Rakshith Hospital v. The Assistant Provident Fund Commissioner
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 07.03.2025 CORAM :
THE HONOURABLE MR. JUSTICE M. DHANDAPANI and W.M.P.No.8885 of 2025 M/s.Rakshith Hospital, Sri Sai Square Campus, 153, Arcot Road, Valasaravakkam, Chennai - 600 026, Represented by its Managing Director, Mr.Ravi ... Petitioner Vs.
The Assistant Provident Fund Commissioner, Employees Provident Fund Organization, Bhavishya Nidhi Bhawan, No.37, Royapettah High Road, Chennai - 600 014.
... Respondent Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Mandamus, directing the respondent to permit the petitioner to remit a sum of Rs.10,24,898/- determined in terms of order under Section 7Q of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 dated 02.01.2025 in proceedings no.TN/RO/CHN/I/CC-I/TNMAS0051086000/DIV.25/PD C/2024 in 15 equated monthly instalments commencing from the month of March 2025.
Page No.1 of 6
For Petitioner : Mr.Anand Gopalan for M/s.Agam Legal For Repondent : Mr.K.Venkatesan Standing Counsel *****
ORDER
This Writ Petition has been filed by the petitioner seeking for a Writ of Mandamus, directing the respondent to permit the petitioner to remit a sum of Rs.10,24,898/- determined in terms of order under Section 7Q of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 dated 02.01.2025 in proceedings no.TN/RO/CHN/I/CCI/TNMAS0051086000/DIV.25/PD C/2024 in 15 equated monthly instalments commencing from the month of March 2025.
2. Mr.K.Venkatesan, learned Standing Counsel, takes notice on behalf of the respondent. In view of the consent expressed by the learned counsel appearing for the parties, this Writ Petition is taken up for final disposal at the stage of admission itself.
Page No.2 of 6
3. The case of the petitioner is that, it is a multi-specialty hospital with 50 beds and 2 operation theatres and it also got an intensive care unit. It employs around 60 staff comprising of nursing staff, lab technicians, x-ray technicians and pharmacists and it was started in the year 2004. Since inception it has covered all its eligible employees under the provisions of the EPF scheme and has been regularly remitting contributions. Due to financial irregularities, the petitioner failed to remit contributions on time in respect of its employees from January 2017 onwards. Due to financial constraints and lack of provisions for COVID patients, the hospital faced a severe cash crunch, leading to delayed wages payments and EFP contributions during the period 2020 - 2022.
From April 2022, the petitioner regularized EPF compliance and contributions were subsequently remitted. Whileso, on 31.05.2024, the respondent initiated proceedings in terms of Section 7Q and Section 14B of the EPF Act claiming interest and damages towards belated remittance from 11/2017 to November 2022 and the petitioner submitted its detailed reply. However, the respondent determined Section 7Q interest payable to the extent of Rs.10,24,898/- and Section 14B damages to the extent of Rs.20,12,052/-. Hence, the present writ petition is filed. Page No.
4. Though very many grounds have been raised, the learned counsel for the petitioner submitted that, it would suffice, if this Court issues direction to the respondent to permit the petitioner to remit the determined amount of Rs.10,24,898/- in 10 equated monthly installments.
5. On the above contentions, heard the learned Standing Counsel appearing for the respondent and perused the materials available on record.
6. In view of the limited request made by the learned counsel appearing for the petitioner, this Court, without going into the merits of the case, permits the petitioner to remit the entire demand amount of Rs.10,24,898/- (Rupees Ten Lakhs Twenty Four Thousand Eight Hundred and Ninety Eight only) by way of Ten (10) equated monthly installments, commencing from 7th April, 2025 and shall continue to pay the installments on or before 7th of every succeeding English Calendar month, failing which, it is open to the respondent to initiate appropriate action against the petitioner in accordance with law. Page No.4 of 6
7. With the above directions, this Writ Petition is disposed of. No costs. Consequently, the connected writ miscellaneous petition is closed. 07.03.2025 Index : Yes / No Speaking order / Non-speaking order sp To The Assistant Provident Fund Commissioner, Employees Provident Fund Organization, Bhavishya Nidhi Bhawan, No.37, Royapettah High Road, Chennai - 600 014.
Page No.5 of 6
M.DHANDAPANI, J.
sp 07.03.2025 Page No.6 of 6