WA/1439/2024 of M/s. VBC Ferro Alloys Ltd. Vs Union of India on 31 December 2024

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD

TUESDAY ,THE THIRTY FIRST DAY OF DECEMBERTWO THOUSAND AND TWENTY FOUR

PRESENT

THE HONOURABLE THE CHIEF JUSTICE ALOK ARADHEANDTHE HONOURABLE SRI JUSTICE J SREENIVAS RAO

WRIT APPEAL NO: 1439 OF 2024

Writ Appeal under clause ['1 ]5 of the Letters Patent Appeal Preferred Against OrderDated 1211212024 in WP.No. 34950 of 2024. on the file of the High Court.

Between:

M/s. VBC Ferro Alloys Ltd., A company registered'under the Companies Act,Having its Registered Office at 6-2-9131914, 3rd Floor,ProgressiveTowerb,Khairatabad, Hyderabad, Telangana, Factory at Rudraram Village,Patancheru Mandal, Medak District, Rep. by its Authorised Signatory [P.]Venkateswar Rao, S/o. Late Parusuramaiah aged about 62 [years, ][Occ.]Director

...AppELLANT/pETrrroNER

AND

1Union of lndia, Ministry of Labour and Employment, Employees ProvidentFund Organization, Baiiishva Nidhi Bhavan, New Delhi, rep by [its ]AdditionalCentral Provident Fund Commissioner.Fund Organization, Baiiishva Nidhi Bhavan, New Delhi, rep by [its ]AdditionalCentral Provident Fund Commissioner.

Regional Provident Fund Commissioner and Authority, U/S 7A of [EPF ][and][/PAct. The Employees Provident Organization, Regional Office, Patancheru,1 2-1 ,Susheeram Complex, Patancheru, Sangareddy District-5O2319, [rep ][by]its Recovery officer' [/PAct. The Employees Provident Organization, Regional Office, Patancheru,1 2-1 ,Susheeram Complex, Patancheru, Sangareddy District-5O2319, [rep ][by]its Recovery officer'

...RES'.NDENTS/RES'.NDENTS

lA NO: 2 OF 2024

Petition under Section 151 CPC [praying ]that in the circumstances [stated ][in]the affidavit filed in support of the [petition, ]the [High ][Court ][may ][be ][pleased to stay]all further [proceedings pursuant ]to the Notice to [show cause as ][to ][why ][a ][warrant]of arrest should not be issued vide Office Letter [No. ][TS/RO/PTC/171g2lRecy-]CPt2st 20241589, dated 22t11t2024 issued by the 2nd [respondent, ][pending]disposal of the Writ appeal Counsel for the Appellant: SRl. RAJA SHEKAR [RAO ][SALVAJI]Counsel forthe Respondent No.1: SRt GADI PRAVEEN [KUMAR]

Dy. SOLICITOR GEN. OF INDIA

Counsel for the Respondent No.2: SRI G. VENKATESHWARLU, [SC FOR EPFO]The Court made the following: JUDGMENT

THE HON'BLE THE CHIEF JUSTICE AI.OK ARADHE

AND

THE HON'BLE SRI JUSTICE J.SREENryAS RAO

WRIT APPEAL No. 1439 of 2024

JUDGMENT: (t'er ttle Hoi'bLe the Chpl Justice Atok Ara(1he)

Mr. Raja Shekar Rao Salvaji, learned counsel for the appellant Mr. G.Venkateshvarlu, learned Standing Counsel for the Emplovees Provident Fund Orgalisation, [or therespondents

2. Heard on the question of admission

3. This intra court appeal is directed against the ord.erdated 12.12.2024 passed by the learned Single Jr.rdge byr.r,hich the u rit petition preferred by the appellant, namelyW.P.No.349[)O of 2024, has been dismissed.

4. Facts lliving rise to filing of this appeal brieflr. statedare that th: appellant, namely M/s. VBC Ferro AlloysLimited, r,r,hich is a registered company under theprovisions cf the Companies Act,1S represented by its

whole time director. The company had not paid theprovident fund dues to its workers. Thereupon, anindustrial dispute was raised and the Regional providentFund Commissioner passed an order dated 08.05.2015directing payment of provident fund to the employees forthe period from April, 2Ol2 to December, 20 13. TheRegional Provident Fund Commissioner, by taking intoindustrial dispute was raised and the Regional providentFund Commissioner passed an order dated 08.05.2015directing payment of provident fund to the employees forthe period from April, 2Ol2 to December, 20 13. TheRegional Provident Fund Commissioner, by taking intoaccount the settlement between the parties passed alorder of assessment for an amount of Rs. 1 ,21 ,84 ,232 I -.order of assessment for an amount of Rs. 1 ,21 ,84 ,232 I -.

5. According to the appellalt, a sum ofRs.1,13,94,988/- was paid on account of dues payable tothe employees on account of provident fund. However, asum of Rs.7,67,7831- was not paid. The RegionalProvident Fund Commissioner thereupon issued al orderdated 06.1 1.2015 under Section 14B and under Section 7Qof the Employees' Provident Funds and MiscellaneousProvisions Act, 1952, for payment of an amount ofRs.93,48,695/-.

6. Since the amount mentioned in the order dated06. 1 I .20 1 5 was not paid, thereupon a notice dated 16.02.2016 was issued for conducting auction of theproperty beionging to the appeliant for recovery of :L sum ofRs.1,16,50,519/- towards provident fund dues and date ofauction rvas; {ixed on 2l .O3.2016. The appellant th ereuponfiled a writ petition, namely W.P.No.9443 of 2016, which ispending belbre the learned Single Judge. In the aforesaidwrit petition an interim order was granted by which theRecovery Olficer was directed to decide the representationsubmitted bv the appellant dated 22 .O2. 20 16 rvithin aperiod of tr.r,o u,eeks

7. It is the case of the appellant that the representationsubmitted bfr him was rejected on 31.03.2O16 withoutaffording arr opportunity of hearing to him. The appellantlearnt abo rt the decision of the represental.ion on06.07 .2023. The Recovery Officer issued another letterdated 03 C7 .2023 asking the appellant to ascertainwhether ary stay has been granted in favour of theappellant. Thereafter, the Regional Provideni FundCommissior.er issued a notice dated 22.1),.2024 to theappellant, inter alia, on the ground that the appellant hasfailed to pal. the sum due on account of provident fund to ,/

the employees of the appellant. The appellant was,therefore, asked to appear before the Regional providentFund Commissioner on 16.12.2024 and was required toshow cause as to why he should not be committed to civilpnson.

8. The appellant instead of submitted appellant instead of submitted of submitted submitted any reply orreply or orexplanation, challenged the aforesaid show cause notice ina writ petition. The learned Single Judge, by an orderdated 12.72.2024 has dismissed the writ petition. Hence,this appeal The appellant instead of submitted appellant instead of submitted of submitted submitted any reply orreply or or

9 . Learned counsel for the appellant submits that theappellant has realised his mistake and ought to haveresponded to the show cause notice which was issued tohim. It is submitted that in case the appellant is graltedtwo weeks time to respond to the show cause notice dated22.11.2024, the appellant shall appear before the RegionalProvident Fund Commissioner and shalt file the reply.

10. In view of the aforesaid submission and in the factsand circumstances of the case, the order dated 12. 12.2024

passed b1' the iearned Single Judge in [W.P'No'34950 ][of]2024 is morillied.

11. The appellant is granted the [liberty ][to ][file ][a ][reply ][to]the notice <lated, 22.11.2024 on [or ][before ][06.O1.2025. ][It ][is]further directed that the appellant [shall ][appear ][br:fore ][the]Regional Pr,rvident Fund Commissioner on [O6.01.2025]along u.ith the reply. The Regional [Provident ][Fund]Commissio'rer, after considering [the ]reply [submittt:d ][by ][the]appellant, .s granted the liberty to [proceed ][further ][in ][the]matter in accordance with law.

12. The appeal is accordingly disposed of.

Miscellaneous applications pending, if any, shal1

stand closed. Hor.r,ever, there shal1 be no order as [r-o ]costs.SD/- I. NAGA LAKSHMIDEPUrYlREGtfInan//TRUE COPY//\sEcfioN oFFtcER

To,

1of The Additional Labour and centrar provident Emorovment, EmproveeJ Fund commissioner, Fiouiolht Union of rndia, Ministrvruil iitdn#iil1Baiiishva Nidh Bhavah, New Delhi,2lfr^e !.ecgv-eg- [officer' ][Region.ar ][provident ][Fund ]commissioner and Authoritv.Htl,ll$**,fr District-50231 [(t][3,1y?4?:.I:f; ]"="H#'4""'":##;#,?I9fl :,i,:'"*[:%%112Th-e-A_uthoriserl Signatory, p. V^enkateswar Rao,M/s. VBC Ferro Alloys Ltd., Agolnpglry registered under the Companies Act, Having its negiit"r€,;iOfrili'ai6-2-9131914, 3rd Ftoor,progreslire _Towei;khiirataua"ol'- itvo-,,iiii"i,Telangana, Fa:tory at Rudrarair Village, palanchlri, frrfrnOaf, IMed;k Diiirict:S/o. l_a_te Parusuramaiah aged aboutb?v"rr., OC.. bir".tor.9nu 99 [to ][sRr. ][RAJA ][sHEKAR.nng_$a-LVajriIJu6""t" ]Iopucl2lfr^e !.ecgv-eg- [officer' ][Region.ar ][provident ][Fund ]commissioner and Authoritv.Htl,ll$**,fr District-50231 [(t][3,1y?4?:.I:f; ]"="H#'4""'":##;#,?I9fl :,i,:'"*[:%%112Th-e-A_uthoriserl Signatory, p. V^enkateswar Rao,M/s. VBC Ferro Alloys Ltd., Agolnpglry registered under the Companies Act, Having its negiit"r€,;iOfrili'ai6-2-9131914, 3rd Ftoor,progreslire _Towei;khiirataua"ol'- itvo-,,iiii"i,Telangana, Fa:tory at Rudrarair Village, palanchlri, frrfrnOaf, IMed;k Diiirict:S/o. l_a_te Parusuramaiah aged aboutb?v"rr., OC.. bir".tor.9nu 99 [to ][sRr. ][RAJA ][sHEKAR.nng_$a-LVajriIJu6""t" ]Iopucl[[to ][SRt. ]][[SRt. ]][GAD| ][PRAVEEN ]

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C)7Two One CD Copier;CC to SRI. G. VENKATESHWARLU, SC FOR EPFO tOpUCl 7w BIu HIGH COURT

DATED:31 11212024

JUDGMENTWA.No.1439 of 2024

F.1[gOF ][rq]v7edDo,:'l{I3\F&$)c/HIo

DISPOSING OF THE WRIT APPEALWITHOUT COSTS

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