IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Civil Writ Petition No.5251 of 1992 (O&M) Date of decision:07.09.2011 Haryana Dairy Development Cooperative Federation Limited, Chandigarh, through its Managing Director. ...Petitioner versus The Regional Provident Fund Commissioner, Haryana, New Bank of India Building, Ist Floor, Nehru Ground, N.I.T., Faridabad-121001, through its Regional Commissioner. ....Respondent CORAM: HON’BLE MR. JUSTICE K. KANNAN ---- Present: Mr. Krishan Kumar Gupta, Advocate, for the petitioner. Mr. A.P.S. Sandhu, Advocate, for the respondent. ---- 1. Whether reporters of local papers may be allowed to see the judgment ? No. 2. To be referred to the reporters or not ? No. 3. Whether the judgment should be reported in the digest ? No. ---- K.Kannan, J. (Oral) 1. The petitioner challenges the action taken by the respondent for delay in remittances of provident fund contribution from the employer through the impugned demand issued on 03.06.1991. The respondent had imposed as damages 100% of the amount that had been found due and which was remitted after the due date. 2. The only point urged before me is that the number of days of delay of remittances for the periods were in the range of 18 to 131 days and has given the details in the petition which is reproduced as follows:- Civil Writ Petition No.5251 of 1992 (O&M) - 2 - Period Amount due Required to be deposited upto Deposited on Delay Reason 5/75 to 11/81 27,427-80 24,593-00 13.08.1983 04.09.1984 26.09.83 14.01.85 43 days 131 days Financial crisis pertains to daily wage employees' share & was not even deducted from wages. 2/91 3,85,404-00 15.03.1991 03.04.1991 18 days Financial crisis The percentage that could be claimed as damages under Section 14, according to the learned counsel, is fixed through Employees Provident Fund Scheme of 1952 under clause 32-A. The said clause prescribes the schedule as follows:- Period of default Rate of damages Less than two months 17% Two months and above 22% Four months and above, but less than 6 months 27% 3. In this case, the maximum default has been for period between 4 to 5 months. The maximum rate of damages could have been, therefore, 27% for the period from 5/75 to11/81 and for the amount of delay of 43 days, the rate of damages could have been 17% and similarly for the period 2/91 for the delay of 18 days, the percentage of damages could have been only 17%. The number of days of delay in remittances as shown in the petition, has not been refuted by filing any reply by the respondents. Indeed even the representation given by the petitioner prior to the filing of the petition has not been considered. A show cause notice itself through Annexure P-6 admits the details of dates of deposits as set out in the petition and detailed above. The impugned demand is, therefore, required to be modified to provide for the percentage of damages as referred to above. The entire amount as demanded is reported to have been paid. The respondent shall rework the amount and refund Civil Writ Petition No.5251 of 1992 (O&M) - 3 - the excess amount collected with interest at 7.5% from the date when the amount was collected till the date of payment. To prevent any delay, the petitioner will be at liberty to make the calculation of the amount payable and submit the same with the order of this Court. The amount shall become payable forthwith with interest as referred to above. 4. The writ petition is allowed but with modifications in the demand as referred to above. (K. KANNAN) JUDGE 07.09.2011 sanjeev