IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE TWENTY FOURTH DAY OF MARCH TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITION NO : 6185 of 2008 Between: Andhra Cooperative Spinning Mills Ltd., Guntakal (Under Liquidation) S/o. Veeraiah, aged 52 yrs, Occ: Assistant Director of Handlooms & Textiles, Working at Anantapur, (Post & District). ..... PETITIONER AND 1. Assistant Provident Fund Commissioner, Employees' Provident Fund Organization, Sub-Regional Office, R.S. Road, Kadapa-516 004, A.P. 2. Recovery Officer, Employees' Provident Fund Organization Sub-Regional Office, R.S.Road, Kadapa- 516 004, A.P. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue an order or direction or writ more appropriately a Writ of Mandamus to declare the impugned attachment order of the 2nd respondent passed in his proceedings No. AP/258/SRO/CDP/RECY/ATP/2006/548 dt. 30-11-2006 and the consequential proclamation of sale of the immovable properties of the petitioner Mills by the 2nd respondent Vide Notice No. AP/258/ATP/RECY.CELL/SRO/KDP/2008/ dt. 8-2-2008 and further corrigendum issued by the 2nd Respondent Vide his Notice No.AP/258/ATP/RECY. CELL/SRO/KDP/2008/944, dt. 7-3-2008 fixing the further sale of the immovable properties of the petitioner Mills as illegal and set aside the same. Counsel for the Petitioner:MR.K.RAJANNA Counsel for the Respondent No.: MR.R.N.REDDY The Court made the following : THE HON’BLE SRI JUSTICE NOOTY RAMAMOHANA RAO W.P.NO.6185 OF 2008 ORAL ORDER: Heard Sri K.Rajanna for the petitioner and Sri R.N. Reddy for the respondents. It is not in dispute that the default committed in remitting the contributions in terms of Section 7 of the Employees Provident and Miscellaneous Provisions Act, 1952 attracts imposition of damages and penal interest. It is also not in dispute that the arrears of the employees’ provident fund have primacy over the assets of the employer in terms of Section 11 of the aforementioned Act. The present controversy centers around the notification of proclamation of sale of the assets of the petitioner – Cooperative Spinning Mill, Guntakal, Anantapur District dated 07-03-2008. The petitioner submits that it is taking all necessary measures and steps to liquidate the liability and if only a reasonable period of time of three months is accorded, it will be able to liquidate the entire liability in that regard. The petitioner is permitted to liquidate the entire liability in accordance with law on or before 31st July 2008, failing which the respondents are free to give effect to the notification dated 07-03-2008 and proceed further for realization of the dues in terms of the impugned order. Till such time, the respondents shall not take any steps in pursuance of the impugned notification of proclamation of sale. With this, the writ petition stands disposed of at the stage of admission. -------------------------------- Nooty Ramamohana Rao, J Note: Issue copy by tomorrow. (bo) mrk 24th March 2008 ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1.2CCs to 2.2CD copies Form-NIC-OGS/WP{VSMI}