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Madras High CourtWP/36454/2025disposed of

M/S.Vbk Fibreo Tech v. The Regional Provident

2025-10-08Honourable Mrs.Justice N. Mala7 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 08-10-2025

CORAM

THE HONOURABLE MRS.JUSTICE N. MALA WP No. 36454 of 2025 & WMP NO. 40741 OF 2025

1. M/s.Vbk Fibreo Tech Industries, Represented By Partner, Mr Vlbalu, Plot No. R 20 Sipcot Industiral Compelx Estate Phase Ii, Tiruvallur 601 201.

Petitioner(s) Vs

1. The Regional Provident Fund Commissiner I Employees Provident Fund Organisation, Regional Ambatturm Chenani, No. R 40 A 1 Tnh B Shopping Cum Office Complex, Mugappair Road, Mugapair East, Chennai 600 037.

2.The Recovery Officer Employees Provident Fund Organisation Regional Ambattur Chenai, No. R-40 A 1 Tnhb Shoppoing Cum Ofifce Complex Mugappair Road, Mugappair East, Chennai 600 037.

Respondent(s)

PRAYER Writ petition filed under Article 226 of the Constitution of India praying for issuance of a writ of certiorari calling for the records pertaining to the proceedings of the 2nd respondent in order No. TN/RO/AMB/RECOVERY / AREA -8/ TNAMB /1441271/RRC-10139/2025 DATED ON 21.08.2025 and quash the same and direct that the mater may be remitted back to the 1st respondent for fresh determination strictly in accordance with the principles of natural justice.

For Petitioner(s):

M/s.R.Rajesh Parthiban J Aarthi S Murugesan M For Respondents:

Mr.R.Thirunavukarasu, Standing Counsel

ORDER

(1)Mr.R.Thirunavukarasu, learned Standing counsel accepts notice on behalf of the respondents. With the consent of the learned counsels on either side, the writ petition is taken up for final disposal. (2)The writ petition is filed challenging the Prohibitory Order dated 21.08.2025 of the 2 nd respondent for recovery of a sum of Rs.16,65,816/-.

(3)The petitioner-Establishment is a Partnership Firm registered under the Partnership Act and is involved in manufacture and service of wide range of FRP tank, Air Duct, FRP Pipe etc. The petitioner-Establishment is compliant under all the applicable statutes. The petitioner-Establishment is registered under the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952, [in short ''EPF and MP Act, 1952] with Code No.TN/AMB/144127/000. While so, on account of loss of business due to Covid-19 pandemic, the petitioner-Establishment failed to pay the EPF contributions in time. Therefore, the 1 st respondent passed an order on 13.08.2024 under Section 14B of the EPF and MP Act, 1952, for damages of Rs.24,92,498/- for belated payment of contributions.

The petitionerEstablishment challenged the said 14B order before the CGIT, Chennai, on 06.11.2024, in Case No.194/2024. During the pendency of the said appeal, the 2 nd respondent passed the impugned Prohibitory Order under Section 8F, on 21.08.2025, directing the petitioner to pay the statutory dues under the Act, amounting to Rs.16,65,816/-.

petitioner-Establishment has filed the above writ petition for the aforesaid relief.

(4)The learned counsel for the petitioner-Establishment, on instructions, submitted that the petitioner-Establishment admits the liability under the impugned Prohibitory Order, but only seeks the indulgence of this Court to permit it to remit the said amount in ten equated monthly instalments. The learned counsel for the petitioner further submitted that if the petitionerEstablishment is permitted to pay the aforesaid amount in instalments, the petitioner-Establishment would also withdraw the appeal already filed before the CGIT, Chennai, in Case No.194/2024.

(5)However, the learned counsel for the respondents vehemently opposed the said submission of the learned counsel for the petitioner. (6)Heard the submissions on either side and also perused the materials placed on record.

(7)Admittedly, the delay in payment of contributions was due to loss of business folowed by Covid-19 pandemic. Since the petitioner-Establishment admits its liability to pay the amount covered by the impugned Prohibitory Order,

and only seeks for permission to pay the amount in instalments, this Court is inclined to accept the prayer for payment in instalments and hence, the following directions are issued:- (a)The petitioner-Establishment shall remit a sum of Rs.4,00,000/- [Rupees Four Lakhs only] on or before 25.10.2025 ; (b)The petitioner-Establishment shall pay the balance amount in eight equated monthly instalments on the 25 th of every succeeding English Calendar month ;

(c) The undertaking of the petitioner-Establishment that on such payment, it shall withdraw the appeal in Case No.194/2024, pending before CGIT, Chennai, is recorded ; and (d)It is made clear that if the petitioner-Establishment defaults in payment of any one of the instalments, the respondents are at liberty to initiate recovery proceedings in the manner known to law.

(8)The writ petition is disposed of with the above directions. No costs. Consequently, connected miscellaneous petition is closed. 08-10-2025 AP

Index:Yes/No Speaking/Non-speaking order Internet:Yes To 1.The Regional Provident Fund Commissiner I Employees Provident Fund Organisation, Regional Ambatturm Chenani, No. R 40 A 1 Tnh B Shopoping Cum Ofifce Cmpmplex, Mugappair Road, Mugapair East, Chennai 600 037.

2.The Recovery Officer Employees Provident Fund Organisation Regional Ambattur Chenai, No. R-40 A 1 Tnhb Shoppoing Cum Ofifce Complex Mugappair Road, Mugappair East, Chennai 600 037.

N.MALA J.

AP AND WMP NO. 40741 OF 2025 08-10-2025