2014 (3) TMI 1196 - HC - Indian Laws

Validity of assessment order - initiation of recovery proceedings - petitioner's only apprehension is that recovery proceedings will be initiated as per the order since the petitioner has been directed to pay the amounts determined as per the order within seven days of the order - HELD THAT - The order is dated 17.2.2014 and has been despatched on 20.2.2014 which has been received by the petitioner on 26.2.2014 - As per the provisions of the EPF Act, an appeal is provided which remedy has to be availed of within sixty days or if delay occurs, within another sixty days. In the circumstances of an appeal having been provided for against Ext.P4 order under the EPF Act and the period having not yet expired, the petitioner definitely cannot be proceeded against in the intervening period. In such circumstances, there shall be an interdiction in proceeding with recovery proceedings under Ext.P4 order for a period of sixty days from 26.2.2014. The petitioner, if so advised, can approach the appropriate authority and then, the recovery shall be subject to final order or interim order to be passed by the concerned authority. Petition disposed off.

Summary

Issues:
Challenge to Ext.P4 order of assessment under Section 7A of the EPF Act; Concern regarding initiation of recovery proceedings; Applicability of the appeal remedy within sixty days.

Analysis:
The judgment addresses the petitioner's grievance against Ext.P4 order of assessment made under Section 7A of the EPF Act. The petitioner's main concern is the possibility of recovery proceedings being initiated following the order, which directed payment within seven days. The order, dated 17.2.2014 and received on 26.2.2014, prompted the petitioner to seek relief through the legal process.

The court highlights the provision within the EPF Act that allows for an appeal to be filed within sixty days, with a further extension in case of delay. Given this legal recourse, the court rules that the petitioner cannot be subject to immediate proceedings during this appeal period. Consequently, there is a temporary halt on recovery actions under Ext.P4 order for sixty days from 26.2.2014. The petitioner is advised to utilize this time to approach the appropriate authority, ensuring that any recovery actions are contingent upon the final decision or interim orders from the relevant authority.

In conclusion, the writ petition is disposed of, affirming the petitioner's right to appeal and temporarily suspending recovery proceedings pending the resolution of the appeal process.