DAMAGES FOR LATE OR NON-DEPOSIT OF CONTRIBUTIONS

• Recovery of damages and non-payment of provident fund contributions cannot be stalled by invoking section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985.

Ralliwolf Ltd. v. Regional Provident Fund Commissioner (For Maharashtra and Goa), (2001) 2 Mah LJ 169, 2001 LLR (Sum) 523 (Bom HC).

• Lump sum payment towards arrears of wages will be deemed to be as if paid on duty by to the employee for EPF contribution even when the employees were not actually working.

Changdeo Sugar Mills v. Union of India, (2001) 2 SCC 519, AIR 2001 SC 557, (2001) 1 LLN 849, 2001 LLR 188 (SC).

• Recovery of EPF contributions will be justified even when the employer has not deducted employees' share.

S.K. Nasiruddin Beedi Merchant Ltd. v. Central Provident Fund Commissioner, (2001) 1 LLJ 840, 2001 LLR 263 (SC).

• Levying of damages for late payment of Provident Fund contributions, without affording fair opportunity, is to be quashed.

Kasthuri Mills (P) Lt. v. Assistant Provident Fund Commissioner, Coimbatore, 2007 LLR 367 (Mad HC).

• Provisions of Provident Funds Act for levy of interest and damages for late deposit of contributions not amount to double jeopardy.

Khodays Systems Ltd., by its Managing Director v. Regional Provident Fund Commissioner (Enforcement), 2007 LLR 1120 (SN) (Karn HC).

• Damages for late payment or default of EPF contributions are to be restricted to 25% of original demand.

Assistant Provident Fund Commissioner v. Ashram Madhyamik, 2007 LLR 1249 (MP HC).

• Levying interest on delayed payment of provident fund contributions without show-cause notice would be improper.

Engser Ltd. v. Employees' Provident Fund Organization, 2008 LLR 889 (SN) (Cal HC).