M/S. Midas Golden Distilleries Private Limited v. Recovery Officer
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 01.08.2024 CORAM :
THE HONOURABLE DR.JUSTICE D.NAGARJUN and W.M.P.No.23576 of 2024 M/s.Midas Golden Distilleries Pvt.Ltd., Rep by its Managing Director, T.K.Kumaran ... Petitioner Vs.
The Recovery Officer, Regional Provident Fund Commissioner - II, Employees Provident Fund Organization, Ministry of Labour, Government of India, Regional Office: Tambaram, No.3, Rajaji Salai, Chennai - 600 045.
... Respondent Prayer: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorari, to call for records pertaining to the attachment notice in No.TB/TAM/RECY/524/TBTAM0060460000/CPI/2024-25 dated 07.05.2024 is passed by the respondent and to quash the same. Page No. 1 of 7
For Petitioner : Mr.R.Ganesan For Respondent : MR.Thirunavukarasu Standing Counsel
ORDER
Mr.R.Thirunavukarasu, learned Standing Counsel takes notice for the respondent.
2. Heard the learned counsel for the petitioner and the learned Standing Counsel for the respondent and perused the materials available on record.
3. This is a petition filed by the petitioner seeking to quash the attachment notice issued by the respondent dated 07.05.2024.
4. It is submitted by the learned counsel for the petitioner that the petitioner company is dealing with distilling and packaging of Indian made - Foreign Liquor (IMFL) and that the respondent has initiated proceedings as against the petitioner's company under Sections 6, 6A and 6C of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 (for short, the Act) in Diary No.118/2019 on 17.08.2021. It is further submitted that on account of an Page No. 2 of 7
error in the calculation the respondent has issued the impugned notice dated 07.05.2024 directing the petitioner to pay an amount of Rs.39,14,750/- in total under Sections 14B and 7Q of the Act.
5. As the petitioner could not pay the said sum of Rs.39,14,750/- the respondent has attached the bank account of the petitioner in the Canara Bank, Teynampet Branch. It is submitted by the learned counsel for the petitioner that the petitioner has paid an amount of Rs.5,86,732/- on 25.07.2024 by way of demand draft and on which the respondent has relaxed the attachment in so far as the said amount is concerned. It is further submitted that on account of the attachment of the petitioner's bank account, all financial transactions of the petitioner' company had come to a stand still and therefore, sought for intervention and prayed to grant interim orders.
6. Per contra, the learned Standing Counsel for the respondent submitted that aggrieved by the order dated 15.6.2023 in Diary No.333/2023 in Ref.No. TB/RO/TAM/60460/PDC/14B/524/2023 passed by the respondent whereby a sum of Rs.33,28,518/- was demanded, the petitioner approached the Central Government Industrial Tribunal-cum-Labour Court, Chennai (for short, the Tribunal) by filing an appeal along with a stay petition. Further, the Tribunal, Page No. 3 of 7
by order dated 08.1.2024, admitted the appeal and directed that the further operation and implementation should remain stayed on the petitioner depositing a sum of Rs.10,00,000/- before the respondent within a period of eight weeks. It was also made clear that failing to deposit the said sum of Rs.10 lakhs before the respondent, the petitioner would not be entitled to the relief of interim stay. However, the petitioner has not complied with the said condition within the time stipulated by the Tribunal. Hence, he sought for dismissal of this petition.
7. During the course of hearing, the learned counsel for the petitioner submitted that the petitioner company is willing to deposit entire demanded amount with the respondent, under monthly installments.
8. In view of the said submission made by the learned counsel for the petitioner, this Court is of the view that ends of justice would be met if the petitioner is permitted to deposit the entire demand in three equated monthly installments.
9. Accordingly, the writ petition stands disposed of with a direction to the petitioner to deposit the entire demand namely Rs.39,14,750/- with respondent in three equated monthly installments. The first installment of Page No. 4 of 7
which falls on 09.08.2024 and the rest of the two installments shall be deposited with the respondent on 9th of a successive months. If the petitioner fails to comply with the said condition for any one of the installments, the respondent is at liberty to enforce the impugned order dated 07.05.2024 without any further notice. On deposit of first installment on or before 09.08.2024, the attachment effected in pursuance of the impugned order, shall stand vacated. No costs. Consequently, the connected WMP is closed.
01.08.2024 Speaking Order/Non-Speaking Order jas Note: Issue Order Copy on 02.08.2024 To The Recovery Officer, Regional Provident Fund Commissioner - II, Employees Provident Fund Organization, Page No. 5 of 7
Ministry of Labour, Government of India, Regional Office: Tambaram, No.3, Rajaji Salai, Chennai - 45.
Page No. 6 of 7
DR.D.NAGARJUN , J.
jas and W.M.P.No.23576 of 2024 01.08.2024 Page No. 7 of 7