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1996 (10) TMI 499

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..... Provisions Act, 1952 (for short, the 'Act') to the respondent Institution by notification dated March 6, 1982. Calling the notification in question the respondent, had filed writ petition in this Court. This court by judgment dated January 29, 1988 had held that the Act would apply to the educational institutions and, therefore, they are required to comply with the notification issued under the Act. This Court had directed thus: "Shri S.k. Bagga, learned counsel appears for the petitioners. We do not find any substance in the contention of the petitioners in these cases that the Employees Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as "the Act") has no application to the educatio .....

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..... reads as under: "14-B. Power to recover damages.- Where an employer makes default in the payment of any contribution to the Fund (the family Fund or the Insurance fund) or in to be transferred by him under sub-section (2) of Section 17) or in the provision of this act or of any scheme or insurance scheme or under any of the conditions specified under section 17, the central provident fund commissioner or such other officer as may be authorised by notification in the Official Gazette in this behalf may recover such damages, not exceeding the amount of arrears, as may be specified in the scheme; Provided that before levying and recovering such damages, the employer shall be given a reasonable opportunity of being heard: Provided .....

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..... rning interests @ 11% since a direction was issued to comply with the direction to redeposit the amount, after premature encashment, they returned it with 9% interest and the same was deposited and, therefore, they are not liable to pay the damages that are determined by the Regional Provident Fund Commissioner under the impugned order as assailed in the writ petition. Having regard to the contention, the question that arises for consideration is: whether the appellant is entitled to recover damages? A reading Section 14-B of the Act would indicate that the employer is under an obligation under the statute to comply with the payment of the amount, In the event of his committing default in the payment of the contribution to the fund or in t .....

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..... is the accumulated arrears. The Regional Provident Fund Commissioner is given discretion only to reduce a percentage of damages and he has no power to waive penalty altogether. In this case, admittedly, after the judgment, there was no reason for the respondent to deposit the amount with the University. We can understand that, since there was a scheme framed by the University and the respondent was under an obligation to comply with the scheme. they can have a feeling of doubt as to whether they should abide by the scheme framed by the University or under the Act. Since they had filed the writ petition in this Court, this Court gave direction on January 29,1988 directing the respondents to deposit the contribution with the appellant. Thereb .....

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