IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR MONDAY, THE 21ST JULY 2008 / 30TH ASHADHA 1930 WP(C).No. 25978 of 2005(P) -------------------------- PETITIONER: ------------ M/S. STEEL INDUSTRIALS KERALA LTD., SILK NAGAR, ATHANI P.O., THRISSUR-680 771, REPRESENTED BY ITS MANAGING DIRECTOR. BY ADV. SRI.K.ANAND (A.201) SMT.LATHA KRISHNAN RESPONDENTS: ------------- 1. THE ASST. P.F.COMMISSIONER AND RECOVERY OFFICER, EMPLOYEES PROVIDENT FUND ORGANIZATION, BHAVISHYA NIDHI BHAVAN, KALOOR, KOCHI-682 017. 2. THE ASST. PROVIDENT FUND COMMISSIONER, EMPLOYEES PROVIDENT FUND ORGANIZATION, SUB REGIONAL OFFICE, KANNUR. 3. THE REGIONAL PROVIDENT FUND COMMISSIONER EMPLOYEES PROVIDENT FUND ORGANIZATION, BHAVISHYA NIDHI BHAVAN, ERANJIPALAM, KOZHIKODE-673 006. 4. THE REGIONAL PROVIDENT FUND COMMISSIONER EMPLOYEES PROVIDENT FUND ORGANIZATION, BHAVISHYA NIDHI BHAVAN, KALOOR, KOCHI-682 017. *ADDL. R5. THE CHIEF SECRETARY TO GOVERNMENT, SECRETARIATE, THIRUVANANTHAPURAM. (*IMPLEADED AS ADDITIONAL R5 AS PER JUDGMENT DATED 21/07/2008) BY ADV. SRI.S.GOPAKUMARAN NAIR, SC, P.F. FOR R1 TO 4 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 21/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC NO.25978/2005 APPENDIX PETITIONER'S EXHIBITS P1 : COPY OF PROFIT AND LOSS ACCOUNT FOR THE YEAR 2002-03. P2 : COPY OF PROFIT AND LOSS ACCOUNT FOR THE YEAR 2003-04. P3 : COPY OF STATEMENT SHOWING THE DETAILS OF PAYMENTS MADE FROM APRIL 2004 TO APRIL 2005. P4 : COPY OF LETTER NO.3(S-58)/BC/2004 DATED 14/02/2005 RECEIVED BY PETIITONER FROM BIFT, NEW DELHI. P5 : COPY OF ORDER OF ATTACHEMTN OF IMMOVABLE PROPERTIES DATED 11/07/2005 ISSUED BY R1. P6 : COPY OF NOTICE FOR SETTLING SALE PROCLAMATION DATED 20/07/2005 ISSUED BY R1. P7 : COPY OF REPRESENTATION DATED 10/08/2005 AGAINST EXTS.P5 & P6 SUBMITTED BY PETITIONER. P8 : COPY OF PROCLAMATION OF SALE ISSUED BY R1 ON 12/08/2005. P9 : COPY OF COMMUNICATION DATED 16/08/2005 FOR EVACUATION OF MOVABLE PROPERTIES FROM THE BUILDING ON THE ATTACHED SITE. P10 : COPY OF REPRESENTATION DATED 22/07/2005 SUBMITTED BY PETITIONER TO GOVERNMENT. //TRUE COPY// PA TO JUDGE. jg C.N.RAMACHANDRAN NAIR, J. ------------------------- W.P.(C) No. 25978 of 2005 --------------------------------- Dated, this the 21st day of July, 2008 J U D G M E N T The Chief Secretary to Government, Secretariat, Thiruvananthapuram is impleaded as additional 5th respondent in the writ petition. 2. Petitioner is a Government of Kerala undertaking, which has been a sick industry for long. So far there is no scheme for revival of company, several units of which are closed and some are on the verge of closure. Challenge is against the steps taken by the Provident Fund Commissioners for sale of the company property for recovery of arrears of provident fund dues, which is around rupees two crores. Learned counsel appearing for the Provident Fund Organisation submitted that writ petitions were filed in 2002 and 2005 by the company promising to pay the provident fund arrears in installments. According to him, the company had breached all commitments and still prayer is for installment facility without any commitment to clear the arrears. Learned counsel for the petitioner submitted that funds have to be given by the Government of Kerala to clear the provident fund arrears. 3. I do not think, this Court should permit the Provident Fund Commissioners to sell the properties of a Government of Kerala WPC No.25978/2005 -2- undertaking because interest of financial institutions, State Government and the public at large are involved. It is not known whether the Government proposes to revive the industry or to allow other parties to set up industry in the property under any arrangement. In any case, sine defaulter is a Government concern, it is for the Government to raise funds and clear the arrears of provident fund dues for payment to retired employees. While it is open to the Government to arrange for revival of industry and if required to sell the property keeping in mind the interest of all creditors, the Government is simultaneously bound to clear the arrears of provident fund due from the company. The writ petition is, accordingly, disposed of directing the Chief Secretary to Government to help the company to clear the arrears of provident fund dues by arranging funds from the Government within a period of three months from now. However, if arrears are not paid by petitioner whether it is sourced from the Government or not, it will be open to the Recovery Authority to sell any item of property of the petitioner after expiry of the period granted above. The Provident Fund Organisation will inform the petitioner the arrear position after adjusting the payments already made. (C.N.RAMACHANDRAN NAIR, JUDGE) jg