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TMI Blog1964 (7) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... of Messrs. Amin Chand & Sons of Phillaur carry on the work of manufacturers of iron chaff cutting machines and during the course of their business have been employing a large number of workers. They have become liable under the provisions of the Act and the Scheme made thereunder (The Employees' Provindent Fund Scheme, 1952) to deduct not only the employees' contribution towards provident fund but also their own. An employer is required under the Act to remit his own contribution to the Provident Fund together with what is called an administrative charge to the "Fund" which under Clause (h) of Section 2 of the Act is defined to mean "the provident fund established under the Scheme." This Fund at the relevant time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 58; and of August 1959 on 15th of September 1959. 4. The petitioner received a notice from the Regional Provident Fund Commissioner, Ambala, respondent 2, on 2nd of March, 1960, that defaults had been made in respect of the aforesaid payments mentioning the last payment to have been made on 15/20th of May, 1957. No reference in this notice is made to the last two payments made on 17th of February, 1958 and 15th of September, 1959. The petitioner was asked to show cause why damages should not be levied in pursuance of Section 14B of the Act which is to this effect:-- "Where an employer makes default in the payment of any contribution to the Fund.... the appro-priate Government may recover from the employer such damages, not exceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce may be made to paras. 29 and 30 of the Scheme. In para. 30 the employer's liability to make the payment in the first instance of both the contribution by himself and also on behalf of the member is made mandatory. This leaves no room for the contention of Mr. Thapar that the contribution of the employer could have been made by the end of the following month. Para-graph 38 says that the payment has to be made by the 15th of every month and it means that the contribution of the employer together with administrative charges should have been transferred to the Fund as defined in the Act on the 15th of every month. 8. So Ear as the other point is concerned, it is to be observed that a letter from the Regional Provident Fund Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the latest on the 15th of every month. No doubt, the fluty of the employer to make this payment on the 15th of every month is statutory, but as the power to levy damages is dis-cretionary it also is a legitimate inference for any employer to make that if the delay of two or three days has been condoned in the past it will not be taken account of in the future. It is certainly not in consonance with the purpose and object of the Act to choose a date six years after the default to exercise the power to levy damages in respect of all payments made after the scheduled lime. The purpose of Section 14B is as much reformative as punitive. A defaulting employer, in my opinion, is given a chance to amend himself when a penalty up to 25 per cent b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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