IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN WEDNESDAY, THE 18TH MARCH 2009 / 27TH PHALGUNA 1930 WP(C).No. 38097 of 2008(I) -------------------------- PETITIONER(S): --------------- UNION BANK OF INDIA, PANAMPILLY NAGAR BRANCH, P.B.NO.4274, PANAMPILLY NAGAR, ERNAKULAM DISTRICT,PIN-682 036, REPRESENTED BY CHIEF MANAGER. BY ADV. SRI.A.V.THOMAS SRI.JOJO GEORGE SRI.NIDHI SAM JOHNS RESPONDENT(S): --------------- 1. THE REGIONAL PROVIDENT FUND COMMISSIONER EMPLOYEES' PROVIDENT FUND ORGANISATION, SUB REGIONAL OFFICE, 36/685 A, BHAVISHYANIDHI BHAVAN, P.B.NO.1895, KALOOR, KOCHI - 682 017. 2. THE ASSISTANT PROVIDENT FUND COMMISSIONER & RECOVERY OFFICER, EMPLOYEES' PROVIDENT FUND ORGANISATION, SUB REGIONAL OFFICE, 36/685 A, BHAVISHYANIDHI BHAVAN, P.B.NO.1895, KALOOR, KOCHI - 682 017. ADV. SRI.S.GOPAKUMARAN NAIR, SENIOR ADVOCATE SRI.M.CHANDRA BOSE THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 18/03/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX IN WPC.38097/08 PETITIONER'S EXHIBITS: EXT.P1: TRUE PHOTOCOPY OF THE MEMORANDUM OF DEPOSIT OF TITLE DEED DRAWN ON 2.3.04 IN FAVOUR OF THE PETITIONER BY M/S.BHAGEERATHA ENGINEERING LTD. EXT.P2: TRUE COPY OF THE SALE NOTICE PUBLISHED IN MATHRUBHUMI DAILY DATED 27.11.08. EXT.P3: TRUE COPY OF THE NOTICE DATED 6.12.07 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER. EXT.P4: TRUE COPY OF THE REPLY DATED 11.1.08 SENT BY THE PETITIONER TO THE 1ST REPSONDENT. EXT.P5: TRUE COPY OF THE REPLY DATED 15.12.08 SENT BY THE PETITIONER TO THE 2ND REPSONDENT. EXT.P6: TRUE COPY OF THE PROHIBITORY ORDER DATED 18.12.08 ISSUED BY THE 2ND REPSONDENT TO THE PETITIONER. /TRUE COPY/ THOTTATHIL B.RADHAKRISHNAN, J. ------------------------------------------- W.P(C).No.38097 OF 2008 ------------------------------------------- Dated this the 18th day of March, 2009 JUDGMENT 1. The petitioner Union Bank of India brought an item of property belonging to M/s.Bhageeratha Engineering Ltd. to sale under the provisions of the SARFAESI Act. The EPF Organisation has an overriding statutory charge in terms of the Employees Provident Funds & Miscellaneous Provisions Act,1952. The said charge gets priority over the amounts due to the bank. See Bank of India v. Asst. Provident Fund Commissioner [2006(2) KLT 553]. On the basis of the interim order dated 26.12.2008, the bank has conducted the sale and has kept the amounts due to the EPF Organisation in a suspense account. Therefore, without prejudice to the contentions of M/s.Bhageeratha Engineering Ltd. and some of its adversaries in W.P(C).5358/09 and any other matter that may be pending in different courts, this writ petition is ordered directing that the petitioner Union Bank of India will be at liberty to confirm the sale held pursuant to the interim order WPC.38097/08 Page numbers dated 26.12.2008 and shall release the amounts kept apart for the EPF Organisation to that authority in satisfaction of the outstandings due to it from M/s.Bhageeratha Engineering Ltd. The attachment imposed by the EPF Organisation would be released on receipt of the aforesaid amounts and the petitioner will be entitled to appropriate the balance amount subject to the final decision in W.P(C).5358/09. Sd/- THOTTATHIL B.RADHAKRISHNAN, Judge. kkb.19/3.