THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Writ Petition No.12002 of 2009 (Dated : 23-08-2010) Between: M/s.Novo Agritech Limited Rep. By its Managing Director …Petitioner A n d Regional P.F. Commissioner-II and others …Respondents THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Writ Petition No.12002 of 2009 ORDER: This writ petition has been filed assailing the order dated 01.6.2009 passed in AP/SRO/PTC/32505/2009/6624, whereby and whereunder, the Regional Provident Fund Commissioner-II, Patancheru, Medak District-1st respondent rejected the review application filed by the petitioner under Section 7B of the Employees Provident Fund and Miscellaneous Provisions Act, 1952. 2. The writ petitioner is an establishment coming within the purview of the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (hereinafter referred to as “the Act”). A notice has been issued to the petitioner on 18.12.2008 for production of records in respect of contractors’ details for the period from 05/2007 to 11/2008. The petitioner appeared before the 1st respondent and produced the records. Thereafter, the 1st respondent proceeded to pass an order on 11.3.2009 under Section 7-A of the Act determining a sum of Rs.10,52,686/-. The relevant portion of the order reads as hereunder:- The statement of amounts remitted towards employee’s share and the dues in the remaining accounts for the period from July 2007 to December 2008 and the dues in respect of the non-enrolled employees that the employer has to pay under various heads of Accounts is given below:- 07/2007 to 12/2008 Dues payable In (Rs.) D u e s Paid in (Rs.) Balance amount payable in (Rs.) Employees’ Provident Fund contributions A/c No.1 Er Ee 1, 88, 803/- - 1,88,803/- 8,60,715/- 8,60,715/- -- Employees’ Pension Fund contributions A/c No.X 4,28,971/- -- 4,28,971/- Employees’ Provident Fund Admn. Charges A/c No.II 78,778/- -- 78,778/- Employees’ Deposit Linked Insurance contributions A/c No.21 35,804/- -- 35,804/- Employees’ Deposit Linked Ins. Admn. Charges A/c No.22 718/- -- 718/- TOTAL : 15,93,789/- 8,60,715/- 7,33,074/- Amounts due in respect of the casual non-enrolled employees for the period from 01/2005 to 12/2008:- 01/2005 to 12/2008 Dues payable In (Rs.) D u e s Paid in (Rs.) Balance amount payable in (Rs.) Employees’ Provident Fund contributions A/c No.1 Er Ee 45,800- - 45,800/- 1,49,760/- -- 1,49,760/- Employees’ Pension Fund contributions A/c No.X 1,03,960/- -- 1,03,960/- Employees’ Provident Fund Admn. Charges A/c No.II 13,728/- -- 13,728/- Employees’ Deposit Linked Insurance contributions A/c No.21 6,240/- -- 6,240/- Employees’ Deposit Linked Ins. Admn. Charges A/c No.22 124/- -- 124/- TOTAL : 3,19,612/- -- 3,19,612/- Since having applied my mind and having perused the records of the office, I find that a total sum of Rs.7,33,074/- payable from 07/2007 to 12/2008 and Rs.3,19,612/- payable in respect of the non-enrolled employees from 01/2005 to 12/2008 is due towards PF dues under various heads of account. Now, therefore, in exercise of the powers conferred upon me under Section 7A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, I, T.INDIRA Regional P.F. Commissioner- II (Enf), Andhra Pradesh, Patancheru, do hereby determine a sum of Rs.10,52,686/- (Rupees Ten Lakhs fifty two thousand six hundred and eighty six only) for the period mentioned above. I hereby direct the employer of the said establishment to pay the said amount within 10 days of the receipt of this order. However, a further demand for payment of penal interest under Section 7Q & Penal damages under Section 14-B of the EPF & MP Act, 1952 would follow separately. The Department also keeps its opinion open to determine any escaped amount for the notice period under Section 7 C of the aforesaid Act.” 3. The petitioner filed review under Section 7-B of the Act with a prayer to review the order dated 11.03.2009. The grounds urged in the review application are that the order passed under Section 7-A covered beyond the notice dated 18.12.2008 and therefore, there is an apparent error on the face of the record warranting review of the order dated 11.3.2009. The 1st respondent proceeded to reject the review application, by order dated 1.6.2009. Hence this writ petition. 4. Notice before admission came to be ordered on 19.6.2009. An interim order came to be granted on the even date directing the respondent not to take any coercive steps against the petitioner on the basis of the prohibitory order dated 10.6.2009 so far as the liability of the petitioner with regard to non-enrolled casual and contract employees concerned. 5. The respondent entered appearance and filed counter. It is stated in the counter that Sri A.M.Dora, Vice President, appeared on behalf of the petitioner and he did not raise any objection with regard to the amounts arrived at in the order passed under Section 7-A of the Act. 6. Heard learned counsel appearing for the petitioner and learned Standing Counsel appearing for the respondents. 7. Learned counsel appearing for the petitioner submits that payment of amount towards casual non-enrolled employees was not the subject matter of summons issued to the petitioner to appear in person under Section 5-A of the Act, and therefore, the order passed by the 1st respondent directing the petitioner to pay Rs.3,19,612/- towards the amount due in respect of casual non- enrolled employees for the period from 01/2005 to 12/2008 is not legal and proper. 8. Learned Standing Counsel appearing for the respondents submits that the summons issued to the petitioner is explicit that the petitioner was required to produce the original and attested copies of all the relevant records and in which case, it is impermissible for the petitioner to contend that calculation of the amount due in respect of the casual non-enrolled employees for the period from 1/05 to 12/08 covered beyond the scope of summons dated 18.12.2008. 9. I have gone through the summons issued to the petitioner requiring the petitioner to appear in person under Section 7-A of the Act. The relevant portion of the summons reads as hereunder:- “Whereas information has been laid before me and on consideration whereof, I have reason to believe that you have failed in production of records with contractors details and significant drop in strength and you have failed to remit the (1) Provident Fund Contribution for the period from 05/2007 to 11/2008 in accordance with the provisions of the Employees Provident Fund Scheme, 1952. (2) Pension Fund contribution for the period from 05/2007 to 11/2008 in accordance with the provisions of the Employees Pension Scheme, 1995. (3) Insurance Fund Contribution for the period from 05/2007 to 11/2008 in accordance with the provision of Employees Deposit Linked Insurance Scheme, 1976. (4) Administrative charges/inspection charges to the Fund for the period from 05/2007 to 11/2008 in accordance with the provision of the Employees Provident Fund Scheme, 1952. (5) Administrative Charges/Inspection charges to the Fund for the period from 05/2007 to 11/2008 in accordance with the provision of the Employees Deposit Linked Insurance scheme , 1976. And, Whereas, I. T.INDIRA, REGIONAL PROVIDENT FUND COMMISSIONER-II, is empowered under Section 7A of the Employees Provident Funds and Miscellaneous Provisions act, 1952 to determine the amount due from you under the provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952, Employees Provident Fund Scheme, 1952, Employees Pension Scheme, 1995 and Employees Deposit Linked Insurance Scheme, 1976. And Whereas, for determining the amount due from you for the said period from 05/2007 to 11/2008, it is desired to give you a reasonable opportunity of representing your case either in person or by or through an authorised representative. Now, therefore, in exercise of powers conferred on me under Section 7A of the Employees Provident Funds and Miscellaneous Provision Act, 1952, you are hereby summoned to appear before me either in person or through an authorized representative on the 22nd day of January 2009 at 11.30 A.M., in my office to give evidence, and produce the original and attested copies of all relevant records you intend to rely in support of payment including those mentioned below for conducting an inquiry and determining the amount due from you: (1) Attendance Registers (2) Cash Book and vouchers (3) Payment register/Pay Bills (4) General Leger (5) Trading and Profit & Loss account and Balance Sheet. (6) Any other documents necessary for ascertaining the amount due. (7) Copy of statutory return/returns in form 12A for the above said period. … …. …. …… ….” 10. The order passed under Section 5-A with regard to casual non-enrolled employees relates to the period from 01/2005 to 12/2008. The issue with regard to payment of contribution from 01/2005 to 12/2008 was not covered under summons issued to the petitioner requiring his presence. Therefore, I am of the view that there is an error apparent on the face of it, in the order dated 11.3.2009 with regard to arriving the arrears in respect of causal non-enrolled employees for the period from 01/2005 to 12/2008. The respondent ought to have entertained the review and disposed of the same on merits. Therefore, the order impugned in the writ petition is set aside and the matter is remitted back to the 1st respondent for considering the matter in respect of casual non-enrolled employees for the period from 01/2005 to 12/2008 and to pass appropriate orders afresh. 11. Accordingly, the Writ Petition is disposed of. No order as to costs. ______________________ B.SESHASAYANA REDDY, J Dt.23-08-2010 RAR THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Writ Petition No.12002 of 2009 (Dated : 23-08-2010)