER, OFFICE OF THE EMPLOYEES PROVIDENT FUND COMMISSIONER, BHAVISHYANIDHI BHAVAN, 14, BHIKAJI KAMA PLACE, NEW DELHI - 110 066. THE ASSISTANT PROVIDENT FUND COMMISSIONER, NO.36/685 A, BHAVISHYANIDHI BHAVAN, KALOOR, ERNAKULAM - 682 017, KERALA * ADDL. 7 * ADDL.R5 TO R7 ARE IMPLEADED AS PER ORDER DATED 15.01.2025 IN IA NO.1/2025 IN WP(C) NO.2876/2017 ADV.SRI.S.GOPAKUMARAN NAIR (SR.) SRI.SAJEEV KUMAR K. GOPAL, SC, EPFO SRI.K.MONI, SC, OFFICE OF THE OFFICIAL LIQUIDATOR KERALA THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 03.04.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).NO.2876/2017 3 MOHAMMED NIAS C. P. , J. ========================= W. P. (C) No. 2876 of 2017 ========================= Dated this the 3rd day of April, 2025 J U D G M E N T The petitioner was functioning as the Managing Director of M/s.Warrier Herbal Products Ltd., a company manufacturing ayurvedic medicines and herbal products. The company went into liquidation.  As per the adjudication order dated 17.9.2014 in C.P.No. 8/2000, the claim of the EPF authorities against the company was adjudicated as follows: “In the circumstances an amount Rs.42,670/- towards Administrative Charges under EPF Scheme & EDLI Scheme (ie:Rs. 41,944/- + Rs.726/-) has been admitted Under Section 529 & 529A of the Companies Act 1956, an amount of Rs.6,78,419/- has been paid by Cheque No. 978084 dated 13.03.2014 towards the Contribution amount claimed on the basis of the Supreme Court orders as per the letter of Official Liquidator dated 14.03.2014 & rejected an amount of Rs.14,42,178/- out of the total claim of Rs.21,63,267/-.” The claim for Rs. 21,63,267 /—made on 30.12.2011, as per Anx.R1(a), was accordingly rejected.

2. The statement filed on behalf of respondents 1, 3 & 4 does not show any challenge made against Anx.R1(l) order dated 17.9.2014, referred WP(C).NO.2876/2017 4 to above.

3. Upon admission of the writ petition, this Court granted an interim stay on 30.1.2017. The petitioner submits that the company in liquidation has already paid Rs.18,61,205/—towards the Provident Fund liability, as against the claim made by the Assistant Provident Fund Commissioner for Rs.21,63,267/—, though the Official Liquidator has admitted the claim only to the extent of Rs.42,670/-, as seen from Anx.R1(l) order. In the absence of any material before this Court to indicate a challenge made against Anx.R1(l) order, the prayers sought by the petitioner to quash the proceedings initiated before the Chief Judicial Magistrate, Trichur, on similar allegations of non-payment of the EPF dues, has to be allowed. This Court had earlier by judgment in O.P.No.10709/2001 dated 25.10.2005 permitted the petitioner to make remittance and wipe off the liabilities. The recovery proceedings and prosecution against the petitioner were deferred for a period of two months.

4. In the aforesaid circumstances, the continuance of the prosecution is nothing but an abuse of the process of law.

5. In view of the above, I am inclined to allow the prayer sought for in the writ petition and all proceedings before the Chief Judicial WP(C).NO.2876/2017 5 Magistrate, Trichur in  S.T.Nos.1223, 1224, 1226, 1227, 1228, 1229 and 1232 of 1998 and C.C.Nos.26, 27, 28, 29, 30 and 31 of 2000 will stand quashed as against the petitioner. The writ petition is allowed as above. Sd/- MOHAMMED NIAS C. P., JUDGE MMG WP(C).NO.2876/2017 6 APPENDIX OF WP(C).NO.2876/2017 PETITIONER'S EXHIBITS: EXHIBIT - P1 TRUE COPY OF THE COMPLETE DETAILS OF PAYMENT IN A TABULAR FORM EXHIBIT - P2 TRUE COPY OF THE ORDER DATED 27.3.2006 IN C.P.NO.8/2000 OF THE HON'BLE HIGH COURT WINDING UP OF THE COMPANY EXHIBIT - P3 EXHIBIT - P4 EXHIBIT - P5 TRUE COPY OF THE JUDGMENT OF THIS HON'BLE COURT IN O.P(C)NO.10709/2001(Y)

25.10.2005 DATED TRUE COPY OF THE REPRESENTATION MADE BY THE PETITIONER BEFORE THE CHIEF PROVIDENT FUND COMMISSIONER WITH COPY TO THE ASSISTANT PROVIDENT FUND COMMISSIONER, DATED 24.12.2016. TRUE COPY OF THE POSTAL RECEIPT, DTD. 24/12/2016, EVIDENCING THE DISPATCH OF THE POSTAL COVERS TO THE CHIEF PROVIDENT FUND COMMISSIONER. EXHIBIT - P5(A) TRUE COPY OF THE POSTAL RECEIPT, DTD. 24/12/2016, EVIDENCING THE DISPATCH OF THE POSTAL COVERS TO THE ASSISTANT PROVIDENT FUND COMMISSIONER. EXHIBIT - P6 TRUE COPY OF THE REGISTER SHOWING DEBTS AND CLAIMS ADMITTED WHOLLY OR IN PART MAINTAINED BY THE OFFICIAL LIQUIDATOR WITH RESPECT TO M/S.WARRIER HERBALS PRODUCTS LTD., (IN LIQUIDATION) IN C.P.NO.8/2000, DATED 21.11.2014. WP(C).NO.2876/2017 7 RESPONDENTS' ANNEXURES: ANNEXURE R1(A) TRUE COPY OF THE AFFIDAVIT OF PROOF OF DEBT DATED 30-12-2011 SUBMITTED BY M/S WARRIER HERBAL PRODUCTS LIMITED ANNEXURE R1(B) TRUE COPY OF THE LETTER ISSUED BY THE PETITIONER DATED 20-06-2012 ANNEXURE R1(C) TRUE COPY OF THE REPLY SUBMITTED BY THE EPFO DATED 03-08-2012 ANNEXURE R1(D) TRUE COPY OF THE LETTER DATED 07-08-2012 ISSUED BY THE ADDL.R5 ANNEXURE R1(E) TRUE COPY OF THE FURTHER COMMUNICATION DATED 12.10.2012 WAS ISSUED BY THE ADDL.R5, ANNEXURE R1(F) TRUE COPY OF THE REPLY DATED 17-01-2013 SUBMITTED BY THE EPFO ANNEXURE R1(G) TRUE COPY OF THE LETTER DATED 17-01-2014 OF THE RESPONDENT ANNEURE R1(H) TRUE COPY OF THE ORDER PASSED BY THIS HON’BLE COURT DATED 11-09-2013 ON THE BASIS OF A REPORT FILED BY THE OFFICIAL LIQUIDATOR ANNEXURE R1(I) TRUE COPY OF THE LETTER DATED 30-01-2014 1ST RESPONDENT ORGANIZATION ANNEXURE R1(J) TRUE COPY OF THE PROCEEDINGS OF THE 1ST RESPONDENT UNDER SECTION 14B OF THE ACT DATED 28-03-2014 ANNEXURE R1(K) TRUE COPY OF THE PROCEEDINGS OF THE ASSISTANT PROVIDENT FUND COMMISSIONER, KOCHI UNDER SECTION 7Q OF THE ACT DATED 28-03-2014 WP(C).NO.2876/2017 8 ANNEXURE R1(L) TRUE COPY OF THE ADJUDICATION ORDER (FORM NO.69) DATED 17/9/2014 ANNEXURE R1(M) TRUE COPY OF THE FRESH CLAIM PETITION DATED 21/10/2014 ANNEXURE R1(N) TRUE COPY OF THE ORDER OF THE OFFICIAL LIQUIDATOR DATED 20/11/2014