9911796707
TMI Blog2009 (10) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... by this common order. 2. The petitioners in all these criminal original petitions are facing trial for the alleged offences under sections 14(1A) and 14A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, in C.C. Nos. 133 to 138 of 1994 and S.T.C. Nos. 1987 to 1989 of 1994 on the file of the learned Judicial Magistrate II, Coimbatore. 3. The case of the prosecution is as follows : The petitioners are said to have failed to pay contributions towards the provident fund dues. The second petitioner is the managing director in charge of the establishment and responsible for the conduct of the business of the first petitioner mill and as the petitioners committed offences under sections 14(1A) and 14A of the Employees' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. 6. In view of the said observation made by the Division Bench of this court, the petitioners again filed writ petitions in W.P. Nos. 22193 to 22198 of 2001 to quash the criminal proceedings. The said writ petitions were admitted and interim stay was granted and the petitioners withdrew those writ petitions on February 2, 2006. Though the scheme for rehabilitation was sanctioned by the BIFR, due to some intervening difficulties, the said scheme could not be implemented and despite best efforts to make the scheme viable, it all ended in vain. However, the BIFR has ordered to wind up the mill and being aggrieved against the said order, an appeal in Appeal No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly for recovery of its debts and the said section does not bar the payment of money by the company or its directors to other persons for satisfaction of their legally enforceable dues. The issue in the said decision arose in relation to commission of offence under section 138 of the Negotiable Instruments Act, 1881, by the company and when it was contended that when the company was declared sick by the BIFR under the Act, no steps could be taken by the complainant for realisation of the amounts said to be due to them and therefore, the criminal proceedings initiated against the drawer company and its directors on the allegation that the cheques drawn in favour of the complainant were dishonoured by the bank is misconceived and should be qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section does not refer to any criminal proceeding." 9. The honourable Supreme Court has made it clear that section 22 of the Act does not create any legal impediment for instituting and proceeding with a criminal case. Though it relates to an offence under section 138 of the Negotiable Instruments Act, 1881, the principle laid down by the honourable Supreme Court applies to any criminal proceedings launched against the company for committing breach of the duty statutorily imposed upon it under the Act by not remitting its contribution to the employees' provident fund in terms of the prescription made in the Act and the scheme framed thereunder. Therefore, it cannot be said that the initiation of the prosecution against the petitioners is o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edings initiated against the company, in respect of which an enquiry is pending or a scheme is under preparation, consideration or implementation, but only proceedings of the kind described in the provision. These proceedings must in order to fall within the mischief of section 22 be the proceedings in the nature of winding up of the industrial company or for execution, distress or the like against any of the properties of the industrial company or for the appointment of a receiver in respect thereof. Prosecution proceedings do not answer the description set out in section 22 of proceedings which are forbidden. They are not in the nature of winding up of the proceedings nor can such proceedings be said to be proceedings for execution or dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is brought to the notice of this court that the entire provident fund dues in respect of all calendar cases have been remitted by the petitioners and the copies of the remittances by the bankers of the petitioners of the entire dues and the receipt issued by the respondent coupled with the statement of amount by the bank have been submitted by the petitioners before this court. 15. Though the fact that the obligation and liability for payment of the provident fund contribution and other dues have been entirely discharged by the petitioners, it may not by itself exonerate them from the penal consequences flowing from the tentacles of sections 14A and 14(1A) of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 and yet it ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
