The High Court
Case Details
IN THE HIGH COURT OF ORISSA AT CUTTACK W.A No.1784 of 2022 (Arising out of W.P.(C) No.29069 of 2022) M/s. Maa Basuli Higher Secondary School, Thakurmunda, District- Mayurbhanj …. Appellant Mr. Deepak Kumar Pani, Advocate -versus- State of Odisha and Another …. Respondents/ Opp. Parties Mr. D. R. Mohapatra, Standing Counsel For School and Mass Education Department CORAM: JUSTICE JASWANT SINGH JUSTICE M.S. SAHOO ORDER(Oral) 01.02.2023 Order No. (Hybrid Mode) 02. 1. The present intra-Court appeal is directed against the order dated 25th November, 2022 passed
Decision
by the learned Single Judge, whereby the Writ Petition filed by the appellant-petitioner has been disposed of by relegating the appellant-petitioner to seek its remedy of appeal before the appropriate authority in accordance with law. 2. Briefly, the facts are that the appellant is a Government Aided Higher Secondary School located in the tribal area of Mayurbhanj District, and as such within the ambit of Employee’s Provident Fund and Miscellaneous Provisions Act, 1952 (for short, “the Page 1 of 5 // 2 // Act, 1952) read with Employee’s Provident Fund Scheme, 1952, whereby the appellant School/Employer is required to remit it’s contribution amount to the Fund in accordance with the provision of Scheme along with employee’s contribution deducted from the wages along with interest payable in accordance with the provisions of the Act, 1952. 2.1. It transpires that for the period from 20th December, 2013 to 28th February, 2022, the appellant-School could not deposit the due amounts within specified time periods in the Employee’s Provident Fund in terms of the requirements of the Act, 1952/Scheme leading to issuance of summons by the Assistant Regional Provident Fund Commissioner, Keonjhar to appear for hearing under Section 14B of the Act, 1952 (an order for payment of interest under Section 7Q of the Act, 1952) for belated remittance made during the period. Along with the summons complete statements showing amounts payable under Section 7Q and 14B of the Act, 1952 were annexed. The appellant-School replied and claimed that in view of deposits made though belatedly under the Amnesty Scheme dated 15th March, 2017 was entitled to waiver of damages. It was admitted that inadvertently and due to ignorance, the due amounts of contributions could not be deposited in time. Page 2 of 5 // 3 // 2.2. The Regional Commissioner after providing due opportunity of hearing passed an order dated 16/21.09.2022 imposing an amount of Rs.12,47,103/- as damages under Section 14B of the Act, 1952 and another Demand Notice dated 16/21.09.2022 requiring the deposit of Rs.7,64,556/- (rupees Seven Lakh Sixty Four Thousand Five Hundred Fifty Six) only towards interest due under Section 7Q of the Act, 1952 for the delayed remittance of the contributions made for the period from 20th December, 2013 to 28th February, 2022. 2.3. The aforesaid Demand Notice directing the deposit a sum of Rs.7,64,556/- (rupees Seven Lakh Sixty Four Thousand Five Hundred Fifty Six) only towards interest and the order dated 21st September, 2022 ordering the deposit of Rs.12,47,103/-(rupees Twelve Lakh Forty Seven Thousand One Hundred Three) only towards damages were challenged before this Court by filing a Writ Petition bearing W.P.(C) No.29069 of 2022, which was disposed of vide impugned order dated 25th November, 2022 passed by the learned Single Judge relegating the appellant- petitioner to seek it’s remedy of appeal under Section 7-I of the Act, 1952. 3. Learned counsel for the appellant submits that for the demand of interest under Section 7Q of the Act, 1952, there is no remedy of appeal provided under Section 7-I of the Act, 1952, thereby the Page 3 of 5 // 4 // learned Single Judge has erred in refusing to entertain the petition causing severe prejudice to the appellant. 4. After analyzing the arguments raised by the learned counsel for the petitioner and the relevant provisions of the Act, 1952, we find the argument of the appellant to be totally misplaced in the face of admitted facts of the case. 4.1. A perusal of the provision of Section 7Q of the Act, 1952 reflects that the employer has been made liable to pass simple interest at the rate of 12% per annum or at such higher rate as specified in the Scheme at any amount due from the employer under the Act, 1952 from the date on which the said amount has become so due till the date of its actual payment, meaning thereby that there is no independent adjudication of any liability but only prescribes the rate of interest payable on the admitted amounts, which have been belatedly deposited in the Fund or the amounts so adjudicated/determined under Sub Section (1) of Section 7-I of the Act, 1952. It is thus crystal clear that the payment of interest is only a consequential event in case of admitted delay in remittance or adjudication of the liability. No doubt the position would be different in case the liability to pay remittance for the period was disputed, and in such eventuality possibly a writ would be liable to be entertained. However, in the instant case, the Page 4 of 5 // 5 // amounts due and its belated payment by the appellant-school is not in dispute, therefore we are not persuaded to accept the contention raised on behalf of the appellant and hence, the same is rejected. 5. The other argument that the appellant-school will be entitled to pay the reduced rate of damages for the period of default between 1st April, 2009 to 31st December, 2016 under the Employee’s Provident funds (Seventh Amendment) Scheme, 2016 would be covered within the area of adjudication under Section 14-B of the Act, 1952 vesting the power to recover damages and thus fall within the scope of appellate jurisdiction under Section 7-I of the Act, 1952. Thus, the learned Single Judge has rightly relegated the petitioner to seek it’s remedy of appeal before the appellate forum under the Act, 1952 and as such we find no grounds warranting interference in our writ appeal jurisdiction. 6. In view of the above, the present Writ Appeal stands dismissed. (Jaswant Singh) Judge Judge (M.S. Sahoo) Sipun 1st February, 2023 Cuttack Page 5 of 5