IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN MONDAY, THE 18TH JULY 2011 / 27TH ASHADHA 1933 WP(C).No. 19370 of 2011(U) -------------------------------------- PETITIONER: ------------------- A T I LIMITED, [FORMERLY ANDAMAN TIMBERS INDIA LTD.],KUNDUCHIRA ROAD,ERANHOLI -670 107,THALASSERY , KANNUR DISTRICT, REPRESENTED BY ITS DIRECTOR. BY ADV. SRI.M.SASINDRAN. RESPONDENTS: ------------------------ 1. THE ENFORCEMENT OFFICER (RECOVERY), EMPLOYEES PROVIDENT FUNDS, SUB REGIONAL OFFICE, KANNUR- 670 001. 2. THE ASSISTANT PROVIDENT FUND COMMISSIONER, SUB REGIONAL OFFICE,V.K.COMPLEX, FORT ROAD,KANNUR- 670 001. R1 & R2 BY ADV. DR.ABRAHAM P.MEACHINKARA, S.C, E.P.F. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18/07/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C). NO.19370/2011-U: APPENDIX PETITIONERS' EXHIBITS: EXT.P.1: COPY OF THE AGREEMENT DTD. 20/09/2010 EXECUTED BETWEEN THE PETITIONER COMPANY AND THE ASTRA TIMBER INDUSTRIES PRIVATE LTD., EXT.P.2: COPY OF THE COMMUNICATION DTD. 01/04/2011 ISSUED BY THE R.2. TO THE R.1. EXT.P.3: COPY OF THE NOTICE OF DEMAND ISSUED BY THE R.1. TO THE PETITIONER. RESPONDENTS' EXHIBITS: NIL. //TRUE COPY// P.A. TO JUDGE. Prv. P.N.RAVINDRAN, J. --------------------------- W.P.(C) No. 19370 OF 2011 -------------------------- Dated this the 18th day of July, 2011 J U D G M E N T The petitioner is a company registered under the Companies Act, 1956 (hereinafter referred to as 'the Act' for short). It has a wood based industrial unit at Thalassery. This writ petition is filed challenging Ext.P2 demand notice dated 1.4.2011 issued by the second respondent to the first respondent calling upon the first respondent to take steps to recover from the petitioner the sum of Rs.7,55,761.25 towards arrears of contribution along with the interest payable under section 7Q of the act and Ext.P3 notice of demand dated nil issued by the first respondent demanding payment of the said sum within 15 days failing which the petitioner has been threatened with coercive steps under section 8B to section 8G of the Employees Provident Funds and Miscellaneous Provisions Act, 1952. It is stated that the petitioner has entered into an agreement to sell the establishment to another company that the proposed purchaser has agreed to take over the entire liability including that of the workers and therefore the petitioner may be granted four months time to pay the amount demanded in Exts.P2 and P3. In this writ petition the petitioner seeks a direction to the respondents to grant the petitioner four months time to pay the amount demanded in Exts.P2 and P3. 2. Sri.Abraham P. Mechinkara, learned standing counsel WPC No.19370/2011 2 appearing for the Employees Provident Fund Organisation submitted that besides the amount demanded in Exts.P2 and P3, interest under section 7Q of the Act is also due from the petitioner and that the petitioner will also be liable for damages under section 14B of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 for belated payment of the contribution. The learned counsel for the Employees Provident Fund Organisation submitted that if the petitioner undertakes to pay the amount demanded in Exts.P2 and P3 along with interest under section 7Q of the Act within four months, the respondents will not initiate proceedings for recovery till the period of four months expires. In the light of the aforesaid submissions, I dispose of the writ petition with a direction to the respondents to grant the petitioner four months time from today to deposit along with the interest payable under section 7Q of the Act, the amount demanded in Exts.P2 and P3. It will be open to the petitioner to pay the amount due either in lump or in instalments. Needless to say, the petitioner will also be liable for damages under section 14B of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 as and when it is levied after following the prescribed procedure. P.N.RAVINDRAN, (JUDGE) vps